5 The Retail Marketing Mix5 The Retail Marketing Mix and and

The Retail ProductThe Retail Product

5 The Retail Marketing Mix5 The Retail Marketing Mix and and

The Retail ProductThe Retail Product

Objectives

• What constitutes the marketing mix• The importance of targeting and

marketing mix• A model of the relationships between

components of the mix• The pressures to increase the four Ps

of the mix for services• What constitutes a product• The aspects of store layout and

atmospherics which affect demand

THE MARKETING MIX

• Product• Price • Place• Promotion

“the set of controllable tactical marketing tools that the firm blends to produce the response it wants in the target market” (Kotler 1999)

Fig. The Marketing Mix

• That an offer exists

• Where it is best to purchase the offer

• That it offers value and is affordable

• That the offer is likely to satisfy the need for which it is required

Whatever approach is taken to the classification of the controllable aspects of marketing, there is a need to realize that purchases do not take place unless customers know:

THE MARKETING MIX FOR SERVICES – ARE THE FOUR Ps SUFFICIENT ?

Fig.  The Marketing Mix for Services

• The marketing tools that a retail organisation uses to pursue its marketing objectives are termed as the retail marketing mix

The Retail Marketing Mix

TARGET MARKETS

Benefits of targeting:

• The characteristics and needs of the group targeted

• The main competitors

• The changing/ developing needs of the targeted consumers

Fig. Components of the Derived Value of Purchase for the

Customer

BENEFITS •Store/product value• Service value• Retail personnel value• Retail experience value• Image/brand value• Loyalty scheme value

COSTS•Monetary cost•Time cost•Travel/energy cost•Retail experience cost•Psychological risk cost

Total customer value

Total customer cost

CUSTOMERDERIVED VALUE

THE RETAIL PRODUCT

The formulation of a successful retailing operation involves a combination of:

• Service• Quality• Merchandise• Brand name• Features and benefits• Atmospherics

A BREAKDOWN OF RETAILING AS A PRODUCT

Service

Five dimensions to measure service quality:

• Tangibles• Reliability• Responsiveness• Empathy• Assurance

Quality

Quality is also used strategically:

• As a way of differentiating merchandise and

• Of positioning the offer or retail outlet in an exclusive way

Merchandise

Decisions over merchandise have to take into account that a consumer may want to choose to purchase from a range of different types of goods:

• National brands• Own-brand• Licensed merchandise• Franchised products via concessions

in a store

Brand Name

Family branding• When FBP/ PBP & the quotient

shows an increase over time, it means product brand needs modification, revitalization or a detailed review

Product levels

• The product can be thought of as being an amalgam of four different levels:

• The core product• The facilitating product• The supporting product• The augmented product

STORE LAYOUTProactive planning

Retailer’s choice should be determined by:– The merchandise– The size and type of space available– Cost involved

Layouts can contain one or a combination of the following:

• Grid pattern layout• Free-flow layout• Boutique layout

Fig. Grid pattern layout

Fig. Free-Flow Layout

Fig. Boutique Style Layout

Atmospherics

The act of a retail purchase entails a number of social and psychological states related to the place and time of that purchase occasion. These are based upon:

• The environmental and physical aspects of place

• The social surroundings• The temporal aspects of the occasion• The objective of the shopping trip• The objective of the shopping trip• The predisposition of the individual

Main Sensory Mediums

• Visual• Aural• Olfactory• Tactile

Atmospherics: The changes made to the design of buying environments that produce special emotional effects that subsequently enhance the likelihood that a purchase will take place

Fig. Stages related to Sensory Marketing

Store Sensory Emotions Customer Behaviour

Characteristics Outcome

Spatial aspects Pleasure Purchase behaviour changesTemperature Calmness Time spent in the store is

alteredType of music Arousal Activity patterns are

affectedLighting either Non-arousalnatural or designed AnxietyScent InterestColoursetc.

Aspects of Atmospherics and Store Layout

These may affect:

• The speed at which consumers move from one point to another in the store

• The degree of well-being felt by the staff working in the store environment

• The total sales revenue, sales patterns and type of product sold

• The image of the consumer has of the store and its merchandise

CONCLUSION