Retail marketing

Once the strategic plan is in place, retail managers turn to the more managerial aspects of planning. A retail mix is devised for the purpose of coordinating day-to-day tactical decisions. The retail marketing mix typically consists of six broad decision layers including product decisions, place decisions, promotion, price, personnel and presentation. The retail mix is loosely based on the marketing mix, but has been expanded and modified in line with the unique needs of the retail context. A number of scholars have argued for an expanded marketing, mix with the inclusion of two new Ps, namely, Personnel and Presentation since these contribute to the customer's unique retail experience and are the principal basis for retail differentiation. Yet other scholars argue that the Retail Format should be included. The modified retail marketing mix that is most commonly cited in textbooks is often called the 6 Ps of retailing.

Product

See Product management
The primary product-related decisions facing the retailer are the product assortment ; the type of customer service and the availability of support services. These decisions depend on careful analysis of the market, demand, competition as well as the retailer's skills and expertise.

Product assortment

The term product assortment refers to the combination of both product breadth and depth. The main characteristics of a company's product assortment are:
; the length or number of products lines
; the breadth
; depth or number of product varieties within a product line
; consistency
For a retailer, finding the right balance between breadth and depth can be a key to success. An average supermarket might carry 30,000–60,000 different product lines, but might carry up to 100 different types of toothpaste. Speciality retailers typically carry fewer product lines, perhaps as few as 20 lines, but will normally stock greater depth. Costco, for example, carries 5,000 different lines while Aldi carries just 1,400 lines per store.
Large assortments offer consumers many benefits, notably increased choice and the possibility that the consumer will be able to locate the ideal product. However, for the retailer, larger assortments incur costs in terms of record-keeping, managing inventory, pricing and risks associated with wastage due to spoiled, shopworn or unsold stock. Carrying more stock also exposes the retailer to higher risks in terms of slow-moving stock and lower sales per square foot of store space. On the other hand, reducing the number of product lines can generate cost savings through increased stock turnover by eliminating slow-moving lines, fewer stockouts, increased bargaining power with suppliers, reduced costs associated with wastage and carrying inventory, and higher sales per square foot which means more efficient space utilisation.
When determining the number of product lines to carry, the retailer must consider the store type, store's physical storage capacity, the perishability of items, expected turnover rates for each line and the customer's needs and expectations.

Customer service and supporting services

is the "sum of acts and elements that allow consumers to receive what they need or desire from retail establishment." Retailers must decide whether to provide a full service outlet or minimal service outlet, such as no-service in the case of vending machines; self-service with only basic sales assistance or a full service operation as in many boutiques and speciality stores. In addition, the retailer needs to make decisions about sales support such as customer delivery and after sales customer care.
Retailing services may also include the provision of credit, delivery services, advisory services, exchange/ return services, product demonstration, special orders, customer loyalty programs, limited-scale trial, advisory services and a range of other supporting services. Retail stores often seek to differentiate along customer service lines. For example, some department stores offer the services of a stylist; a fashion advisor, to assist customers selecting a fashionable wardrobe for the forthcoming season, while smaller boutiques may allow regular customers to take goods home on approval, enabling the customer to try out goods before making the final purchase. The variety of supporting services offered is known as the service type. At one end of the spectrum, self-service operators offer few basic support services. At the other end of the spectrum, full-service operators offer a broad range of highly personalised customer services to augment the retail experience.
When making decisions about customer service, the retailer must balance the customer's desire for full-service against the customer's willingness to pay for the cost of delivering supporting services. Self-service is a very cost efficient way of delivering services since the retailer harnesses the customers labour power to carry out many of the retail tasks. However, many customers appreciate full service and are willing to pay a premium for the benefits of full-service.
A sales assistant's role typically includes greeting customers, providing product and service-related information, providing advice about products available from current stock, answering customer questions, finalising customer transactions and if necessary, providing follow-up service necessary to ensure customer satisfaction. For retail store owners, it is extremely important to train personnel with the requisite skills necessary to deliver excellent customer service. Such skills may include product knowledge, inventory management, handling cash and credit transactions, handling product exchange and returns, dealing with difficult customers and of course, a detailed knowledge of store policies. The provision of excellent customer service creates more opportunities to build enduring customer relationships with the potential to turn customers into sources of referral or retail advocates. In the long term, excellent customer service provides businesses with an ongoing reputation and may lead to a competitive advantage. Customer service is essential for several reasons. Firstly, customer service contributes to the customer's overall retail experience. Secondly, evidence suggests that a retail organization that trains its employees in appropriate customer service benefits more than those who do not. Customer service training entails instructing personnel in the methods of servicing the customer that will benefit corporations and businesses. It is important to establish a bond amongst customers-employees known as Customer relationship management.

Types of customer service

There are several ways the retailer can deliver services to consumers:

Counter service, where goods are out of reach of buyers and must be obtained from the seller. This type of retail is common for small expensive items and controlled items like medicine and liquor.
Curbside pickup, where orders are placed online, via a mobile app, or called in, then the customer picks up the product on the property of but outside of the physical store. The coronavirus pandemic is making curbside pickup much more valuable to customers
Ship to Store, where products are ordered online and can be picked up at the retailer's main store
Delivery, where goods are shipped directly to consumer's homes or workplaces.
Mail order from a printed catalogue was invented in 1744 and was common in the late 19th and early 20th centuries. Ordering by telephone was common in the 20th century, either from a catalog, newspaper, television advertisement or a local restaurant menu, for immediate service, remaining in common use for food orders. Internet shopping – a form of delivery – has eclipsed phone-ordering, and, in several sectors – such as books and music – all other forms of buying. There is increasing competitor pressure to deliver consumer goods – especially those offered online – in a more timely fashion. Large online retailers such as Amazon.com are continually innovating and as of 2015 offer one-hour delivery in certain areas. They are also working with drone technology to provide consumers with more efficient delivery options. Direct marketing, including telemarketing and television shopping channels, are also used to generate telephone orders. started gaining significant market share in developed countries in the 2000s.
Door-to-door sales, where the salesperson sometimes travels with the goods for sale.
Self-service, where goods may be handled and examined prior to purchase.
Digital delivery or Download, where intangible goods, such as music, film, and electronic books and subscriptions to magazines, are delivered directly to the consumer in the form of information transmitted either over wires or air-waves and is reconstituted by a device which the consumer controls. The digital sale of models for 3D printing also fits here, as do the media leasing types of services, such as streaming.
Place

Place decisions are primarily concerned with consumer access and may involve location, space utilisation and operating hours.

Location

Also see Site selection
The perspective of marketing in large-scale enterprises is based on the theory of supply chain management; it emphasizes that the suppliers, large-scale retail enterprises, and customers form a chain of cooperative marketing that establishes mutually beneficial long-term relationships. Relationship marketing of huge retail enterprises from the perspective of supply chain mainly includes two relationship markets, supplier relationships, and customer relationships, as the two greatest influences on retail profits are suppliers and customers. First, as the supplier of commodities to retail enterprises, it directly determines the procurement cost of commodities to retail enterprises, which is mainly reflected in the purchase price of commodities themselves, the cost incurred in the procurement process, and the loss cost caused by unstable supply of commodities. In addition, the good relationship with supplier interaction, large retail enterprises can also promote the suppliers timely grasp the market information, improved or innovative products according to customer demand, which contributed to the retail enterprises improve the market competitiveness of the goods are sold, so the retail enterprise's relationship with the supplier directly affects the retail enterprises in the commercial product competitive. Second, due to the transfer of advantages between buyers and sellers, the retail industry has turned to the buyer's market, and consumers have become the key resources for major retailers to compete with each other. Therefore, it is very important to establish a good relationship with clients and improve customer loyalty. The relationship marketing of customer relationship market regards the transaction with clients as a long term activity. Retail enterprises should pursue long-term mutual benefit maximization rather than a single transaction sales profit maximization. This requires large retail enterprises to establish a customer-oriented trading relationship with the customer relationship market. Retail stores are typically located where market opportunities are optimal – high traffic areas, central business districts. Selecting the right site can be a major success factor. When evaluating potential sites, retailers often carry out a trade area analysis; a detailed analysis designed to approximate the potential patronage area. Techniques used in trade area analysis include: Radial studies; Gravity models and Drive time analyses.
In addition, retailers may consider a range of both qualitative and quantitative factors to evaluate to potential sites under consideration: