What is retail marketing
Retail marketing deals with the marketing and offering of all products, sub-products and processes in retail. Due to the different parts of the trade, which consists not only of the sale of the end products, but also of the procurement of the product, the actual competition and the internal processes, trade marketing is a very diverse area in marketing. Due to this diversity, it is necessary to take a closer look at the individual areas and their special features.
Retail marketing is institution-specific marketing for retail companies, mostly understood as procurement and sales marketing. All retail marketing instruments are to be used on the procurement and sales markets in accordance with the specific circumstances. The main difficulty is the coordination of the directly mutually acting consequences.
Who is retail marketing relevant for?
Commercial marketing is an interesting area for everyone working with trading companies. This primarily affects people who are involved in the procurement and manufacture of products. This affects the employees of the company, all of their suppliers and also the competitors. However, since the finished products and services go to very different types of customers, retail marketing is also relevant for the end consumer. Due to the many different areas of application of retail marketing, parts of it can become interesting for almost everyone.
What makes retail marketing special? What are the challenges?
- Constant research into the relevant markets: sales market, procurement market, competitive market, internal market
- Complex differentiation possible: by sectors (e.g. retail marketing or mail order marketing) or by sectors, company sizes, locations, etc.
- Linking and interdependency of the individual areas
- General goal in retail marketing: acquisition of new customers
- Customers are bound in the long term by high product and service quality
- Securing the market share in the competition
The relevant markets
Sales market The sales market offers the platform on which products such as consumer goods and services are offered and where customers are to be bought. In this market, particular emphasis is placed on knowing the needs of customers and presenting the product or service as precisely as possible. The operational marketing department in particular is concerned with how the company's performance can be best placed on the market. One can differentiate the sales marketing on the one hand on the basis of the local, national or international market, on the other hand also on the basis of the offer and the participants. Even if most people immediately think of marketing when they first think of marketing, this alone is not enough. Without the other parts of retail marketing, a product cannot be produced correctly or offered on the sales market.
The procurement market clarifies where the raw materials for your own production come from or which products are required to offer a service. This market is therefore upstream of production and the sales market and every company that offers products or services on the sales market is also represented on the procurement market. Not only the individual parts and resources are procured for the production, but also the financial resources, labor and preliminary products that are required for the completion. The increasingly global network means that the procurement market can also be expanded and changed internationally. For companies from which the resources and parts are obtained, their sales market is the procurement market of the producer of the end product. Procurement marketing is therefore about influencing purchasing activities in the most targeted and efficient way possible.
The competitive market, as the name suggests, is a market in which there is great competition and therefore a great comparison. This competition can be divided into the large number of providers and a large number of buyers. If many providers or sellers offer the same good, a single company can have relatively little influence on the price. The opposite would be a monopoly market in which there is little competition or a scarce good is offered. Because of the large range, it is important in competitive marketing to stand out from the competition. This is usually done by highlighting product properties or particularly low sales prices. Apart from competition for the buyer, competitors can also be used as a source of information. They serve to exchange experiences and offer the opportunity to compare processes and procedures in the company.
The fourth market that is served in retail marketing is the internal market. The coordination within the company takes place on the internal market. On the one hand, this is about the correct presentation and disclosure of the goods and goods in the shops. Above all, questions about shop design and product presentation are clarified. On the other hand, internal processes are also important. Coordination of staff training and further education as well as the control of processes such as incoming goods control also fall under the field of the internal market.
- Print marketing
- Online marketing
- Public space advertising
- Social media
- Connection of suppliers
- Contact with service providers
- Horizontal advertising communities
- Uniform advertising focus
- Exchange between different locations
- Agency and shop equipment
- Internal mailings
- Internal communication
Retail Marketing Goals
In retail marketing as well as in marketing in general, the goal is ultimately to generate customers and to convince them in the long term of their own product, services and the entire company. As a trading company, you want to stay with the customer above all for the high quality in the area of service and product. After looking at the different markets, however, it becomes clear that this is not only possible through pure sales marketing. The procurement of the individual parts and the securing of shares on the competitive market as well as the internal realization play a decisive role in the conviction of the end customer. Thus, the success of retail marketing lies in the systematic and consistent implementation in all four markets.
Multi channel concepts
Due to the ever-advancing cross-mediality, more and more different platforms are also used in retail marketing. Products and services can be placed on various offline and online channels using a campaign.
Augmentes Reality offers are also becoming increasingly popular in sales marketing. Products can be tried on, combined and tested virtually, especially in online shops. Thus, the technical test can prevent bad purchases in advance.
Social networks are becoming increasingly popular not only in private life. Retail marketing is also increasingly communicating online and via platforms. With this form of marketing, interested parties can be picked up directly and in their everyday life. The simple filtering and target group determination also make the networks a popular marketing tool.
Due to the ever increasing technical development, technical support can be used in many areas of the marketing process. Be it for the administration of data or the direct transfer to the attached service providers, the use of IT systems saves time and money. These resources can be reinvested in other process steps.
How can software support?
In retail marketing, especially in the sales market, it is important to reach customers and to use a uniform marketing strategy. This uniformity and the efficient use of marketing opportunities can be supported and simplified by a software solution. It is important to be able to access the various digital resources and, for example, to forward pictures, videos, graphics, but also data or address lists to everyone involved. If the entire database of media is made available to employees (via digital asset management), they can first be inspired by the media selection and develop new ideas. If this is not the case, only targeted media can be requested from the headquarters, which leads to less creative or varied use of the media. A marketing portal helps to ultimately include these media in finished marketing materials.
All print media and functions of a classic web-to-print platform can be combined into one system in a marketing portal. In addition, cross-media marketing materials of all kinds can be personalized and edited and ordered, printed or reserved directly from the service provider. It is not only possible to create printed materials, but also to place digital advertisements and to create and even advertise on social media. The large mix of different marketing materials makes it possible to accompany a complete campaign in retail marketing with the right advertising measures. By integrating the company's own digital assets management system, stored data and media can also be used directly in the production of marketing materials and further simplify the process. In addition to these advantages, a general planning of marketing focal points can also be published with a marketing portal, which all relevant sales partners can access and which they can take into account for their own planning.