Unit 11. RetailerMarketing Decisions
Unit 11. Retailer Marketing Decisions
RetailerMarketingDecisionsRetailers are searching for new marketingstrategies to attract and hold customers. In thepast, retailers attracted customers with uniqueproducts,more or better servicesthan theircompetitors offered, or credit cards. Today,national brand manufacturers,in their drive forvolume,haveplaced theirbranded goodseverywhere.Thus,stores offer more similarassortments-national brands are found not onlyindepartment stores,but also inmass-merchandise and off-price discount stores.As aresult,stores are looking more and more alike;they have become"commoditized".In any city,ashopper can find many stores,but fewassortments
Retailer Marketing Decisions Retailers are searching for new marketing strategies to attract and hold customers. In the past, retailers attracted customers with unique products, more or better services than their competitors offered, or credit cards. Today, national brand manufacturers, in their drive for volume, have placed their branded goods everywhere. Thus, stores offer more similar assortments—national brands are found not only in department stores, but also in massmerchandise and off-price discount stores. As a result, stores are looking more and more alike; they have become “commoditized”. In any city, a shopper can find many stores, but few assortments
Service differentiation among retailers hasalsoeroded.Many department stores have trimmedtheir services,whereas discounters haveincreased theirs,Customers have becomesmarter and more price sensitive.They see noreason to pay morefor identical bands,especially when service differences are shrinkingAnd because bank credit cards are now acceptedat most stores,consumers no longer need creditfroma particular store.For all these reasons,many retailerstoday are rethinking theirmarketingstrategies
◼ Service differentiation among retailers has also eroded. Many department stores have trimmed their services, whereas discounters have increased theirs, Customers have become smarter and more price sensitive. They see no reason to pay more for identical bands, especially when service differences are shrinking. And because bank credit cards are now accepted at most stores, consumers no longer need credit from a particular store. For all these reasons, many retailers today are rethinking their marketing strategies
Target MarketandPositioningDecisionRetailerMarketingDecisions(SeeTextonP192)RetailerRetailerMarketing MixStrategyProductandserviceassortmentTarget MarketPricesRetail StorePromotionPositioningPlace(location)Asshown in the figure above,retailers face major marketingdecisionsabout their target marketsand positioning,productassortmentand services,price,promotion,andplace
4 Retailer Marketing Decisions (See Text on P192) Retailer Strategy Target Market Retail Store Positioning Retailer Marketing Mix Product and service assortment Prices Promotion Place (location) Target Market and Positioning Decision As shown in the figure above, retailers face major marketing decisions about their target markets and positioning, product assortment and services, price, promotion, and place
TargetMarketand PositioningDecisionRetailers first must define their target marketsand then decide how they will position themselvesin these markets.Should the store focus onupscale,mid-scale,or downscale shoppers?Dotarget shoppers want variety,depth of assortmentconvenience,or low prices? Until they define andprofile their markets,retailers cannot makeconsistent decisions about product assortment,services,pricing,advertising,store decor,orany ofthe other decisions that must support theirpositions
Target Market and Positioning Decision ◼ Retailers first must define their target markets and then decide how they will position themselves in these markets. Should the store focus on upscale, mid-scale, or downscale shoppers? Do target shoppers want variety, depth of assortment, convenience, or low prices? Until they define and profile their markets, retailers cannot make consistent decisions about product assortment, services, pricing, advertising, store decor, or any of the other decisions that must support their positions