Marketing is such a diverse term in 2023 with many different interpretations and applications, but in retail, the same notion is always in play – what is the best way for a business to acquire customers, and more importantly, how do they get those customers to purchase their goods or services? This is where the four Ps of marketing come into play.
What is Retail Marketing?
Retail marketing is a pointed strategy that supports the spread of awareness relating to your company’s products or services, with the overall goal of increasing sales and, therefore, profitability and viability of your organization in the long term. A good retail marketing strategy will help you sell your product to the targeted market by eliminating any customer doubts about the need to buy your product.
Benefits of Retail Marketing
Retail marketing is a crucial part of establishing a brand and attracting customers. It is important both for increasing the visibility of the business to attract new customers and also to highlight the company’s offerings to encourage repeat business from existing customers. From highlighting promotions and specials to getting the word out about customer loyalty programs, a solid retail marketing strategy is necessary to communicate the value of your business. It can also showcase what makes your business unique and highlight advantages over your competitors in the market. The goal is to boost brand recognition and increase sales by drawing in new customers and then keeping them hooked.
Understanding the 4 Ps of Marketing
The 4 Ps are a useful framework upon which each business can build its personalized marketing strategy based on the individual product or service. It is essentially a checklist to get a company thinking about what their product or service is and how best to sell this to their targeted customer.
Each company must first analyze the product they are marketing and determine what the key characteristics that make it useful and appealing to the customer are. Alongside this, it’s important to scout for similar products and competitors on the market and what can be done to make sure your companies become long-lasting and successful. This is the point where you can really start focussing on the 4 Ps.
1 The Product
The Product – Potential customers want to know, first and foremost, that you have the product that they are looking for. For the retailer aiming to market their products, it’s important to ensure the product is something that the customers will want to buy. This can be achieved by making the product more attractive to the customer through the use of advertising platforms such as posters and social media outlets, but most importantly, things like the packaging of the item, making it stand out with the utilization of strong branding.
1 The Price
The Price is the amount that customers will be willing to pay for the product. Effective marketing must link the real and perceived value whilst also taking into account supply costs, potential discounts for seasonal products or buying items in bulk. It is also important to do research on any competitor’s prices and how your product compares. Your marketing strategy will also need to take into consideration the price point in the market that you are targeting. For instance, at one end, this could mean products marketed as luxury or limited edition, meaning that the price point would be increased to make the customer feel they are getting an exclusive product. Or conversely, other products may need to be priced to be competitive at the lower end of the market or as an accessible option for new customers to try out with lower commitment.
1 The Place
The Place generally refers to where the product will be available in the marketplace. In today’s market, this could be done solely online to generate business in a stand-alone store or throughout a chain of businesses. For example, the sale of high quality socks wholesale is marketed directly to retailers via a website. If in a physical store, the requirement of how the product will be displayed must also be analyzed and considered, such as eye-catching merchandising displays to grab the attention of customers. Whether an online or physical space, the options for utilizing the place as a strategy are limitless, depending on your business.
1 The Promotion
The goal of promotion is to communicate to the consumers that this product is a must-have and that it is priced appropriately to ensure they follow through and purchase it. The promotion of a product relates to advertising, public relations, and, most important factor, the overall media strategy for introducing the product. This, in turn, flows from first knowing your target market and what form of advertising is likely to have the highest reach and effect. For example, if you are promoting a new toy on the market, you would perhaps be looking at advertising on prime-time television when a child in the correct age group is likely to be watching and can, in turn, request to their guardians that this is something they must have.
The bottom line is that the key to profitability in retail is marketing, and the 4 P’s provide a simple guide on where to start. The 4 P’s interact with each other and, taken together, form a well-oiled machine when it comes to marketing strategy and an excellent starting place for any business trying to break into the market or expand on their business name.
