About marketing how's the retail work

1. Introduction to Retail Marketing
· Concept, nature, scope and importance of retail marketing
· Marketing Evolution.
· Marketing mix (4Ps and upgrade to 4Es)

2. Some facts about Retail Marketing
Contribution of retail to GDP is 10%. The contribution of retail to employment - 8% of total
population of India is associated with the retail sector.
https://ugcmoocs.inflibnet.ac.in/assets/uploads/1/220/6766/et/3_Script%20-%20CONTRIBU
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Third largest sector in Indian Economy-More than 12% GDP contribution
https://retail.economictimes.indiatimes.com/blog/indian-retail-invest-now-to-lead-the-world-20
47/98090645#:~:text=Retail%20is%20the%20third%20largest,%2C%20logistics%2C%20co
nstruction%20and%20packaging.
The Indian retail market is estimated to be worth $1.3 trillion as of 2022.
https://en.wikipedia.org/wiki/Retailing_in_India

3. Scope of Retail Marketing
Purchase Department
Finance Department
Marketing and Sales
Stores
Human Resource
Technology in Retailing
Supply chain management

4. Nature of Retail Marketing
Part of Marketing
Customer centric
Multi-dimensional
Varying Geographical Locations
Transformational
Complex Management Process
Assortment of Products and Services
Studying demand patterns
Creation of utilities
Private branding and labelling

5. Pre-requisite Knowledge
Retail is the sale of goods and services from individuals or businesses to the
end-user called the customer
Retail comes from the Old French word tailler, which means “to cut off, clip, pare,
divide”
A retailer is a merchant or occasionally an agent or a business enterprise, whose
main business is selling directly to ultimate consumers for non-business use. He
performs many marketing activities such as buying, selling, grading, risk-trading,
and developing information about customer’s wants.

6. General Services by Retailers
Anticipates the wants of the customer-supply the right kind of goods
Service of Bulk breaking
Large assortment of Merchandise
Time and Place utility by storing the product
Assumes risks by guaranteeing the goods
Free delivery,credit, free alteration, liberal exchange facilities, instructions in the use of goods
Revolving credit plans
Long term installment programmes

7. Convenient Shopping locations
Market Information
Free parking
Helps producers in distributing the products by using advertisement display and
personal selling

8. Challenges to Retailing
Regulatory barriers(Restrictions by government, unfavourable taxation)
High competitiveness
Constant advances in product design-product obsolescence
Lack of properly trained workforce
Lack of infrastructure

9. Types of Retail based on Product type
A marketplace is a location where goods and services are exchanged
➢ Food products
➢Hard goods or durable goods (“hardline retailers”) - appliances, electronics,
furniture, sporting goods, etc. Goods that do not quickly wear out and provide utility
over time.
➢Soft goods or consumables - clothing, apparel, and other fabrics. Goods that are
consumed after one use or have a limited period (typically under three years) in which
you may use them.
➢Services – banking, insurance, transportation, communication, IT & ITES(Enabled
Services), etc,. those are also marketed like products across the retail counters

11. Departmental Store
Department stores are very large stores offering a huge assortment of “soft” and
“hard” goods; often bear a resemblance to a collection of specialty stores. A retailer
of such store carries variety of categories and has broad assortment at average
price.
a) On the basis of ownership these are:
(i) The independent stores; (ii) The ownership group; and (iii) Chain department
Stores.
b) On the basis of income groups: These stores cater to the middle and high income
groups
c) Leased Departmental Stores

12. Super Markets
Supermarkets: is a self-service store consisting mainly of grocery and limited
products on non food items.
Discount Houses-Discount stores tend to offer a wide array of products and
services, but they compete mainly on price offers extensive assortment of
merchandise at affordable and cut-rate prices
Chain Stores or Multiple Shops-A chain store system consists of four or more
stores which carry the same kind of merchandise are centrally owned and
managed and usually are supplied from one or more central warehouses

13. Other Retail Stores
1. Warehouse stores - warehouses that offer low-cost, often highquantity goods
piled on pallets or steel shelves; warehouse clubs charge a membership fee;
2. Variety stores - these offer extremely low-cost goods, with limited selection;
3. Demographic Stores - retailers that aim at one particular segment (e.g.,
high-end retailers focusing on wealthy individuals).
4. Mom-And-Pop Stores - is a retail outlet that is owned and operated by
individuals. The range of products are very selective and few in numbers. These
stores are seen in local community often are family-run businesses. The square
feet area of the store depends on the store holder

14. 5. Specialty stores - A typical speciality store gives attention to a particular
category and provides high level of service to the customers.
6. General store - a rural store that supplies the main needs for the local
community;
7. Convenience stores - is essentially found in residential areas. They provide
limited amount of merchandise at more than average prices with a speedy
checkout.
8. Hypermarkets - provides variety and huge volumes of exclusive merchandise at
low margins.

15. 9. Malls - has a range of retail shops at a single outlet. They endow with products,
food and entertainment under a roof.
10. Category killers or Category Specialist - By supplying wide assortment in a
single category for lower prices a retailer can “kill” that category for other retailers.

16. Non-Store Retailing
Direct Selling
Tele Marketing
Online Retailing
Automatic Vending
Direct Marketing-Mail, Catalogue,Televised Shopping
Franchising-A franchising operation is a legal contractual relationship between a
franchiser (the company offering the franchise) and the franchisee (the individual
who will own the business).

17. Retail Strategy(Coordination, Resource Allocation,
Position)
Retail strategy is a marketing plan that details how a business intends to offer its
products or services to consumers and influence their purchases.
Significance-To build a competitive advantage that can be sustained, retailers
need to pay special attention to aspects like price, location, merchandise, service
and communications. Operations, purchasing/ logistics, market research, financing
and technology, which determine the strategic positioning of the firm are also
equally important.

18. Elements of Marketing Mix

19. Strategy for the competitive advantage of physical facilities
Location
Size
Design
Layout

20. Strategy regarding technology
1. Technology selection or specialisation.
2. Level of competence.
3. Sources of capability: Internal vs External
4. R&D investment level.
5. Competitive timing: Initiate vs Respond
6. Retail policies

21. Competitive Retail Analysis
Competitor A vs B

22. References
https://www.economicsdiscussion.net/marketing-management/retailing/retail-mark
eting/31736