From window displays and newspaper ads, to sidewalk sandwich boards and pop-up events, there are many ways to market a retail store.
Whether your goal is to draw in casual passersby or increase online sales, having a well-planned (and well-executed) marketing strategy is key to wooing more customers.
But before you get fancy with flashy ads or influencer partnerships, it’s best to start with the fundamentals. That’s what makes this guide essential reading for any savvy retail business owner.
Master the four pillars of retail marketing – often referred to as “the 4 Ps” – and you’re well on your way to having an iron-clad marketing plan.
What Is Retail Marketing?
Retail marketing refers to the various activities, whether in-store, locally, or online, that are used to attract customers to a retail business.
While the exact tactics may vary, retail marketing at its core is about establishing a brand identity, promoting your products, and engaging with potential customers (often across multiple channels).
Marketing as a whole has changed over the years, evolving from traditional media (print ads, flyers, in-person networking, etc.) to more technologically advanced methods (social media, online ads, email marketing, etc.), but the fundamentals have remained mostly the same.
That said, it’s important to know that retail marketing differs from other types of marketing.
How Retail Marketing Differs From Other Types Of Marketing
Like all types of marketing, retail marketing is all about connecting the product or service with the consumer. But retail marketing is different from other types of marketing – like Business to Business (B2B) marketing or service marketing – in a few distinct ways:
Customer Needs: Retail marketing focuses on individual consumers (B2C), whereas B2B marketing targets other businesses. Retail customers are typically driven by personal needs, while B2B decisions are often based on business requirements, return on investment (ROI), and long-term objectives.
Sales Cycle: Retail marketing usually involves a shorter sales cycle, with consumers making relatively faster purchasing decisions than B2B buyers.
Tangible Products: Retail marketing primarily deals with tangible products that consumers can see and touch, whereas other types of marketing (B2B or Service) often deal with intangible offerings like consulting or software.
Physical Presence: Retail marketing often (but not always) involves a physical presence, usually via a brick-and-mortar store. Digital marketing, while it can support retail efforts, primarily operates online using tools like social media and email to reach customers.
Retail marketing is different from other types of marketing in its focus on the close interaction between the business and the consumer at the point of sale.
Many retail business owners understand that the success of their marketing efforts often comes down to face-to-face interactions and personalized experiences.
What Are The 4 Principles Of Retail Marketing?
When it comes to something as broad as “marketing,” simplicity is key. The essential elements of retain marketing revolve around four primary pillars:
Product.
Price.
Place.
Promotion.
We’ll refer to these as “the 4 Ps” throughout this article. They have even been known to extend beyond to include “Presentation” and “Personnel.” But for our purposes, we’ll stick to the primary four.
1. Product: What You Sell
The first pillar, product, pertains to the actual item or service you offer customers. This might involve a single category of products (e.g., novelty candles) or, most often, a variety of products (e.g., candles, home decor, furniture, etc.) offered by your brand.
Before you market your product(s), you need to understand it. This means not only its physical attributes and design but also the value it provides to customers. This also includes its material quality, branding, and even post-sale support resources.
Your product (again, it can pertain to a category of products) should speak to the needs, challenges, or interests of your prospective customers. You must fundamentally understand what it is that you sell and how that provides a benefit to customers.
For example:
If you sell office chairs, your product could address the challenge of reducing back pain or increasing comfort for people who spend long hours at a desk.
If you sell natural skincare products, your product could appeal to customers interested in natural ingredients and being environmentally conscious.
If you sell durable running shoes, your product could cater to athletes looking for footwear that lasts long, provides support, and prevents injuries.
If you sell gourmet coffee, your product might connect with coffee enthusiasts looking for unique flavors, high-quality beans, and a connection to Fair Trade growers.
The key is to gain a deeper understanding of your product’s connection to your customers. Ask yourself: What do they need? What are their challenges? How does your product address a need or a problem?
Try This To Better Understand Your Product
Every retail business owner can benefit from some practice in examining their products and how they might appeal to the needs of their customers.
If you aren’t crystal clear on the “why” behind your product(s), start with this activity:
Workshop: Gather your team (sales, marketing, and service) to identify the key features of your most important products. Off the cuff, what are the primary features that stand out?
Map: Then, outline the customer journey, from the time someone first discovers your product to the after-sale experience. Discuss what points of interaction a customer is likely to have during this process (e.g., entering your store, being welcomed by a sales rep, trying on clothes, weighing pricing options, etc.)
Empathize: At each touchpoint, put yourself in the customer’s shoes. How might the customer feel? What else might they need?
Apply: Based on your customer journey map, consider any improvements to made to your product or process. Could merchandise be laid out differently? How might you enhance the customer experience? Could post-sale support be improved?
Refining your product is a continuous process, influenced often by customer feedback and actual sales numbers.
Train your team on how they should communicate about your product, associate products with related offerings (cross-selling), and answer customers’ questions to direct them to the most appropriate product (read: solution).
2. Price: What People Pay For The Product
The second pillar, price, refers to the amount of money customers are willing to pay for your product.
This is more than just the number you put on the price tag. It is a representation of your product’s perceived value and the benefit it provides to your customers.
Some things to consider are your own brand’s positioning in your market, your competitors’ pricing, and the quality of materials used to create the product.
For example, if your product is of superior quality, has unique features, and conveys a sense of luxury, premium pricing may be the way to go.
On the other hand, if you’re in a saturated market and can’t outshine your competitors based on quality, you could undercut them on price.
The objective is to find that sweet spot – where your pricing generates a profit but also feels appropriate based on your customer’s perception of the product’s value.
Developing Your Pricing Strategy
Not sure how to price your products? Pricing is both an art and a science.