Retailers thus provide value to manufacturers and customers by STORING stuff for them, though many retailers are beginning to push their suppliers to hold the inventory until they need it. difficult for retailers to distinguish themselves from their competitors through merchandise because competitors can sell the same popular brands retailers have developed private-label brands ( store brands ): products developed and marketed by a retailer and available only from that retailer . Price Helps define the value of merchandise/service & price range helps define image of the store When a manufacturer considers which of these stores is most appropriate for its new line, it must keep customers' perceived images of these retailers' price–quality relationship in mind. Manufacturers must consider at what price they will sell the product to retailers so that both can make a profit . Also, both are concerned about what the customer is willing to pay . Current sales and special pricing info can shape customer expectations of price by enabling them to quickly and easily get the most current prices. Price must always be aligned with the other elements of the retail mix: product, promotion, place, personnel, and presentation. Promotion Good promotion can mean the difference between flat sales and a growing consumer base. Advertising in traditional media such as newspapers, magazines, and television continues to be important to get customers into the stores. But new media vehicles are increasingly important. Once in the store, retailers use displays and signs , placed at the point of purchase or in strategic areas such as the end of aisles ( end caps ) to inform customers and stimulate purchases A coordinated effort between manufacturer and retailer creates a cohesive message . The manufacturer can defray the costs of advertising by paying all or a portion of the advertising's production and media costs cooperative (co-op) advertising. Store credit cards and gift cards are subtle forms of promotion that facilitate shopping . Pricing promotions —such as coupons, rebates, discounts— stimulate sales. Important in driving traffic to retail locations, increasing the average purchase size, and repeat purchases. Retail promotions inform customers about what is new and available and how much it costs . 106 |
B352 Marketing Many retailers are devoting more resources to overall retail environment to promote what the store has to offer. displays of merchandise, in the store/windows enhance customers' visual and sensory experiences, provide them with educational information, and increase the store's sales potential by enabling customers to “try before they buy” Consumers' perceptions of value & patronage are influenced by the store's “look and feel.” Personal selling and customer service reps are also part of the overall promotional package. Retailers must provide services that make it easier to buy and use products.
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- Fall '11
- Marketing, Marketing Plan & Marketing Strategies