As a retailer, it’s important to understand what is retail marketing and how the four Ps of retail marketing (product, price, place, and promotion) can be used to reach your target market. I remember when I first started my business, I had no idea what any of this meant. Thankfully, I was able to learn about retail marketing and use it to grow my business.

What is Retail Marketing? 

What is retail marketing? Retail marketing is a process that helps retail businesses to promote and sell their products and services. It involves creating awareness among the target audience, building goodwill, and generating sales.

There are various ways in which a retailer can market its goods and services. Some of them are free while others may require some investment.

It’s important to note that retail marketing is used extensively by both e-commerce and traditional retailers. In fact, almost every retailer uses some form of marketing. This demonstrates the importance of marketing in today’s business world.

It seems that online marketing channels are becoming increasingly popular. A majority of consumers use search engines to research retail products.

88% of consumers who perform local mobile search end up calling the business they searched for or visiting it in person.

In order to get the majority of people who find you to visit your store or website, there are a few things you need to have in place.

The Four Ps of Retail Marketing

Most retailers will use a mix of different marketing strategies. These can include things like online advertising, public relations, direct sales, and social media marketing.

Today’s retailers use the Four Ps of marketing to persuade consumers to do business with them.

The Four Ps are

Product, price, place and promotion.

Product

Product refers to the goods or services offered by the retailer.

There are 2 main product categories. Durable or hard goods that are physical objects, such as appliances and sporting goods.

And things including clothes, household goods, makeup, and stationery.

Some retail stores sell a wide range of both soft and hard items, like a department store or supermarket, while others only specialize in one type of product, such as clothing or electronics.

Price

Pricing is a key element of any retail strategy. The retail price must cover the cost of goods as well as additional overhead costs. There are four primary pricing strategies used by retailers:

There are five main ways for retail stores to price their products:

High-low pricing: The retailer offers regular sales and discounts to attract customers. Highlow pricing is a retail strategy in which a company starts with a high price and later reduces the price when the item’s popularity fades. This strategy is used by most department stores.

Penetration pricing: The retailer charges a low price for a new product to attract customers and gain market share.

Skimming pricing: The retailer charges a high price for a new product, counting on early adopters who are willing to pay more.

Bundle pricing: The retailer offers two or more products for a discounted price. The retailer offers a group of products for one price. This strategy is often used to increase the sales of slow-moving items or to increase the average ticket size.

Promotional pricing: The retailer offers special prices for a limited time to attract customers. This strategy is used by all types of retailers. Everyday low pricing (EDLP) is a retailing strategy in which a company offers products at relatively low prices on a daily basis, as opposed to offering promotional discounts on selected items. 

The retailer uses a competitive pricing strategy, basing their prices on what their competition is charging. This is often used after the retailer has exhausted the higher pricing strategy of starting with a high price and later reducing it when the item’s popularity fades.

Place

Retail Location, location, location.

It doesn’t matter if you have the best product, but it doesn’t matter if your customers can’t afford it.

Distribution channels help you get your product to your customers. You must consider where your target customers shop when deciding which channel to use.

You might sell your homemade jam at the local farmer’s market while Smucker’s sells its jelly through a large wholesaler.

This is a simple concept in theory. It’s not always easy to get your product before retailers.

Promotion

The final retail marketing mix element is promotion. Promotion includes all of the marketing activities undertaken by the retailer to communicate with potential customers. This includes personal selling, advertising, sales promotion, direct marketing, and publicity.

A promotional marketing  mix is a calculation of how much attention to pay to each tactic and how much money to budget for each.

There are many reasons why a company might choose to promote one of its products. A promotion can aim to increase retail sales, get people to try a new product, create brand equity, or change people’s perceptions of a product or company. It can also be used as a way to retaliate against a competitor, or to build a positive image for a company.

8 Retail Marketing Trends For 2022

Let’s take a look at some of the latest and most important trends in 2022 for retailers.

Trend #1 – Free Overnight Shipping From Online Retailers

The instant gratification that today’s customers demand has forced businesses to shorten their delivery times. It wasn’t too many years ago that online shopping was reserved for only the most patient of buyers.

As consumers’ shopping habits have changed, it has become necessary for businesses to offer free, fast shipping as a standard. With more and more people opting to shop online, companies must adapt their processes and ensure that they can meet the demands of customers.

Retailers need to be able to respond quickly to changing trends in order to fulfil orders as efficiently as possible.

This requires forecasting your customer’s demand by tracking purchase cycles within your market and stocking products accordingly. This will help you eliminate the need for delayed gratification.

Trend #2. Streamlining Online and Offline Experiences for Hyper-Personalization

In 2022, personalization will continue to be a major focus for online retailers as they continue to look for ways to better understand their shoppers.

In the future, retailers will use personalized data to streamline the shopping process and create a more seamless experience for customers. By understanding customer preferences and using people-based marketing insights, retailers can provide a tailored shopping experience that is both efficient and enjoyable.

Today’s consumers are always pressed for time. This is a significant value-add for them.

Many customers prefer to shop from the comfort of their own homes because they don’t have to interact with salespeople. However, creating a personalized shopping experience can bridge the gap that would normally be filled with a sales person.

To personalize the customer experience, retailers should gather information on their customers’ likes and dislikes, as well as their needs and their values. This can help create a more personal shopping experience for your customers, increasing the likelihood that they become loyal customers.

If customers visit your online store, they should see a personalized list of recommended products based on both their online search history and their offline purchase history. This will give them a more seamless shopping experience, where they won’t have to worry about second guessing themselves.

Marketers need to think about which metrics they will use to measure their success. Media Mix Modeling and Multi-Touch Attribution can only give limited insights into which channels are most effective. However, with a unified platform, you can gain a much more comprehensive view of your retail marketing efforts.

They should consider using marketing technology that can provide a more accurate and all-inclusive measure of marketing performance.

The COVID-19 pandemic has forced marketers to adapt their strategies on the fly. Many have found themselves struggling to keep up as their historical data and usual benchmarks for performance no longer apply. To stay ahead of the curve, marketers need to focus on streamlining online and offline experiences for hyper-personalization.

Trend #3. Leverage Experiences Powered by Artificial Intelligence and Machine Learning

As artificial intelligence and machine learning become more prevalent, companies will begin to leverage these technologies in order to create personalized recommendations for their customers. This will allow customers to make simpler and more instant decisions, leading to a better overall experience.

Trend #4. Socially Integrated Visualized Search

Some people might see someone on the street wearing an outfit they like, and then try to find something similar online. Retailers are hoping to make this process easier for shoppers by improving their product offerings for visual search.

Using visual search for fashion can be great for finding clothes that you are interested in. All you have to do is upload a picture of an outfit that you like, or one similar to it, and the app will find similar items for you.

When you use a search engine like Google, it provides you with a list of matching items that makes it easy for you to purchase what you’re looking for.

Then, customers can take a photo of an outfit they like, and use a technology called “Google lens” to identify the specific piece they’d like to see more information about.

Then, customers can use an application like Google Lens to find the specific item of clothing they want to buy from that photo.

With this new technology, retailers can analyze a customer’s Instagram account, or their Pinterest boards, in order to learn more about their shopping habits.

From there, the stylist could recommend items that would match a shopper’s current wardrobe or overall style.

Trend #5. eCommerce Shopping on Social Media

Many social media platforms have introduced e-commerce shopping experiences in response to the 15,000 retailers that closed their brick-and-mortar stores in 2020, according to Forbes. For example, Instagram recently announced the Shop tab, which gives users an opportunity to search for and connect with brands, creators, and products.

For instance, Facebook’s recent announcement of the shop feature on Instagram gives consumers the opportunity to connect with brands and content creators.

If you’re a business, consider using influencer marketing to promote your brand. Partnering up with a popular creator for sponsorships or affiliate deals can be a good way to reach a new audience.

Trend #6. Transparency and Values-based Branding

71% of customers are more likely to purchase from a brand that aligns with their values.

As we head into 2022, it’s more important than ever for your brand to be transparent. Consumers are becoming more and more concerned with their privacy and with political upheaval, so they’re expecting more from businesses.

In order to succeed in 2022, you need to focus on being transparent and live up to your values. Only then will you build the trust with your customers that you need to maintain a good reputation.

Trend #7: Shopping Assistance via Smart Home Speakers and Chatbots

The market for smart speakers is growing rapidly, with projections of market revenue of $35.5 billion in the next five years. These devices, such as the Amazon Echo or Google Home, allow customers to order something without ever having to look at a screen. This allows for a more streamlined and convenient shopping experience.

As customer support increasingly moves away from in-person interactions and towards chatbots and virtual assistants, retailers will need to adapt their strategies to meet customers where they are. By providing a seamless shopping experience through these channels, retailers can stay ahead of the curve and keep their customers satisfied.

Trend #8: Retailers Engaging In Omnichannel Marketing 

By using a variety of channels, retailers can provide a more seamless customer experience. Omnichannel marketing is an excellent way for retailers to turn one-time buyers into repeat customers. By integrating various channels, retailers can provide a more cohesive brand experience. This allows for a better customer experience overall, as they are able to engage with the brand on multiple levels.

Digital advertising, such as through Google AdWords, is a great way to reach buyers. Social media, such as Facebook, is also a great way to connect with customers.

This method of marketing will allow retailers to connect with consumers on multiple channels, creating a seamless buying experience. This will increase the probability that the consumer will become a repeat customer.

Future of Retail Marketing

Now consumers are connected more than ever. They are more knowledgeable and informed, and they know they have choices.

The future of retail marketing expects hyper-customized concierge and on-demand services along with an integration of ultra-convenience, entertainment, and consumption. This will provide consumers with a more personalized and convenient shopping experience.

Conclusion

If you’re a retailer, it’s good to understand what is retail marketing and why it is essential for the growth of your business.  The four Ps of retail marketing (product, price, place, and promotion) can be used to reach your target market and increase sales. Keep these concepts in mind as you develop your marketing strategy and you’ll be on your way to success.