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Principles of Marketing - Philip Kotler

Marketing solutions retailer

Now we look at the basic marketing decisions to be taken by the retailer in relation to the target market, the product portfolio and range of services, price, promotion and placement of its commercial enterprise.

DECISION ON target market. The most important decision to be taken by the retailer - is the choice of the target market. Not choosing a target market or reaching its profile, it is impossible to take sustained, mutually consistent decisions about product assortment, store design, advertising messages and advertising media, price levels, and so on. N. Some stores definitely focused on your target market. So, shop fashionable women's clothing in the Californian city of Palm Springs knows that his main market are women with high incomes, mostly aged between 30 and 55 years, living in a radius of 30 minutes by car. However, too many retailers either do not have a clear idea of ​​their target markets, or trying to meet incompatible with each other markets, the result is not satisfying as it should any of them. Even the company "Sears" serving the many different groups of people should make for themselves a clearer idea of ​​which of these groups will be its main target customers in order to more accurately pick up its product portfolio, determine prices, stores the location and nature of the measures stimulation calculated for these groups.

Retailers need to regularly engage in marketing research, to make sure customer satisfaction. Imagine a shop who wants to attract wealthy clients. Fig. 72 the current image of the store is presented with a black line. This image is unattractive to the desired target market, so shop should either do a mass market service, or be transformed into an institution "higher grade". Suppose adopted the second option. After a while, the store follows the customer survey. Its new image is shown in Fig. 72 Orange line. The shop was able to bring his image to the target market needs.

Fig. 72. A comparison of the old and the new store image, seeking to attract the target market

DECISION ON product portfolio and range of services. Retailers have to decide on three basic "commodity" variables: product portfolio, services and complex atmosphere of the store.

The product range retailer must meet the customer's expectations of the target market. Incidentally it's product portfolio is becoming a key factor in the competition between similar retailers. Retailers have to decide on the breadth of product range (narrow or wide) and its depth (shallow or deep). Thus, in the field of food service establishment may propose narrow and shallow assortment (small lunch counter), narrow and deep range (cold buffet) and a wide range of small (coffee shop) or a wide and deep range (large restaurant). Another characteristic of the product range is the quality of the offered goods. Consumers interested not only in the breadth of choice, but also the quality of the goods.

Retailers will also solve the problem of complex services that it will offer customers. Family gourmet grocery-stores the last delivery of the goods offered on the house, sale on credit and a leisurely conversation. In today's supermarkets these services completely disappeared. Table. 17 lists some of the basic services that can provide retailers with a complete service cycle. The scope of services is one of the key instruments of non-price competition to highlight the store among others.

Table 17. Typical services provided by retail stores

The third element of a trade arsenal retailer a store atmosphere. Each room has its own trading plan, which may impede and facilitate the movement of customers. Each store produces a certain impression. One perceived dirty, the other - charming, the third - a luxurious, four - grim. The store must embody the ambiance that fits the tastes of the target market of consumers and has a positive impact on shopping. The funeral appropriate silence, subdued light, tranquility, and a disco - bright colors, loud noises, the beating of life. The atmosphere creates creative people who know how to combine visual, auditory, olfactory and tactile stimuli to achieve the desired effekta27.

DECISION ON PRICES. Prices requested by retailers - a key factor in competition and at the same time a reflection of the quality of products offered. The ability of a retailer to make carefully considered purchases - the most important component of its success. In addition, the appointment of prices should be treated very carefully and for other reasons. For some products, you can generate low margins in order to make these items in "zamanivateley" or "loss leaders" in the hope that, once in the store, at the same time consumers will buy other products with higher margins. In addition, the management of retail businesses need to master the art of slow sales markdown goods. For example, dealers expect to sell shoes 50% of goods with the margin of 60%, 25% of the goods - with the margin 40, and the remaining 25% - without any extra charges. These price reductions are already provided in their original level.

DECISION ON incentives. To reach consumers retailers are common incentive tools - advertising, personal selling method, measures for sales promotion and propaganda. Retailers give advertisements in newspapers, magazines, radio and television. From time to time mass advertising supplement letters, which are awarded personally and sent a direct mail advertising. Personal selling requires careful training of sellers methods of establishing contact with customers, satisfaction of consumer needs, the order of resolution of doubts and complaints of customers. Sales promotion can be expressed in the conduct of in-store displays, the use of credit vouchers, cast prizes device celebrity visits. Retailers who have interesting things to say, and can always use propaganda techniques. Let's get acquainted with an arsenal of stimulus methods used by the three recently opened in Chicago's art galleries.

Gallery "Siburg-Isthmus" quietly wedged in the artistic environment month ago by a reception worthy of imitation - stimulating words, announcing its opening in a lowly saturated with information letter ... Our second example - gallery "Origin." She broke under such frightening firing in the area of ​​"public rileyshns" that this has led to the confusion of the young artist (Metta) and it might just scare the people he wanted to see in his studio-gallery. Still, the art and the "hard sale" does not tally with each other ... Our third example - a typical case of a neutral approach. Not having a name known only to shop at Frederick Julian Harr consists of a neat gallery, behind which there is a cluttered studio of the sculptor. In the long term, Harr, without noise trap adjusts its visitors, is in a better position than Matt, who has yet to make people forget the hype, raised by him in good faith for themselves. However, much more efficient methods trigger a "soft sell" used by the gallery "Siburg-Isthmus" 28.

A decision on the facility location. Selecting the store's location - one of the key competitive factors in terms of customer engagement opportunities. Clients, for example, tend to choose a bank that is nearest thereto. Web stores, oil companies and owners of franchises in the field of catering fast service very carefully chosen accommodations of their businesses, using for this purpose the most advanced methods of selection and evaluation sites.