Retail Communication

Retailers communicate with the customers about their products or services, new product updates, and upcoming events regarding retail business via print, audio, video, or Internet media. Retail communication involves the following strategies

• Providing retail information based on stored data about celebration dates of the customers.

• Holding contests to gain new customers and keep existing ones.

• Posting retail information on social websites to increase followers.

• Sending coupons on mobile so that customers can avail the benefits of the schemes right when they enter the store.

• Conducting customer surveys and reviews. Rewarding participating customers.

• Using automated retail communication.

Elements of Retail Marketing Mix (7Ps

The retail marketing mix is the combination of marketing activities that the retailers carry out to meet the target market’s requirements in the best possible way. Retail marketing mix is a combination of 7Ps 

· Product − The quality and range of variants of the product or service.

· Place − It is the location where the product or service is sold: online, type of store, location of store, time taken and the mode of transport to reach the retail place.

· Price − Cost of product or service for different customer segments by considering various price affecting factors.

· Promotion − It is raising customers’ awareness about the product or service and driving customers to buy the products by offering tempting deals.

· People − This includes internal stakeholders such as customers, sales staff, management staff, and external stakeholders such as suppliers and supply chain management force.

· Process − It is the range of activities involved in manufacturing and delivering the product or service to the customer.

· Physical Environment − Presenting the products or offering services in a well-organized and attractive manner, keeping an aesthetic sense in presentation to elevate customers’ shopping experience.

Retail Marketing Strategy

Selecting an objective market is with the expanded nearness of option approaches to achieve clients; both geographic space and the internet must be considered.

Next, Market division is the technique retailer’s use to separate heterogeneous shopper populaces into littler homogeneous gatherings and is the point at which a retailer recognizes a few fragments inside any given market, not all objectives ought to be considered for focusing on.

Business Districts of focal business region attributes is normally situated around a geographic time when all open transportation frameworks unite. Next, make-up as a rule relies on upon history, past retail patterns, and good fortune. Also, as a rule their engaging quality is in decrease, yet they can get to be distinctly upgraded by expanded arranging, group support, and adaption to improve non-shopping attractions. The focal business region of qualities is simple community, wide collection of item sold and nearness to business exercises while the shortcomings is insufficient stopping , more established stores, higher lease and conceivably higher wrongdoing rates.

Business District of auxiliary business area attributes is littler than a focal business region, rotates around no less than one division or assortment store and found a noteworthy road crossing point.

Business District of neighborhood region attributes is ordinarily littler than an auxiliary business region, advances to fulfill accommodation, for the most part numerous little stores focused on one market or assortment store and situated on a noteworthy course of a local location.

Strip malls or shopping centers qualities are halfway claimed, arranged, adjusted tenure and expansive sums stopping. Next, strip malls or shopping center qualities are overwhelming activity, agreeable arranging and sharing costs, access to expressways, regularly have spotless and flawless situations and diminished wrongdoing rates. For strip malls or shopping centers shortcomings is unbendable hours, higher rents, and limitations on stock which can be sold and possibly an excessive amount of rivalry.

Unattached areas qualities is situate along significant movement courses, absence of adjoining retailers offering aggressive items and commonly huge, surely understood retailers due to the trouble in drawing in and holding clients in a disengaged area. Next, detached areas qualities are absence of direct rivalry, for the most part lower rents, flexibility in operations and hours, offices that can be adjusted to the retailer's own and economical stopping. For the detached areas shortcomings is absence of drawing force by complimentary stores, troubles in pulling in clients for the underlying visit, higher publicizing and limited time costs, working costs that can't be shared, stores that may must be manufactured as opposed to leased and zoning laws.

Major Problems Of The Retail Industry

Auditing

Auditing is another problem that the retail industry faces on a regular basis. Retail businesses are regularly engaged in competition with one another, and this competition can create price wars, forcing a need to keep tight control over inventory and other important data. Metric Stream, Inc. notes that the retail industry is often faced with inefficient and poor auditing plans that make competing with other companies difficult. The company notes that existing auditing systems may be outdated and provide inadequate audits needed to stay competitive.

Economic Challenges

Another area of challenge for the retail industry is the economic uncertainty it faces moving forward. The retail industry as a whole is largely dependent upon the economic well being of the nation. As the nation prospers and people have more money to spend, the retail industry generally flourishes. However, in more difficult economic times, the retail industry is often faced with potential shrinkage. Columbus IT also indicates that the future uncertainty of global economic markets makes economic planning difficult in the retail world.

Technology

Keeping up with the pace of modern technology is another problem the retail industry faces. For instance, retail point of sale technology often uses computer systems that are several years behind the computer industry as a whole. An article in Mobile Commerce Daily by Peter Finocchiaro points out that the inability of retail industry technology to keep up with initiatives such as mobile digital coupons is a problem that the industry regularly faces. Given the rate of turnover and the constantly changing economic environment, constantly upgrading and keeping their equipment and networks running on the newest technologies can be difficult for retail leaders.

Ten Reasons Why Retail Businesses Fail

Most people believe that in order to achieve success, it is important to study the works of successful people and successful organizations. While this notion holds true to a good extent, it is also important and insightful to take a look at failures. Indeed, by studying and understanding what causes failure, one can gain more awareness. In fact, in order to achieve long term success, one must never ignore the aspects that can lead to failure.

Many businesses, too, start off well but often go awry somewhere along the way. This happens across businesses in every industry and the reasons for businesses failing must always be studied. In this article, we will take a look at the top ten reasons why retail businesses fail.

Whether you’re planning to start off a retail venture, or you have already established your retail store, it is important for you to consider the probable causes of retail businesses failing. Doing so will offer you a good amount of insight and may prevent your business from collapsing.

Here are the top ten causes of retail failure:

1. Lack of proper capital

As with all types of businesses, retail businesses require a good amount of capital, both to start off the venture, as well as to sustain operations. Even after starting up, many retail businesses soon reach a stage where they require additional funds to continue operating.

Business owners must always ensure that they have proper access to capital and must look to secure financing well before the business needs it. Securing capital well in time can be the determining factor between a successful venture and insolvency.

2. Disasters

Disasters, either manmade or natural, can be the death blow to a retail business. While it is often difficult to anticipate and escape disasters, retail business owners must ensure that they have a plan to combat an emergency scenario. Furthermore, business owners must ensure that they have proper and adequate insurance policies in place for such situations.

3. Underestimating costs of overheads

While a large number of business owners pay close attention to all details of their business, the cost of overheads is often overlooked. Overheads include the fixed and running costs that are required for the day to day operation of a business. If these costs are not calculated accurately, retail business owners may find themselves paying out of their pockets to sustain daily operations.

It is necessary for retail business owners to always account for overhead expenses and keep centralized funds for paying these costs. It is also a wise idea to keep a buffer on the estimation in order to cover variable and miscellaneous costs, which may not occur every day.

4. Negligence

Negligence is one of the biggest reasons retail ventures fail. Often, entrepreneurs are the ones who start off a retail venture. However, entrepreneurs, being visionaries, relish challenges and once the challenge of setting up a venture passes, their interest begins to wane.

A retail business needs a good amount of involvement and clear directions set by its leaders in order to be successful. Leaders will need to keep their interest in their retail ventures and maintain performance at all times.

5. Poor sales figures

Businesses make money by conducting sales and without sales, no business can survive. Sales are linked to many factors, including economic trends and market awareness and company management must always look to increase sales figures in order for the business to grow.

While it is not entirely possible to guarantee that a business makes sales, retail business owners must look to carefully study market trends and customer preferences. By studying the market and by bringing about necessary adjustments in strategy, a retail business can be responsive, and this can help increase sales figures.

6. Overexpansion

Many retail businesses start off well and soon plan to expand in order for the business to flourish. While expansion certainly needs to be done, it must be done in moderation. Expanding too much, or too rapidly can lead to a variety of problems which a retail business may not be ready to face.

Before attempting to expand and capture a bigger share of the market, business owners must ensure that they are adequately prepared to meet logistic challenges, financing concerns, staffing issues and supply chain management. Expanding without preparation can make retail businesses battle out for survival.

7. Problems with the management or leadership

Of the many reasons why retail businesses fail, problems with leadership or the management is one reason, which is completely the business owner’s responsibility. While a retail business may have been started off by an entrepreneur, it is important to effectively manage the day to day issues.

Lack of proper experience and incompetence of the management is one of the prime reasons why retail businesses fail. Business owners must ensure that they spot and effectively address any management problems before they go out of hand.

8. Economic conditions

Economic factors are often out of the hands of business owners. Every once in a while, there will be an economic downturn and business owners cannot avoid such a scenario. However, those retailers, who keep themselves prepared financially for such a downturn, will find themselves managing through the tough times.

Changing economic conditions is never in the hands of a business owner. However, training and planning to meet fluctuating economic conditions can prove to be the decisive factor to a retail business succeeding or failing.

9. Fraud

Unfortunately, fraud is something which exists in every industry and may be committed by anyone, including partners, vendors, customers or even employees. While it is not entirely possible to escape fraud altogether, retail businesses must ensure due diligence and must keep themselves prepared for such scenarios. It is also a good idea to have insurance policies in place to cover any fraud. Doing so can allow business owners to address and combat such scenarios effectively.

10. Customer problems

Whatever business a company may be in, it needs to be able to address customer problems. Customer problems may range from customers not paying up on time, to customers being unhappy with the products or services they purchase.

While there is no guaranteed way of keeping customers happy, retailers must look to be quick in responding to customer concerns and must always maintain clear communication with customers. Doing so will keep customer problems from turning into business ending disasters.

Five Qualities of a Great Retail Employee

Hiring for a retail position can be a demanding task. People that do not have experience in retail sales often feel that they can do the job and that can result in a deluge of resumes to sort through. In order for your retail store to thrive, you need to make sure that you are hiring the right kind of people. One of the ways to judge if someone is right for your retail job is to see if she has the five characteristics of a good retail employee.

1. Experience

It is up to you how much experience you want your candidates to have, but a GREAT employee would have some kind sales or customer service experience. And sales experience does not necessarily mean only retail sales, since there are a wide variety of sales fields that could be a good training ground for a successful retail employee. Some of those include business to business sales, outbound phone sales, and other customer-facing service roles.

2. Professional

A retail sales associate needs to remain professional at all times. If an angry customer is raining down insults on your retail sales professionals, they need to maintain their composure. You can determine if a candidate has this characteristic two ways. The first is by looking at their experience working directly with customers in the past. Someone with a customer service background knows how to remain calm when faced with angry customers.

The second way to determine professionalism is during the interview. You’ll get a feel for how the person will work with customers through their interaction with you. Gauging this in a potential employee is often a gut feeling, but your first impression is often right on.

3. Honest

A retail sales associate that misrepresents your product just to get the sale could give your store bad reputation. This trait also affects your interaction with the employee as well. You’re not always going to be at the store, so you want to make sure you have employees you can trust while you’re not there.

This is another quality that is hard to see from a person’s experience, so it can also come down to your gut feeling. Another way to find honest, trustworthy employees is to ask your current employees for referrals. This can actually be one of the best ways to find great new employees.

4. Reliable

Retail sales associates work a wide variety of hours. There needs to be coverage for every hour that the store is open, so that can mean a different schedule every week. You can start judging for reliability right from the start by seeing what time the person shows up for the interview. If they show up late, then reliability is probably going to be an issue. People that show up on time, or maybe even early, for their interview understand the value of being reliable.

5. Personable

Your retail sales associate should be pleasant, greet everyone with a smile and try to bring levity to a situation. He needs to be someone that people feel comfortable talking to, and that gives an air of confidence that will make what he says believable to customers. This will all come out in the interview. If you find the candidate at ease during the interview, then you have the makings of a personable retail employee.

It can be difficult to find a potential employee with all of these characteristics, but they’re out there. Having great employees is a great asset for any store, so don’t rush out to hire the first people through the door!

Pricing In Retailing

This posting I will clarify about valuing in retailing. There are evaluating choices for retailers which are markdown introduction, at the market introduction and upscale introduction. The elements influencing retail value technique is customers, government, makers, wholesalers and different providers, present and potential contenders is the aggregate impact on estimating methodology.

Value flexibility of interest is the affect ability of client to value changes in term of the amounts the will purchase. Versatile is little rate changes in value prompt to considerable rate changes in the quantity of units purchased while inelastic is vast rate changes in value prompt to little rate changes in the quantity of units purchased.

Next, the legislature and retail valuing are level value settling, vertical evaluating settling, value segregation, least value laws, unit estimating, thing value expulsion and value publicizing. Showcase estimating is retailers regularly value also to each other and have less control over cost since customers can without much of a stretch shop around while directed evaluating is firming try to pull in purchasers on the premise of particular retailing blends.

Value procedure was dictated by request arranged evaluating, cost-situated estimating, and rivalry arranged valuing.

The professional and cons of regular low estimating. The experts are to diminished publicizing cost, more unsurprising deals levels and less pinnacles and ebb of offers conveyance while the cons are diminished energy, conceivably less store movement because of specials and less "carefully selecting" by shoppers who just buy specials.

The motivations to utilize various unit evaluating are a firm could look to have customers increment their aggregate buys of a thing. Moreover, this drew nearer can offer moderate moving and end of season stock and cost packaging may expand offers of related things.

In conclusion, timing markdowns. Timing markdowns are early markdown approach, late markdown strategy, stunned markdown arrangement, programmed markdown arrange and store wide freedom.