What Is Retail Mix?
The retail mix is a mix of variables that are taken into account when creating winning strategies for marketing, promoting, and selling products. It’s also referred to as the Ps of marketing. A well-thought-out and planned retailing mix gives retailers a focused position and helps them gain a competitive edge. Generally, the retail mix varies based on the business and the products being offered to customers.
What Are The 7Ps of The Retail Mix?
The elements that make up successful traditional or digital marketing strategies are known as the Ps of the retail mix. In 1960, American marketing professor and author E. Jerome McCarthy introduced these Ps of marketing in his book “Basic Marketing: A Managerial Approach”.
The marketing mix concept originally consisted of only 4 Ps. If you wonder what four elements make up the retailing mix, the answer is Product, Price, Place, and Promotion. But in the 70s, marketers acknowledged that the mix needed an update.
In 1981, Booms and Bitner added three new elements to the mix and called it the Extended Marketing Mix. They’ve added People, Processes, and Physical Evidence. Although it’s been a few decades since the 7Ps were created, it is still widely taught and used in various industries, including retail.
This article will take a closer look at the 7Ps of the retailing mix.
Product
The Product is the first of the Ps in the retail marketing mix. It refers to what you offer or sell to the customers, which are usually items that your target audience shows interest in. Product considerations include branding, features, after-sale services, and design. This component deals with analyzing the target audience and marketing trends to determine what appeals the most, how much inventory to stock, etc.
Price
The price element covers the cost of your goods. When determining a pricing strategy and setting up a retail price, it’s essential to consider profitability and competitiveness. Also, consider your demographics. Higher price often gives the appearance of a higher-quality product, while lower prices draw in budget-conscious customers.
Place
The Place refers to the business’s distribution channels. The goal of this P is to make the products easily accessible. Traditionally, consumer goods were only sold in physical retail stores. However, the rise of online stores or e-commerce has widened distribution possibilities. When going digital, it is critical to design an online store with a polished, user-friendly, and professional-looking interface. For physical locations, consider foot traffic, design and layout, and aesthetics.
Promotion
Promotion is one of the public-facing Ps of the marketing mix retail. Its goal is to capture the interest of consumers and drive purchases. It covers social media strategies, in-store presentations, email marketing, display ads, discount promotions, print and television advertising, and more. The process typically entails data analysis from marketing metrics, SEO analytics, and customer surveys, among other sources.
People
People in the retail mix include cashiers, management staff, and anyone else who directly and indirectly interacts with your customers. To create a retail strategy that incorporates your people, you must have an in-depth grasp of your hiring and onboarding operations, business culture, and employee needs. Investing in CRM software is another way to foster loyalty and real connections.
Process
The Process of 7Ps describes the steps and procedures involved in providing a product to the customer. It is closely related to the customer experience and is usually divided into back-end and front-end processes. Back-end processes refer to your supply chain logistics, whereas front-end processes deal with how the item is sold to customers and include components like inventory systems.
Physical Evidence
The Physical Evidence of 7Ps refers to the tangible features of your goods. It includes branding, packaging, and design. Use packaging that makes your brand recognizable and contains relevant product information, like usage instructions. It can also apply to how the business appears, like having a clean and well-lit store and neat employees.
Why is The Retail Mix Important?
A retail mix is crucial for a retailer’s short-term and long-term strategy for making sales. Each P has a critical role in ensuring a successful marketing mix that aligns with the business goals and target audience.
The 7Ps can help retailers understand the needs of their target market and identify products that will meet those needs. As a result, retailers can improve customer satisfaction levels and set more realistic marketing goals. Furthermore, the 7Ps can help retailers develop a strategy that can differentiate them from their competitors. Ultimately, the right retail mix can aid in increasing retail sales and revenue.
The 7Ps can also become components of a retail image. The retail image relates to the way a retail business is perceived by customers. Retailers can use the 7Ps to create and maintain the best possible image.
To ensure that the implementation of the 7Ps positively impacts your retail business, it’s also critical to determine and track KPIs. Tracking relevant KPIs enables retailers to have a high-level view of their business performance, allowing them to streamline and improve processes.
8 Types of Retail Businesses
There are different types of retail businesses worldwide. Here are some of the most common forms:
Department Stores
A department store is a type of retail establishment that carries a wide variety of consumer goods from different product groups. It might have many stores to accommodate various products, such as electronics, sporting goods, appliances, hardware, and clothes.
Supermarkets
A supermarket is a sizable self-serve store that offers a wide variety of products, including dairy produce, groceries, meat, and household items. They usually display goods in bulk at low prices and are often located in a nearby housing area.
Supermarkets reach more customers and entice them to return by providing specials, discounts, and merchandise.
Online Retailing
Online retailing refers to selling goods and services over the Internet through an e-commerce platform. It also often involves the use of retail software and tools. Online retailers can operate on their websites, social media platforms, and third-party platforms, such as Amazon.
Drug Store
It’s a shop that offers a wide selection of drugs and medications to meet people’s daily needs. Many retail drug stores integrate a dedicated pharmacy section with a regular retail store to sell over-the-counter medications and general merchandise.
Mom and Pop Stores
Mom and Pop shops are independent, family-run small businesses. They usually operate from one location and serve the local community with personalized goods and services. Although mom-and-pop stores face tough competition from established companies, the high demand for personalized products keeps this retail business type popular.
Telemarketing
Telemarketing, also called telephone selling, is the direct selling of goods or services to potential customers via phone systems, faxes, or the Internet. It usually involves a single call to gauge interest or fit and additional calls to pursue a sale.
Automatic Vending
Automatic vending refers to selling retail goods swiftly, effectively, and with little to no human interaction. Common locations for vending machines include workplaces, public spaces, colleges, and schools.
Franchising
Franchising is taking up the name of an existing business to operate, using the franchisor’s trademarked products or services. A licensing arrangement is used in retail franchising to grow a company and distribute products and services.
Specialty Stores
Specialty stores are retail establishments that sell specific types of products. Its main draw is the availability of items not commonly found in the market. Sports goods stores, furniture stores, DIY stores, florists, and bookshops are a few examples of specialty stores.
