Retail Market Strategy Flashcards
4 Step Marketing process
- Environmental scanning (customer & competitors)
- STP (market segmentation)
- Retail mix (location, merchandise, store layout)
- Customer relationship marketing (CRM)
Retail strategy
statement identifying target market, format, plan
Target market
What types of target markets are there? What does the target market mean
the market segment(s) towards which the retailer plans to focus its resources and retail mix
- Major -> majority/mass market
- Minor -> minority/niche market
Retail format
the nature of the retailer’s operations (retail mix)
Sustainable Competitive Advantage
an advantage over the competition that is not easily duplicated and can be maintained over a long time
Retail market segment
A group of consumers with similar needs and a group of retailers that satisfy those needs using similar retail channel and format
(psychographic, behavioural, geographic, demographic segements)
heterogenous and homogenous
Location
The most important factor determmining which store customer patronises
Growth opportunities
Market penetration
Market expansion
Retail format development (product development)
Diversification
Market penetration
Increase number of touch points with customers
1. attract new customers from current market
2. get current customers to visit or buy more
3. opening more stores or extending store hours
4. cross selling (selling additional products & services to current customers)
Market expansion
Using exisiting retail format in new market segments
Retail format development
(or product development). Develops a new retail format witha different retail mix for same target market
Diversification
Introduces new retail format directed toward market segment not currently served by retailer
