What is retail marketing and why is it important?

When it comes to the world of marketing for retail precincts, there is a very precise art to retail marketing. Here’s what you need to know.

Anyone who has ever organised an office lunch knows that satisfying the needs of every individual can be an overwhelming task.

There are some who have particular food allergies, others on restrictive diets, and what is it with Joan from accounts who won’t eat anything containing corn, asparagus, or any food which in its uncooked form was white?

Naturally, you want to make everyone happy, and importantly, you want staff to actually come to the lunch and all future lunches, but how do you cater for all those individual needs in the one meal?

Welcome to the world of marketing for retail precincts, and the very precise art of retail marketing.

What is retail marketing?

Retail marketing is any strategy that helps spread awareness of products and retail-based services, with the end goal of increasing revenue, and involves a range of activities in both the digital and real worlds.

What is retail precinct marketing?

Retail precinct marketing is a specific and nuanced form of marketing because it needs to be holistic and all-encompassing, as it markets an entire retail precinct or region.

A retail precinct may contain a number of stores, each with their own diverse offerings, and marketing the precinct as a whole must take in all of them in a way that creates strong brand awareness of the precinct, without appearing scattered or hobbled together.

What are the types of retail marketing?

Retail marketing takes many forms, all working together.

In-store marketing is promotional activities that happens within your store and focuses on the customer journey and experience. It can include displays, samples, product demonstrations, and window displays that encourage shoppers to enter the store.

Traditional marketing for retail precincts includes channels like brochures, newspaper ads, and flyers, while digital marketing promotes a store or products through organic and paid online posts and advertisements and includes SEO, email newsletters, social media and even SMS.

Why is retail marketing important?

Why is retail marketing important?

Retail marketing isn’t just about increasing immediate sales, it’s about creating long-term repeat customers, building brand awareness, and increasing the resilience of a business.

  • Increasing sales: It’s the low-hanging fruit of retail precinct marketing, and sales can be achieved via a range of online and real life activities.
  • Increasing return customers: A study by Bain & Company found that increasing customer retention by just five per cent can increase profits by up to 25 per cent. Businesses can build their base of repeat visitors through things like loyalty programs and email marketing.
  • Brand building: Research shows that strong and consistent branding can increase revenue by 33 per cent. A good retail marketing strategy will strengthen your brand and make your products and company recognisable.

Retail marketing mix: the 7 Ps of marketing

Originally devised in the 1960s, the 7 Ps of marketing have been the cornerstone of marketing over the decades and hold particular value in marketing for retail precincts.

Put simply, the 7 Ps provide a marketing model and simple framework that retail precincts can use to get the most out of their marketing mix and strategy.

Here’s an overview of the 7Ps of marketing:

  1. Product addresses the key questions of sales conversion: what problem or issue does the product solve for the customer and why is your product the best one to solve it?
  2. Price refers to how much customers are prepared to pay for your product, desired profit margins, and the costs associated with selling your product. Competitors’ pricing is also important.
  3. Promotion includes all the activities across the marketing mix, including advertising, direct marketing, and in-store promotions.
  4. Place is where and how your product is displayed and sold and includes online sales as well as physical stores.
  5. People are the employees who work for a retail business, and includes workers on the floor, brand ambassadors, or the people who answer the phone or webchat. Often, it’s these interactions with people that customers will remember, so it’s important to get the right people, train them well, and keep them across all your marketing activity.
  6. Process is the chain from the moment a customer becomes aware of your product, to consideration and purchase, to delivery to their front door. The entire process should be designed from a customer perspective.
  7. Physical evidence is what your customers see, hear and feel when interacting with your business, including the physical store or online interactions, and should be comfortable, inspiring and as easy as possible.

Speak to the retail marketing experts

Assemblo is a full-service marketing agency based in Melbourne, with knowledge and experience across all aspects of traditional retail marketing and the latest in digital marketing strategies. We work with retail precincts and associations to bring shoppers to the area and increase sales to all their stores.

To find out how we can help your retail precinct, give us a call on (03) 9079 2555 or send us a note via the contact form below.

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