Editing Retail (section)

==Retail marketing==
{{Main|Retail marketing}}
[[File:Retail mix.jpg|thumb|upright=1.2|The retail marketing mix or the 6 Ps of retailing]]

A retail mix is devised for the purpose of coordinating day-to-day tactical decisions. The retail marketing mix typically consists of six broad decision layers including product decisions, place decisions, promotion, price, personnel and presentation (also known as physical evidence). The retail mix is loosely based on the [[marketing mix]], but has been expanded and modified in line with the unique needs of the retail context. A number of scholars have argued for an expanded marketing, mix with the inclusion of two new Ps, namely, ''Personnel'' and ''Presentation'' since these contribute to the customer's unique retail experience and are the principal basis for retail differentiation. Yet other scholars argue that the ''Retail Format'' (i.e. retail formula) should be included.<ref>Constantinides, E., "The Marketing Mix Revisited: Towards the 21st Century Marketing", ''Journal of Marketing Management'', Vo. 22, 2006, pp. 422–423</ref> The modified retail marketing mix that is most commonly cited in textbooks is often called the ''6 Ps of retailing'' (see diagram at right).<ref>Berens, J.S., "The Marketing Mix, the Retailing Mix and the Use of Retail Strategy Continua", ''Proceedings of the 1983 Academy of Marketing Science (AMS)'', [Part of the series Developments in Marketing Science], pp. 323–27</ref><ref>Lamb, C.W., Hair, J.F. and McDaniel, C., ''MKTG 2010'', Mason, OH, Cengage, pp. 193–94</ref>[[File:Supermarket full of goods.jpg|thumb|left|A typical supermarket carries an assortment of between 30,000 and 60,000 different products.]]The primary [[Product management|product-related decisions]] facing the retailer are the product assortment (what product lines, how many lines and which brands to carry); the type of customer service (high contact through to self-service) and the availability of support services (e.g. credit terms, delivery services, after sales care). These decisions depend on careful analysis of the market, demand, competition as well as the retailer's skills and expertise.

[[Customer service]] is the "sum of acts and elements that allow consumers to receive what they need or desire from [the] retail establishment." Retailers must decide whether to provide a full service outlet or minimal service outlet, such as no-service in the case of vending machines; self-service with only basic sales assistance or a full service operation as in many boutiques and speciality stores. In addition, the retailer needs to make decisions about sales support such as customer delivery and after sales customer care.

[[File:Souvenir.london.arp.750pix.jpg|thumb|Sellers of souvenirs are typically located in high traffic areas such as this London souvenir stand situated near a railway station on a busy street corner.]] [[Site selection|Place decisions]] are primarily concerned with consumer access and may involve location, space utilisation and operating hours. Retailers may consider a range of both qualitative and quantitative factors to evaluate to potential sites under consideration. Macro factors include market characteristics (demographic, economic and socio-cultural), demand, competition and infrastructure (e.g. the availability of power, roads, public transport systems).  Micro factors include the size of the site (e.g. availability of parking), access for delivery vehicles. A major retail trend has been the shift to multi-channel retailing. To counter the disruption caused by online retail, many bricks and mortar retailers have entered the online retail space, by setting up online catalogue sales and [[e-commerce]] websites. However, many retailers have noticed that consumers behave differently when shopping online. For instance, in terms of choice of [[Online marketing platform|online platform]], shoppers tend to choose the online site of their preferred retailer initially, but as they gain more experience in online shopping, they become less loyal and more likely to switch to other retail sites.<ref>Verhoef, P., Kannan, P.K. and Inman, J., "From Multi-channel Retailing to Omni-channel Retailing: Introduction to the Special Issue on Multi-channel Retailing", ''Journal of Retailing'', vol. 91,  pp. 174–81. {{doi|10.1016/j.jretai.2015.02.005}}</ref> [[Online shopping|Online stores]] are usually available 24 hours a day, and many consumers across the globe have Internet access both at work and at home.
[[File:Fan-Tankstelle von Dynamo Dresden.JPG|thumb|left|upright|Extensive use of the terminal digit 'nine' suggests that psychological pricing is at play.]]

The broad [[Pricing strategies|pricing strategy]] is normally established in the company's overall strategic plan. In the case of chain stores, the pricing strategy would be set by head office. Broadly, there are six approaches to pricing strategy mentioned in the marketing literature: operations-oriented,<ref name="Dibb, S. 2013">Dibb, S., Simkin, L., Pride, W.C. and Ferrell, O.C., ''Marketing: Concepts and Strategies'', Cengage, 2013, Chapter 12</ref> revenue-oriented,<ref name="Dibb, S. 2013" /> customer-oriented,<ref name="Dibb, S. 2013" /> [[Value-based pricing|value-based]],<ref>Nagle, T., Hogan, J. and Zale, J., ''The Strategy and Tactics of Pricing: A Guide to Growing More Profitably'', Oxon, Routledge, 2016, p. 1 and 6</ref><ref>Brennan, R., Canning, L. and McDowell, R., ''Business-to-Business Marketing'', 2nd ed., London, Sage, 2011, p. 331</ref> [[Relationship-based pricing|relationship-oriented]],<ref>Neumeier, M.,
''The Brand Flip: Why customers now run companies and how to profit from it (Voices That Matter)'', 2008, p. 55</ref> and socially-oriented.<ref>{{cite book|last = Irvin|first= G.|title =Modern Cost-Benefit Methods|publisher= Macmillan |date = 1978|pages = 137–160|isbn = 978-0-333-23208-8}}</ref> When decision-makers have determined the broad approach to pricing (i.e., the pricing strategy), they turn their attention to pricing tactics. Tactical pricing decisions are shorter term prices, designed to accomplish specific short-term goals. Pricing tactics that are commonly used in retail include discount pricing,<ref>Rao, V.R. and Kartono, B., "Pricing Strategies and Objectives: A Cross-cultural Survey", in ''Handbook of Pricing Research in Marketing'', Rao, V.R. (ed), Northampton, MA, Edward Elgar, 2009, p. 15</ref> [[everyday low price]]s,<ref name="hoch">{{cite journal|last1 = Hoch|first1 = Steven J.|last2 = Drèze|first2 = Xavier|last3 = Purk|first3 = Mary E.|title = EDLP, Hi-Lo, and Margin Arithmetic|journal = The Journal of Marketing|volume = 58|number = 4|date = October 1994|pages = 16–27|url = http://www.davidreiley.com/FieldExperimentsCourse/papers/FullReadingList/DrezeEverydayLowPricing.pdf|doi = 10.1177/002224299405800402|s2cid = 18134783|access-date = 19 December 2018|archive-date = 20 December 2018|archive-url = https://web.archive.org/web/20181220230718/http://www.davidreiley.com/FieldExperimentsCourse/papers/FullReadingList/DrezeEverydayLowPricing.pdf|url-status = live}}</ref> high-low pricing,<ref name="hoch" /><ref>Kaufmann, P., "Deception in retailer high-low pricing: A 'rule of reason' approach", ''Journal of Retailing, '' Volume 70, Issue 2, 1994, pp. 115–1383.</ref> [[loss leader]]s, [[product bundling]],<ref>Guiltnan, J.P., "The Price Bundling of Services", ''Journal of Marketing'', April 1987</ref> promotional pricing, and [[psychological pricing]].<ref>Poundstone, W., ''Priceless: The Myth of Fair Value (and How to Take Advantage of It)'', New York: Hill and Wang, 2011, pp. 184–200</ref> Two strategies to entice the buyer, [[money back guarantee]] and [[Buy one, get one free|buy one get one free]], were devised by 18th-century retail entrepreneur [[Josiah Wedgwood]].<ref>{{cite news|first=Judith|last=Flanders|url=https://www.nytimes.com/2009/01/10/opinion/10flanders.html?_r=2|title=They Broke It|newspaper=The New York Times|date= 9 January 2009}}</ref><ref>{{cite news |title=Josiah Wedgwood, an Industrial Revolution pioneer |url=https://www.adamsmith.org/blog/josiah-wedgewood-an-industrial-revolution-pioneer |access-date=8 June 2024 |publisher=Adam Smith Institute}}</ref> Retailers must also plan for customer preferred payment modes&nbsp;– e.g. cash, credit, lay-by, Electronic Funds Transfer at Point-of-Sale (EFTPOS). All payment options require some type of handling and attract costs.<ref>Barr, A., "PayPal Deepens Retail Drive in Discover Payments Deal", ''Technology News.'' 22 August 2012</ref> Contrary to [[List of common misconceptions|common misconception]], price is not the most important factor for consumers, when deciding to buy a product.<ref>{{Cite web|url=https://www.forbes.com/sites/forbesagencycouncil/2019/02/05/three-ways-to-crush-e-commerce-busting-common-misconceptions/|title=Council Post: Three Ways To Crush E-Commerce: Busting Common Misconceptions|first=Rafael|last=Romis|website=Forbes|access-date=6 February 2019|archive-date=6 February 2019|archive-url=https://web.archive.org/web/20190206165436/https://www.forbes.com/sites/forbesagencycouncil/2019/02/05/three-ways-to-crush-e-commerce-busting-common-misconceptions/|url-status=live}}</ref>
[[File:Mcdonald's - panoramio.jpg|thumb|One of the most well-known cross-selling sales scripts comes from McDonald's. "Would you like fries with that?"]]
Because patronage at a retail outlet varies, flexibility in [[Schedule (workplace)|scheduling]] is desirable. [[Employee scheduling software]] is sold, which, using known patterns of customer patronage, more or less reliably predicts the need for staffing for various functions at times of the year, day of the month or week, and time of day. Usually needs vary widely. Conforming staff utilization to staffing needs requires a flexible workforce which is available when needed but does not have to be paid when they are not, [[Part-time job|part-time]] [[Workforce|workers]]; as of 2012 70% of retail workers in the United States were part-time. This may result in financial problems for the workers, who while they are required to be available at all times if their work hours are to be maximized, may not have sufficient income to meet their family and other obligations.<ref>{{cite news|title=A Part-Time Life, as Hours Shrink and Shift|url=https://www.nytimes.com/2012/10/28/business/a-part-time-life-as-hours-shrink-and-shift-for-american-workers.html|access-date=28 October 2012|newspaper=The New York Times|date=27 October 2012|author=Steven Greenhouse|archive-date=27 November 2020|archive-url=https://web.archive.org/web/20201127021021/https://www.nytimes.com/2012/10/28/business/a-part-time-life-as-hours-shrink-and-shift-for-american-workers.html|url-status=live}}</ref>  Retailers can employ different techniques to enhance sales volume and to improve the customer experience, such as Add-on, Upsell or Cross-sell; Selling on value;<ref>Hee, J.K., "Stand-alone Sale of a Free Gift: Is it effective to accentuate promotion value?" ''Social Behavior & Personality'', Vol. 43, no. 10, 2015, pp. 1593–1606</ref> and knowing when to close the sale.<ref>{{cite book |last1 = Cant|first1= M.C. |last2= van Heerden|first2= C.H.|title=Personal Selling|publisher= Juta Academic|date= 2008|page = 176|url = https://books.google.com/books?id=gy4K3muCsmsC&q=Cant%2C%20M.C.%20and%20van%20Heerden%2C%20C.H.%2C%20Personal%20Selling%2C%20Juta%20Academic%2C%202008&pg=PA176| isbn = 978-0-7021-6636-5}}</ref>

Transactional marketing aims to find target consumers, then negotiate, trade, and finally end relationships to complete the transaction. In this one-time transaction process, both parties aim to maximize their own interests. As a result, transactional marketing raises follow-up problems such as poor after-sales service quality and a lack of feedback channels for both parties. In addition, because retail enterprises needed to redevelop client relationships for each transaction, marketing costs were high and customer retention was low. All these downsides to transactional marketing gradually pushed the retail industry towards establishing long-term cooperative relationships with customers. Through this lens, enterprises began to focus on the process from transaction to relationship.<ref>{{Cite web |title=Retail Mix |url=https://www.monash.edu/business/marketing/marketing-dictionary/r/retail-mix |url-status=live |archive-url=https://web.archive.org/web/20180718175916/https://www.monash.edu/business/marketing/marketing-dictionary/r/retail-mix |archive-date=2018-07-18 |access-date=2024-06-19 |website=[[Monash University]]}}</ref>
While expanding the sales market and attracting new customers is very important for the retail industry, it is also important to establish and maintain long term good relationships with previous customers, hence the name of the underlying concept, "relational marketing". Under this concept, retail enterprises value and attempt to improve relationships with customers, as customer relationships are conducive to maintaining stability in the current competitive retail market, and are also the future of retail enterprises.

[[File:Change the way you WiFi.jpg|thumb|Modern technologies are often displayed in clean environments with much empty space.]]
[[File:Harrods Food Department Halls (8473364801).jpg|thumb|The retail servicescape includes the appearance, equipment, display space, retail counters, signage, layout and functionality of a retail outlet. Pictured: [[Harrods]] food court]]

Presentation refers to the physical evidence that signals the retail image. Physical evidence may include a diverse range of elements&nbsp;– the store itself including premises, offices, exterior facade and interior layout, websites, delivery vans, warehouses, staff uniforms. The environment in which the retail service encounter occurs is sometimes known as the ''retail [[servicescape]].''<ref>"The Impact of Retail Servicescape on Buying Behaviour", ''BVIMSR's Journal of Management Research'',  Vol 6, No. 2, 2014, pp. 10–17</ref> The store environment consists of many elements such as aromas, the physical environment (furnishings, layout, and functionality), ambient conditions (lighting, air temperature, and music) as well as signs, symbols, and artifacts (e.g. sales promotions, shelf space, sample stations, visual communications). Retail designers pay close attention to the front of the store, which is known as the ''decompression zone''. In order to maximize the number of selling opportunities, retailers generally want customers to spend more time in a retail store. However, this must be balanced against customer expectations surrounding convenience, access and realistic waiting times.<ref>Wakefield, L.K. and Blodgett, G J., "The Effect of the Servicescape on Customers' Behavioral Intentions in Leisure Service Settings", ''The Journal of Services Marketing'', Vol. 10, No. 6, pp. 45–61.</ref> The way that brands are displayed is also part of the overall retail design. Where a product is placed on the shelves has implications for purchase likelihood as a result of visibility and access.<ref>Hall, C.M. and Mitchell, R., ''Wine Marketing: A Practical Guide'', pp. 182–83</ref> Ambient conditions, such as lighting, temperature and music, are also part of the overall retail environment.<ref>Bailey, P. (April 2015). Marketing to the senses: A multisensory strategy to align the brand touchpoints. Admap, 2–7.</ref> It is common for a retail store to play music that relates to their target market.<ref>{{Cite journal|last1=Hul|first1=Michael K.|last2=Dube|first2=Laurette|last3= Chebat |first3=Jean-Charles|date=1 March 1997|title=The impact of music on consumers' reactions to waiting for services|journal=Journal of Retailing|volume=73|issue=1 |pages= 87–104|doi= 10.1016/S0022-4359(97)90016-6}}</ref>

<div id="Kinds of retailers"> <!-- anchor tag for links to this section. --></div>