Retailers in Marketing

One of the foundations of marketing is Place i.e., making goods and services available to the end consumers. In distribution, the role of retailing can not be downplayed. Retailers make sure to deliver what was promised to the target audience in the initial stages of a marketing campaign. In this article, the role of retailers in marketing is discussed along with other important aspects of retail marketing. 

Retailers in Marketing Retailers in Marketing

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Table of contents

    Retail Marketing Definition

    The marketing cycle completes when the final product/service is delivered to the target audience. Consumers use the product and decide whether the business fulfilled its promise or not. It is, therefore, crucial to get the distribution strategy spot on.

    One of the main components of distribution is retailing. The core function of retailing is to sell the product/service to the end user. However, it also deals with store advertising, inventory management, and creating a shopping experience for customers.

    Retailing is the last link in the distribution chain of a business where the products are sold to the end users.

    Retail marketing involves various activities, from store advertisement to product assortment. The main aims are to evoke customers' interest in the products and give them a good shopping experience.

    Retail marketing refers to the steps taken by retailers to attract customers to buy their products/services.

    Friendly and helping store representatives add value to the overall shopping experience for customers by assisting them in their purchase processes. It also makes the whole process safe and secure for the customers.

    retails in marketing fashion retail store studysmarterFig. 1 - A fashion retail store

    Retail Marketing Strategies

    Developing and executing the right retail marketing strategies is the key to gaining a competitive advantage and achieving higher ROI – return on investment.

    Retail marketing strategy: Segmentation and targeting

    The first step is to segment the market to identify the target audience. The market data about consumer preferences, buying patterns, and demographics could help identify the target audience. Once the target audience is identified, develop strategies to cater to their needs effectively.

    Retail marketing strategy: Differentiation and positioning

    It is important for retailers to differentiate themselves by creating a distinct position in the market. It helps because prospective customers have a variety of options in terms of retail stores. Retail stores could differentiate themselves based on the product/service offered and the target market they want to focus on. For instance, a discount retail store takes a position based on pricing i.e., offering low-pricing products.

    Retail marketing strategy: Marketing mix

    Product strategy refers to the kind of products customers can expect to find in the retail store. It is based on the preferences of the target audience. Products could be exclusive, store labeled, and tailored. For instance, if the customer base is variety-seeking, retailers will store a wide variety of products.

    Pricing strategy has a big impact on customers. Retailers often opt for different kinds of pricing strategies. Competitive pricing and everyday low pricing are some examples of pricing strategies.

    Promotion strategy deals with in-store and out-store advertising and the strategic placement of promotional messages in a store. Its aim is to attract customers toward a specific product.

    Place strategy is about the store location. It is the most important strategy in retailing. Store locations must be accessible to customers and consistent with the retail positioning.

    IKEA is a big name in the retailing industry. It was founded in 1943 to provide home furnishing products to the middle-class segment of society. Now, it has close to 500 stores in 49 markets worldwide. Superior customer service is central to the marketing campaigns of the company. Through its marketing activities, it has formed a strong brand identity. IKEA relies majorly on digital marketing to give a consistent message to its target audience.

    retails in marketing ikea retail store studysmarterFig. 2 - Ikea store

    The retail marketing strategies along with marketing mix elements create value for customers.

    Characteristics of Retail Marketing

    Retail marketing contains the following characteristics:

    • Direct contact with customers – Retailing provides direct contact with the customers. It offers convenience to customers for shopping and giving direct feedback.

    • Comfortable and safe environment – Customers must feel comfortable and safe while buying in a retail store. It makes the shopping experience a pleasant one for customers.

    • Display and promotions at point-of-purchase – Products are displayed and promoted at point-of-purchase in a retail store. The transactions are completed in this area. It is ideal for promoting products to customers who could see them and make impulsive buying decisions.

    • Limited shelf space – Retail stores have limited shelf space. Not all the products can make it to the shelves. Retailers place in-demand products on them.

    • Customer relationship – It is an important characteristic of retail marketing to cultivate strong customer relationships. Store representatives help customers in the buying process. They also listen to their feedback. They answer customers’ questions instantly.

    Importance of Retail Marketing

    Retail marketing is the last link in the distribution channel and contributes significantly to customer satisfaction. It offers convenience to the customers and encourages them to shop more. It uplifts customers' lifestyles by offering them affordable products.

    Retailers extensively research customers’ preferences and buying patterns. The market data could be used to improve a product and make marketing campaigns more effective. Retailing is a key component of a supply chain. Retailers buy products from either manufacturers or wholesalers and sell them directly to customers. They can offer a wide variety of products because they acquire products from different suppliers. The width of product assortment depends on the positioning and product strategy of the retailer.

    Retailing plays a big role in the economic development of a country. Consumers spend daily on retail products, and the money circulates in the economy. Retailing also provides employment opportunities to the masses as it is one of the most important industries in the world.

    retails in marketing discount in store studysmarterFig. 3 - Discounts in store

    Types of Retail Marketing

    There are three types of retail marketing, and these are used based on the marketing strategy:

    • In-store retail marketing – Store locations can be used for various marketing activities. Retailers can launch a brand by organizing an event. The stores offer plenty of promotional opportunities such as point-of-sale promotions and discounts. Retailers strategically put some marketing messages in the store to grab customers' attention.

    • Out-store retail marketing – Outside the store, retailers also have many marketing options. They can mail brochures to their prospective customers. Tv advertisement could be another good option, though it is more costly than other outdoor marketing options.

    • Digital retail marketing – Retail marketing is also done via digital channels. Websites, social media marketing, and mobile marketing are being used extensively now.

    Retailers in Marketing - Key takeaways

    • Retailers make sure to deliver what was promised to the target audience in the initial stages of a marketing campaign.
    • The core function of retailing is to sell the product/service to the end user.
    • Retail marketing involves various activities, from store advertisement to product assortment.
    • The retail marketing strategies and marketing mix elements create value for customers.
    • Retail marketing is important in an economy as it provides many benefits to the people.


    1. Fig 2: Ikea Logan Store ( by Kgbo ( licensed by CCCC BY-SA 4.0 (
    Frequently Asked Questions about Retailers in Marketing

    What do Retailers mean in marketing? 

    Retailers make sure to deliver what was promised to the target audience in the initial stages of a marketing campaign. 

    What is retail marketing mix with example? 

    A retail marketing mix has four elements just like a marketing mix. (Price, place, promotion, product)

    What is retail convergence in marketing? 

    Retail convergence means the coexistence of many retailers of the same product within a convenient location. 

    What are the 7 P's of retail marketing? 

    The 7 P's of retail marketing are:
    product, price, promotion, place, packaging, positioning, and people.

    What are the functions of retail marketing?

    Sales promotion, advertising, and point of purchase display are some of the functions of retail marketing. 

    Test your knowledge with multiple choice flashcards

    The marketing cycle completes when the final product/service is delivered to the target audience

    Retailing is an important aspect of distribution strategy. 

    The core function of ______ is to sell the product/service to the end user.


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