Introduction
Retail
marketing is the sum of all activities, procedures and institutions meant for
communication and delivery of products and services to the consumer, including
the exchange of offers in small scale proprietorships. Information and
technological changes have redesigned consumer shopping experience. Many
consumers are shifting from the traditional way of shopping to the emerging
online shopping.
Through
internet and wireless communication, consumer-retailer communication has been
reinvented from traditional face to face to online interaction. Mobile phones,
tablets and internet as a whole have revolutionized retail marketing and
management. Although, internet marketing has changed the general outlook or
retail marketing, has not completely replaced traditional retail stores
Merits
not-withstanding online marketing has its own disadvantages. The dangers and
negative impacts of internet are reflected in online retail marketing. This
essay will discuss online and traditional marketing, their applicability, advantages
and disadvantages in the context of the case study
IMPORTANCE OF ENVIRONMENT TO RETAILERS
Environmental
factors are the cumulative factors surrounding a business which are beyond the
control of the retailer. These factors influence the business directly. In
order to strategically position himself competitively, the retailer must
monitor and evaluate these components.
The
retailer should closely monitor the environment to cushion himself against
depression in the national and or global economies. Political instability,
terrorism and wars will affect the operation of retailer. Vandalization or
looting by people will derail the business and hence the retailer must watch
out for the same to take appropriate steps.
Two,
Finance; interest rates offered by credit institutions and the availability of
credit is key to retail businesses. The retailer relies on the cash within his
reach to operate and serve its customers. Retailers require finance to make
quick adjustments to changes in the market and consumer preferences.
When
the retailer monitors the prevailing climatic changes, he can adapt the
business to the changes resulting from weather. Weather hazards like tornados,
storms and hurricanes can shape consumer preferences and hence the retailer must
look out for such changes. The retailer is in a good position to adjust to such
changes if he constantly monitors the environment.
Next
is infrastructure; the retailer can mitigate on the challenges arising from
infrastructure if he keeps watch. Accessibility and communication network
significantly affect the delivery of products to the customer and to the
retailer. He can reduce the expense and liability arising from ineffective
infrastructure by making adjustments necessary.
Also,
inconvenience arising from changes in environmental trends can be reduced if
the retailer monitors trends. New trends not compliant with the business can
make it irrelevant and even push it out of business. Online retailing
especially the use of mobile applications and smart phones can accord compliant
businesses an edge over those which have not yet implemented online services.
Lastly,
retailers need to closely scrutinize the environment in order to adopt steps
combative to a changing customer base. For instance structural demographic
change can alter consumer preference. A population of households being replaced
by single people can alter the demand for certain household’s products consumed
by families. Cultural change of a customer base can also alter demand and
consumer preference. Eastern cultures prefer lighter staple foods than African
FACTORS FOR FUTURE TRENDS
Information and communication technology is a key moderator
in retail marketing and management. Most customers are shifting from the
traditional shopping experience to a new medium of online shopping experience.
This influx is triggered by technological advancement like smart phones tablets
and internet. The national retail federation
(NRF) notes, the number of smart phone users will rise to 159 million in 2015
from 82 million in 2010 in the United States.
Retailers
should therefore in conjunction with this rise train their sales
representatives on the emergent technologies and trends to enhance the shopping
experience of their customers. The employees should stay ahead of the consumers
to be able to attend to their online shopping experiences.
Another
emerging trend is seen in the change of grounds of competition. Traditionally
retailers competed principally on price but with the dynamics brought forth by
online experience, competition has moved beyond mere price wars. Retailers
through the online platforms can personalize product value and customize the
prices to befit the consumer needs. For retailers to stay relevant in the
industry they must redesign their competition strategies beyond the price tag.
Information technology has completely changed
consumer experience. Most consumers prefer to purchase products online from the
smart phones or tablets and through the internet. Consequently retailers must
change in tandem with consumer needs. Retailers should adopt a multifaceted
approach that embraces online shopping and reserving traditional retail method.
The rationale should be to explore new technologies as their downsize retail
stores or premises.
DISTINCTION BETTWEEN ONLINE AND TRADITIONAL
RETAILER
Traditional retailer is a proprietor who operates from a
physical store or office into where customers walk in to obtain services or
products and may or may not include delivering the products to the consumer
premise. Such retail stores are also called brick- and- mortar. They deal with
their clients face to face. Online retailers on the other hand are who operate
a central store from where the products sold on an online platform and then shipped
to the clients.
Online retailing and marketing provides the retailer with a
greater flexibility and convenience. By virtue of operating online, the retailer
does not have to be in the retail store in order to sell his clients so long as
he is online. The store does not rely on opening hours like in traditional retailing.
Online retailers enjoy reduced cost of operation. Since the
customer and the retailer interact virtually. Pilferages and shoplifting losses
are minimized. Due to minimization of working space the cost of human resource
requirement reduces as few online sellers can handle perfectly several clients.
The online system can incorporate automated finance control documentation, and
this can cut down significantly operational costs.
Internet marketing consolidates a huge catchment of
customers. The potential customers are proportionate to the number of users.
This is contrary to traditional users who rely on the customers who visit their
stores. It follows that online retailers have more clients than traditional
retailers.
Apart from those merits, online retailing also provides the
customer with strong consumer-retailer relations. The retailer can send a
follow up e- mail of thank you or asking for feedback or send the customer
tailor made offer. This constant communication via online platform strengthens
customer relations hence more dependability and confidence on the retailer.
However, online retail brands, logos and trademarks can be
copied by competitors. The competitors can use the information the retailer
posts as a tool for completion. The competitor can use the information to
slander and tarnish another retail store corporate image.
Malicious users place a lot of sperm and viruses on the
internet causing most internet users to advert phobic. Since the advertisement
banners do not get to the intended potential clients marketing becomes
ineffective. When marketing becomes ineffective then the products do not move.
This is unlike traditional retailers who do not rely on internet for marketing
and sales.
Lastly, internet breakdown and strength can negatively
affect online marketing. When connection is low or unavailable or when the
consumers have lost their smart phones or tablets, the online shop becomes non-operational
to online customers. When the online platform is interfered with sales too is
interfered with.
MY CHOICE RETAIL STORE
I
prefer online retailing to traditional retail store due to the diversity in
market. The strong consumer relations arising from follow up and feedback. As
opposed to the rigidity of traditional retail, online retail allows greater
flexibility to the retailer and convenience to the customers and hence greater
customer satisfaction. The best approach to retail marketing is incorporating
the two retail channels into a hybrid that encompass both online and
traditional.
SHOPPING INVOLVEMENT
High
involvement shopping refers to purchase of products with a higher opportunity
cost. The customer has a higher interest in buying and consuming the product
and a higher risk is attached to any shopping flaw. Conversely, Low involvement
shopping refers to the purchase of inexpensive low risk items with a low
opportunity cost. The customer can decide to forego the product since it ranks
lower in his scale of preference.
HOW
TO CHOOSE A RETAIL CHANNEL FOR LOW OR HIGH INVOLVMENT SHOPPING
In
my opinion high involvement shopping should be suited for online marketing.
Since they attract a greater interest and commitment of the consumer, he might
require more time to examine the products on line and ask questions before he
decides to buy it at his own convenience. Because of the high dependability,
trust and confidence required by the consumer from the retailer regarding the
product they should be retailed online.
Online
retailers are always more careful with their products since they thrive on
credibility. They can handle products which are very expensive and important to
the consumer due to the retailers’ flexibility and seamless service delivery.
Such items can be bulky machines and electronics like power generators, Music
Theater, refrigerators or portable very expensive machines like lap top
computers and tablets.
Low
involvement shopping on the other hand should be reserved for traditional
retail. Since there is a low value attached to them, their shipping expenses
can override profits. Consumers can forego the items and might opt reduce the
cost of shopping online for them since it would be cost ineffective. Most
consumers would rather grab the items from the nearby traditional retail store
since there is no need for strict selection due to low risk attached.
CONCLUSION
Technological change
has placed in the hands of man new channels to allow customers have a better
experience in shopping. Online retail marketing though has its disadvantages;
should be embraced by retailers to diversify their shopping experience to that
which fits the discretion of the customer. Retailers should adopt online
marketing strategies apart from traditional channels in order to also stay
competitive.
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