Assignment Code: BRL-002/TMA/2022-23

Course Code: BRL-002

Assignment Name: Retail Marketing and Communication

Year: 2022-2023

Verification Status: Verified by Professor

Attempt all the questions.

(A) Short Type Questions 10x7

Q1) What is retail marketing? Explain the importance of retail marketing.

Ans) Retail marketing encompasses all of the ways a consumer business attracts customers and generates sales of its goods and services. Retail marketing strategies touch virtually everything in a company’s operations, including signage, store layout, sales and promotions, pricing strategies, advertising, checkout processes, and customer service.

A retail marketing mix is similar to the traditional marketing mix, also known as the “4 Ps” of marketing. These include product, pricing, place, and promotion. The retail marketing mix adds two more “Ps” to the mix: people and presentation. These elements represent the value of sales associates and other staff in retail settings, as well as the importance of aesthetics and design in retail locations.

Importance of Retail Marketing

Retailing has mirrored the increasing prominence of the retail industry. Retailing provides necessary service and a positive contribution to the economy. The importance of retailing is given below:

1. Retailing shapes, the lifestyle of people.

2. Retailing contributes to the economy.

3. Retailing dominates the supply chain.

4. Retailing is interdisciplinary.

5. Retailing offers itself as an academic course.

6. Retailers have status as employers.

7. Retailers are gatekeepers within the channel of distribution.

8. Retailers have scope for expanding internationally.

Q2) Discuss the factors which affect the nature of consumer decision marketing.

Ans) While these different types of buyers take their purchase decision in different ways there are important factors that influence all the buying decisions. Let’s discuss the most important factors that Influence the buying decision of a consumer.

1. Economic Factor: The most important and first on this list is the Economic Factor. This one is the main foundation of any purchasing decision. The reason is simple people can’t buy what they can’t afford. The need of a product also doesn’t play a role here, but the most important thing is affordability.

2. Functional Factor: The factor is totally about needs, backed by a logic that what makes sense and also fits in the best interest of the customer. This one factor also plays a very important role in the buying decision.

3. Marketing Mix Factors: There are 4 components in the marketing mix, i.e., product, pricing, promotion, and place of distribution and each of these components have a direct or indirect impact on the buying process of the consumers. The consumers consider various things like the characteristics of the product, price charged, availability of the product at the required location and much more.

4. Personal Factors: The personal factors include age, occupation, lifestyle, social and economic status, and the gender of the consumer. These factors can individually or collectively affect the buying decisions of the consumers.

5. Psychological Factor: When it comes to the psychological factors there are 4 important things affecting the consumer buying behaviour, i.e., perception, motivation, learning, beliefs, and attitudes.

6. Social Factors: Social factors include reference groups, family, and social status. These factors too affect the buying behaviour of the consumer. These factors in turn reflect an endless and vigorous inflow through which people learn different values of consumption.

7. Cultural Factors: Cultural factors have a subtle influence on a consumer’s purchasing decision process. Since each individual lives in a complex social and cultural environment, the kinds of products or services they intend to use can be directly or indirectly be influenced by the overall cultural context in which they live and grow. These Cultural factors include race and religion, tradition, caste, and moral values.

Consumer behaviour can indicate different things like how individuals or groups choose to buy, use, and dispose goods or services, to satisfy their needs and desires. Hence it is important to understand that the consumer behaviour is affected by several factors.

Q3) What is personal selling? Explain the essential elements of personal selling.

Ans) Personal selling is a promotional method in which one person uses skills and techniques for building personal relationships with another person that result in both obtaining value. In most cases the value for the salesperson is realized through the financial rewards of the sale while the customer's value is realized from the benefits obtained by consuming the product. However, getting a customer to purchase a product is not always the objective of personal selling.

Elements of the Personal Selling

Prospecting and Evaluating: Seek names of prospects through sales records, referrals etc., also responses to advertisements. Need to evaluate if the person is able, willing, and authorized to buy. Blind prospecting-rely on phone directory etc.

Pre-Approach (Preparing): Review key decision makers esp. for business to business, but also family:

1. assess credit histories

2. prepare sales presentations

3. identify product needs.

Helps present the presentation to meet the prospects needs.

Approaching the Customer: Manner in which the salesperson contacts the potential customer. First impression of the salesperson is Lasting and therefore important. Strive to develop a relationship rather than just push the product.

Making the Presentation: Need to attract and hold the prospects Attention to stimulate Interest and stir up Desire in the product so the potential customer takes the appropriate Action. Try to get the prospect to touch, hold or try the product. Must be able to change the presentation to meet the prospect needs.

Following Up: Must follow up sale, determine if the order was delivered on time, installation OK etc. Also helps determine the prospects future needs. Accomplishes four objectives:

1. customer gain short term satisfaction

2. referrals are stimulated

3. in the long run, repurchase

4. prevent cognitive dissonance

Q4) What is needs? How needs are different from wants? Explain.

Ans) We human beings have unlimited needs and our needs which we study as consumer needs are the basis of all modern marketing. We can say that needs are the essence of marketing concept. In fact, the key to a firm's survival, profitability, and growth in a highly competitive marketing environment is its ability to identify and satisfy unfulfilled consumer needs better and sooner than the competitor. Behaviour here is focused on consumption related aspects. We also go further to explore the influence such needs have on consumption behaviour.

Needs and Wants

A need is an unsatisfactory condition of the customer that leads him or her to an action to make the condition better. A want is a desire to obtain more satisfaction than is absolutely necessary to improve an unsatisfactory condition.

What Determines Customer Needs

1) Personal Characteristics of the Individual:

a) Genetic: The branch of science dealing with heredity and chemical biological characteristics.

b Biogenic: Characteristics that individuals possess at birth.

c) Psychogenic: Individual states and traits induced by a person's brain functioning.

2) Physical Characteristics of Environment:

a) Climate, including temperature, attitude, and rainfall.

b) Topography - refers to the physical condition of the location.

c) Ecology, including quality of air, ozone layer and food chain.

What Determines Customer Wants

1) The Individual Context:

a) Personal worth or the financial resources available to the individual.

b) Institutional context the groups and organisations that a person belong.

c) Cultural context the influence of a customer's culture and cultural values

2) The Environmental Context:

a) Economy

b) Technology

c) Public Policy

Q5) What are the steps in individual selling? How are they different from the B2B?

Ans) The personal selling process is a method through which a salesperson has direct access to consumers and interacts to convince and draw his attention in building interest in the product or services, he intends to sell. In several other sales situation the salesperson can obtain information on the background of the customer as well as his needs.

Steps in Individual Selling

1. Determine your Best Client Profile: Determine the markets in which the type of people who fit the Best Client ,Profile work, live and play.

2. Research your Prospective Clients: Compile a bank of names of people who fit Your Best Client Profile, including recommendations.

3. Approach your Prospective Clients: Send a pre-call letter/introductory leaflet newsletter. If possible, include a handwritten introduction from the client.

4. Prepare for your Calls: Ensure that all possible homework has been done before you go for the sales call. Review the client history and ensure that all tools are handy and available with the salesman.

5. Call to Set a Time for an Introductory Meeting: Calling in advance to set a time would help to show seriousness and would also convey the message that you value the other person's time.

6. Attend your Introductory Meeting: It is important to keep time and be on time for the introductory meeting.

7. Apply the Prospect Filter: Utilise the MAN concept to judge whether you are targeting the right person.

8. Attend a planning meeting

9. Present your options in person: It is okay to send the information by post or mail, but a personal presence adds a lot of value to the whole.

10. Get the order: Be crisp and always on the lookout for signals that will help you close the sale.

11. Obtain Written Recommendations: Once the order has been secured, ask for recommendations and references that would help gain inroads to other clients.

12. Apply an Effective Client Service Program: Aim at a long-term client service to gain clients in the long term.

Q6) What is “SPIN” selling? Explain.

Ans) Neil Rackham, in his classic book shows how classic sales techniques such as closing and objection-handling can actually reduce your chance of selling, especially in big business-to-business sales situations, where buyers are savvy to the classic tricks. The four question types are described below:

Situation Questions

In big sales, minimize the small talk and focus on finding background detail that can be used to make sense of the buyer's business situation. Context creates meaning. This is about understanding the wider context before you zoom into the details.

Problem Questions

Ask questions to uncover problems which your product can address. If you are selling tractors, ask about maintenance costs, breakdowns and so on. If you are selling life insurance, ask about how many dependents the person has.

Implication Questions

Instead of telling them the problem they have, the goal is now to get them to see (and feel!) the problem. By asking questions which draw out the implications of the problem, they get to feel the pain that will drive them towards your product. This is the 'hurt' of Hurt and Rescue.

Need-Payoff Questions

Having hurt the target person with your implications, you now give them a straw to grasp at by asking how their pain could be resolved. With careful questions, you can get them to the state where they are asking for your product even before you show it to them. This is a very neat 'rescue' of Hurt and Rescue, where they either rescue themselves or ask you to rescue them.

Q7) Explain various categories of advertising with specific examples.

Ans) These categories of advertising could be placed in any of the following for advertising and promotion of products/services:

1. Brochures or Flyers: Tri-fold brochures can be created using a variety of desktop publishing and word processing programmes. If properly created, brochures may hold a lot of information and are a popular type of promotion.

2. Direct Mail: You can send your customers highly personalised mail that is tailored to their personalities and needs. Customers can be asked to provide their addresses by filling out information cards, noting addresses on their checks, etc. Mailing lists can soon lose their relevance. Pay attention to mail that is returned to you. Make the most of your message because this should be handled with caution and can be very expensive. You don't want to overwhelm your stakeholders with information.

3. E-Mail Messages: These can be excellent tools for spreading the news about your company. Create a "signature line" in your email programme to appear at the end of each message.

4. Magazines: Magazine advertisements can be rather pricey. Discover whether there is a magazine that specialises in your specific sector. The magazine might be quite helpful if there is one because it already has a focus on your market and potential clients.

5. Newsletters: This can be a potent way to promote the nature of your company and its offerings. For the initial design and layout, take into account hiring a consultant.

6. Newspapers (Major): Nearly everyone reads the prominent local newspaper(s). The cost of advertising can add up quickly. Newspapers may be a great resource for guidance on what to advertise and how to do it.

7. Newspapers (Neighbourhood): Ironically, these are sometimes overlooked in favour of major media even though local publications frequently serve the interests of the organization's stakeholders best.

8. Online Discussion Groups and Chat Groups: Similar to e-mail, engaging in online discussion groups and chat groups will give you regular exposure to both you and your business.

9. Posters and Bulletin Boards: Placing posters where your clients would see them can make them incredibly effective marketing tools. But consider how frequently you have personally observed posters and noticeboards.

10. Radio Announcements: The fact that radio advertising are frequently less expensive than television ads and that many people still listen to the radio is a significant benefit. Adverts are typically offered in packages that take into account the quantity, length, and timing of the ads.

11. Telemarketing: The use of telemarketing is on the rise.

12. Television Ads: Due to the perception that television advertisements are expensive, many individuals never even consider them. They cost more than the majority of popular kinds of advertising.

13. Web Pages: Even two years ago, if you had read a list of advertising techniques, you most likely would not have seen this form of advertising on it. Nowadays, online advertising and promotions are practically standard.

14. Yellow Pages: If your ads are strategically positioned in the directory's service categories, your company name is descriptive of your services, and/or your ad stands out, the Yellow Pages can be a very effective form of advertising.

(B) Essay Type Questions

Q8) What are the different promotional methodologies for a store?

Ans)

1. Orientation: The action necessary in this situation, which can be a potent marketing weapon, is to comprehend the customer's orientation and present him with the appropriate goods at the appropriate price.

2. EDLP: This encouraged customers to visit frequently in order to take advantage of the low prices, in addition to making larger purchases.

3. POP: Posters, buntings, and display cards are excellent tools to display the goods being offered and inform customers at the point of purchase.

4. TFT Displays: In-store multimedia displays like these are used to display designs and product ads.

5. Entry Gates: These serve as the entry gate for seasonal promotions and schemes. On the windows or through display boards, you may see the prices of popular goods that are offered at discount rates.

6. Welcome Cheer Team at Entry: A group of salespeople greeting consumers outside a storefront while holding expensive fans in their hands, or perhaps holding posters advertising niche programmes

7. Collaterals: They keep hanging in the shop portraying latest product features or discount offers.

8. Product Brochures User Guide: Retailers prominently display brochures or catalogues to advertise discounts or cost advantages.

9. White Board Display: A board with information about current offerings that customers can read to help them decide.

10. Neon Lights: Special lighting effect for the featured product or newcomer.

11. Focus Display Around Product: For the purpose of generating curiosity and communicating new arrivals, brands position focus displays in strategic locations across the store.

12. Employee Rewards Announcement: To encourage employees and encourage consumers to acknowledge them, several stores post a board listing the best employee, star salesperson, or star salesgirl of the month.

13. Display Board of Customer Feedback Snippets: To gain the trust of a new customer, a notice board containing customer feedback notes might work wonders.

14. Bundled Offers: Packages like a free tie with a shirt purchase. with the purchase of the same-brand pants and a 20% discount on each shirt.

15. Freebies: Giving a free gift with products can create excitement amongst customers.

16. Glow Sign Boards: A glow sign board or board with proper lighting with punch line can help getting customer's focus.

17. Complimentary Gifting: Promotional gift like a small alarm clock or a pen to every buyer also makes a big difference in bringing clientele to your shop.

18. Loyalty Membership: These are customer retention programmes that offer points and discounts on purchases that can be redeemed in-store to customers.

19. Peak Hour Management: When business is booming, it is crucial that salespeople divide up the workload among themselves to ensure that no client is neglected.

20. Consultant Approach: Modern retailing allows customers to Touch, Feel, and Experience items firsthand before making a purchase. Front-end salespeople must act as consultants and aid in the decision-making process because customers can occasionally become confused and unable to make a decision.

Q9) What is In-store promotion and how do retailers communicate promotion?

Ans) The following factors contributed to the loss of retail sales and the lack of individuality of earlier retail outlets:

1. Customer qualification was subpar.

2. Salespeople who fail to demonstrate the product or service.

3. The presentation's failure to incorporate gut instinct.

4. Salespeople's lack of expertise on the product and its rivals. Fighting with a client.

5. In selling similar things, there is no suggestive selling.

6. Letting up too soon.

7. Rigidity in providing customers with solutions.

8. Poor follow-up while receiving consumer orders or when keeping their data.

There is a lot of competition today, and clients have a wide range of stores to select from. Good in-store promos and bargains constantly encourage customers to indulge, therefore they have evolved into a crucial component of a store's survival strategy.

Promotional Objective Parameters

1. Build Awareness: Since new companies and products are frequently unfamiliar to a market, first promotional efforts must concentrate on forging an identity. The marketer must concentrate on advertising in this case in order to effectively contact clients and inform the market of who they are and what they have to offer.

2. Create Interest: It can be difficult to get a buyer to buy a product from the point of awareness. Before seriously considering a purchase, customers must first acknowledge that they have a need. Marketing has historically been characterised by the emphasis on developing messages that persuade consumers that a need exists, with advertising appeals aimed at fundamental human traits like emotions, fears, and humour.

3. Provide Information: Some promos are made to help clients when they are doing their research before making a purchase. In other instances, such as when a product is so innovative it establishes a new product category with few rivals, the material is just designed to describe the product and may not include any rivals. Informational promotion may also be used to support a product positioning strategy in other circumstances where the product competes in an already established market.

4. Stimulate Demand: A successful campaign might encourage buyers to buy something. The goal of promotional campaigns for products that a client hasn't bought before or hasn't bought in a while can be to entice them to give them a try. On the Internet, this is frequently observed when software providers offer free trials or even free downloads of their goods. When it comes to products that already have a loyal following of buyers, promotions can motivate consumers to make more purchases by giving them an incentive to do so earlier or in larger quantities than usual.

5. Reinforce the Brand: Once a purchase has been made, a marketer might utilise promotions to foster a strong bond that may result in the buyer becoming a devoted client. For instance, many retail establishments now request a client's email address so that follow-up emails with further details about the product or even a promotion to buy more items from the retailer can be sent to build the relationship between the customer and marketer.