Marketing mix is often regarded as the cornerstone of success for retail companies. A retailer must engage in planning, research, and analysis before implementing a marketing strategy. At the core of any retail marketing plan is the marketing mix consisting of the four Ps – Product, Price, Place, and Promotion. Furthermore, with packaging gaining immense traction for retail companies in the recent years, packaging is said to be the 5th P of the marketing mix. In the case of services, the marketing mix consists of 3 Ps – People, Process, and Physical evidence. These elements form an integral part of the strategy formulation and decision making-process for retail companies. Still not convinced of the benefits of marketing mix for a retailer? Here are some vital reasons why it is considered inevitable and of great importance in the retail industry:
Aids new product development
During the product design stage for a new item, there could be several ideas which can crop up for a related product that can be designed by the company. The place, pricing, and promotions might be different for these products. It can be classified as a new product; and while designing the marketing mix, retail companies can come up with good ideas for new product development as well.
Better resistance to contingencies
By gaining a clear understanding of their product, processes, people, promotion, retailers can respond to unforeseen contingencies with more agility. During a recession or in a poor business environment, companies will be able to respond better if they have in-depth knowledge of their marketing mix.
Helps in differentiation
When retailers analyze their marketing mix with that of their competitors, there are many different ways you can differentiate yourself from the competitors. The competitor might have poor promotions and by analyzing them, you can create better promotions of your own product. By doing things, companies will gain knowledge on the weak points of the competitors and build on them to get a competitive advantage. For instance, the competitor might have poor promotions and by analyzing them, companies can create better promotions of their own product.
Guide to improve business
Marketing mix is as important to service-based companies as it is for product-based companies. If a restaurant or an interior design business realizes that it’s important, then naturally they can act on it and improve the physical evidence of their business; thereby, bringing in more business. Knowing the people and process are important to the organization and optimizing both can improve the overall efficiency of an organization. Hence, marketing mix is an excellent guide if a retailer wants to improve their business or conduct a gap analysis.
Better product portfolio
When retail companies want to increase the product depth or product line and length, they must make minor changes to the product. In essence, it involves making minor changes in the marketing mix itself. Changes are being made to the product features, to its pricing and possible to its promotions. As a result, by altering the marketing mix and certain features within it, companies can end up with an enlarged product portfolio.