Advantages Of Retail Market Segmentation

2) Direct Marketing:

Direct marketing enables retailers to establish personal contact with the customer. It is also provides a key differentiating factor: along with persuade customers to respond instantaneously. The different types of communication in direct marketing are: direct mail, catalogue and mail order, telemarketing and electronic retailing etc.

3) Retail Market Segmentation:

A market is defined as a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods and services to satisfy those needs. Market segmentation is the process of dividing the heterogeneous total market into small groups of customers who share a similar set of wants.

Benefits of Retail Market

The retail outlets can be located where there is a concentration of the target population.

c) Understanding customer behaviour: Segmentation helps a retailer to gain insight into why it dose. The buying behaviour of the target segment can be understood once the market is segmented. This can help in the development of an effective marketing strategy.

d) Merchandising decisions: Segmentation helps a retailer in merchandise decisions. Merchandising is essentially the skill that decides which items will go on the shelves. An understanding of preferences of target segments is essential for a successful merchandising programme.

e) Promotional campaigns: Segmentation helps the retailer in developing more effective and accurate promotional campaigns.

f) Positioning: Segmentation helps a retailer in positioning itself in the market. Thus, shoppers stop and crossroads have targeted the upper-income class, while Westside has targeted the larger base of middle-and upper –middle-class consumers.

B) Retail Management:

Management in retail marketing are given

iv) Compensation for retail personnel:

A proper compensation package is among the best motivators for any job, specially in a retail set up, where the employees are subjected to complex and striky situations for for better part of their jobs. In order to better motivate employees, some firms have introduced profit-sharing in employee compensation packages. Small retailers often pay salaries, commissions, and bonuses and have few fringe benefits, compared to large organizations which generally pay higher salaries, commissions, and bonuses and offer more fring benefits.

v) Supervision of retail personnel: Supervisor is the manner of providing a job environment that encourages employee’s accomplishment. The goals are to oversee personnel, attain good performance, maintain morale, motivate people, control costs, communicate, and resolve problems. Supervision is provided by personal contact, meetings, and reports. vi) Performance appraisal: performance appraisal is the process of determining and communicating to an employee how he is performing the allocated job and planning for improvement in future on the basis of this