What is the retail marketing mix?

The marketing mix is a strategy that businesses use that features ‘the 4 Ps’, which are:

• Product
• Price
• Place
• Promotion

The goal of the marketing mix is to attract and retain customers, which helps increase sales and profitability. Simple, right?

Well, yes – but also, no. If it was simple, every business out there would adopt it and be a roaring success and everyone would buy a boat. The truth is that the marketing mix is an incredibly successful strategy, but only if implemented correctly.

The retail marketing mix goes one step further (or should that be three steps further?), by adding three additional Ps into the mix. So, the seven Ps of the retail marketing mix are: 

• Product
• Price
• Place
• Promotion
• Packaging
• People
• Process

What are the 7 Ps of the retail marketing mix?

Here are what each of these Ps mean and why they’re an important part of the retail marketing mix.

1. Product

The first and most important P is your product. This is what you sell to your customers to make sure their needs and wants are met. You may offer a wide range of products, or focus on a specific type of product. Similarly, these may be products from a single brand or, more likely, a range of brands.

Products need to be of a consistently high quality and be new and innovative. Everything you stock should appeal to your target customer.

You should be familiar with every product you sell, including the unique selling points (USPs) and pain points. You should also have an understanding of the products offered by your competitors and what they offer that perhaps you don’t.

2. Price

For your customers, price will always be a major consideration. It can be the difference between someone making a purchase and not, even if the product meets that exact need and helps them overcome a major pain point. This especially applies to luxury items, which are generally high priced, and if they’re not affordable it will put customers off from making a purchase.

In a time when even the cost of living is sky-high, price will always be a stumbling block for many. On the flip side of this, products that are priced too low can be seen as inferior or a budget option, so questions related to quality can come into play even if it’s not the case.

When it comes to pricing, there are several factors to bear in mind:

• Your pricing strategy: this might be skimming, value-based or penetration pricing
• Look at competitors: Keep a close eye on what competitors charge for the same or similar products to ensure you remain competitive
• Perceived value: Make sure the price of your products reflects value for money
• Discounts and promotions: Limited-time offers and discounts can convert customers and boost sales

3. Place

In retail the place is the location of your store, whether that’s online or a brick-and-mortar store. However your customers buy products from you, so your place needs to be simple, accessible and user-friendly.

Physical stores should be modern and clean and products should be easy to find. It’s important to pay attention to foot traffic and parking unless you have a niche product that a specific target customer is likely to travel to.

Your website should be easy to navigate, responsive and robust so it appeals to your target audience. It’s important that it also looks visually appealing and professional.

4. Promotion

The fourth P is one of the most frustrating, not just for retail businesses but businesses across all industries: promotion. How do you get your name out there so your target customers know you have the products they want at the price they want to pay?

Marketing your business comes at an expense, but a necessary one (unless you happen to be exceptionally lucky and rely on word of mouth alone, but even then…). However, if you market your business effectively, you should experience a valuable return on investment.

Some of the marketing strategies you could undertake include:

• Content marketing
• Search engine optimisation (SEO)
• Email marketing
• Social media marketing
• Influencer marketing
• Paid advertising
• PR

Which strategies you pursue will depend on your business, target audience and budget

5. Packaging

The first of the Ps is exclusive to the retail marketing mix is packaging. Packaging is a major contributor towards improving sales and impulse buying. If a product looks good, then it’s going to sell more than a rival product that has poor packaging.

As a retailer, unless you exclusively sell your own products, you won’t have much influence over packaging. However, displaying products to show off packaging and stocking products with more attractive packaging should be a consideration.

As part of this, the appearance of your website and/or physical store, and your employees, should also reflect your brand values. This may include an employee uniform, product information and product displays.

6. People

The second of the Ps specific to the retail marketing mix is people. For many retail businesses, your employees can be the difference between success and failure. This may be through being a strong salesperson or offering consistently helpful advice and customer service.

This applies to everyone in your team, from managers to shop-floor staff. A strong workplace culture that reflects your company values will always go a long way.

Getting customers in through your doors (digitally if you’re an eCommerce brand) is only half the battle. Retaining customers and ensuring they become loyal and valuable is something else entirely – and a great team of people will help make that happen.

But it goes beyond customer satisfaction. High-performing employees ensure processes are smooth and succinct, use technology efficiently and regularly monitor quality so they’re in a position to make continuous improvements.

7. Process

Operating efficiently in retail involves a lot of individual moving parts. From the manufacturer to the moment a product is sold, it can be a long process.

It’s important to have a solid understanding of your business’ supply chain to identify weaknesses. Remember, a chain is only as strong as its weakest link, so making positive changes can make the process far more effective. This may also potentially help speed things up and even cut costs.

In your store, your process should make sure customers can see the products they want, when they want them. After the stock is delivered to your warehouse there should be minimal stumbling blocks, because the longer it takes you to get products on the shop floor the less likely your business is to make money.

How can businesses analyse retail marketing data?

Data is one of the most valuable assets your business can have and ensures you can make informed decisions that are more likely to lead your business to success.

Data can come from different sources, including:

• Sales data from point of sale or eCommerce platforms
• Customer data from CRM software, loyalty schemes or surveys
• Market data from market research or competitor analysis
• Analytics data from Google Analytics, social media and email marketing

Once you have your data, it should be cleaned and formatted so you can gain clear and actionable insights through analysis. This can be a long process, however, platforms such as Apteco Orbit can streamline and automate processes so you can make data-led decisions quickly.

Data can also be used to influence each element of the retail marketing mix:

• Product: Adjust product offerings based on trends and create targeted marketing campaigns based on customer segments
• Price: Make changes to prices based on competitor analysis
• Place: Optimise store layout based on the customer journey and foot traffic analysis or make website changes based on where customers spend most of their time
• Promotion: Sent targeted promotions that customers and potential customers are far more likely to engage with
• Packaging: Make changes to displays and/or packaging based on feedback and trends
• People: Identify skills gaps and implement reward schemes to boost performance and morale
• Process: Streamline processes by identifying issues and making improvements