Most business people who run small businesses would surely be aware of the answer to this question. It is known to most business people that the sales and profits are dependent on the marketing or promotions of a certain product or service. This is perhaps the one thing that most new business owners tend to overlook. In a nutshell, it is the sales part that directly affects the bottom line of any business or company. So, how do you determine which marketing mix element deals specifically with retailing and marketing channel management? You can’t simply look at the profit margin of your sales revenue and use that as the basis for evaluating your marketing mix.
The sales and profit of a retail outlet largely depend on how well the retailing and marketing activities are being managed. If you have a very high profit margin but your retailing and marketing activities are fairly dull, then there’s nothing wrong with your retail outlet’s sales revenue and profits. On the contrary, you might be able to improve upon your sales revenue by improving the promotion and marketing of your products and services. However, if your earnings don’t increase at all despite of your having a high profit margin, then it would be wise to re-examine what are you doing wrong? Are your retailing and marketing costs affecting your sales revenue negatively?
If your answer to the question is that your retail outlet is not doing well in terms of retail sales because of your marketing mix, then you should focus on improving your marketing activities. But before you can do so, it would be best to identify which marketing mix element deals specifically with retailing and marketing channel management. The common factors that are typically interrelated when it comes to effective retailing and marketing activities include the following:
* Target market – when it comes to retailing and marketing activities, you should identify your target market first. It would be a smart move for you to identify the type of consumer that you wish to target before engaging in any marketing or advertising activity. The more you know about the type of consumer that you are targeting, the easier you will be able to create appropriate marketing strategies targeting your target consumers. For example, if you are opening a clothing boutique, then you should know which type of clothing you are dealing in before you spend too much time and effort into creating marketing strategies. This is important because not everything works out for everybody, and sometimes, even if you manage to get the target consumer to purchase from you, they may not be interested in what you are offering.
* Marketing channels – it would be a good idea for you to study the different marketing channels that you can choose to engage in. This is because each marketing channel management technique has its own purpose and it would be wise on your part to know which ones are suitable for your type of retail business. You could either do a comprehensive study of the available marketing channels that you can choose to use or you could focus on one such channel to give it sufficient priority in your overall marketing mix. The important thing is that you understand the functions and contribution that each channel plays in your overall strategy for retailing and marketing. This would make things easier for you in the future as you plan for future marketing activities.
* Marketing plans – if you intend to be successful in your retailing business, then you should not rely solely on your sales personnel and your marketing plans. As a matter of fact, you should also have a thorough understanding of your marketing mix and the way these two elements should be incorporated in your overall business strategy. This is important because you want to ensure that your retailing activities are giving you positive results but at the same time, they are also working to meet your strategic goals. This means that you should have a clear picture of what you intend to accomplish in a certain period of time. This will give you a basis on which you could work on and improve your strategy while ensuring that all aspects of the business are being taken care of. This is how you will be able to come up with effective marketing activities that will work to boost your sales and thereby your profit margin.