Retail Management

Module 4: Retail Marketing Mix

• Product – Meaning – decision related to selection of goods in retail
stores – Visual Merchandising – (2M/5M)
• Decisions related to delivery of Service – Service delivery process
(2M/5M)
• Pricing-factors influencing pricing decisions (2M/5M)
• Approaches to pricing – Value-based, competition-based, cost-plus,
psychological and dynamic pricing – (2M/5M/15M)
• Price sensitivity -meaning only –(2M)
• Value pricing – meaning only –(2M) Markdown pricing – meaning
only –(2M)
• Markdown pricing – meaning online(2M)
• Place :meaning, Supply chain Management – meaning, concept and
principles – (2M/5M/15M)
• Retail logistics – meaning and Types (2M/5M)
• Computerised replenishment System – Meaning only (2M)
• Corporate replenishment policies – Meaning
• Promotion-objectives – retail communication effects
• Promotional mix –advertising, personal selling, sales promotions,
direct marketing, public relations, and branding (15M)
• Human resource Management in Retailing – Manpower planning-
Recruitment-Training- Compensation – Performance appraisal
methods- (Concepts only/ Seminar/Assignments
 RETAIL MARKETING MIX
Introduction
Retail marketing comprises all of the techniques through which a
consumer firm attracts customers and sells its goods and services. Signage,
store layout, sales and promotions, pricing strategies, advertising,
checkout processes, and customer service are just a few examples of how
retail marketing strategies affect a company’s operations. The retail
marketing mix, often referred to as the 4 Ps, is a strategic framework that
retailers use to plan and execute their marketing strategies effectively. It
consists of four key elements that combine to meet the needs and desires
of customers while achieving the retailer’s objectives.
A retail marketing mix resembles the traditional marketing mix, popularly
known as the “4 Ps” of marketing. These are product, pricing, location, and
promotion. The retail marketing mix includes two additional “Ps”: people
and presentation. These characteristics indicate the importance of sales
associates and other retail workers, as well as the relevance of aesthetics
and design in retail settings.

Product
Meaning and Definition
The term ‘Product’ refers to “the bundle of tangible and intangible
attributes that a seller offers to a buyer in return for a particular
predefined amount of payment in a particular mode.” In other words, the
term “product” refers to “a tangible item or intangible service that a
company offers to its customers.”

Product Mix
Product mix refers to “a company’s entire variety of products and/or
services. A product mix is made up of product lines, which are related t

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Retail Product mix refers to “mixing and blending of entire variety of
selling products and/or services. A product mix is made-up of product
lines, which are related things that customers like to use together or
consider to be similar products or services.”

Decisions Related to Selection of Goods

1. Product Line: This term ‘product line’ refers to “a group of

products that are all in the same class and sold to the same
customers, have the same qualities, and are marketed through
the same distribution channel, but for distinct market sectors”.
Product decisions for a product line include:
a) Line Extending, and
b) Line Filling.
The product strategy determines whether a retail
organization will have a single product or multiple products.
‘Retail Product line’ is an expression used to describe set-off
items that are closely related,
2. Product Mix: The term ‘product mix’ refers to “a collection of all
the products provided for sale by a specific company. “The
‘Retail Product Mix Strategy’ encompasses all of a company’s
product lines and products. A company has several alternatives
for improving its product mix. It might introduce new products
to a certain product line or new product lines,
broadening its product mix. This brings us to the more pressing
issue of product diversity.

Decisions related to Delivery of Service

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Running a successful service business should be linked to providing
exceptional service. If not, why even consider starting a service
business? However, if all organizations that provide services
effectively compete on the basis of providing the service, the essential
differentiation is the service management model and the ability to
execute it.

Decision related to delivery of services is discussed in detail as

below.
1. Service Culture: Service delivery pertaining to service leadership,
conventions, work habits, vision, mission, and values all
contribute to service culture. Service Culture is the set of
overarching principles by which retailers manage, maintains, and
develops the social process that presents itself as service
delivery and customer value.
2. Employee engagement: Employee engagement encompasses
activities such as employee attitude, purpose-driven leadership,
and HR practices. Even the best-designed processes and systems
will be ineffective unless they are carried out by individuals who
are more engaged.
3. Service quality consists of strategies: Service quality is comprised
of strategy, methods, and performance management systems.
Strategy and Cube process design is the critical components of
the overall service management paradigm.
4. Customer Experience: Customer experience encompasses
customer 18000 of not intelligence, account management, and
continual improvement. Perception is king, and it is critical for
continuous collaboration to regularly assess how both customers
and end users view service delivery.

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Service delivery process
The service delivery process has been discussed has below
1. Need Assessment: To provide a service must first completely
comprehend our clients requirement. These us professionals
employee tried and true approaches to determine demands of
their clients.
2. Plan of Action: A plan of action can be formed based on the
information gathered during the needs analysis. The plan of
action may include both short-term and long-term measures.
Short-term objectives, for example, may necessitate the creation
of a project plan outlining the strategy, steps, and resources
required to fulfill management’s goals. A long-term activity
could be specifying the amount of commitment required for a
These us professional to assist in the maintenance and
improvement of existing management systems.
3. Performance: The chosen line of action determines
performance. Performance may involve, for example, periodic
consulting meetings in which concerns are examined and
interpretations and recommendations are made. Performance
may entail coaching or mentoring a person who will fill a job in
standards and regulatory compliance or process improvement.
4. Results: A successful customer relationship is dependent on the
consulting firm’s ability to provide outcomes. These
professionals are results-oriented, whether the results given are
demonstrable process improvements compliance or certification
to a standard or legislation, or effective training.

Pricing
The price at which the product is sold to the end customer is called
the retail price of the product. The retail price is the sum of the

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manufacturing cost and all the costs that retailers incur at the time of
charging the customer.

Meaning of Price
Price refers to “the specific amount of money that a buyer is expected
to pay in exchange for a product, service, or asset. It is the monetary
value attached to a particular item or offering.”
Pricing
The pricing approach is used to change the cost of the producer’s
offerings to make them more suitable to both the manufacturer and
the customer. It involves various strategies, methods, and
considerations to set a price that aligns with business goals and
market conditions.
Pricing refers to “a process of fixing the value that a manufacturer will
receive in the exchange of services and goods”. In other words, Pricing
is “the process of determining the appropriate price for a product or
service”.

Factors influencing Pricing Decision

Pricing decisions are influenced by the factors like internal and
external to a business. These factors can vary depending on the
industry, market conditions, and the specific product or service being
offered. The following are some of the key factors that influence
pricing decisions which are discussed as below:
1. Internal Factors: Internal factors refer to the factors operating
within the retail organization. The following are internal factors
that influence retail prices as below:

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 a) Manufacturing expenses: The retailer takes into account of
both fixed and variable production expenses. The fixed
costs are not affected by the volume of production.
b) Predetermined Objectives: The retail’s goal changes with
time and market conditions. If the company’s objective is
to increase return on investment, it may charge a higher
price.
c) Firm’s Image: The retailer may consider its own market
image. (c Companies with plenty of goodwill, like Procter &
Gamble, HUL and Apple etc. can charge a higher price for
their products.
d) Product Status: The pricing of a product is determined by
where it is in its life cycle. To attract fresh customers, a
retailer may charge a reduced price while launching the
product on the market. The company raise the price once
the product is approved and established in the market.
e) Promotional Activity: If a retailer spends a lot of money on
advertising and sales promotion, it will keep the product
prices high to make up for the investment.
f) Cost of Capital: A retailer may consider the cost of
borrowing money or the return on investment when
setting prices for products or services with long production
cycles.
g) Brand and Reputation: A strong brand and a positive
reputation can justify premium pricing. Customers may be
willing to pay more for products or services associated with
trust and quality.

2. External Factors:
The following are external factors that influence retail prices:

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 a) Competition: If there is a lot of competition, the prices may
be kept low to compete successfully, and if there is not
much competition, the prices may be kept high.
b) Consumer Buying Power. The sensitivity of customers to
price volatility and their purchasing power both contribute
to price setting.
c) Demand and Supply: The interaction between demand and
supply in the market plays a significant role in pricing.
d) Elasticity of Demand: The price elasticity of demand
measures how responsive consumer demand is to changes
in price.
e) Government Policies: Government manufacturing laws and
regulations, as well as the announcement of administered
prices, can all increase the price of a product.
f) Market Conditions: When the market is in a downturn,
customers’ buying patterns change. Product prices are
reduced to influence their purchasing behaviour.
g) Levels of Channels: A retailer must assess the number of
channels engaged in the supply chain from manufacture to
retail, as well as their expectations. The more expensive
the product prices, the deeper the level of channels.

Approaches to Pricing (Price fixing Method)

Pricing is a critical component of marketing strategy, and businesses
can adopt various pricing approaches to achieve their marketing
goals. Setting a price for a service or product is not a simple
undertaking. A product’s or service’s pricing is kept at a level that will
result in profits as well as demand. The lower price limits are usually
provided by the cost of the service or product, though. Although the

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maximum price that can be charged depends on how customers
perceive value.
The following are some common pricing approaches in retail
marketing:
1. Cost-plus Pricing: Cost-plus pricing, also known as mark-up
pricing or cost- based pricing which is a straight-forward method
for setting the price. It involves calculating the cost of producing
or acquiring the item and then adding a predetermined mark-up
or profit margin to determine the selling price.
This pricing approach is commonly used in various industries and
can be a useful starting point for pricing decisions. When the
goal is to recover the product’s production costs, some
organizations employ a cost-plus pricing method. This technique
entails taking the initial investment and raising it by a
predetermined proportion. Physical product retailers frequently
employ this method since their products provide greater value
than the cost of production.
For example, assume that the total cost of a product is ₹70, If
you want a 30% profit margin, your mark-up percentage would
be 30%.
Advantages of Cost-Plus Pricing
The following are the advantages of cost-plus pricing which are listed
as below:
(a)Simplicity: It’s a straightforward method that is easy to
understand and implement.
(b) Cost recovery: Ensures that all costs are covered, reducing
the risk of operating at a loss.
(c) Transparency: The pricing method is transparent and can help
build trust with customers.

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 Disadvantages of Cost-Plus Pricing
The following are the disadvantages of cost-plus pricing which are
listed as below:
1. Ignores Market Factors: Cost-plus pricing does not consider
market demand or competitors’ prices, potentially leading to
under-pricing or overpricing.
(a)Profit May Be Limited: Depending solely on cost-based
pricing may limit profit potential if the mark-up percentage
is not sufficiently high.
(b) Doesn’t Reflect Value: It doesn’t take into account the
perceived value of the product or service to customers.
2. Value-based Pricing: Value-based pricing is a strategic pricing
approach that focuses on setting prices for products or services
based on the perceived value they provide to customers. This
approach recognizes that customers are willing to pay a price
that aligns with the benefits and value they receive from a
product or service, rather than just the cost of producing it. In
other words, “Value-based pricing is an approach to determining
how much to charge for a product or service based on how much
customers believe it is worth.” Companies may set prices that
represent the value of their goods by understanding what
people are willing to pay.
Value-based pricing is particularly effective for businesses with
unique or differentiated products and services. By
understanding and delivering on what customers’ value most,
companies can establish a strong competitive advantage and
capture higher profits.
For Example, Apple, Starbucks, and Tesla Motors have all used
the power

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 Of value-based pricing for their products in order to capture
their customers’ hearts and wallets.

Advantages of Value-Based Pricing

The following are the advantages of value-based pricing which is
listed as below:
1. Maximizes Profit: Value-based pricing can lead to higher profit
margins because it captures the maximum value customers are
willing to pay.
2. Aligns with Customer Needs: Prices are aligned with customer
perceptions of value, making it more likely that customers will
be satisfied with their purchases.
3. Differentiation: It allows for product differentiation and
positioning as customers perceive unique value in the offering.
Disadvantages of Value-Based Pricing
The following are the disadvantages of value-based pricing which is
listed as below:
1. Complex: Implementing value-based pricing can be complex,
requiring in-depth market research and ongoing analysis.
2. Subjective: The perceived value of a product or service can be
subjective and may vary among customers.
3. Competitive Pressures: In competitive markets, it may be
challenging to maintain high prices if competitors offer similar
value at lower prices.

a) Competition-based pricing: Competition-based pricing is

a strategy that sets the price of a product or service
based on the prices charged by competitors in the same

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 industry. This approach takes into account the prices set
by direct competitors as a primary factor in determining
the price of a product or service.
Competitive-based pricing involves setting prices in line
with or relative to competitors’ prices. Businesses may
choose to price their offerings below, at, or above
competitors’ prices. Competition-based pricing is often
used in industries where products or services are
relatively homogeneous and customers make
purchasing decisions primarily based on price.
For examples, the pricing battle between Coca-Cola and
Pepsi. To remain competitive, both companies regularly
observe each other’s pricing and promotional strategies
and modify their rates accordingly. To attract customers,
they also offer various discounts and promotions, such
as “Buy One, Get One Free” deals or multi-pack
discounts.

Advantages of Competition-Based Pricing

The following are the advantages of competition-based pricing which
is listed as below:
1. Simplicity: It provides a straight-forward pricing strategy that is
easy to implement.
2. Market Alignment: It ensures that the prices are competitive and
in-line with industry standards.
3. Reduces Price Wars: Competitive-based pricing is closely aligning
with competitors, it can help prevent destructive price wars.

Disadvantages of Competition-Based Pricing

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The following are the disadvantages of competition-based pricing
which is listed as below:
1. Limited Profit Potential: It may not optimize profit potential if
the product or service has unique features or qualities that
justify higher prices.
2. Price Wars: Competitors may engage in price wars, driving down
prices and reducing profit margins.
3. Ignores Customer Value: It doesn’t consider the specific value
the product or service offers to customers, potentially
undervaluing the offering.

a) Dynamic pricing: Dynamic pricing, often known as demand

or surge pricing that represents market demand at the
time. It is a flexible method that is employed when prices
fluctuate on a daily or even hourly basis. Dynamic pricing in
marketing refers to the practice of adjusting the prices of
products or services in real-time based on various factors,
such as demand, supply, competitor pricing, customer
behaviour, and other market conditions. This pricing
strategy is enabled by technology and data analysis,
allowing businesses to optimize their pricing for maximum
profitability and competitiveness.
Dynamic pricing may be used by industries such as airlines,
hotels, e- commerce, utility companies, and event
management businesses based on market trends.
Amazon, Flipkart, Uber, Oberoi and Taj hotels, Air India,
and Indigo, etc. are the examples of dynamic pricing.

Disadvantages of Dynamic Pricing

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The following are the disadvantages of dynamic pricing which is
discussed as below:
1. Customer Perception: Customers may feel that dynamic pricing
is unfair or manipulative.
2. Complexity: Implementing dynamic pricing requires advanced
data analysis and technology.
3. Risk of Price Wars: Competitors may engage in a price war,
leading to lower overall prices and reduced margins.

a) Psychological pricing: Psychological pricing is a pricing

technique that approaches the subconscious thinking of
the buyer, such as selling goods and services for slightly
less than the whole amount. In other words, psychological
pricing is a sales strategy where businesses set prices that
might appear lower or more valuable to the customer.
Psychological pricing is a pricing strategy that leverages
psychological principles and customer perceptions to
influence buying decisions by setting prices that seem more
appealing to consumers.
This strategy is based on the idea that consumers don’t
always make rational decisions about pricing and are often
influenced by emotional and psychological factors.
Psychological pricing often involves setting prices just
below round numbers (e.g., ₹99 instead of ₹100) or using
specific pricing techniques to create a perception of value.
For example, buy one Get one, two items 50% off, offer
stating one Day sale on selected products, instead of 150,
the product is priced at 149.99.
Advantages of Psychological Pricing

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The following are the advantages of psychological pricing which is
discussed as below:
1. Perceived Value: The psychological aspect of pricing is that it can
create the perception of a lower price or better value in the
minds of consumers.
2. Increased Sales: Lower perceived prices can lead to increased
sales because customers may be more likely to make a purchase
when they feel they are getting a deal. This can be particularly
effective for price-sensitive consumers.
3. Emotional Appeal: It can create a sense of urgency (e.g., limited-
time offers) or excitement (e.g., discounts), which can drive
purchasing decisions.

a) Price Sensitivity: Price sensitivity in marketing refers to

“how responsive consumers are to changes in the price of a
product or service”. In simple words, “the degree to which
demand changes as the price of a product or service
changes is known as price sensitivity”. Price sensitivity is
commonly measured using the price elasticity of demand,
which states that some consumers won’t pay more if a
lower priced option is available.

a) Markdown pricing: Markdown pricing, also known as discount

pricing or clearance pricing, is a marketing strategy where a
business reduces the price of a product or service to stimulate
sales and move inventory quickly. Markdown pricing is a popular
pricing method in the retail and e-commerce sectors. It involves
decreasing a product’s price in order to clear out stocks, make
room for new stocks, or increase sales.

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Place (or Physical Distribution)
Meaning and Definitions
Place or Physical distribution refers to “the movement of finished
goods from a company’s distribution and fulfillment network to the
end user.”
In other words, Physical distribution is “the movement of goods,
products, and raw materials between warehouses, factories, and
distribution centres, and sending finished products to the customer. It
involves sales distribution channels, such as ecommerce and
wholesale, and components like customer service, inventory,
materials, order processing, and transportation.”

Supply Chain Management

Meaning and Definitions
A Supply Chain refers to “a mechanism designed to transfer goods
from suppliers to customers. A supply chain is a group of companies
and people engaged in the manufacture and distribution of a good or
service.”
Supply Chain Management refers to “monitoring and improving the
flow of a product or service throughout the supply chain. In other
words, the coordination of all the activities required to create and
deliver goods and services to customers is known as supply chain
management.”
Components of Supply Chain Management
1. Plan: This is the strategic portion of Supply Chain Management.
Companies need a strategy for managing all the resources that
go toward meeting customer demand for their product or
service. A big piece of SCM is planning to develop a set of

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 metrics to monitor the supply chain so that it is efficient, costs
less and delivers high quality and value to customers.
2. Source: Companies must choose suppliers to deliver the goods
and services they need to create their product. Therefore, supply
chain managers must develop a set of pricing, delivery and
payment processes with suppliers and create metrics for
monitoring and improving the relationships.
3. Make: This is the manufacturing step. Supply chain managers
schedule the activities necessary for production, testing,
packaging and preparation for delivery. This is the most metric-
intensive portion of the supply chain one, where companies are
able to measure quality levels, production output and worker
productivity.
4. Delivery: This is the part that many SCM insiders refer to as
logistics, where companies coordinate the receipt of orders from
customers, develop a network of warehouses, pick carriers to
get products to customers and set up an invoicing system to
receive payments.
5. Return: This can be a problematic part of the supply chain for
many companies. Supply chain planners have to create a
responsive and flexible network for receiving defective and
excess products back from their customers and supporting
customers who have problems with delivered products.

Principles of Supply Chain Management (SCM)

The following are some key principles and concepts of Supply Chain
Management in the context of retail marketing:

1. Adapt to the needs of the customer: Businesses and supply chain

specialists are aware of customer requirements. To better

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 understanding of customers, they are split-up into groupings
called “segments.” ABC analysis is a simple method of
segmenting customers based on sales volume or profitability.
Additionally, it can be done by industry, trade channel, or
product. Considering the needs of the customer is also crucial.
When consumer needs are anticipated, the supply chain should
be set up to meet those needs.
2. Make a customized logistics network: After consumer
segmentation based- on various criteria, SCM managers must
modify logistics networks to cater to the various segments.
Deliveries must be prioritized, and the SCM manager must take
appropriate measures to dispatch strategically designated
products as soon as possible.
3. Align demand planning across supply chain: Professionals in the
are directed to share information with business partners to
reduce stock. The SCM managers must be careful in their use of
the demand data
4. Differentiate products close to customers: Differentiation and
standardization superfluous are completely opposite concepts.
Instead of producing one Stock-keeping unit (SKU) for each
country, several cosmetic companies only produce one SKU that
can be distributed throughout Asia. The economy of the sales
allows uniformity to significantly reduce costs.
5. Uses strategic outsourcing: Although outsourcing is popular,
managers must do so carefully. Never should core competencies
be outsourced. This idea has endured the test of time.
6. Create IT that facilitates multi-level decision making:
Information Technology must be used to smoothen the supply
chain. It shouldn’t be carried out in a vacuum, and business
process reengineering should be carried-out before IT projects.

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 7. Modify both financial and service metrics: The profitability of
the customer is assessed using the Activity-based Costing (ABC)
method. Utilizing time-driven activity-based costing to
understand changes in activities, processes, products, and
customers is even better.

Retail Logistics
Large retailers deal with a broad range of goods. This has made it
necessary to plan the flow of multiple products in an organized
manner until the buyer receives them. By using effective logistics and
adding value, retail logistics makes sure everything is in place to
provide better delivery and service at less expensive prices.
Meaning and Definition
The word logistics is derived from the french word ‘loger’ which
means “to quarter and supply troops”.
Retail logistics refers to “the process of planning, implementing, and
managing the flow of goods and services from suppliers to retail
stores or directly to consumers in the retail industry and the
systematic method of controlling the flow of goods from the supplier
to the buyer”
In simple, ‘Retail logistics’ is the organist process of managing the flow
of merchandise from the source of supply to the customer.

Computerized Replenishment System

A computerized replenishment system, also known as an automated
replenishment system or automated inventory replenishment system,
is a technology-driven approach to managing and restocking inventory
in a business. Computerized replenishment systems are widely used in

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various industries, including retail, manufacturing, distribution, and
healthcare, where effective inventory management is critical to
business success.

Meaning of Computerized Replenishment System

Computerized Replenishment System refers to a “system that
analyses inventory levels and lead times and re-ortlers stock to meet
forecast sales needs.
Computerized Replenishment System uses computer software and
algorithms to monitor inventory levels, predict demand, and
automatically reorder items when they reach predefined minimums
or reorder points. This system helps businesses streamline their
inventory management processes, reduce stock-outs and overstock
situations, and improve overall supply chain efficiency.

Corporate Replenishment Policies

Computerized replenishment policies refer to the automated rules
and algorithms used by computer systems to manage and optimize
inventory replenishment.
These policies are designed to streamline the inventory management
process, ensure that stock levels are maintained within desired
parameters, and minimize the risk of stock-outs or overstock
situations. There are several common computerized replenishment
policies, each with its own approach and suitability for different types
of businesses and products.
The choice of which computerized replenishment policy to use
depends on factors such as the nature of the products, demand
patterns, lead times, and business objectives. Many modern inventory

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management systems and software applications offer the flexibility to
implement multiple replenishment policies for different items within
a single inventory.

Promotion
The word promotion has its origin in the Latin term ‘promovere’,
which means moving from one end to another. Promotion means
promoting the goods of the manufacturer. Promotion is a marketing
tool used as a strategy to communicate between sellers and buyers.
Through this, the seller tries to influence and convince the buyers to
buy their products or services.
Meaning and Definition
Promotion refers to the activities a company engages in to
communicate with its target audience, create awareness about its
products or services, and persuade customers to buy.
The American Marketing Association Promotion means “media and
non-media marketing pressures applied for a predetermined, limited
period of time in order to stimulate trial, increase consumer demand,
or improve product quality.”

Objectives of Promotion
Promotion in marketing serves various objectives, and these
objectives can vary depending on a company’s goals, target audience,
and stage of the product or-service life cycle. The following are some
common objectives of promotiom.
1. To Stimulate Demand: This is the main objective of market
promotion.The business can increase demand for the product by

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 using effective market promotion strategies, such as advertising,
sales promotion, personal selling, and others.
2. To Inform Consumers: The purpose of promotion is to inform
consumers about the benefits, attributes, capabilities, value, and
accessibility of a company’s products. Market promotion is a
useful tool for informing customers about updates to current
items and the arrival of new ones.
3. To Convince Consumers: Market promotion is a powerful tool
for persuading customers that your product is superior to that of
your rivals. A company might advertise the competitive
advantages its product offers to set it apart from those of rivals.
4. To Promote New Product: Market promotion is a necessary tool
for promoting a new product in a large, scattered market. A
business can successfully launch a new product on the market in
comparison to competing products by using effective
promotional techniques.
5. To Face Competition: Market promotion gives the company the
ability to compete successfully. Without proper promotional
efforts, it is tough to survive in the competitive marketplace.

Promotional Mix
A promotion mix is a combination of various marketing strategies that
are created by marketers to maximize promotional efforts and reach a
broader audience. To accomplish a specific marketing objective, a
promotional mix combines marketing strategies such as direct
marketing, sales, public relations, and advertising.
The Promotion Mix is the collective names for the various methods
that help a company achieve its goal of promotion. The combination
of a) advertising, b) direct marketing, c) personal selling, d) sales
promotion, and e) public relations is known as the promotion mix.

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1.Advertising:
Advertising is a marketing communication strategy that involves
promoting products, services, ideas, or brands to a target audience
through various media channels. Advertising is the concept of
communicating a message about products and services to a customer
in order for the customer to understand the offering along with its
features, uniqueness, price, offer, benefits, and value in order to be
convinced about making a purchase. Advertising is done through
various media, such as TV, print, radio, online, digital, social media,
outdoor, and more, where advertisements are showcased, showing
the value to the customer.

Meaning and Definitions

Advertising refers to “a process of developing a paid communication
message intended to inform people about something or to influence
them to buy, try, or do something.”
In other words, Advertising refers to “a means of communication with
the users of a product or service. Advertisements are messages paid
for by those who send them and are intended to inform or influence
people who receive them.”

Benefits of Advertising
The following are the benefits of advertising which is discussed as
below:
(i) It helps marketers connect with consumers by
creating awareness.
(ii) It helps buyers understand the worth and
usefulness of the brand.

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 (iii) Effective advertising encourages brand
loyalty and helps create strong communities.
(iv) It facilitates more effective product
promotion by the sales staff, retailers, and
shop owners.
(v) It builds trust among consumers, retailers,
suppliers, and producers.

Limitations of Advertising
The following are the limitations of advertising which is discussed as
below:
1. It requires significant expenditures on the part of the business.
2. An activity that takes a long time.
3. Only advertising can help build a good business. Unless the
product, services, and customer service are good, promotion can
only bring in customers but not retain them.
4. Advertisements can sometimes make false promises and set
unrealistic or artificial standards.

2.Personal Selling
Personal selling entails making direct contact with existing and
prospective consumers via a sales staff. Its goal is to not only engage
and persuade customers to purchase a product or service but also to
establish close connections with them. Personal selling involves the
direct interaction between a sales representative and potential
customers. It’s a sales technique that aims to build a

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One-on-one relationship with individual buyers or clients, tailoring
the sales pitch to their specific needs, preferences, and concerns.

Meaning and Definitions

Personal selling refers to “face-to-face selling in which one person, the
salesman, attempts to convince the customer to purchase a product
assigned by the firm. It is a promotional activity in which the
salesperson uses his or her abilities and skills to persuade people to
purchase the goods in order to make a sale.”
Benefits of Personal Selling
The following are the benefits of personal selling which is discussed as
below:
(a)This is a two-way communication in which the selling agent
receives an immediate response from the prospective buyer
regarding their intent to purchase.
(b) This is an interactive method of selling those aids in the
development of consumer trust. Personal selling is required
when selling high-value products, such as automobiles, since the
consumer must trust the products.
(c) Personal selling is a persuasive kind of selling because clients
come face- to-face with the salesperson, making it difficult to
avoid them, and the buyer
(d) Direct selling aids in reaching the target demographic.

Limitations of Personal Selling

The following are the limitations of personal selling which is discussed
as below:

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 (i) It is an expensive form of selling that involves a large
investment.
(ii) Personal selling requires a huge sales force to be successful;
this strategy requires a large number of laborers.
(iii) Salesperson training for personal selling is also a time-
consuming and costly process.
(iv) The strategy can only reach a limited number of individuals; it
does not deliver mass advertisements such as those found on
television or radio.

3.Sales Promotion
A sales promotion is a marketing tactic in which a company uses a
limited- time campaign or offer to boost interest in or demand for its
product or service. Sales promotions are often used in combination
with other marketing strategies and can be an effective way to
achieve specific objectives, such as increasing sales volume, clearing
out excess inventory, or launching a new product. Companies can use
sales promotion to sell their products and attract potential customers.
Sales professionals might benefit from understanding the
fundamentals of sales promotions.

Meaning and Definition

Sales Promotion refers to “a collection of marketing strategies
designed to generate consumer interest in a product or service, create
brand awareness, and increase income.”
Benefits of Sales Promotion
The following are the benefits of sales promotion which is discussed
as below:
(i) Provides an extra incentive to purchase the product.

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 (ii) Way to appeal to price-sensitive consumers. (iii) Can generate
extra interest in ads.
(iii) Easier to measure efforts.

Limitations of Sales Promotion

The following are the limitations of sales promotion which is
discussed as below:
1. Often, it only has a short-term impact.
2. Often abused.
3. Can lead to promotional wars.
4. Often, it does not contribute to the brand’s image.

4. Direct Marketing
Direct marketing is a marketing strategy where target customers are
contacted directly by the brand instead of having an indirect medium
between them. Direct marketing is a form of advertising and sales
strategy in which organizations communicate directly with potential
customers to promote their products or services. This type of
marketing bypasses intermediaries such as retailers or wholesalers
and reaches consumers directly. Direct marketing is a kind of
marketing in which products and services are promoted by engaging
directly with customers and potential customers. Direct marketing is
conducted through text messaging, catalogs, phone calls, direct mail,
etc. The primary goal of direct marketing is to generate a specific and
measurable response, such as making a purchase, signing up for a
newsletter, or requesting more information.
Benefits of Direct Marketing

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The following are the benefits of Direct Marketing which is discussed
as below:
(i) Concentrate limited resources on targeted promotion.
(ii) Can customize the marketing message
(iii) Response and success may be measured very easily.
(iv) It is simple to test alternative marketing messages.
(v) If the customer database is adequately handled, it is cost-
effective.
Limitations of Direct Marketing
The following are the limitations of Direct Marketing which is
discussed as below:
1. Response rates vary greatly.
2. Ineffective marketing can be expensive.
3. Negative perception of junk mail and email spam.
4. Databases are costly to maintain and keep accurate rate

5. Public Relations
Public Relations in marketing is a strategic communication practice
that focuses on managing and enhancing the relationship between a
company or brand and its various stakeholders, including customers,
investors, employees, the media, and the general public. PR plays a
crucial role in shaping the public’s perception of a brand or company,
building trust, and creating a positive image. A systematic act of
building an image of a product, service, idea, or company among the
target group, general public, or stakeholder groups through a well-
designed promotion on a regular basis. A form of marketing that
seeks to influence the feelings, opinions, or beliefs held by customers,
prospective customers, stockholders, suppliers, employees and the
public about a company and its products or services.

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Benefits of Public Relations
The following are the benefits of Public Relations which is discussed
as below:
(i) Credibility
(ii) Avoidance of clutter
(iii) Ability to reach specific groups
(iv) Image building

Limitations of Public Relations

The following are the limitations of Public Relations which is discussed
as below:
a) Potential for an incomplete communication process
b) Lack of connection between receiver and sender
c) Lack of coordination with the marketing unit
d) Erratic, redundant communications

Branding
A brand is how a company differentiates itself from its peer brands. A
brand can be thought of as the personality of the company,
communicated through an identifying mark, logo, name, tagline,
voice, and tone. Some of the oldest and most recognizable brand
names in automotive, toys, and food and beverage have been around
for decades, with some surpassing more than a century of consistent
and recognizable branding. There are three main types of brands,
including company/corporation brands, product brands, and personal
brands, which apply to individuals. The rules of brand marketing
apply, regardless of type.
Benefits of Branding

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The benefits of branding are discussed as below:
(a)Differentiation: It helps a retailer stand out in a crowded market
by showcasing what makes them unique.
(b) Customer Loyalty: A strong brand can foster customer
loyalty, leading to repeat business and advocacy.
(c) Perceived Value: Effective branding can create the perception of
higher value, allowing retailers to command premium prices. (
(d) Trust and Credibility: A well-established brand is often
associated with trust and credibility, which can attract new
customers.
(e) Consistency: It ensures that all aspects of the retail
experience, from advertising to in-store interactions, are
consistent, reinforcing the brand’s message.
Limitations of Branding
The limitations of branding are discussed as below:
1. Cost and Resource Intensive: Building and maintaining a
strong brand can be expensive. Costs can include design and
marketing expenses, advertising, and ongoing efforts to
ensure brand consistency.
2. Time-Consuming: Building a strong brand takes time. It
involves consistent messaging, customer engagement, and
reputation-building efforts. : Even with a strong brand,
success is not guaranteed Success guaranteed. Market
dynamics, competition, and external factors can impact a
brand’s performance.
3. Vulnerability to Negative Publicity: A negative incident,
controversy, or public relations crisis can damage a brand’s
reputation quickly.

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 4. Consumer Preferences Change: Consumer preferences and
trends can change rapidly. What’s popular today may become
outdated tomorrow.

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