Mastering Global Retail Marketing Strategies

Global Retail Marketing Fundamentals

Global Retail Marketing: A retailer is a company or individual that sells products directly to the end consumer.

The STP Marketing Model

STP: Companies use this model to develop and implement their marketing strategy.

• Segmentation: Dividing a market into smaller groups of consumers with similar needs or characteristics.
• Targeting: Selecting the specific segments to serve.
• Positioning: Proposing a unique value for the target segments.

Evolution from 4Ps to 7Ps

The transition from the 4Ps to 7Ps reflects the growing understanding of modern marketing strategy:

1. Product
2. Price
3. Place (Distribution)
4. Promotion
5. People
6. Process
7. Physical Evidence

Points 5, 6, and 7 specifically focus on the customer experience.

The 3Ws and Key Retail Trends

3W: What? Where? When?

Key words: Online retailing, showrooming or webrooming, mobile technology, social media, omni-channel, flagships, private labels, and pop-up stores.

Retailer vs. Manufacturer

Retailer: Conducts sales directly to consumers.

Manufacturer: Transforms raw materials into finished goods, which they then sell to wholesalers or retailers.

Retail Business Formats

• Chain store: La Comet
• Independent store: Nino Alvarez
• Retail co-operative: Coop Italy
• Franchise: McDonald's
• Concession: IKEA

Classification of Retailers by Type

1. Specialist store: Offers a narrow line of products.
2. Department store: Offers several products in separate departments.
3. Variety chain: Similar to department stores, but these are under own brands.
4. Supermarket
5. Superstore/Hypermarket: Caprabo debajo de casa (categorized by size).
6. Convenience store: Small, daily basis products.
7. Catalogue store: Sells a wide variety of products via catalogue.
8. Discount store: High volume or sell-off discounted products.
9. Market trader/Stallholder: Known for low prices.
10. Outlet store: Off-season and cheap products.

The Shift in Retail Power

In the 19th and early 20th centuries, manufacturers held the most power. Now, retailers have increased their power in the supply chain.

Distribution Channels and Strategies

Direct channels: Manufacturer → Consumers.

Indirect channels: Products are delivered through one or various intermediaries (retailers, wholesalers).

Three Available Distribution Strategies:

1. Intensive distribution: Company → Maximum number of distributors.
2. Exclusive distribution: Company → Limited number of dealers (common for luxury goods).
3. Selective distribution: Company → Selected distributors.

Consumer Retail and Behavior

Consumer retail process: Antecedent states → Purchase environment → Post-purchase processes.

Consumer Behavior and Shopping Orientation

• Economic shopper: Rational and price-conscious.
• Personalized shopper: Values attachments to store personnel.
• Ethical shopper: Prefers to support local small shops.
• Apathetic shopper: Disinterested in the shopping process.
• Recreational shopper: Views shopping as a fun and social activity.
• Hate-to-shop shopper: Prefers e-shopping to avoid physical stores.

Dimensions of Customer Experience (CE)

1. Sensory: Engaging the five senses.
2. Affective: Evoking feelings and emotions.
3. Cognitive: Stimulating thinking and mental engagement.
4. Physical: Encouraging action and movement.
5. Social identity: Creating a sense of belonging.

Phases of Customer Experience

1. Pre-consumption experience
2. Purchasing experience
3. Core consumption experience
4. Remembered consumption experience

Global Market Entry Modes

1. Exporting (e.g., Champagne)
2. Licensing (e.g., Disney)
3. Franchising (e.g., Benetton)
4. Concession (e.g., L'Oréal)
5. Joint Venture (e.g., Carrefour)
6. Strategic Alliance (e.g., Star Alliance)
7. Acquisition (e.g., Walmart)
8. Self-start entry (e.g., Inditex - Zara)