Factors Affecting Pricing:

Several factors influence how a retailer sets prices for its products:

● Cost: The cost of acquiring the product from the vendor, including manufacturing,
transportation, and import costs (if applicable).
● Competition: Pricing needs to be competitive with similar offerings in the market.
● Target Market: The price should be attractive to your target customer segment's price
sensitivity and buying power.
● Demand: Price can be used to influence demand, with lower prices stimulating sales and
higher prices potentially conveying higher quality.
● Profit Margin: The desired level of profit needs to be factored into the final price.
● Government Regulations: Certain pricing regulations or minimum advertised prices may
apply in some industries.

Developing a Retail Price Strategy:

Here are key steps involved in creating a retail pricing strategy:

1. Define Retail Objectives: Are you aiming for high sales volume, maximizing profit margins,
or establishing brand image?
2. Decide Pricing Policy: Will you adopt value pricing, penetration pricing, skimming pricing,
or competitive pricing strategies?
3. Price Adjustments: Consider incorporating markups, discounts, coupons, and price
bundling to influence customer behavior.

Retail Communication:
Retail communication involves all efforts a retailer undertakes to inform, persuade, and remind
customers about their products and services. It's crucial for building brand awareness, driving
sales, and fostering customer loyalty.

Concept of Retail Image:

The overall impression customers have of a retailer based on its communication, store
environment, and customer service.

Classification of Retail Communication Mix Elements:

● Advertising: Paid, non-personal communication through various media channels (TV, print,
online).
● Sales Promotion: Short-term incentives like discounts, coupons, and contests to stimulate
sales.
● Personal Selling: Direct interaction between salespeople and customers to provide
information and influence purchase decisions.
● Publicity: Unpaid, non-personal communication through media coverage, press releases,
and sponsorships.
● Word-of-Mouth: Informal communication between customers about their experiences with a
retailer.

Types of Retail Advertising:

● Broadcast Advertising: Television and radio commercials.

● Print Advertising: Newspapers, magazines, and flyers.
● Online Advertising: Banner ads, search engine marketing, social media advertising.

Media Decisions:

Choosing the right media channels to reach your target audience at an appropriate cost.

Retail Sales Promotion Tools:

● Coupons: Vouchers offering discounts on specific products.

● Rebates: Partial refunds offered after purchase.
● Contests and sweepstakes: Promotional events with prizes to generate excitement.
● Point-of-sale displays: Promotional materials and product presentations at the checkout
area.

Personal Selling:

Training and empowering salespeople to effectively interact with customers, answer questions,
and close sales.

Publicity:

Strategies to generate positive media coverage and brand mentions.

Word-of-Mouth:

Encouraging positive customer experiences that lead to organic recommendations.