Chapter 16.6, Problem 1CY

Summary Introduction

To determine: Components of retail strategy.

Introduction: Retail strategy refers to a marketing approach for a commodity or service which focuses on targeting and attracting consumers. It includes decisions such as pricing of the product, selection of a retail channel, and placement of product in the shop.

Answer to Problem 1CY

Retail strategy aims at targeting and attracting consumers with the help of a marketing approach. The components of retail strategy are:

• Product: Goods or services provided by an establishment to its customers.
• Price: Sum of money paid by customers to acquire the product.
• Place: Task carried out to make the product accessible to the buyer.
• Promotion: Advertisement and marketing of goods to convince the buyers to buy the product.

Explanation of Solution

Mentioned below are the components of retail strategy:

• Product: Product refers to goods or services provided by an establishment to its customers, its features, and its benefits to customers.
• Price: Price refers to the sum of money paid by customers to acquire the product that is based on factors such as the cost of production of the product, its demand in the market.
• Place: Place refers to the tasks carried out to make the product accessible to the buyer through the marketing channels, and distribution strategies.
• Promotion: Promotion refers to advertisement and marketing activities undertaken to communicate about the product to the potential buyers to convince the buyers to buy the product.