In an economy marked by inflation, companies are looking to optimize their sales and marketing strategy. Particularly sensitive to market fluctuations, brands selling through mass retailers need to ensure that their marketing strategy is perfectly aligned with the achievement of their commercial objectives.
To do this, we need to go back toone of the fundamentals of marketing: the marketing mix. But the marketing mix is not set in stone. As we'll see in this article, the marketing mix has undergone several revisions over time, so companies need to choose a model before applying it!
Once we've reviewed these key concepts, it's time to turn to the case that interests you first: how your brand can leverage the marketing mix in its retail strategy.
The marketing mix, also known as the marketing mix, is a strategy that aims to define a company's marketing positioning in its market in a global and coherent way.
Market planning generally follows on from market research. Its aim is to identify and control the expectations of target customers, and to develop a strategy adapted to the market and achievable with the means at the company's disposal, in order to reach commercial objectives.
The next logical step in the marketing mix is the implementation of the marketing plan.
Popularized by American marketing and management professor Jerome McCarthy in the 60s, the 4Ps of the marketing mix correspond to the different levers a company will use to influence demand for its products or services.
The term 4P refers to the components of a successful marketing strategy, all of which begin with the letter P :
To begin the marketing mix, the product strategy, sometimes called product policy, studies all the strategic components of the product (quality, design, functionality, packaging, composition...)t :
Pricing strategy seeks to set the right price for a product and define the overall pricing strategy. It follows on from the product study.
Pricing depends on the target market, existing competitors, product volume and the positioning the company wishes to offer its product.
In addition to calculating product selling prices, discounts, promotions and payment terms must also be included.
The aim is to achieve the highest possible profit, taking into account manufacturing, distribution and promotion costs.
Finally, this financial dimension is complemented by a general pricing strategy:
Learn how to master your pricing policy.
Once you've decided on the product and its price, you need to determine how it will be made available to your target customers, and in particular through which distribution channel. This includes the logistics system, the distribution method and the geographical area.
The distribution policy can be direct or indirect, and sometimes a mix of both. The choice depends on the product itself and the company's sales objectives.
Direct distribution means selling a product to the end customer via its own stores, whether physical stores or e-commerce sites.
The main advantages of direct distribution are close contact with the end consumer and higher profit margins, thanks to the absence of intermediaries.
This option brings with it significant disadvantages: internal costs (personnel, training, infrastructure, etc.) and the cost of a global geographic reach that can prove a deterrent. This cost reality justifies the decision of many companies to address the market indirectly.
Indirect distribution involves selling products to the end consumer via one or more intermediaries (distributors, wholesalers, retailers). The main advantage of this channel is that the company benefits from a much wider potential customer base.
The disadvantage of the indirect channel is that it reduces the profit margin.
It's also possible to combine direct and indirect distribution channels: this is called cross-channel.
The promotional policy - or communications strategy - defines the framework (on what occasions? How often? For whom?) and media in which the company will carry out its promotional actions. Its aim is to understand how to communicate with customers to inform them and persuade them to buy.
There are 2 main categories of communication channels: Media and Non-Media.
Media communication channels are the main traditional means of mass communication. They include television, cinema, radio, the written press, billboards and so on. The aim is to disseminate a message on a large scale in a relatively short time. On the other hand, this can involve high costs, depending on the type chosen.
Non-media communication channels bring together the various means of direct communication that can reach a specific target. These techniques are more easily measurable, to track their impact on sales. With the arrival of the Internet, new non-media communication channels have emerged, such as digital marketing, with websites (e-commerce, blogs), social networks, mobile applications and so on. The advantage of digital marketing is that it can reach a large audience at lower cost, and measure costs more easily.
Effective promotion will increase brand awareness, and therefore the appeal of your product.
Since the 60s and the beginning of the 4P model, the market has evolved, and other elements have become crucial to marketing strategy and - ultimately - customer satisfaction.
Three new levers have been added to the original 4Ps:
People - or customer relations - refers to the personnel involved in providing the service and interacting with the customer.
The quality of interactions will serve to create or maintain a good corporate image. This means looking at the appearance, training and behavior of everyone in contact with the end customer.
The sales process encompasses all the steps involved in ensuring customer satisfaction, creating a positive customer experience and, consequently, fostering customer loyalty. The entire process must be considered, from the first interaction with the customer to the conclusion of the sale or even the service. Indeed, it has become clear that the way a product is delivered is just as important as the product itself.
Physical evidence is based on all the material components relating to the product (store layout, signage, point-of-sale advertising, brochures, etc.). The environment in which the sale takes place has an impact on the customer's experience and perception of the product. Customers will be more inclined to buy in a place where they feel comfortable.
This last point is very close to merchandising and is assimilated with the catman's trade.
In the 2000s, 3 new P's appeared in the marketing mix. These are still the subject of much debate.
A partnership is a system whereby a company joins forces with other entities to exchange goodwill, each benefiting from the notoriety of the other. These entities can be other companies, non-profit organizations, etc.
Introduced by former Yahoo vice-president Seth Godin, the purple cow comes from the idea that if, in the middle of a herd of identical cows, a purple cow appears, it's the only one you'll see.
In a market where all products are similar, it's essential to stand out from the competition. The purple cow encourages you to be innovative by differentiating both your product and your communication.
According to Seth Godin, permission marketing involves asking prospects for their consent before soliciting them with targeted advertising or promotional messages. In this case, the company is committed to respecting the consumer's wishes, allowing them to change their preferences or even unsubscribe easily and at any time. This not only concerns compliance with RGPD laws, but also aims not to buy address bases, not to send emails without authorization etc.
Examples of ways to collect opt-ins include online or paper forms, voluntary in-store subscriptions, newsletter subscriptions and so on.
This system creates a more transparent and trusting relationship with customers. Brands with a strong online marketing presence can use these techniques to improve their relationship with consumers, as well as their brand image "outside the store". But the supermarket purchase can also be the starting point for an online marketing approach: for example, your dairy brand can integrate a QR Code into its products, which, when scanned, links to a recipe site / cooking blog. This is the point at which permission marketing can be activated, with agreement to receive notifications, subscribe to a newsletter and so on.
The table below lists, for each pillar of the marketing mix (7P), one or more recurring problems in supermarkets, and the action levers for solving them.
Let's finish with a few case studies based on brands you're all familiar with. Starting with a particular brand and product, we reproduce key elements of the 3 major pillars of their marketing mix: Price / Place / Promotion.
Marketing remains an essential technique for defining an approach aimed at maximizing the commercial potential of brands. Its theoretical content is bound to change over time, as evidenced by the number of P's!
Once you've chosen your model, you also need to take your sector into account: mass retailing involves both constraints linked to commercial partners and the omnipresence of competition at the point of sale. A successful marketing mix will enable you to find your place and defend it, whether you're operating in a new or mature market.
