by Stephen Reed | Industry - Retail & Distribution, News, Newsletter, Retail & Distribution
Effective positioning is crucial for brands seeking to connect with their target audiences and drive sales. But what exactly is positioning, and why does it matter? This article will explore the fundamentals of positioning and practical steps for retailers to develop a compelling positioning strategy.
What is Positioning?
Positioning refers to how a brand is perceived in the minds of consumers compared to its competitors. It involves crafting a unique identity that resonates with your target audience, highlighting your brand’s distinct benefits and values. Effective positioning differentiates a retailer in a crowded market, making it easier for consumers to choose your products over others.
Why is Positioning Important?
- Consumer Connection: Strong positioning helps retailers build emotional connections with consumers. When a brand speaks directly to its audience’s needs and desires, it fosters loyalty and trust.
- Competitive Advantage: Effective positioning sets a retailer apart from competitors. It clarifies what makes the brand unique and why consumers should choose it.
- Guided Messaging: A well-defined position informs all marketing efforts, from advertising to social media, ensuring consistency in messaging that resonates in a timely way with your target audience. It provides clarity on what you do and why your audience should choose you over competitors.
Starting with Positioning: Focus on Customers
To develop a successful positioning strategy, retailers must begin with a deep understanding of their customers. Here are the steps to developing a winning positioning strategy:
Market Research
Conduct thorough market research to gather insights about your target audience. Utilize surveys, interviews, and focus groups to identify demographics, preferences, pain points, and buying behaviors. Online tools like Google Analytics and social media insights can also provide valuable data.
Competitive Analysis
Evaluate your competitors to understand their positioning strategies. Identify their strengths and weaknesses, and analyze how they communicate with their audiences. This competitive analysis will help pinpoint gaps in the market that your brand can fill.
Develop Positioning and Messaging
Now it’s time to start developing your positioning statement. This should articulate your brand’s unique value proposition and the key benefits you offer. Consider using a format like:
“For [target audience], [brand name] is the [category] that [unique benefit] because [reason to believe].”
For example, “For eco-conscious shoppers, Green Harvest Market is the online store that provides organic, sustainably sourced products because we partner directly with local farmers.”
In addition to the positioning statement, create messaging that reinforces this position across all channels. Use language that resonates with your audience and aligns with their values.
Test Your Positioning
After developing your positioning and messaging, you’ll need to test their effectiveness. This can be done through A/B testing on advertisements (two versions of an ad are compared to see which one performs better), website content, and social media posts. Monitor engagement metrics such as click-through rates, conversion rates, and customer feedback to determine if your positioning is resonating.
Ongoing Evaluation and Adjustment
Positioning is not a one-time effort. Continuously evaluate how well your positioning aligns with market changes and consumer preferences. Regularly solicit feedback through customer surveys and monitor industry trends to make necessary adjustments.
by Daniel Kittell | Business Growth, Industry - Retail & Distribution, News, Newsletter, Retail & Distribution, Small Business
Mastering the art of marketing is a required skill to reach and engage target audiences effectively. Two powerful strategies to accomplish this are push and pull marketing. Understanding the distinct roles of these approaches can make all the difference in driving sales and brand awareness. In this article, we’ll examine the differences between push and pull marketing and explore when retailers should use each strategy for maximum impact.
Understanding Push Marketing
When using push marketing, also referred to as outbound marketing, you are in charge of when, how often, and what content to promote. The idea is to “push” your promotions out, hoping to catch the interest of potential buyers and prompt them to make a purchase. You are propelling your brand, content, or product out into the world in a way that can interrupt the natural flow of your audience’s day to get them to pay attention to your message. This method naturally prompts a call to action and also helps to create brand awareness.
Push Marketing Examples
Push marketing is more assertive than pull marketing and encompasses a range of methods.
Here are some examples:
- Television and radio advertisements
- Print ads in newspapers or magazines
- Direct mail campaigns (e.g., flyers, brochures, catalogs)
- Email marketing (e.g., promotional newsletters, product announcements)
- Telemarketing calls
- Outdoor advertising (e.g., billboards, posters)
- Point-of-sale displays and signage in stores
- Social media ads with direct call-to-action
- Influencer marketing campaigns promoting products or services directly to their audience
- Trade shows and events where retailers showcase their products to potential customers
Understanding Pull Marketing
Pull marketing, also referred to as inbound marketing, revolves around enhancing the visibility of your product or service so that potential customers can discover you when they recognize a need or interest in a product or service and begin their search for solutions. It encompasses modern marketing avenues such as websites, search engine optimization (SEO), search engine marketing, pay-per-click (PPC), email communication, and social media marketing. It focuses on the consumer’s need-to-know basis by attracting them to your brand through valuable content such as instructional videos, infographics, step-by-step blogs, or webinars, all geared toward addressing the consumer’s needs. Pull marketing is most effective when you have a dedicated customer base and a strong brand reputation. Without brand recognition, consumers are unlikely to engage with your content.
Pull Marketing Examples
Pull marketing efforts focus on attracting customers to your business by providing valuable content, building relationships, and creating positive brand associations. Unlike push marketing, where you actively promote your offerings to potential customers, pull marketing encourages consumers to seek out your business on their own. Pull marketing strategies are almost all online.
Some examples include:
- Social media marketing: Engaging with customers on platforms to build brand awareness and attract followers.
- Content marketing: Creating valuable and informative content such as blog posts, articles, videos, and infographics to educate and engage potential customers.
- Search engine optimization (SEO): Optimizing your website and content to rank higher in search engine results pages (SERPs) and attract organic traffic from people searching for products or information related to your business.
- Email marketing: Sending targeted and personalized emails to subscribers with relevant content, promotions, and product recommendations to nurture leads and encourage repeat purchases.
- Influencer marketing: Collaborating with influencers or brand ambassadors who have a large following to promote your products or services to their audience.
- Word-of-mouth marketing: Encouraging satisfied customers to share their positive experiences with others, either through reviews, testimonials, or word-of-mouth referrals.
When to Use Push Marketing vs Pull Marketing
Determining when to use each strategy depends on various factors, including your business goals, target audience, and the nature of your products or services.
- Push marketing: effective when you need to generate immediate sales or promote time-sensitive offers to a broader audience.
- Pull marketing: ideal for building brand awareness, nurturing long-term customer relationships, and attracting individuals who are actively seeking information about your industry or products.
By understanding the unique advantages of each approach, retailers can strategically integrate push and pull marketing tactics to maximize their marketing efforts and achieve sales goals.
by Stephen Reed | Accounting News, Industry - Retail & Distribution, News, Newsletter, Retail & Distribution, Small Business
Consumer trust and loyalty are paramount in the competitive retail industry, and brand transparency is a powerful catalyst for unlocking sales growth and building long-lasting connections with customers. In this article, we explore the various ways retailers can use transparency to strengthen their game in the market.
What is Transparency in Business?
Transparency in business refers to the open and honest sharing of information between a company and its customers. It involves providing insight into various aspects of the business, including operations, policies, and practices. In essence, it is about building trust by demonstrating integrity and authenticity, which in turn leads to customer loyalty and business success.
Cost Transparency
A key element of brand transparency lies in openly sharing pricing details. This is something consumers value, and it contributes to building trust and credibility. Hidden fees, ambiguous pricing structures, and unforeseen costs can rapidly undermine customer trust. Being clear on pricing aids customers in making well-informed purchasing decisions but also fosters a perception of fairness, which helps to strengthen the connection between the brand and its customers.
Communications Transparency
Effective communication is the core of brand transparency. Retailers should openly communicate their values, business practices, and product sourcing to build trust. This includes sharing information like the manufacturing process, materials, and relevant certifications. Transparent communication also extends to customer interactions, where responding promptly and honestly to inquiries and feedback can reinforce customer trust and satisfaction.
Transparency in Owning Mistakes
No company is immune to mistakes—they’re an unavoidable part of the journey. However, acknowledging errors, taking responsibility, and actively working to fix mistakes are critical steps to strengthening trust with customers. This includes responding to negative online reviews by addressing known issues and how the company is working to resolve them. When retailers engage in transparent communication and feedback, it underscores their commitment to improvement and customer satisfaction.
Transparency in Sharing Ongoing Efforts
Establishing transparency as a fundamental company value that influences every facet of a company’s operations is crucial for long-term success. Transparency should be an ongoing, integral initiative rather than a one-time effort. This involves regular updates on websites to provide transparent information on pricing, products, and business practices.
Additionally, businesses should routinely assess their adherence to core values and, if necessary, strategize the best corrective measures while transparently communicating these actions to customers. A lack of transparency effectively leads to a loss of customer trust and loyalty, which can substantially impact a retailer’s bottom line.
Brand transparency is a powerful tool for retailers to build a strong foundation of trust with their customer base. It is not only a business strategy but a fundamental principle that can redefine the retail landscape, and retailers that embrace transparency will thrive in an industry where trust is the currency of lasting success.
by Stephen Reed | Accounting News, Industry - Retail & Distribution, News, Retail & Distribution
Small retailers often find it challenging to compete and thrive in markets driven by big stores and retail chains. However, with the right strategies and a focused effort, small retailers can carve out a niche and strongly compete with larger stores. Here are some key strategies that can help small retailers compete successfully in a crowded marketplace.
Embrace Personalized Customer Service
A significant advantage that small retailers have over larger stores is their ability to provide consistent personalized customer service. By fostering a welcoming atmosphere, small retailers can build strong relationships with their customers and tailor their offerings to meet customers’ unique needs and preferences. Independent retailers should strive to greet customers by name, remember their previous purchases, and offer product recommendations. To help with this, consider implementing point-of-sale software with built-in customer management tools. Additionally, retailers can also consider offering multiple services to address client needs, such as free gift wrapping, personal shopping assistance, and customization options. By going the extra mile to meet customer needs, small retailers can differentiate themselves and create a loyal customer base.
Curate Unique and Niche Product Selections
Larger stores may be able to offer a wider range of products, but small retailers can compete by curating unique and niche products that might be challenging to find in large retailers. By carefully selecting products that align with their target market’s interest and preferences, small retailers can offer something different and exclusive, establishing themselves as a go-to destination for customers seeking these harder-to-find items. To be successful at this, small retailers should continuously have conversations with customers about the lates trends, and update their product offerings in order to stay ahead of the competition.
Focus on Local Community and Connections
Small retailers can build a strong local community presence. They are in a unique position to build connection with their communities by partnering with local organizations, sponsoring community events such as sports leagues and charity events, and collaborating with other small businesses to promote each other and create a sense of unity. Actively engaging in the local community allows small retailers to enhance their brand visibility and create a positive reputation as a trusted and credible local retailer.
Embrace Technology
Small retailers don’t typically have the same financial resources as larger stores, but they should still consider reaching a broader audience with a strong online presence. Setting up an online store and promoting products through social media platforms can help small retailers attract customers who prefer the convenience of online shopping. Additionally, small retailers should utilize customer relationship management (CRM) software to help analyze customer data, personalize marketing efforts, and establish long-term customer loyalty.
by Stephen Reed | Accounting News, Industry - Retail & Distribution, News, Retail & Distribution
Both small and big companies have been impacted by the labor shortage that has spanned the country since the pandemic. A short-staffed company can lead to overworked and burnt-out employees, dissatisfied customers, and even a decline in sales. Below we’ll discuss how retail store owners can better retain employees and maximize operations among the “Great Resignation” era.
Provide Consistency, Flexibility, and Gratitude
Consistency is key. Statistically, more than half of the employees whose work hours are inconsistent end up quitting their jobs. A consistent schedule lends a sense of routine and security. Flexibility is also paramount to setting up employees for fulfillment in their roles. Whether this translates into something like more flexible meal breaks; or greater or more flexible time off; or a combination of these, employees want to succeed when they feel like their employers support them and their wellbeing. It follows, then, that employees will likely become frustrated if they’re being overworked when the company is short-staffed. To make sure the workers who go above and beyond know how valued they are, consider small gestures of gratitude such as providing free lunch.
Take Advantage of Your Online Outreach
When the pandemic hit, retailers had to pivot seemingly overnight to online channels. Though it might have been a bumpy transition in the beginning, by now retail businesses should have their websites and social media accounts working to their advantage. Strategies like buy online pick up in-store and curbside delivery offer convenience to customers while alleviating some of the grunt work for employees who are working understaffed shifts.
Prioritize Peak Days and Tasks
To make the most of payroll budgeting, you should be scheduling the bulk of employee hours during peak traffic days and scaling back your staff on less busy days. Not only does this balance scheduling, but it helps to avoid employee burn out and boredom. Too, having a clear understanding of tasks that take priority in your store — and relaying this prioritization to staff — will help to increase efficiency in store operations and provide task-oriented employees with purpose for their shifts. A proven strategy is the 80/20 rule, where workers and managers dedicate 80% of their time and energy to the 20% of work that takes top priority.
