stores, catalogs, TV channels, and Web sites are
positioned with the lowest possible prices and
least amount of service. Others are positioned
for the best values for fashion forward career
apparel. Still others coordinate the variables to
position themselves in other ways. This strategy
of retail positioning is illustrated in 13-1 and will
be described in detail in this chapter.
Targeting a Specifi c
Market
If retailers do not defi ne their target markets
clearly, for themselves and their customers,
they usually end up satisfying no market at
all. This can happen when a retailer tries to
offer something for everyone. As you learned
in Chapter 5, market segmentation enables a
company to defi ne a target niche of customers
with similar characteristics. It can be done with
demographics, psychographics, and other
information. Each segmented group responds
in a similar way to various goods and services,
sales promotion activities, and advertising.
Ongoing market research of actual and
potential retail customers is needed, gathering
and analyzing information about the chosen
market’s tastes and changing trends, 13-2. Stores
often use computerized credit data to fi ne-tune
their customer knowledge. Large companies can
further segment their customer base electronically
using customer purchase data contained in
their computer systems. Companies use the
information to better satisfy their customers’
needs and desires through database marketing.
Also, if research shows that the chosen market is
not being satisfi ed, the retailer can either change
its target market or redesign its marketing mix to
once again satisfy its target market.
Retail managers regularly talk about “their
customer.” This singular term, “customer,”
represents the company’s ideal targeted consumer.
However, it must be determined if that ideal
customer is the actual customer that is shopping
at the site. One challenge for retail managers is
the constant adjustment to this ever-changing
customer base. Various ways for managers to stay
in touch with the customer include working on the
selling fl oor, listening to customer feedback from
the company’s staff, working with a focus group,
and doing customer surveys.
To better satisfy their customers, retailers
develop and follow merchandising policies.
These are specifi c management guidelines
the company follows to keep their inventory
choices on track. Merchandising policies are
adjusted regularly based on current trends and
the needs of the target market. Retailers also
have operational policies, which are designed
to make customers feel good about shopping
with them. These policies make the retail site
appealing for the target market through physical
appearance and customer services.
Retailers’ merchandising and operational
policies complement each other to maintain
Blend correct marketing mix
Differentiate from competitors
(with a specific image)
Define target market customers
(and understand their buying motives)
Promotion Product Price Place
Strategy of Retail Positioning
13-1 Retail companies should try to position
themselves at a certain place in the market
that will enable them to achieve the highest
possible success.
Fashion & Apparel Studies Dept.; University of Delaware
13-2 Target market analysis can be done by
computer, enabling marketing strategy and
implementation plans to be made.
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