SOCIAL, ECONOMIC, TECHNOLOGICAL, AND COMPETITIVE FORCES

RETAIL MIX

RETAIL MIX

the mix of variables, including location, merchandise, communications, price, services, physical attributes and personnel, which form the overall strategic marketing components of retailing.

Location.Merchandise.CommunicationPriceServicesPhysical attributesPersonnel.

SOCIAL FORCES

In recent years, the concept of social responsibility has entered into the marketing literature as an alternative to the marketing concept.

The implication of socially responsible marketing is that retail firms should take the lead in eliminating socially harmful products such as cigarettes and other harmful drugs etc.

There are innumerable pressure groups such as consumer activists, social workers, mass media, professional groups and others who impose restrictions on marketing process and its impact may be felt by retailers in doing their business.

SOCIAL FORCES

RELIEGION ,BELIEFS, CUSTOMS AND VALUES OF CONSUMERS

People live in different parts of the country may have different cultural values – which has to be analysed by retail business people/firm.

This will help them to reorient their strategy to fulfill the demands of their consumers.

EDUCATION LEVEL: People with different education level have

different type of needs and demands.

ECONOMIC FORCES

DEFINITIONFactors such as level

of employment, rate of inflation, rate of interest, demographic changes, and fiscal and monetary policies, which determine the state of competitive environment in which a firm operates.

ECONOMIC FORCES

INCOME LEVEL:Different income level group has different type of

product need. So the retailer should adopt the retail mix according to the income level of consumers, existing in that area.

PURCHASING POWER: Consumer purchasing power measures the value

in money for which consumers may purchase goods or services.

If the purchasing power of consumer is strong they will go for more and more purchasing of costly goods.

ECONOMIC FORCES

MARKET CONDITIONS:Market condition means whether it is boom

or recession, inflation or deflation.FISCAL AND MONETARY POLICYFactors such as interest rate, taxation policy

e.t.c.

TECHNOLOGICAL FORCES

Technological factors such as packaging, billing system, storing system, e.t.c affect the retail mix very much.

1. Innovative packing of the products3. Modern stores where merchandise can be

stored for a long time.4. Billing.Transportation.Internal facilities. e.t.c.

COMPETITIVE FORCES

Forces in the marketing environment that are based on competition among customers and competition with other firms

Who is buying goods and services and who is providing them to those customers?

Are there many competitors or are there just a few? Maybe none.

Knowing what competitive forces exist helps an organization develop strategic planning to attract customers

PORTER’S FIVE COMPETITIVE FORCES

ENTRY OF COMPETITORSHow easy or difficult it is foe new

competitors to start competing. THREAT OF SUBSTITUTEHow easily a product or service can be

substituted especially made cheaper.BARGAINING POWER OF BUYERSIf there is more no of sellers the bargaining

power of buyers increase because they have alternatives to switch over.

BARGAINING POWER OF SUPPLIERSSame is in case of suppliers. The bargaining

power of suppliers increases with the no of retailers.

RIVARLY AMONG EXISTING PLAYERSIs there a strong competition among existing

players. Is one player very dominant or all are equal in sixe and strength.

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