UNIT 4 & 5

Introduction to Market penetration

As soon as a company enters a new market, it strives for market penetration. The main

objective behind the market penetration strategy is to launch a product, enter the market as

swiftly as possible and finally, capture a sizeable market share. Market penetration is also,

sometimes used as a measure to know whether a product is doing well in the market or not.

The technique of Market Penetration usually does not affect the overall marketing strategy of

a company, but invariably brings a solid growth potential and an increase in revenue

generation.  A company trying to adopt the concepts of market penetration must remember to

also implement specific plans and tactics to challenge the competitors and boost sales figures.

However, it must also be considered that market penetration can be a risky affair and has

some disadvantages also.

More commonly, this technique is useful whenever a business is selling prevailing products

in an ongoing market. Marketers must take into consideration the relevant market

development or expansion grid data to decide actually, which penetration tactic to adopt? In

other words, the market may be saturated or it may be in an intense competition scenario or

the products may have low turnaround time. Now, what should be the best tactic for all of

these different scenarios? Well, the answer to this question lies in the type of strategy you

adopt. And yes, there are quite a few different penetration tactics to choose from. So without

further ado, let’s know about a few of them.

Market Penetration Strategies

Following are the different market penetration tactics:

1. Price Adjustment
The strategy of Price Adjustment is one of the most widely used market penetration tactics. A

example could be lowering the price of a product or service with the aim of increasing sales

is a price adjustment tactic. Furthermore, the alteration (increase or decrease) in the price of a

product after analyzing the competitors’ products is also a scenario of price adjustment. But,

in the real sense, this marketing strategy should be used very judiciously as overdoing it can

lead to adverse results. Like, increasing your price consistently may make the customers

believe that you are a company of high-profit motive. Decreasing the price too often would

make them to believe that your products are of sub-standard quality.

2. Augmented promotion
The drastic increase in promotion of a product (or service) can lead to dramatic results. For

example, advertising can be a wonderful tool for increasing brand awareness. Companies do

have a choice of making their campaigns long-term or short-term which depends upon their

needs and budget. However, the thing to be considered is that whatever be the size of the

campaign, it must be well-planned and thought-out. An easy to counter promotional

campaign would be simply ruined by competitors in this age of cut-throat competition.

3. Distribution Channels
The strategy of Distribution Channels is one of the most constructive market penetration

strategies. This strategy typically involves opening of new distribution channels by focusing

on a particular distribution channel. For example, if selling through retail outlets is your

primary channel, then you can learn to gain new channels like telemarketing, e-mail

marketing, online marketing, etc. Such opening of new distribution channels pave the way for

more new channels and thus lead to increased market space and overall profitability.

4. Improving Products
It is true that to really appeal to your customers, you must improve your product quality.

However, sometimes by communicating to them about the better standard of the product

itself can do the trick and no major improvement in the product may be needed. This is

because most consumers are encouraged to buy a product just by its appeal and do not

necessarily check whether it proves itself or not. Thus, only by doing slight adjustments with

the product and it’s packaging you can appeal more strongly and increase your sales revenue.
5. Upsurge Usage
A very potent method of market penetration is that of increased usage of any product or

service. If a marketing promotion campaign is effectively delivered at a specific area, then it

would lead to an upsurge in product use which would thus lead to better market penetration

with the increase in sales figures.

6. Knowing Risk and Growth

Most marketers whenever think of growth, think of new launches. However, it is only

partially true. Actually, it can be risky too. When a new product is being launched, there

exists the risk of it being successful or not. But, an efficient distribution channel along with a

smooth delivery process makes it sure that the product does meet the expectations. Similarly,

entering a brand new segment of the market can be risky as well. Therefore, it is absolutely

essential to know your market and your product in order to do well and beyond expectations.

An effective way to do this is to properly communicate with the customers and be sensitive to

their requirements and wants.

7. Create barriers to entry

When it comes to adopting strategic options, it is crucial to leverage your business’s strengths

in a correct and just manner. For example, by minimizing your variable costs, you can boost

your sales and establish a barrier to entry for others. This is why many firms with superior

technology and distinct processes are able to reduce variable costs and earn better gross

margins per item sold. With a substantial share in the market and an efficient marketing

process, your business could create a barrier to entry to prevent competitors from coming into

your industry.

8. Be unique and think differently

Although, the entire process of market penetration seems simple and monotonous, yet it’s a

big challenge if you perceive it to be. To overcome the challenge, you need to be more

unique and highly innovative in your approach. A repetitive selling strategy would yield

unsatisfactory results and hinder your growth potential. So, it would be better to think

different and modify your penetration tactics as and when required. By being more innovative

and adding value to your products you enhance your success chances.
9. Diversification
The product penetration tactic of diversification entails manufacturing new products for new

markets. The strategy of diversification is usually followed whenever, there is saturation in

the current market or when environmental changes such as

societal, economic, technological or regulatory make it very hard to generate new sales in

those markets. This strategy is most commonly followed by those businesses in the health

sector, such as hospitals. Hospitals have now diversified their services in the form of long-

term care facilities, reimbursement, network referrals, and utilization. Those firms that have

diversified on opportunities of their strengths have been able to gain the most.

10. Strategic Alliances

For some organizations, it is difficult due to one or more reasons to enter new markets. To

solve such an issue, many of these organizations enter into a kind of strategic alliances with

one another to operate in a particular market. Although strategic alliances can be formed into

many forms, the more common one is the joint venture business, in which each partner

business holds an equity position. The most common and natural strategic alliances are found

in the pharmaceutical industry.

Retail Store Location: Importance, Types

Having a good location for retail is one of the crucial impacts in the case of the marketing
strategy of retail because many of the associated long-term decisions and commitments
depend on the location of the retail. Having a good location is one of c primary element in
attracting prospects and customers.

At times a good location can also lead to an excellent competitive advantage because in

retail marketing mix location is one of the crucial parameters and unique which cannot be
copied by competitors in any way.

Importance of a good retail store location

A good retail location as a competitive advantage which cannot be copied by the competition.
One location can occupy one retail store, and time also plays a crucial role along with the
location.

For example, the retail store of Gucci opens up in a particular neighborhood then, and for a
couple of months, that is the store which is going to be the only purchase point of all the
Gucci products for a neighborhood.

If Nike shows up in the same neighborhood after a couple of months, it won’t be possible for
Nike to occupy the same location as of Gucci. Nike store has to be located either very close,
which entirely depends on the availability of the location, or it has to be placed very far from
the Gucci store thereby targeting a different neighborhood and different customers.

Customer proximity is another concern for most of the retail businesses. Several stores can be
opened away from the city with a cheaper budget, but it won’t be possible for the retailers to
bring customers to that particular neighborhood.

Hence the retailers have to think the way customer would think and open a store which would
be convenient for the customers. Since geographically, peoples are spread out at every
possible location, retailers cannot open a store in every neighborhood and instead they have
to think of a Central location which would be accessible by most of the neighborhood within
a particular diameter of the circle.

The retail store should be close to the place of customers. The word to use here has no
quantification, and it cannot be quantified at the store should be located within 1 mile or ten
miles of the customer, and it is a dependent on the locality in the country and the probability
of the retailer.

Having a convenient retail store helps the organization to make supply chain

and distribution arrangements easy for a particular outlet. This reduces the cost of the
organization as brothers when it comes to meeting the immediate demands of the customer
and fulfilling the urgent orders the retail outlet will not have any difficulty in doing so.

Because the transportation cost is reduced, it reduces the overall cost of supply chain
management and operations that by everything the retail store and the retail corporation to go
close to the six sigma process.

Having many retail stores nearby also enables the retail corporation to store and bed storage
houses at one convenient place from which most of the retail outlets can be created within no
time. This reduces the wait time and also reduces the ‘No Stock’ incidences in stores.
A well placed retail store can also help to influence the buying habits of the customers.
Customers will always prefer their brand, but most of the times, customers also referred to
avoid a hassle to get to their store and compromise on other brands as well.

For example, a die-hard fan of Pepsi lives in a particular neighborhood, and the availability of
Pepsi is ten blocks away from his place.

Since the person is a die-hard fan of Pepsi, he will make sure to stock up his home
with Axis Pepsi, but there will be times when we will have to walk those blocks or take a
suitable means of transportation to the place and by Pepsi for himself.

Types of Retail Store location

1) Solitary sites

These are single small outlets of shops which are separated from different writers, and they
are positioned near other retailers on the roads on the way to shopping centers. Many of the
food and non-food retailers use this type of solitary sites.

The primary advantage of having a solitary site is that it is away from the competition and
provides the services to the customers, which help the customer to zero down on
the product offered by that particular retailer.

2) Unplanned shopping areas

These are the locations of retail stores which have evolved over a long period of time and
have multiple outlets in nearby proximities. These are further divided into:

Central business district such as the downtown areas in major cities

Secondary business districts on main or high Street

District neighborhood

Location switch on the street or on the motorway which is also known as strip locations.

The advantages of having unplanned shopping areas are that there is very high pedestrian
traffic during working hours and also because of my residential areas. This ensures a constant
pull of customers.

The disadvantage of having unplanned shopping area is that there is a threat of shoplifting
because of which high security is required.

3) Planned shopping areas

The retail locations which are well planned according to the architecture and provide multiple
out that are under the same roof are called as planned shopping areas. They have huge land
spaces and the collection of major retail brands. Malls, Speciality, and Lifestyle centers are
classified under planned shopping areas.
High visibility to customers and harmful of customers is a major advantage of planned
shopping areas. But the disadvantages are that why security is required, and the cost of
occupancy is also high.

Tips to have a good retail location:

Choosing the right education is crucial in terms of business, as stated above. As such, there
are different rules which govern choosing of location for retail store depending on the nature
of the business and the target audience.

1) Market analysis:

The company has to analyze the market in terms of their product and industry along with the
nature of competition and the presence of competition. The company also has to consider
how old are there in the market and how many some other businesses are there in the current
location.

2) Demographics of the market:

The demographics of locality is essential to be considered in order to choose the retail

location. The age group of the customer, profession, Lifestyle, profession, religion income
groups, etc.

3) Market potential evaluation:

The paying capacity of the population plays an important role in the evaluation of the
potential of the market, along with the impact of the competition and the product estimation
and demand. The retailer should also have the knowledge of regulations and laws of the
country in which the store is being operated.

4)Identification of alternatives:

Most of the times it so happens that the retailers in hurry of starting the business finalize a
location which costs them a fortune within fact a similar location with similar business
potential would’ve been available somewhere very close which was neglected or overlooked.

5)Allocation of marketing budget:

A retail store should have a marketing budget depending on the cost of the location, which is
in the third to build the brick and mortar place. The store which is occupying a prime location
and has a good inflow of customers has indeed cost a fortune for the retailer.

In such cases, the marketing budget will be very less since the story is visible to most of the
customers and passers-by. On the contrary, a store which is located away from the main street
should use more marketing campaigns and spend on marketing collaterals in order to attract
more customers to the store.
Factors determining the retail location decisions

This is the first thing that you must consider in the process towards finding your
location. Your retail store location should be consistent with the type of product that
you want to sell and the type of store you want to put up.

You might want to have a traditional specialty store, or might want to sell out of a
kiosk in a mall, or might even want to open a convenience store.

Now you need to be smart about this. Are you looking to get your brand into the
public eye, but at the same time looking for a low-cost option in the initial days of
your business?

Go Pop-Up stores! Or, sell out of a kiosk in a mall. You have various options, like
malls, fairs or festivals, event spaces, etc. These are great ways to bring your brand to
people’s attention.

Do you want to open a convenience store?

As the name goes, customers prefer to purchase from here for the convenience of its
location and fast service. These stores mainly sell high-turnover convenience goods in
a limited quantity. The ideal location for these stores would be residential areas.

So, the first step for you would be to decide on whether you want to play the number
game or position yourself as a specialty retailer.

1. Demographics

Six months prior to opening your store, you must start your site selection process.

This is not a very tedious process if you know exactly what to research and analyze.
To make the whole process easier for you, we have listed down the attributes you
must be looking into.

You can always take help from firms that can provide you with all the information
regarding the attributes stated below.

Target audience attributes

1. Average age: If your store sells modern and trendy outfits, your store should be
located in an area which comprises, or has easy access to, people of a younger age.
An area within a good location in the city where there are colleges or offices around
would be a sensible option.

2. Income: Stores like Nordstrom are located only in affluent areas. This is simply
because if you are selling high-end products, your store should be in a location where
the inhabitants will be able to afford it. Hence, the income of people is an important
consideration.

Premium vs Cost-friendly location

If you own a store selling high-end products for a niche audience, you should make
the choice between setting up your store at a premium location or a cost-friendly one.
 Having your store at a premium location will obviously cost you a much higher rent
per square foot. But at the same time, having it at a cheaper locality where no
customer would turn up is a total waste of investment.

2. Workforce Attributes

Are the kind of employees you are looking for living in an area close to your retail
store location? Will it be easy for them to travel to the store? Are there enough
eateries and hospitals around so as to make things convenient for your employees?
These are some of the questions you must be asking yourself regarding your
employees.

Most new retailers are attracted to malls for this very reason. And what’s more, malls
today recognize the need to support not just big brands but also the up-and-coming
retailers. Hence, shorter leasing options may be available.

3. Businesses and competition in the proximity

It is a smart move to place your store at a point which has businesses around that can
eventually help drive traffic into your own store. Any business or category of product
that is closely related to yours should help your business too.

Another important aspect to be considered is competition.

“Quite simply, the best place to be is as close to your biggest competitor as you can
be,” says Greg Kahn, founder and CEO of Kahn Research Group in Huntersville,
North Carolina.

Kahn makes a very valid point. He says that your competitors have done good
research on the demographics before opening their store there.

4. Footfall

You can make use of sophisticated location analysis tools to understand the traffic
pattern in a certain area. You can understand the optimum level of traffic for a
particular targeted area. Understanding the footfall at your neighboring stores will
help you in a big way to estimate foot traffic at your store.

Companies like ShopperTrak, FootFall, and Radiolocus help physical retailers track

footfall at their stores and the traffic pattern. Most of the ‘people counter’ devices
today use Wi-Fi signals or camera imaging for identification.

Footfall gives you visibility, but to drive sales and bring people to your store, in
particular, consider investing in store design and making your store stand out. Don’t
be loud about it, though.

5. Accessibility

Your store should be easily accessible to the common people using public
transportation. Having a store with great quality products in a deserted area would
serve absolutely no purpose.

Also, depending on which area you are opening the store in, take into account aspects
like parking facilities, distance from the nearest subway station, whether the street
you’re located on is a walking street, etc.

Accessibility, however, is not just limited to transport services.

6. Leases
Before you enter into a lease, it is advisable to hire a good lawyer who can negotiate the lease
for you. Ask yourself these questions:

 Is this the right location for your store?

 Is the condition of the building good?
 Are there adequate utilities around?
 Is the positioning of your store in the building good enough?
 Is there enough space for all the retail, office storage, and workroom space you need?

Once you have found answers to these questions and feel ready to enter into a lease, you must
then consider doing this:

 Keep the initial term short. At the end of the lease term, you can renew it or move out
depending on how your business is performing.
 Your lease should have the option to acquire more room when your business expands.
 You must find out the estimated costs per month that you will have to pay. Common
Area Maintenance (CAM) charges mostly include parking lot cleaning, repairs, etc.

MEASUREMENT OF SUCCESS OF RETAIL LOCATION

Sales per square foot

Formula: Total net sales / Total square foot Sales per square foot is a compelling metric if
you have a physical retail space. Sales per square foot measures how effectively you’re using
the area you have, and sales per square inch is a good indicator of your store’s productivity
while offering insights into store and merchandise layouts. You can visualize these insights
with heat maps of your locations and dig into the data to determine why some merchandise
performs better than others. If one section is performing better than another, it may be due to
the types of products or their arrangement. When you see how the store layout is performing,
then you can improve it and improve sales results. In practice, research in this area has found
that products at eye level are more popular than products higher or lower on shelves.

Gross margins return on investment (GMROI)

Formula: Total gross profit / Average inventory cost While this one sounds similar in name
to the baseline gross profits metric, its purpose is a bit different. GMROI measures the profit
you make from the amount you invest in product stock. What this means in practice is that for
every dollar you spend in your inventory, this KPI can tell you how many dollars you get
back. Return on investment is vital to track for a couple of reasons. It offers more nuance
than just sales or profit margins. GMROI generally tracks specific products or categories
rather than inventory as a whole. 

Average transaction value

Formula: Total sales from transactions / Total distinct count of transactions Sales is a useful
metric overall, but it’s also helpful to know what people are buying and how much they’re
spending each time they come in. Analysts or business teams can track and share these
metrics in a shopping basket analysis dashboard. Average transaction values take sales and
divide them to find out how much on average customers spend in your store each time they
make a purchase. 

Customer retention rate

Formula: ((Total distinct customers at end of period) - (Total new distinct customers

acquired during period)) / (Total distinct customers at start of period) * 100 Customer
retention is another useful metric for measuring growth. Being able to turn one-time
customers into repeat customers is a steady profit generator for long-term growth. With
digital sales, some tools can track the number of new customers versus repeat customers

Conversion rates

Formula: Total number of conversions / Total number of analysis-relevant interactions * 100

This generalized KPI offers insight into what turns browsers into customers. While reach and
marketing campaigns can get your name out there and people to your store, the only way to
grow is to ensure your visitors convert into paying customers. Traffic and awareness has real
value, but that value doesn’t do your business any good if you don’t get a measurable profit
from it.

CHANGING NATURE OF RETAILING

Retailers are changing their business formats, store designs, modes of communication with
customers and ways of handling commercial dealings.
 Modern retailers are adapting new technology for marketing, retail operations, and
business transactions.
 Forward-thinking retailers are using social media to communicate with the
consumers.
 With the space crunch, modern retailers have learnt how to use every inch of the floor
constructively.
 Apart from opening online retail store, the retailers take the help of Augmented
Reality such as 3D mock-ups to let the customer try the products on themselves.
 Retailers are working progressively on delivery of orders that customers placed
through online shopping.
 Retailers are bringing something new now and then to charm the customers. Those
places where internet is still not accessible, retailers are exploiting the power of
mobile phones to advertise their products.

Modern Retail Formats

Today, the Internet has changed the way products are advertised and the manner of selling-
buying transactions.
Here are some modern innovations in retail −
 Modern retail businesses such as malls, specialty stores, and hypermarkets are using
micro development and contemporary technology to increase customers’ shopping
experience and in turn generate business revenue.
 Around the year 2000, online retail startups started changing the face of retail
businesses around the world.
 Social media websites such as Facebook changed consumer behavior as well as made
retailers sweat out to take the benefits and develop their brands.
 Modern e-commerce facilities enable faster transactions and allow purchase on a
simple 30-day credit facility.

E-Tailing

It is nothing but E-Retailing. It is the process of selling or purchasing the products using
Internet for B2B or B2C transactions. E-tailing process includes the customer’s visit to the
website, purchasing products by choosing a mode of payment, product delivery by the
retailer and finally, the customer’s review or feedback.
E-tailing Benefits

 It does not require floor space to display products.

 It allows the customer having internet access to shop any time, any place
 It saves time of the customer otherwise spent travelling to a shopping place in the real
world.
 It creates a platform for products from around the world, which are imported by the
e-tailer when the customer places an order.

Organized retail is a sector which consists of the companies which are associated with
production or sales of goods and services that operates as private limited organizations which
are governed by companies act. The organized retail sector can be characterized as follows

1. The retail setups are owned by companies.

2. Few of the employees on the payroll of the organization with others are on contract.
3. The employees are governed under the act of minimum wages.

Organized retail is associated with customers walking into the stores for the showrooms and
buying their necessary products. Huge quantities of goods are stocked up in the retail store
and huge discounts which are gained by the company are passed down to the customers.

Many retailers like Walmart, IKEA, Costco, and Target have been an attraction for customers

for a long time because of their discounted pricing structure. There has been an increasing
retail store establishment in North American countries Canada with stores like Target and
Nordstrom which have been establishing their bases from some time.

CHALLANGES FACED BYTHE RETAILSECTOR

Every market has its portion of challenges, and any entrepreneur

should know this. The retail sector is an area that can be hard to
penetrate and even harder to survive. In recent years, the industry
has experienced certain shifts that have transformed how things
work. Businesses had to adapt, especially when it comes to the
dominance of online retail. It's not enough for a retailer to hire
a managed service provider to help with an online presence. Retail
business owners have to understand the various challenges and
prepare adequately for them if they are to capitalise on the available
opportunities in this sector. We are firmly in the age of digital
disruption and nowhere has this had more of an impact than within
the retail sector. So, what are the biggest challenges facing the
space currently?

Effects of Digital Disruption

The internet made it possible to provide online shopping solutions,

and this is one element that has turned traditional retailing on its
head. E-commerce stores meant that people no longer had to go to a
physical building to get what they need. This evolution caused a
major disruption. Suddenly, retailers had to figure out ways to
appeal to an audience that cherished the convenience of online
shopping. Rather than consider e-commerce platforms as threats,
retailers are merging online and offline enterprises. With the
right IT infrastructure management services, retail companies can
set up online systems to complement their physical locations. Doing
this offers customers the alternative to pick the most appropriate
means of purchase. Leveraging multiple channels gives retailers the
chance to reach a large audience that is not limited geographically.
Maintaining Customer Loyalty

Convincing a customer to spend money at your store is challenging,

but the real task is getting that customer to keep coming back. If
you can secure it, the loyalty of your customers means everything.
It is an assurance that, regardless of the enticements out there, a
buyer will return. The problem for retailers is that customer loyalty
takes time and patience to build. Retail businesses also have to deal
with a lot of competition. At any one time, there is a brand out there
marketing to your customers, convincing them they are worth
spending money on. The higher the competition in the market, the
harder it is to retain customers. Retailers can craft innovative ways
to appeal to customers and inspire loyalty. In the age of big data,
companies have access to a considerable amount of information
about their customers. They can utilise that data to create offerings
that are all about the consumers. A customer who feels appreciated
by a brand will not have trouble remaining loyal.

Concerns about Security of Data

Speaking of leveraging customer data, retail enterprises should be

careful about how they do that. As much as the digital age brought
incredible benefits for companies and consumers, it also opened up
a world of concerns. As businesses look to improve customer
experience by exploiting data, they go too far sometimes. Cases of
retailers misusing customer details are more common than the
sector would like to admit. You might have noticed it yourself -
getting emails from different brands advertising a product because
you were shopping for it earlier. Such practices make customers
wary when it comes to providing their information, and that only
makes it tougher for retailers. Work with your managed service
provider to ensure that you provide data security measures that
make customers feel safe.

Finding the Right Technologies

Modern technology, such as POS platforms and customer

management software, has had a positive impact on the retail
industry. The solutions that retailer have access to now are designed
for maximum efficiency. Issues arise when it comes to finding the
correct technology. Not every CMS out there will suit your
customer needs. The wrong technology can cost your business
money, time and energy. Take, for instance, an on-premises POS
system that requires extensive training and an in-house IT team to
provide ongoing management and support. It can take a while
before the technology attains its value. Retailers should comprehend
the requirements of the business properly so that they can find
technology that contributes to the bottom-line.
Maintaining Customer Loyalty

Convincing a customer to spend money at your store is challenging,

but the real task is getting that customer to keep coming back. If
you can secure it, the loyalty of your customers means everything.
It is an assurance that, regardless of the enticements out there, a
buyer will return. The problem for retailers is that customer loyalty
takes time and patience to build. Retail businesses also have to deal
with a lot of competition. At any one time, there is a brand out there
marketing to your customers, convincing them they are worth
spending money on. The higher the competition in the market, the
harder it is to retain customers. Retailers can craft innovative ways
to appeal to customers and inspire loyalty. In the age of big data,
companies have access to a considerable amount of information
about their customers. They can utilise that data to create offerings
that are all about the consumers. A customer who feels appreciated
by a brand will not have trouble remaining loyal.

Concerns about Security of Data

Speaking of leveraging customer data, retail enterprises should be

careful about how they do that. As much as the digital age brought
incredible benefits for companies and consumers, it also opened up
a world of concerns. As businesses look to improve customer
experience by exploiting data, they go too far sometimes. Cases of
retailers misusing customer details are more common than the
sector would like to admit. You might have noticed it yourself -
getting emails from different brands advertising a product because
you were shopping for it earlier. Such practices make customers
wary when it comes to providing their information, and that only
makes it tougher for retailers. Work with your managed service
provider to ensure that you provide data security measures that
make customers feel safe.
Finding the Right Technologies

Modern technology, such as POS platforms and customer

management software, has had a positive impact on the retail
industry. The solutions that retailer have access to now are designed
for maximum efficiency. Issues arise when it comes to finding the
correct technology. Not every CMS out there will suit your
customer needs. The wrong technology can cost your business
money, time and energy. Take, for instance, an on-premises POS
system that requires extensive training and an in-house IT team to
provide ongoing management and support. It can take a while
before the technology attains its value. Retailers should comprehend
the requirements of the business properly so that they can find
technology that contributes to the bottom-line.

Siloed Marketing Networks

Retail enterprises operating in today's environment have a multitude

of channels for marketing that range from smartphones to social
media. The ever-increasing marketing platforms provide businesses
with many opportunities to interact with their consumers. Besides
selling, retailers can learn the purchasing behaviours of customers.
They can also get feedback on brands. A downside to this
convenience is that all this data comes in a silo. You have
information coming in and out of different platforms, which can be
overwhelming. Retailers must learn how to structure their marketing
teams to reconcile the strategies of different platforms.
Understanding marketing silos will help you avoid bombarding
customers with information.

The retail sector offers prospects to grow a business, but only if you
can deal with the challenges effectively. Integrating digital
technology is one of the biggest hurdles. IT infrastructure
management services like those offered by Fifosyscan help drive
your retail enterprise into success.