Retail Marketing Mix vs. Traditional Marketing Mix

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  • 1:23 Product
  • 2:14 Promotion
  • 3:13 Place
  • 3:59 Price
  • 4:45 Presentation
  • 5:50 Personnel
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Lesson Transcript
Instructor: Jennifer Lombardo
In this lesson, find out how personnel and presentation round out the traditional four Ps of the marketing mix to create the retail marketing mix. Then, follow along as our farmer implements the six Ps into a new retail store.

The Farmer Goes Retail

Our farmer has had a very successful year. He has opened his own flower shop and learned how to develop a marketing strategy for his organic produce. He has also made enough profit that he wants to invest his money in a local community retail market. The farmer realizes that he will need to create a retail marketing mix in order to successfully launch his new store.

Retail Marketing Strategy

There are some differences between a traditional marketing mix and a retail marketing mix. A retail marketing mix has six Ps instead of just four Ps, and they consist of: product, place, promotion, price, presentation and personnel. Our farmer will have to follow specific steps in order to successfully create an effective retail marketing mix.

Defining a Target Market

The very first step our farmer has to take is to define his target market. Target markets in a retail environment depend heavily on geographic location, demographics and psychographics. For example, our farmer would like to target the local town geographically. He also knows that his key customers are female, aged 18+ and enjoy cooking and eating healthy.


A retailer must spend appropriate time figuring out what product assortment is best stocked to appeal to their target market. Our farmer has decided on a wide assortment of vegetables, fruits, bakery items, prepared meals, fresh breads, plants, jams and spices. He feels that his target market would want a large selection to help with planning meals and eating healthy. The farmer will not stock any national brands but instead only offer his private brand. His private brand will have labels with 'PJ Farmer' in elegant script writing. Many retailers are also offering their own private brands, such as Sears' Craftsman and Kenmore products. The private brands offer the retailer more profit and add to the store's exclusivity of product offerings.


Our farmer's promotional budget must have enough money to cover advertising, sales promotion and public relations. Most retailers spend their promotional money locally in order to attract their target market in the geographic area. The farmer will advertise in local newspapers and set up a Facebook page. His public relations plan consists of offering free cooking classes to his customers and a fun kid farmer program. The program will provide a free cookie and/or an apple to a customer's child every time they shop at the store. He will also offer hayrides and pumpkin, apple and strawberry picking to families. Other ways that the farmer could promote to his customers are through direct mail, email, social media and frequent shoppers clubs. The farmer could send out daily specials through an email blast and reward shoppers (such as having a corn club). The special could be, 'Buy 12 ears of corn, get a dozen free!'


One of the most important pieces of the retail strategy is location. Place is a big investment for retailers, and they must be located in an easily reachable location. The farmer needs to be located away from any competitors and find a location with good accessibility to local roads and excellent parking, near public transportation and in a safe and secure environment. Our farmer has spent weeks analyzing different areas and has decided that his new retail market store should be located away from supermarkets. He found a great location near most of the housing developments and off a side road with easy access. In addition, the market is still very close to his farm, so he can easily restock the produce section.

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