In‐store marketing: a strategic perspective

Abstract

PurposeThe purpose of this paper is to examine two key dimensions of in‐store marketing, namely in‐store promotions and price markdowns. These seem to be the two most important aspects of in‐store marketing, though other dimensions such as retail personal service are also worthy of study.Design/methodology/approachA sample of 287 New Zealand clothing and shoe retailers was studied. Survey questions included the perceived importance of in‐store promotions and price markdowns. The aim was to explain these perceptions in terms of marketing strategies, threat of competition and environmental uncertainty.FindingsThe results indicate that a discount marketing strategy, environmental uncertainty and emphasis on price‐promotions are key to explaining retailers' perceptions and use of specific in‐store marketing activities. In addition, seven key marketing activities were found to distinguish high‐ and low‐performance retailers with respect to in‐store promotions.Practical implicationsThe study has highlighted strategic aspects of in‐store marketing, by focusing on two key components of in‐store marketing, namely in‐store promotion and price markdowns. The findings should provide much needed advice to retailers on the use of sales promotion tools in different environmental settings.Originality/valueThis paper should prove valuable to academic researchers and retailing managers (particularly to those in smaller countries), owner‐operated retail outlets, and chain stores.