Retail sector has redefined they way goods are sold to customer. Sociology helps to decide where society is moving thus what possible product can be made for changing society preferences. Marketing just present those choices to potential customers. Sociology does play a front End to marketing. As be see behavioural Economics coming to for front to vindicate these facts last 2 decades.
Software innovation in Retail : from Retail Inventory planning software tracking inventory, to sensor and tags tracking goods through RFID, Retail non tactical , non structured management planning BI systems using SAP BO, IBM Cognos, Microstrategy BI, SQL server SSRS BI. look Manathan BI (www.manthansystems.com/) which is based on SSRS. Read details big data, retail andRFID:
Read How Software is Eating Retail:
As Philip Kotler defined 5C and 5P of marketing. 5P (product, promotion, place, price,People) and 5 C being (Custmer, Company, collaborator, competition, context)
Read future trends: http://www.kotlermarketing.com/phil_questions.shtml
Read Book :
In Retail sector out of 5P (Place) is very important centrally located , easy accessible to potential customers place can act as magnet for pulling in customers to mall. Then (Promotion) free car parking ,cleaning, or less than cost ice cream at Mac Donald s to attract consumers. (Price) This is where Wall mart is very famous for keeping prices low by attracting many sellers on same floor competing with each other thus like perfect competition condition goods are sold almost at price of Cost of production and supply chain are kept at level of minimal inventory to keep cost down. Supply Chain side automations brings down cost as well more rotation of goods.
Like how P&G and Nestle maintain there Physical warehouses see products by this company
you can register a see complete movie how its done.
Like maintaining Go-down with efficient warehousing management and quick reordering based alert issued by sensor on shelf following the (Reorder-level). Thus one of the Cost leadership strategy given by peter Ducker.
just Read few thoughts by author:
There was a classic case : On Grass cutting company On account of being marginalized in perfect competition floor of thus not able to achieve set price to by providing differentiated product said No to walmart
Read : Man who said No to Walmart
Retail moved a long was towards innovation last 2 decade from merchandising by experts and procurement experts dealing with suppliers always thinking about the assortment they need to present to customer entering the Mall. Tracking Eyeball of consumer picking up consumer behaviour to schedule the products related to each other in one shelf or in nearby place. Creating products variety is assortment planned so as to achieve variety and meeting matrix of operational efficiency of (price, quality, time flexibility).
Any shopping mall place with promotion pulls up potential customer called prospect to store area. Then Each vendor has its strategy of luring in customer because once in the store and customer start spending then customer does not think much about cost also like mac Donald less cost ice cream example other Items does get ordered out of expected value a consumer may derive. The rational choice theory does also play important role. It has been Noble prize winning theory by prof Daniel Kahneman (2002) and Gary Becker (1992). Read : http://en.wikipedia.org/wiki/Rational_choice_theory
Consumer Behaviour is getting shaped by the behavioural Economics of Rationality which is inherent in our thinking process.
Not only does it help justify Stock behaviour it does tell consumer preferences after entering into store.
From the format of stores and their strategies
1. Retail Store: Super Store, department store , Hypermarts, discount store,
Read Strategy here : http://en.wikipedia.org/wiki/Retail#Types_of_retail_outlets
2. Wholesale stores/Warehouse Club : for small vendor taking bulk orders at once. Like metro http://en.wikipedia.org/wiki/Warehouse_club
These differentiation help to achieve variety and specialization and hence more premium is available in terms of not cost but volume.
Its like classical economics “Supply will create its own demand” Although its not much relevant but surely its in play say (10%) of cases. Because there are other factors as well which dominate its not sellers market its buyers market.