Retail Jewelers Learn Keys to Successful Market Planning

By Mauricio Minotta

GIA Consultant Edward Balian, Ph.D., gave a lecture on the importance of marketing for a group of retail jewelers and laid out a road map detailing various considerations they should take in order to compete in today’s increasingly competitive industry. Titled “Want Cash? The Keys to Building More Value into Your Business,” Balian’s lecture stressed the Four Ps of marketing – product, price, placement and promotion – as key elements to stimulate growth in a business.

He encouraged dedication and passion for their work, but also challenged them to take time to really consider the area of the business they most want to see prosper in the future.

“Hard work is not enough if you’re working on the wrong aspect of your business,” Balian said. “At that point you’re just spinning your wheels. You need to work hard on the right part of your business.

“A strong marketing strategy can move your business forward in the direction you want to take it,” he said.

Placement: Stock should be moved around the store on a frequent basis, he said. This requires customers to navigate more through the store past items that could potentially catch their eyes.

“Use the big discount stores as an example. There’s a science behind what they do,” Balian said. “Product is placed throughout the store so getting to the item you intended to buy will result in sales of other products.”

Product: Is the merchandise alluring or unique or does it fulfill the demand of a particular market? Market research may help answer that question, he said.

Price: Is the merchandise reasonably priced compared with competitors? Or are a store’s lower or higher prices used as selling points?

Promotion: Balian placed the highest importance on promotion, saying: “You can have the best product, price and placement, but if the promotion isn’t there, none of the others matter.”

The Four Ps should come together to create a specialized brand, he said. A brand creates customer recognition and net worth to a business. He encouraged the retailers to ask themselves who and where are their customers; how they behave, meaning where do they travel and what do they read, for example; and how will they know their products or show interest in them.

“The answers to these questions will define your target market,” Balian said.