The marketing perception of grocery store retailers belonging to black business associations in Gauteng

Abstract

This study investigates the marketing perception of grocery store retailers belonging to black business associations in Gauteng. In determining what the black grocery store retailer should know about marketing in order to be successful, an extensive literature study was undertaken on the basic components of marketing, namely the marketing concept, marketing environment and target market selection, and the retail marketing mix and strategy. An empirical study was conducted to determine the black grocery store retailer's present knowledge and practices of the basic components of marketing. In the study, grocery store retailers who are members of Nafcoc in Gauteng, were interviewed by using a structured questionnaire which covered the basic components of marketing. The research results reveal various prominent gaps in the black grocery store retailer's marketing perception of the marketing concept, marketing environment and target market selection, and the retail marketing mix and strategy. The most significant findings are that successful black grocery store retailers have certain unique characteristics and perceptions and follow specific marketing practices: they care what customers think of their stores and they see it as their responsibility to conduct marketing research on a regular basis; they are more sensitive to the diverse cultural backgrounds and needs of the customers and infrastructural problems of the townships in which they live; they do not focus only on providing the basic necessities but also keep an expanded product range, including shopping and emergency products; they use the self-service store concept to sell to their customers; they add value by providing after-sales services such as attending to defective goods; they have a broader perception of competitors and do not focus only on intratype competition inside the townships; they use more advanced accounting and financial management techniques; they accept their role as a socially responsible retailing business in the township community; they eliminate the middlemen in the distribution system whenever possible by buying directly from manufacturers and the fresh produce market; and they use more marketing communication elements to promote their stores and range of products and services.