unit-3 retail communication mix & promotion 9

7/27/2019 UNIT-3 Retail Communication Mix & Promotion 9

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Presented By : Uma Shankar Singh (Alumunus

XLRI)

Retail Communication Mix &

Promotion

McGraw-Hill/Irwin Copyri ght 2012 by The McGraw-H il l Companies, Inc. All ri ghts reserved.


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Brands

Distinguishing name or symbol, such as a logo, that

identifies the products or services offered by a seller

and differentiates those products and services from

those offered by competitors

The McGraw-Hill Companies, Inc./Bob Coyle, photographerThe McGraw-Hill Companies, Inc./John Flournoy, photographer


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Value of Brand Image

Value to Retailers (Brand

Equity)

Attract Customers

Build Loyalty Higher Prices Leading to

Higher Gross Margin

Reduced Promotional Expenses

Facilitates Entry into New

MarketsGapGapKids

Value to Customers

Promises Consistent Quality

Simplifies Buying Process

Reduces Time and Effort Searchingfor Information About

Merchandise/Retailer


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Building Brand Equity

BrandEquity

Create a HighLevel ofBrand

Awareness

DevelopFavorable

Associations

CreateEmotional

Connections

ConsistentReinforcemen

t


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Benefits of High Brand

Awareness

Aided Recall TopMind Awareness

Stimulates Visitsto Retailer


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Creating Brand Awareness

Best Buy

Home Depot Starbucks

Macys

Memorable

Name

Symbols

Top-of-mind

Brand Awareness

Event

Sponsorship

Repeated

Exposure

C i t t R i f t


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Consistent Reinforcement

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The retailers brand image is developed and maintained

through the retailers communication mix

Retail Communication Mix


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Integrated Marketing

Communications

Present a Consistent Brand Image through allCommunications with Customers

Store Design

Advertising

Web Site

Magalog

The McGraw-Hill Companies, Inc./Andrew Resek, photographer


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Brand Extensions

Gap GapKids and Old Navy

Abercrombie & FitchHollister and Gilly Hicks

SearsSears Auto Centers and the Great

Indoors Pottery BarnPottery Barn Kids

The McGraw-Hill Companies, Inc./Andrew Resek, photographer


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Methods of

Communicating with Customers


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Direct Marketing

Directmail

Any brochure,catalog,advertisement,or other printed

marketingmaterialdelivereddirectly to theconsumerthrough the mailor a privatedeliverycompany.

E

-mail

Can bepersonalized tothe specificconsumer and

thus is similar tocommunicationsdelivered bysalespeople.


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Direct Marketing

Mobile marketing is

marketing through

wireless handheld

devices, such ascellular telephones,

and m-commerce or

mobile commerce

involves completing atransaction via the cell

phone.


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Online Marketing

Web Sites

Blogs


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Social Media


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Sales Promotions


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Personal Selling

A communication process in which salesassociates help customers satisfy their needs

through face-to-face exchanges of information.


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Advertising

Newspapers

Magazines

TelevisionRadio

Co-opPrograms


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Public Relations (PR)

Managing communications and relationships toachieve various objectives

Building and maintaining a positive image of the

retailer

Handling or heading off unfavorable stories orevents

Maintaining positive relationships with the media

In many cases, public relations activities support

other promotional efforts by generating freemedia attention and general goodwill.


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Planning the

Retail Communication Program


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Establish Objectives

Communication objectives: Specific goals related to the retail communication

mixs effect on the customers decision-making

process

Long-term: ex. creating or altering a retailers brandimage

Short-term: ex. increasing store traffic


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Determine the Communication

Budget

Marginal Analysis Method Based on the economic principle that firms should

increase communication expenditures as long as

each additional dollar spent generates more than a

dollar of additional contribution Very hard to use because managers dont know the

relationship between communication expenses and

sales


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Objective-and-Task Method

Determines the budget required to undertakespecific tasks to accomplish communication

objectives


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Financial Implications of Increasing the

Communication Budget


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Rule of Thumb Methods

Affordable Budgeting Methodsetscommunication budget by determining what

money is available after operating costs and

profits are budgeted.

Drawback: The affordable method assumes that

the communication expenses dont stimulate

sales and profits.


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Percentage of Sales Methodcommunicationbudget is set as a fixed percentage of forecasted

sales.

Drawback: This method assumes the same

percentage used in the past, or by competitors, is

still appropriate for the retailer.


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Competitive Parity Methodthis communicationbudget is set so that the retailers share of

communication expenses equals its share of the

market.

Drawback: This method (like the others) does not

allow the retailer to exploit the unique

opportunities or problems they confront in a

market.


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Allocate the Promotional Budget

The retailer decides how much of its budget toallocate to specific communication elements,

merchandise categories, geographic regions, or

long- and short-term objectives

Budget allocation decision is more importantbudget amount decision

High-assay principle: The retailer allocate thebudget to areas that will yield the greatest return


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Sales Promotion Opportunity

Many sales promotion opportunities undertakenby retailers are initiated by vendors

To evaluate a trade promotion, the retailer

considers:

Realized margin from the promotion

Cost of the additional inventory carried

Potential increase in sales

Potential loss

Additional sales


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Thank You

unit-3 retail communication mix & promotion 9

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