Transcript Retail promotion

Promotion
The final “right”
Six “rights” of merchandising
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Refers to the planning required to get
the:
Right product
 To the right place
 At the right time
 In the right quantity
 At the right price
 With the right promotions
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Promotion
The element of the marketing mix
that involves communicating with our
customers
 Retail promotion includes any
communication by a retailer that
informs, persuades, and/or reminds
the target market about any aspect of
the firm
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Elements of the Retail
promotional Mix
Advertising
 Public Relations and Publicity
 Personal Selling
 Sales Promotions
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Visual merchandising
Advertising
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Paid, non-personal communication
transmitted through out-of-store mass
media by an identified sponsor
Differences between retailer and
manufacturing advertising strategies
Geographically concentrated target
market
 Less able to utilize national media
 Advertising stresses immediacy
 Advertising stresses prices
 Ads display many products
 Media rates tend to be lower for
retailers
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Typical retail advertising
objectives
Boost short term sales
 Increase customer traffic
 Developing/ reinforcing a store image
 Informing customers about goods and
services or customer attributes
 Easing the job of sales personnel
 Develop demand for private brands
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Retail advertising advantages
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A large audience is attracted
Low CPM
A number of alternative media are available;
retailer can match a medium to the target market
Control over message content, graphics, timing,
and size, so a standardized message in a chosen
format can be delivered to the target audience.
In print media, a message can be studied and
restudied by the target market.
Editorial content often surrounds an ad, possibly
increasing its credibility or the probability it will be
read.
Self-service or reduced-service operations are
possible.
Retailer advertising
disadvantages
Standardized messages= no flexibility
 Some media require large
investments
 Media may reach large geographic
areas, leading to waste
 Long lead time of some media
 High throwaway rate of some media
 Brief/small commercials= little detail
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Media
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What different mediums do retailers
use for advertising?
Newspapers
Daily
 Weekly
 Shopper papers
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Newspapers
Telephone Directory
“The yellow pages”
 Suitable for all types of goods and
service-oriented retailers
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Direct mail
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Send ads to customers by mail or
private delivery firms
Radio
Suitable for reaching the market area
surrounding the retailer
 Suitable if market segments can be
identified
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Television advertising
Reach a definable market area
surrounding the station
 Retailers of goods and services with
wide appeal
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The internet
Reaches a global audience
 Appropriate for all goods and services
retailers
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Transit advertising
Used in areas with mass transit
systems
 Used by retailers near transit routes,
especially those appealing to
consumers
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Magazines
Magazines
Used by retailers with a national or
regional presence
 Exceptional for image advertising
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Circulars and flyers
Distributed in parking lots or to
consumer homes
 Single neighborhood
 Restaurants, dry cleaners, service
stations
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Types of Advertising
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Retailers can be classified by content
and payment method
Pioneer ads
 Competitive ads
 Reminder ads
 Institutional ads
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Payment method
Pay own way
 Vertical cooperative advertising
 Horizontal cooperative advertising
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Planning cooperative
advertising strategies
What ads qualify, in terms of
merchandise and special
requirements?
 What percentage of advertising is
paid by each party
 When an ads be run? In what media?
 Are there special provisions regarding
message content?
 What documentation is required for
reimbursement?
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Public Relations
Any communication that fosters a
favorable image for the retailer
among its publics
 Publics include: consumers, investors,
government, channel members,
employees, and the general public
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Publicity
A specific type of public relations
 A non-personal form of public
relations whereby messages are
transmitted through mass media, the
time or space provided by the media
is not paid for, and there is no paid
sponsor
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Public relations objectives
Increase awareness of the retailer
and its strategy
 Maintain/improve cp
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