Chapter 16
Retail Communication Mix
McGraw-Hill/Irwin
PPT
16-1
Levy/Weitz: Retailing Management, 5/e
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Strong Brands Provide Value to
Retailers and Their Customers
Value to Retailers
• Attract Customers
• Build Loyalty
Value to Customers
• Higher Prices Leading to
• Promises Consistent Quality
Higher Gross Margin
• Simplifies Buying Process
• Reduced Promotional Expenses
• Facilitates Entry into New Markets
• Reduces Time and Effort
Searching for Information
About Merchandise/Retailer
Gap Î GapKids
PPT 16-2
Creating Brand Awareness
Memorable
Name
Repeated
Exposure
Brand
Awareness
Symbols
PPT 16-3
Event
Sponsorship
McDonald’s Brand Associations
Fast
Food
Golden
Arches
Big Mac
McDonald’s
French
Fries
Ronald
McDonald
Clean
PPT 16-4
Types of Brand Association
• Merchandise Category – Office Depot
• Price/Quality – Target, Wal-Mart
• Specific Benefit – 7-Eleven Convenience
• Lifestyle – The Nature Company
PPT 16-5
Integrated Marketing Communications
Present a Consistent Brand Image through All
Communications with Customers
•Store Design
•Advertising
•Web Site
•Magalog
PPT 16-6
Retail Communication Mix
PPT 16-7
Communication Methods
PPT 16-8
Types of Sales Promotions
Special sales
Merchandise demonstrations
Premiums
Coupons
Games, sweepstakes, and
contests
PPT 16-9
Steps in Developing a
Retail Communication Program
PPT 16-10
Retail and Vendor
Communication Programs
Vendor
Retailer
• Long-term objectives
• Short-term objectives
• Product focused
• Category focused
• National
• Local
• Specific product
• Assortment of
merchandise
PPT 16-11
Methods for Setting Communication Budget
• Marginal analysis
Advertising
Sales
• Objective and task
• Rules of thumb
- Affordable
- Percent of sales
- Competitive parity
PPT 16-12
Sales
Advertising
Considerations in
Evaluating a Vendor Promotion
• Realized margin from the promotion
• Cost of the additional inventory
• Potential increase in sales from the
promoted merchandise
• Potential loss from switching
• Additional sales from more customer visits
PPT 16-13
CRM Campaign Management System
PPT 16-14
Implementing Retail Advertising Programs
• Developing the
Message
• Selecting the Media
• Determining Ad
Frequency and Timing
PPT 16-15
Suggestions for Developing
Print Ads
• Dominant headline
• Dominant element
• Simple layout
• Specific, complete presentation
• Distinct visuals
• Name and address of store
PPT 16-16
Types of Advertising Media
& Newspapers
& Direct mail
& Magazines
& Outdoor
& Radio
& Shopping guide
& TV
& Yellow pages
PPT 16-17
Types of Internet Advertising
• Banners - >50% of Expenditures
• Rich Media
• Microsites
• Sponsorships -Embedded in Site Content
• Email
PPT 16-18
Problems with
Measuring Effectiveness
• Comparison with Other Media for the
– Reach
• Counting Unique Visitors
• Use of Cookies
– Frequency
• Caching
• Prevent Cache
– Impact
– GRPs - Reach x Frequency
• Comparison of Internet Advertising Sites
PPT 16-19
Generating Traffic for Site
• Domain Name/Brand
• Search Directories and Engines
– Registration, Top Listing
• External Links - Partnerships
• Publicity
• Paid Advertising
– Internet
– Other Media
PPT 16-20
Monitoring Effectiveness of
Traffic Building Approaches
• Monitor Sources of Visits
• Link Behaviors to Sources
–
–
–
–
–
PPT 16-21
Registration
Time on Site
Pages Downloaded
Purchases
Amount Purchased