Post on 01-Jan-2016
Six “rights” of merchandising 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
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
Elements of the Retail promotional Mix Advertising Public Relations and Publicity Personal Selling Sales Promotions
Visual merchandising
Advertising
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
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
Retail advertising advantages 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
Telephone Directory
“The yellow pages” Suitable for all types of goods
and service-oriented retailers
Radio
Suitable for reaching the market area surrounding the retailer
Suitable if market segments can be identified
Television advertising
Reach a definable market area surrounding the station
Retailers of goods and services with wide appeal
Transit advertising
Used in areas with mass transit systems
Used by retailers near transit routes, especially those appealing to consumers
Circulars and flyers
Distributed in parking lots or to consumer homes
Single neighborhood Restaurants, dry cleaners,
service stations
Types of Advertising
Retailers can be classified by content and payment method Pioneer ads Competitive ads Reminder ads Institutional ads
Payment method Pay own way Vertical cooperative advertising Horizontal cooperative advertising
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?
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
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