Post on 18-Nov-2014
Retail communication and promotion
Marketing communications are the voice of the brand and are used to establish a dialogue and build relationships with customers
Retail promotions
The mix of communication activities designed to influence retailer publics
Influence consumer perceptions, attitude and behaviour in order to increase store visits, product purchase and store loyalty
Influence other stakeholders such as suppliers, journalists and local and national politicians
Common communication platformsAdvertising
Print/BroadcastPackagingBrochuresPostersLeafletsBillboardsPOP displaySymbols/logos
SalesPromotions
ContestsGamesGiftsSamplingFairsTrade showsCouponsDiscountsFinance optionsTrade-ins
Events andExperiences
SportsFestivalsArtsCausesFactory toursCompany museums
PRPress packsSpeechesSeminarsAnnual reportsCharityPublicationsCommunity relationsLobbyingCompany magazine
Personal sellingSales presentationsIncentive programmesTrade showsSamples
Direct marketing: Mailings, telesales, faxbroadcast, email, catalogues
For retailers MCP can build own brand equity
MARKETINGCOMMUNICATION
PROGRAMME
BRANDEQUITY
Brand awareness
Brand image
Brandresponses
Brand relationships
Advertising
Sales promotion
PR
PersonalSelling
DirectMarketing
Events andexperiences
How persuasive communications work – Response Hierarchy Models
AIDA (1) Hierarchy of effects (2)
Innovation- adoption (3)
Communication model (4)
Attention Awareness
Knowledge
Awareness
Exposure
Reception
Cognitive
response
AFFECTIVE
Interest
Desire
Liking
Preference
Conviction
Interest
Evaluation
Attitude
Intention
Action Purchase
Trial
Adoption
Behaviour
COGNITIVE
BEHAVIOUR
1. Strong, The Psychology of selling. 2. Lavidge and Steiner. 3 Everett Rogers. 4. Various sources from Kotler and Keller
Promotional objectives
Identify target group Identify specific product or category Set specific goals Agree main communication points and
method Define the time horizon
“To ensure that the parents of children aged between 4 and 16 within eachstore catchment area receive information on back to school children’s offers.To grow sales for these products by £xx for school wear and £xx for schoolrelated equipment by September 1.”
Advertising
Paid for time or space media communication Change attitudes, build image, encourage
trial, grow sales Create awareness of the store and range of
offers Can reach large numbers simultaneously with
simple message
“Every little helps”“Spend a little. Live a lot”
“More reasons to shop at Morrisons”
Types of advertising
Product: new, exclusive, superior merchandise or service
Markdown event: create excitement about genuine “sale” event
Retailer brand: sell the store, core vales, commitment to customers, experiences
Co-operative: manufacturer funded mail drops/leaflets promoting offers and discounts
Windows: capture focal attention, distinctive image, promote seasonal activity
Window displays
ID Magasin research suggest only 7% - 9% of passing traffic will notice store display
Bottom third of window has greatest impact View through the door is more important Clear simple messages Use of technology, movement, lighting, colour
to create dramatic effect
Push and pull promotional strategy
CUSTOMERMANUFACTURERRETAILER
Promotes the benefits ofthe product
Pull strategy – create demand for the productthrough advertising and fund retailer promotionalactivity
Push strategy – push the consumer through the channelby advertising store benefits
Sales promotion
Offers and incentive to achieve a desired result
Mostly short term use but can become central to marketing effort and difficult to terminate
Often used in combination with other tools to supplement overall marketing effort
Types of sales promotions
POINT OF SALE Window,,floor, counter display to induce impulse buy
CONTESTS Competitions for prizes to promote retailer brand
SWEEPSTAKES Random prize draws
COUPONS Money off voucher for in-store purchase
REPEAT SHOPPER Points/stamps/rewards for frequent purchase
LINKED PURCHASE Threshold level spending leads to money off other goods
DEMONSTRATIONS In-store demonstration of benefits or product testing
REFERRAL GIFTS Gifts to introduce new users
BOGOF Money saving but can stimulate demand for other items
BRANDED GIFTS Pens, bags other branded giveaways
SAMPLES Sachets, samples instore or in print media
PREMIUM Include free gift to encourage repeat purchase
SPECIAL EVENT Fashion shows, autograph sessions, store opening events
Relationships and loyalty - CRM “Identify and establish, maintain and enhance and
when necessary terminate relationships with customers, at a profit so that the objectives of all parties are met; and this is done by mutual exchange and fulfilment of promises” (Gronroos)
“Managing detailed information about individual customers and carefully managing all customer touch points to maximise customer loyalty…to provide excellent realtime service through the effective use of individual account information” (Kotler and Keller)
Loyalty
Retention can be a measure of inertia and apathy – not loyalty
Griffin (1995): attachment to company/brand is shaped by degree of preference and degree of perceived differentiation
How loyalty schemes create value More purchases more often – conscious choice to commit to
brand in exchange for reward. Additional valued reason for choice
Mass customise marketing communication – talk to individual customers
Asset value of the data – what’s actually happening in every store to every customer
Trend tracking – what customers are buying and what they’re not Minimise wasted marketing effort – better targeting through real
customer insight Promote trust – built on knowledge and understanding and
consistently delivering on promises
The Clubcard customer contract
Identify individualcustomers
Reward involvement,spend, consolidationof spend.
Build dynamiccustomer knowledge
Create accuratesegmentation formarketing efficiency
Enable more personalmore relevant service tocustomers The customer
contract
Loyalty segments (based on Dick and Basu 1994)
TRUE LOYAL
Gofton 1995 only 17% buy same brand in 50%+ product service sectors they use. Understand why loyalty is divided
LATENT LOYALTY
Well disposed but not heavy user
Using other suppliers?
Create attitudinal attachment
FALSE LOYALTY
Apathy, inertia, high switching costs
Increase degree of positive differentiation
NO LOYALTY
No perceived difference
Frequent price switches
Communicate distinct advantages
Behaviour
High repeat purchase Low repeat purchase
Attitude
Highattachment
Lowattachment
Loyalty lessons from Tesco: the dunnhumby loyalty cube
Customer Contribution
Commitment
Championing
All customers can be placed at some point inthe loyalty cube
Location determinesmarketing action to earnloyalty
Contribution
Should you reward “profitability” or “loyalty” eg low spending loyal versus high spending but promiscuous
High spender may take more rewards but not be loyal
Encourage loyalty, not just profitability
Commitment
Future value based on “headroom” Potential to be more valuable in the future What emerging financial needs can be
assumed/identified and targeted Strengthen the bond
Championing
Loyal customers as brand ambassadors Benefits become an aspiration for friends and
associates Word of mouth/pass on your long term
opinion Long term value of a low value but loyal
customer may be in recruiting higher customers
Emotional attachment
“Marketing people use the expression emotional attachment in too free a way. People have an emotional bond to Tesco in that they feel we are on their side…that we look out for their interests…and most important we deliver on our promises. It’s the sort of customer thinking that says ‘Tesco has always done alright by me.’ On the one hand that sounds rather dull, but it is actually massively valuable. It is, infact, branding”
Tim Mason
Other ideas about loyalty
Clubs that identify real emotional needs “The only club that is worth running is one that
satisfies a genuine customer need, because they’re the ones that consumers are interested in” Tim Mason
Unconditional benefits are powerful. An up-front reward gains positive perceptions and influences shopping behaviour in a valuable direction
Be a “chosen” not a “given”. People value most what they actively choose
Personal selling
Retailer gain through face to face or telephone contact between seller’s representative and customers/clients
Based on trust (perceived credibility) of seller representative and seller company
Trust is an important driver of loyalty intention and loyalty behaviour
Sales staff activity in low-risk low-priced retailer environment is transaction based
In high – risk, high – price activity is information/expertise based
The retail selling process (Gilbert)1. Preparing through skills and knowledge
Feedback and learning from prior listening and training
2. Anticipating and identifying a prospective sale
Feedback and learning from prior listening and understanding customer
3. Method of approaching potential customer and task
Feedback and learning from prior listening and asking appropriate questions
4.Presenting the features and benefits
Establish customer need and pocket, active selling and listening to check acceptability
5. Dealing with concerns Active listening to revise argument and overcome objections
6. Building obligation and commitment
Active listening to ensure offer is acceptable and sale can be concluded
7. Establish affinity and relationship
Close the sale, reinforce the relationship through customer delight
Summary: retail promotions
A complex series of communications concerning store and offerings
Traditional promotional mix tools include advertising, sales promotion, personal selling and PR
Retail atmospherics and visual merchandising play a vital role in promotional strategy
A consistently good set of promotional campaigns help establish a store’s long term image and position
Advertising is used to inform, persuade and remind consumers of the store’s value proposition
Sales promotions encourage trial, repeat purchase and generate short term sales increase
PR allows other media channels to act as opinion leaders for the retailer’s personality and image