PromotionThe final “right”

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

Media

What different mediums do retailers use for advertising?

Newspapers

Daily Weekly Shopper papers

Newspapers

Telephone Directory

“The yellow pages” Suitable for all types of goods

and service-oriented retailers

Direct mail

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

Television advertising

Reach a definable market area surrounding the station

Retailers of goods and services with wide appeal

The internet

Reaches a global audience Appropriate for all goods and

services retailers

Transit advertising

Used in areas with mass transit systems

Used by retailers near transit routes, especially those appealing to consumers

Magazines

Magazines

Used by retailers with a national or regional presence

Exceptional for image advertising

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

Public relations objectives Increase awareness of the

retailer and its strategy Maintain/improve cp