Unit IX ( Retail Promotion)

7/28/2019 Unit IX ( Retail Promotion)

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Unit IX: Retail Promotion - Planning Retail Promotions, Store Events &Sales Promotion, Retail Advertising.

Q1. Define Retail Promotion? Elements of Retail Promotional Mix? (P.498, Barry Berman)

Retail Promotion includes Any communication by a retailer that informs, persuades, and/or

reminds the target market about any aspect of that firm.

Retail promotions are designed to promote the goods and services offered in the business district

and to directly generate retail sales. Retail promotions should be used as part of a broader

promotional strategy, which also can include special events and image-building promotions.

Retail promotions can either be discount-oriented sales events or targeted, non-sale promotional

events.

Elements of Retail Promotional Mix

Advertising, Public Relations, Personal Selling, and Sales Promotion are the elements of

Promotion. A good plan integrates theses elements based on the overall strategy. A movie

theatre concentrates on Ads & Sales Promotions, while an Upscale Specialty Stores stresses

Personal Selling.

Advertising :- Paid, non-personal communication transmitted through

out-of-store mass media by an identified sponsor

Key aspects

Paid form (Distinguishes Advt. from Publicity)

Non-personal presentation

Out-of-store mass media (Newspaper, T.V., Radio)

Identified sponsor

Public Relations:-

It entails any communication that fosters a favorable image for the retailer among itspublics (Consumers, Investors, Government, Channel Members, Employees, and the

general public). IT may be personal or non-personal, paid or unpaid, and sponsor

controlled or not controlled.

Common activities include speaking at conferences, winning industry awards,

working with the press, and employee communication


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Publicity is any nonpersonal 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 identified commercial sponsor.

Personal Selling:- Oral communication with one or more prospective customers for the

purpose of making a sale.

The level of personal selling used by a retailer depends on the image it wants to convey,

the products sold, the amount of self service, and the interest in long term customer

relationships- as well as customer expectations.

Sales Promotion:- Encompasses the paid communication activities other than

advertising, public relations, and personal selling that stimulate consumer purchases anddealer effectiveness.

It includes displays, contests, sweepstakes, coupons, frequent shopper programs, prizes,

samples, demonstrations, referral gifts, and other limited-time selling efforts outside of

the ordinary promotion routine.

Q2. Discuss Planning a Retail Promotional Strategy? (P.512, Barry Berman)


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Promotional Guidelines

Utilize promotions that are consistent with and enhance store image

Review success or failure of each promotion to help in developing future promotions

Test new promotions when possible

Use appeals that are of interest to your target market and that are realistic to obtain

Make your objectives measurable and obtainable

Develop total promotional campaigns, not just ads

New stores need higher promotional budgets than established stores

Stores in out-of-the-way locations require higher promotional budgets than stores with

heavy traffic

Q3. Determine Promotional Objective & Promotional Budget?

Ans:- A retailers broad promotional goals may be drawn from the list:

Increase Sales

Stimulate Impulse and Reminder buying

Raise Customer Traffic

Get Leads for Sales Personnel.

Present and reinforce the retailers image

Inform customers about goods and services

Popularize new stores and web sites

Enhance customer relations

Maintain Customer Loyalty

Have consumers pass along positive information to friends and others.

Perhaps the most vital long term promotion goal for any retailer is to gain positive word

of mouth (WOM), which occurs when one consumer talks to others.


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Establishing Overall Promotional Budget :-

1. With the all-you-can afford-method :- A retailer first allots funds for each

element of the retail strategy mix except promotions. The remaining funds go to

promotion.

2. The Increment Method:- relies on prior promotion budgets to allocate funds. A

percentage is either added to or subtracted from one years budget to determine

the next years.

3. The Competitive Parity Method :- A retailers promotion budget is raised or

lowered based on competitors actions. It the leading competitor raises its budget

by X percent, other retailers in the area may also follow.

4. The Percentage of Sales Method:- A retailer ties its promotion budget to

revenue. A promotion to sales ratio is developed.

Q4. Discuss In Store Events & Sales Promotion?

Stimulating, exciting, immersive events with a human touch can transform the way

consumers think about products, brands and retail environments. When the right

consumer connects with the right Brand Ambassador, sometimes the spark lights up an

entire network of buyers.

Have you ever shopped in a store that was dull and boring? You may not even recall the

name of the shop because it was simply that uninteresting. As a retailer, you don't wantyour store to become one of those lackluster shopping experiences. A great way to avoid

becoming mundane is by strategically planning promotional events for your retail store.

Retail Store Events Tips

Choose a Event that fits your industry, target audience and goals.

Maintain a calendar of all planned and actual promotional events.

Don't forget to include local community events in the planning.

Try to schedule events 3-6 months in advance to create an effective promotion.

Create a folder for each event to maintain records and review the final results.

Increase your Open-to-buy and purchase extra inventory for special events.

Sales Promotion:-


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Encompasses the paid communication activities other than advertising, public relations,

and personal selling that stimulate consumer purchases and dealer effectiveness

Types of Sales Promotions:-

Displays

Contests

Sweepstakes

Coupons

Frequent shopper programs

Objectives:-

Increasing short-term sales volume

Maintaining customer loyalty

Emphasizing novelty

Complementing other promotion tools

Advantages

Eye-catching appeal

Distinctive themes and tools

Additional value for customer

Draws customer traffic

Maintains customer loyalty

Increases impulse purchases

Fun for customers

Prizes

Samples

Demonstrations

Referral gifts

Other limited-time

selling efforts


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Q5. Explain Retail Advertising?

Paid, nonpersonal communication transmitted through out-of-store mass media by an

identified sponsor

Key aspects

* Paid form

* Nonpersonal presentation

* Out-of-store mass media

* Identified sponsor

Objectives

o Lifting short-term sales

o Increasing customer traffic

o Developing and/or reinforcing a retail image

o Informing customers about goods and services and/or company attributes

o Easing the job for sales personnel

o Developing demand for private brands

Advantages

Attracts a large audience

Gains pass along readership (for print)

Low cost per contact

Many alternatives available

Control over message content; message can be standardized

Message study possible

Editorial content surrounds ad


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Self-service operations possible

Types of Advertising


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Key- Terms

Q1. Objectives of Public Relation ?

Increase awareness of the retailer and its strategy mix

Maintain or improve the company image

Show the retailer as a contributor to the publics quality of life

Demonstrate innovativeness

Present a favorable message in a highly believable manner

Minimize total promotion costs

Q2. Advantages of Public Relation ?

Advantages

Image can be presented or enhanced

More credible source

No costs for messages time or space

Mass audience addressed

Carryover effects possible

People pay more attention than to clearly identified ads

Q3. Disadvantages of Public Relation?


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Some retailers do not believe in spending on image-related

communication

Little control over publicity message

More suitable for short run

Costs for PR staff, planning activities, and events

Q4. Objectives of Personal Selling?

Persuade customers to buy

Stimulate sales of impulse items or products related to customers basicpurchases

Complete customer transactions

Feed back information to company decision makers

Provide proper levels of customer service

Improve and maintain customer satisfaction

Create awareness of items also marketed through the Web, mail, and

telemarketing

Q5. Advantages of Personal Selling?

Advantages

Message can be adapted

Many ways to meet customer needs

High attention span

Less waste


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Better response

Immediate feedback

Q6. Disadvantages of Personal Selling?

Disadvantages

Limited number of customers handled at one time

High costs

Doesnt get customer in store

Self-service discouraged

Negative attitudes toward salespeople

Q7. Functions of Personal Selling?


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Q8. Hierarchy of Effects?

Q9. Implementing the Promotional Mix?

Media

Timing

Content

Makeup of Sales Force

Sales Promotion Tools

Responsibility for Coordination


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Q10. Media Selections?

Coverage maximum number of consumers in the retailers target market

Reach actual total number of target customers who come into contact with the ad

message

Frequency average number of times each person who is reached is exposed to the ad

during a given time period

Q11. Cooperative Advertising?

The costs of retail advertising are sometimes shared by manufacturers or wholesalers and

their retailers. Two or more retailers may also share costs. Both of these approaches entail

Cooperative Advertising.

Q12. Vertical Cooperative Advertising?

A manufacturer and a retailer or wholesaler and a retailer share an ad.

Advantage to retailer are the reduced ad costs, assistance in preparing ads, greater

market coverage and less planning time.

Q13. Horizontal Cooperative Advertising?

Two or more retailers share and ad. It is most often used by small noncompeting

retailers, retailers in the same shopping center, and franchisees of a given firm.

Advantages are the bargaining powers of retailers in dealing with the media and the

synergies of multiple retailers working together.

Q14. Order taking salesperson?

Performs routine clerical and sales functions Setting up displays, stocking shelves,

answering simple questions, and ringing up sales. This type of selling is most likely in

stores that are strong in self-service but also have some personnel on the floor.

Q15. Order Getting Salesperson?


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They are actively involved with informing and persuading customers, and in closing

sales. This is a true Sales employee. They usually sell higher price or complex items, such as

real-estate, autos and consumer electronics.

Q16. How to Schedule Retail Ads?

Ads should appear on (or slightly precede) the days when customers most likely to

purchase

Ads should be concentrated around the times when people receive their payroll checks

If funds are limited, concentrate ads during periods of highest demand

Ads should be timed to appear during time of say or day of week when the best cost-perthousand for the target market ((cost of ad/number of people in the target market viewing

the ad) x 1000)

The higher the degree of habitual purchasing of a product class, the more the advertising

should precede the purchase time.

Q17. Why Retail Sales are lost?

Generally, the retail sales are lost due to


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Q18. Media decision?

The choice of specific media is based on their overall costs, efficiency (The cost to

reach the target market),lead time, and editorial content. Overall costs are important since

heavy use of one expensive medium may preclude a balanced promotional mix, and a

firm may not be able to repeat a message in a costly medium

Q19. Content of Messages?

Whether written or spoken, personally or impersonally delivered, message content is

important . Advertising themes, wording, headlines, the use of color, size, layout, and

placement must be selected.

Some retailers use comparative advertising to contrast their offerings with competitors.

These ads help position a retailer relative to competitors, increase awareness of the firm,

maximize the efficiency of a limited budget, and offer credibility. Yet, they provide

visibility for competitors, may confuse people, and may lead to legal action.

Q20. Word of mouth?


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Perhaps the most vital long term promotion goal for any retailer is to gain positive word

of mouth (WOM), which occurs when one consumer talks to others.

If a satisfied customer refers friends to a retailer, this can build into a chain of customers.

No retailer can succeed if it receives negative WOM. Negative WOM will cause a firm

to lose substantial business.

Unit IX ( Retail Promotion)

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