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Chapter 11 Advertising and Promotion. The Retail Promotion Mix. What is promotion?. The Retail Promotion Mix. What is promotion? A means that retailers use to bring traffic into their stores, and includes… Advertising, Sales promotion, Publicity, and Personal selling.

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Chapter 11 advertising and promotion

Chapter 11

Advertising and Promotion


The retail promotion mix
The Retail Promotion Mix

  • What is promotion?


The retail promotion mix1
The Retail Promotion Mix

  • What is promotion?

    • A means that retailers use to bring traffic into their stores, and includes…

      • Advertising,

      • Sales promotion,

      • Publicity, and

      • Personal selling.


1 advertising
1. Advertising

  • Definition:

    • Paid, non-personal communication through various media by business firms, and individuals who are in some way identified in the advertising message and who hope to inform and/or persuade members of a particular audience

  • Key points:

    • Performed by retailers (profit or nonprofit)

    • The retailer is identified within the message

    • Designed to persuade or inform

    • Includes, but not limited to:

      • Communication of products, services, institutions, and/or ideas


2 sales promotion
2. Sales Promotion

  • Definition:

    • Involves the use of media and non-media marketing pressure applied for a pre-determined, limited period of time at the level of consumer, retailer or wholesaler in order to stimulate trial, increase consumer demand, or improve product availability

  • Key points:

    • Uses both media and non-media

    • Runs for a limited, and pre-determined, period of time

    • Directed at the “customer” (final customer, retailer, wholesaler)

    • Has one of three end-goals

      • Stimulate trial, increase existing purchases, or expand availability


3 publicity
3. Publicity

  • Definition:

    • Non-paid-for communications of information about the company or product, generally in some media form

  • Key points:

    • Non-paid-for communication

      • Does not mean that no money has been spent

    • Provides some form of information about a company or product

      • Examples:

        • Macy’s parade

        • Del Frisco’s Double Eagle Steakhouse


4 personal selling
4. Personal Selling

  • Definition:

    • Selling that involves a face-to-face interaction with the customer

  • But why is this considered promotion?


4 personal selling1
4. Personal Selling

  • Definition:

    • Selling that involves a face-to-face interaction with the customer

  • But why is this considered promotion?

    • Rationale:

      • It provides a service to the customer

        • Ease in information gathering

      • Such service enhances one’s value proposition

      • Value propositions are the reasons customers shop a store

        • What is the goal of a promotion – traffic


Integrated effort
Integrated Effort

  • Promotion decisions relate to and must be integrated with other management decisions, such as:

    • Location

    • Merchandise

    • Credit

    • Cash flow

    • Building and fixtures

    • Price

    • Customer service


Promotion in the supply chain
Promotion in the Supply Chain

  • Three major differences in the way retailers and manufacturers use promotion:

    • Consider which, the retailer or manufacturer, highlights each in their promotions:

      • Product image versus availability

      • Specific product benefits versus price

      • Focused image versus cluttered ads


Promotional objectives
Promotional Objectives

  • Long-term objectives

    • Institutional advertising

      • Promoting and selling the store itself rather than the merchandise in the store.

  • Short-term objectives

    • Promotional advertising

      • Promoting the product availability and price to increase short-term performance

    • Two major goals:

      • Increased patronage from existing customers

      • Attraction of new customers


Steps in planning for a retail advertising campaign
Steps in Planning for aRetail Advertising Campaign

  • Select advertising objectives

  • Budget for the campaign

  • Design the message

  • Select media to use

  • Schedule ads

  • Evaluate results


Selecting advertising objectives
Selecting Advertising Objectives

  • Advertising objectives are informed by one’s promotional objectives

    • Advertising objectives are very idiosyncratic, but should never include “to increase sales”. Why?

    • Generally though, all chosen objectives must be:

      • Aimed at a specific market segment

      • Measurable

      • Stated in terms of a specific time frame

      • Would this example be okay or poor? Why?

        • “increase the level of awareness by 30% over the next 6 months”


Budgeting for a retailer only campaign
Budgeting for a“Retailer-Only” Campaign

  • Three general approaches:

    • Affordable Method

      • Allocates all the money that the retailer can afford for advertising in any given period.

    • Percentage-of-Sales Method

      • Targets a specific percentage of forecasted sales to be used for advertising

        ----------------------

    • Task and Objective Method*


Designing the message
Designing the Message

  • Creative ads should seek to accomplish 3 goals:

    • Attract attention and retain attention.

    • Achieve the objective of the advertising strategy.

    • Avoid errors, especially legal ones

  • Some approaches used attract & hold attention include:

    • Lifestyle

    • Fantasy

    • Humorous

    • Slice of life

    • Mood or image







General guidelines for scheduling one s advertising
General Guidelines forScheduling One’s Advertising

  • Ads should…

    • Appear on, or slightly proceed, the days when customers are most likely to purchase.

    • Be concentrated around the times when people receive their payroll checks.

    • Be concentrated during periods of high seasonal demand if the retailer has limited advertising funds.

    • Appear during the time of day/week when the lowest CPM will be obtained.

    • Spaced so that a greater amount of time exists between the advertisement and the purchase time, when a product class has a high level of habitual purchasing


Evaluating advertising s results
Evaluating Advertising’s Results

  • Most ineffective advertising is due to:

    • Messages or sales getting discounted.

    • Advertising not appealing, not giving customers all the information they need, or not directed at the proper target market.

    • Advertising dollars spread too thinly.

    • Poor internal communications.

    • Too many last-minute changes in the advertising copy.

    • Retailer used a medium that reached too many people not in the target market.



Publicity management
Publicity Management

  • When publicity is formally managed, it should be integrated with other elements of the promotion mix.

    • Major advantages of publicity

      • It’s perceived as more objective and credible

      • Likely to appeal to a mass audience.

    • Major disadvantages of publicity

      • It’s difficult to control and time

      • Rumors are just one event that is beyond one’s control and can be highly damaging.

      • Must be prepared for such events if at al possible.


What you should have learned chapter s learning objectives
What You Should Have Learned…Chapter’s Learning Objectives

  • The four basic components of the retailer’s promotional mix and their relationship with other decision areas.

  • The differences between a retailer’s long-term and short-term promotional objectives.

  • The six steps involved in developing a retailer’s advertising campaign.

  • How retailers manage their sales promotion & publicity.


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