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Retail Communication Mix PowerPoint Presentation
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Retail Communication Mix

Retail Communication Mix

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Retail Communication Mix

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Presentation Transcript

    1. Chapter 16 Retail Communication Mix

    2. 16-2 Merchandise Management

    3. 16-3 Questions What can retailers build brand equity for their stores and their private-label merchandise? How are retailers using new approaches to communicate with their customers? What are the strengths and weaknesses of the different methods for communicating with customers? Why do retailers need to have an integrated marketing communication program? What steps are involved in developing a communication program? How do retailers establish a communication budget? How can retailers use the different elements in a communication mix to alter customers decision-making processes?

    4. 16-4 Objectives of Communication Program

    5. 16-5 Brands Distinguishing name or symbol, such as a logo, that identifies the products or services offered by a seller and differentiates those products and services from those offered by competitors

    6. 16-6 Value of Brand Image Value to Retailers (Brand Equity) Attract Customers Build Loyalty Higher Prices Leading to Higher Gross Margin Reduced Promotional Expenses Facilitates Entry into New Markets Gap ? GapKids

    7. 16-7 Building Brand Equity

    8. 16-8 Tar-Zhay

    9. 16-9

    10. 16-10 Apple

    11. 16-11 Benefits of High Brand Awareness

    12. 16-12 Creating Brand Awareness

    13. 16-13 Retailers Develop Associations with their Brand Name

    14. 16-14 McDonalds Brand Associations

    15. 16-15 L.L. Bean

    16. 16-16 L.L. Beans Brand Associations

    17. 16-17 Wal-Mart Associations

    18. 16-18 Target Associations

    19. 16-19 Consistent Reinforcement The retailers brand image is developed and maintained through the retailers communication mix

    20. 16-20 Consistent Reinforcement through Integrated Marketing Communication Program Integrated Marketing Communication Program A program that integrates all of the communication elements to deliver a comprehensive, consistent message Providing a consistent image can be challenging for multichannel retailers Need to consider the needs of all channels early in the planning of its communication program

    21. 16-21 Integrated Marketing Communications Present a Consistent Brand Image through all Communications with Customers

    22. 16-22 Brand Extensions Gap ? GapKids and Old Navy Talbots ? Talbuts Mens Sears ? Sears Auto Centers and the Great Indoors Pottery Barn ? Pottery Barn Kids

    23. 16-23 Extending Brand Name to a New Concept Pluses Develop Awareness and Image Quickly Less Costs Needed to Promote Extension

    24. 16-24

    25. 16-25 Paid Impersonal Communications Advertising Sales promotions Special events, In-store demonstrations Games, sweepstakes and contests Coupons Store atmosphere Website Community building

    26. 16-26 Store Atmosphere The combination of the stores physical characteristics (architecture, layout, signs and displays, colors, lighting, temperature, sounds, smells) together create an image in the customers mind

    27. 16-27 Mediacart A shopping cart that delivers point-of-decision advertising Informs the customer about special deals as the customer passes them in the aisle Each video screen is embedded with an RFID chip that interacts with chips installed on store shelves Records shopping habits, dwell times, how shoppers travel through the store

    28. 16-28 Community Building Retailers Community Building Websites offer opportunities for customers with similar interests to learn about products and services that support their hobbies and share information with others

    29. 16-29 Paid Personal Communication Retail salespeople are primary vehicle for providing paid personal communication to customers. Personal selling salespeople satisfy needs through face to face exchange of information Email retailers inform customers of new merchandise, receipt of order or when order has been shipped Direct Mail M-Commerce (mobile commerce)

    30. 16-30 Unpaid Impersonal Communication

    31. 16-31 PR The Gap, Emporio Armani, and Apple are among several retailers selling red products, a portion of the proceeds go to Product RED, a charity to wipe out AIDS in Africa

    32. 16-32 Unpaid Personal Communication Word-of-mouth Can be favorable Can be detrimental Social Shopping A communication strategy in which consumers use Internet to engage in the shopping process by exchanging preferences, thoughts, and opinions Product/service reviews

    33. 16-33 Social Shopping

    34. 16-34

    35. 16-35 Steps in Developing a Retail Communication Program

    36. 16-36 Setting Objectives Communication objectives: Specific goals related to the retail communication mixs effect on the customers decision-making process Long-term: ex) creating or altering a retailers brand image Short-term: ex) increasing store traffic

    37. 16-37

    38. 16-38

    39. 16-39

    40. 16-40 Marginal Analysis Method Based on the economic principle that firms should increase communication expenditures as long as each additional dollar spent generates more than a dollar of additional contribution Very hard to use because managers dont know the relationship between communication expenses and sales

    41. 16-41

    42. 16-42 Objective-and-Task Method Determines the budget required to undertake specific tasks to accomplish communication objectives

    43. 16-43

    44. 16-44

    45. 16-45 Rule of Thumb Methods

    46. 16-46 Rule of Thumb Methods

    47. 16-47 Allocation of the Promotional Budget The retailer decides how much of its budget to allocate to specific communication elements, merchandise categories, geographic regions, or long- and short-term objectives Budget allocation decision is more important budget amount decision High-assay principle: The retailer allocate the budget to areas that will yield the greatest return