advertising management in retail_merged

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Title and Content

Chapter 2: Advertising Management in Retail

Certificate in Stratergic Retail Management

TCS Business Domain Academy


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Topics covered

2

Introduction

Features of advertising

Objectives and functions of advertising

Types of advertising

Types of retail advertising

Advertising techniques in retail

Role of advertising in retail Advertising management process

Determining advertising budget

Integrated marketing communication


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Learning objectives

3

What are features of advertising

Different objectives and features of advertising

Types of advertising

Different advertising techniques

Role of advertising in retail

Advertising management process

How budget is determined in advertising

Integrated marketing communication.


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Introduction

4

Planned Advertising process involves one year of planning, budgeting,

marketing, creative, printing, distribution which involves coordination

between various departments and the manual activities.

Advertising is nothing but a paid form of non-personal presentation orpromotion of ideas, goods or services by an identified sponsor with a

view to disseminate information concerning an idea, product or

service.


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Features Of Advertising

5

Paid form: All forms of advertisings are paid forms and the mode and

medium of payment depends on the channel used for communication.

Non Personal: There is no face to face communication taking place in

advertisements, they use a mass transmission medium like TV, Radio etc

to communicate to its customers

Identified Sponsor: Sponsor of an advertisement is the advertiser who is

trying to sell his product or service. An advertisement should be able to

convey the identity of the sponsor and also the product.

Mass communication: An advertisement generally uses mediums whichcommunicate to a large group of people example TV, Radio etc.


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Types Of Advertising

6

Institutional advertising

Product Advertising

Pioneering advertising

Competitive advertisingReminder advertising

Customer advertising

Business to business advertising

Commercial and non commercial advertising


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Retail Advertising

7

A retail advertisement is oriented towards highlighting the price, features,

availability of a product.

Types of Retail advertising

Promotional

Semi-Promotional

Non- promotional

Assortment advertising

Omnibus Advertising


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Role of Advertising in Retail

8

To create a specific image in customers mind of the retailers products,

price, quality etc.

To increase short term flow of cash by way of sale, promotional offers

etc.

Increase the demand for a product

To communicate about the store services and policies.

Advertisements attract the customers into the store. They act as a

catalyst in bringing the customers to the stores


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Advertising Management Process

9

The process involving the procedure to design a campaign for selling a

good or service to consumer is known as advertising management.

Business Analysis/ Market Research

Key word research/Pay Per click research

Ad writing

Media Selection

Launch

Monitor


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Determining the Advertising Budget

10

There are a few methods followed by retailers in general to determine the

advertising budget.

Some of these methods are as listed below:

The percentage of sales Competitive parity method

Research Approach

Incremental method


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Integrated Marketing Communication

11

As defined by the American Association of Advertising Agencies

Integrated marketing communications

"recognizes the value of a comprehensive plan that evaluates thestrategic roles of a variety of communication disciplines advertising,

public relations, personal selling, and sales promotion and combines

them to provide clarity, consistency, and maximum communication

impact.


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Thank youTCS Business Domain Academy

Please mail feedback to [email protected]


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Chapter -1 Retail Brand ManagementV1.0, Jan 2013For Associates


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Certificate in Strategic Retail Management TCS Business Domain Academy

Confidentiality statement

This document should not be carried outside the physical and virtual boundaries of TCS and

its client work locations. The sharing of this document with any person other than TCSer

would tantamount to violation of confidentiality agreement signed by you while joining

TCS.


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Chapter - 1 Retail Branding ManagementIntroduction

This Chapter gives an idea about how branding over years have been emerged, how retail

brands and product brands vary, how branding strategies are applied in retail sector. This

chapter gives a detail explanation of Retail branding strategic management and different

strategies used in it. It also gives the idea of architecture of retail brands, dimensions in

retail branding and a brief description of what is Brand assortment, retail brand equity and

brand extension.

Learning Objectives:

After reading this chapter you will be able to know:

What is Retail Branding Retail Branding strategic management Architecture of Branding Dimensions in Branding

Brand equity Brand assortment Brand extension Retail co-branding Brand promotion techniques Sales Promotion Techniques


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Contents

1.1 Overview ...................................................................................................................... 51.2Retail Strategic Branding Management ....................................................................... 5

1.2.1 The Product Brand Strategy............................................................................... 51.2.2 The Line Brand Strategy .......................................................................................61.2.3 The Range Brand Strategy ....................................................................................61.2.4 Umbrella brand strategy ....................................................................................... 71.2.5 Source Brand Strategy .......................................................................................... 71.2.6 Endorsing Brand Strategy ..................................................................................... 8

1.3Retail brand architecture ............................................................................................. 81.4Dimensions of retailer image .......................................................................................9

1.4.1 Location/ Access ...................................................................................................91.4.2 Store atmosphere .................................................................................................91.4.3 price and promotion ............................................................................................ 101.4.4. Cross-category assortment ................................................................................ 101.4.5 Within-category assortment ............................................................................... 10

1.5 Retail Brand Equity .................................................................................................... 101.6 Brand Assortment ..................................................................................................... 10

1.6.1 Private label branding strategy ........................................................................... 111.7 Brand Extension ......................................................................................................... 111.8 Retail co-branding ..................................................................................................... 111.9 Brand promotion techniques ..................................................................................... 121.10 Consumer sales promotion techniques .................................................................... 121.11 Direct marketing ...................................................................................................... 12


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1.1 Overview

Branding over the years has emerged as a firms most valued intangible asset. Due to the

growing competition in this industry branding has become a top priority for the

management in the retailing industry.

Retail brands though share a lot of similarities with product brand they are quite different

when it comes to the application of the branding principles. Retail brands are more sensory

in nature and tend to create an image customers minds in a different ways by unique

associations with the quality of their service, their product assortment and merchandising

policies etc. The Following is American Marketing Associations definition of a brand, a

retail brand identifies the goods and services of a retailer and differentiates them from

those of competitors. A retailers brand equity is exhibited in consumers responding more

favorably to its marketing actions than they do to competing retailers.

Over the last decade there has been a lot of change in the retail industry globally there has

been a substantial increase in promotion of private labels. There is also an immense growth

in the discount stores which has put a lot of pressure on retailers. A large part of retailers

sales comes from manufacturers brand which are also available with the competitors hence

it has become important for the retailers to build their own brand. Manufacturer brands for

most retailers operate agents to generate consumer interest and build the brand equity of

the store. Such equity helps them against the competing retailers which results in

increasing their revenues and profitability.

1.2 Retail Strategic Branding ManagementThere are six strategic models adopted by companies for management of retail brands.

Each of these models assigns different role and status for its brand.

The product brand The line brand The range brand The umbrella brand The source brand


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and the parent company results in having a portfolio of products each with their own brand

identity. Example this brand strategy can be found in case of Procter & Gamble the

company isrepresented in the Indian market by detergent like Ariel, and in the soaps market

by Camay.

1.2.2 The Line Brand Strategy

In this strategy the parent brand introduces a coherent product by proposing a brand name

and expands by introducing complementary products. Example: as in the case of Calgon (a

Benckiser brand) which markets a dishwasher power together with a rinsing agent and lime

scaling inhibitor. Though theseproducts are totally different form the producer point it

makes no difference to the consumers, who perceive them as related. The trick here is to

stay close to the primary product and exploitation on the success of the primary brand.

The following are some advantages of this strategy:

It reduces the cost of launching It results in distribution of sales along the extensions

The biggest disadvantage of this strategy though is that the innovation gets limited.

1.2.3 The Range Brand Strategy

This strategy is mostly found in food and cosmetic brands here all the products under the

parent brand follow a single theme and have similar concept. Example all products of Dove

are related to personal hygiene and cater to the same segment. Here Dove is the brand and

personal hygiene is the theme followed.


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1.2.4 Umbrella Brand Strategy

Umbrella Brand strategy is where in the parent brand produces several products in different

segments of the markets and each of these develop their own advertising and

communication concepts under a single brand name. Each of them acts individually and yet

retain brand name. Example of such strategy is Canon which markets cameras,

photocopying machine and other office equipment under the same brand name.

Fig: 1.2 Umbrella branding

1.2.5 Source Brand Strategy

This strategy is similar to umbrella brand strategy the only difference being that each of the

products has their own name and are not addressed by a generic name brand name.

Example in this case are clinic plus, lakme, dove, pond`s etc are all different brands under

HUL and each of them have their own brandimage.


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1.2.6 Endorsing Brand Strategy

Consider famous automobile manufacturers such as Honda, Hyundai everyone easily

recognizes them. We notice that next to theirlogos and theirindependent names we always

see the brand name. Example: Honda City, Honda Civic etc. This strategy followed is known

as endorsing brand strategy.

Fig1.4.Endorsing Branding

1.3 Retail Brand ArchitectureBrand architecture of an organization can be defined as a systematic way of organizing the

identity of the different products, messages, or elements of an organization so that stake

holders both within and outside of the organization understand how its clients or customers

are being served. The biggest advantage of brand architecture is that it helps in increasing

the equity of an existing brand.

Brand architecture plays a dual role of:

Improving brand awareness by giving a clear idea of the product and servicesoffered to the consumers.

Building the brand image of the products and services.Few other advantages of brand architecture are:

Architecture of a brand when considered as a part of branding strategy helps in


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The biggest challenge though for the smaller brands is to differentiate from the clutter, and

create a differentiating brand image to sell. On contrary visibility is rarely a problem for

larger brands with large shelf space, such as Tide, Colgate, Surf, Nirma,Knor soup, Priya

pickles, MTR etc. The challenge that these brands face is of showcasing all their offerings in

a way that facilitates maximum sales and profitability.

It is pretty evident that some retailers have performed better than the others understanding

how this can be done a retailer should know how to position his brand and how to relate his

brand assortment with its image. The Topics below give a brief about the same:

1.4 Dimensions of Retailer ImageFollowing the American Marketing Associations definition of a brand, a retail brand

identifies the goods and services of a retailer and differentiates them from those of

competitors.

Retailers Brand equity can be discovered in a market where the consumers respond more

favorably to a brand compared to its competitors. Researchers have found that there are

five main parameters which affect the brand image of a retailer namely:

1) Location/ access, 2) in-store atmosphere, 3) price & promotion, 4) cross-categoryproduct/service assortment and 5) within-category brand/item assortment.

1.4.1 Location/ AccessThe distance a consumer has to travel to shop plays an important role in choice of the store.

Consumer decides the store depending on his need for example small basket, fill-in trips are

very unlikely to be made to distant. Hence location is one of the key components in

consumers assessment of choice of store and is important for retailers who wish to get a

substantial share of wallet from fill-in trips and small basket shoppers.

1.4.2 Store AtmosphereMehrabian and Russell (1974) from their research found out that there are three main

parametersin retail atmospheres that arouse response from consumers pleasantness,

arousal and dominance A pleasing stores atmosphere always appeals consumers to


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1.4.3 Price and PromotionPricing and promotion is another important parameter which the consumers consider as a

parameter in building store image. It is more likely that they develop a favorable image if

the discounts offered are more frequent on large number of products rather than steep

discounts on less number of products. The effect of pricing and promotions is indirect it

encourages consumers in store switching.

1.4.4. Cross-category Assortment

An assortment of a retailer is what pulls the customer to the store. A broad assortment can

lure customer by offering convenience and ease of shopping. On the other hand too much

of extension too far too soon may create an unnecessary burden on the retailer but, staying

too tightly coupled to the current assortment and image may unnecessarily limit the

retailers range of experimentation. The retail assortment policy is critical to successfully

appeal to its target customer base and to expand over time.

1.4.5 Within-category Assortment

Greater number of SKU s not always increase the satisfaction level of customers retailers

can actually reduce the number of SKUs and still create a positive brand image in

consumers perception .Retailers must carefully reduce the number of SKU s without

creating much of an impact on consumers perception. As long as the brands they pay

attention to in the assortment of the organization are available image of a store will not

change.

1.5 Retail Brand Equity

Brand equity is defined as the marketing effects or outcomes that accrue to the product or

service with its brand name as compared to the outcomes if that same product or service

did not have the brand name.(Source: http://wiki.answers.com)

Measuring brand equity has been one of the most importantissues for both academics and

managers.


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they provide over manufacturers;and a third being an implicit assumption that a private

label brand enhances loyaltyto the retailer

1.6.1Private Label Branding Strategy

Private brands are products that are controlled and marketed by retailers. Frequently, but

not always, these products carry the retailer's own name as the brand. Private brands are

also known as corporate brand, store brands, own brand, and retailer brands.

(Source: http://www.daymon.com)

Many retailers tend to give their own name to their private label; whereas others use

differentnames Example CVS puts the CVS name on all its private label products whereas

Kmart does not. There is a high probability that the Consumer perceptions of a private label

product under the store are likely to create an impression on the whole store and vice-versa.

Yet, the different inherent qualities of a retail store and its products suggest that the flow

of meaning and equity may not always be strong. In other words, consumers may be able tomentally compartmentalize product offerings as distinct from retailing activities such that,

even if they deemed a particular store brand product as unacceptable, they may be less

inclined to downgrade their evaluations of the retailer as a whole. If the retailer chooses not

to use the store name for private label products, the feedback effects, both positive and

negative, would presumably be less strong.

1.7 Brand Extension

Brand extension or brand stretching is a marketing strategy in which a firm marketing a

product with a well-developed image uses the same brand name in a different product

category. Organizations use this strategy to increase and leverage brand equity. Brands are

the prime barrier to entry into most categories.Many companies could make a cola, but only

Coca-Cola owns that brand. As a result, well known existing brand names can be the way for

a company to enter a new category that otherwise would be impossible.

(Brand equity definition: the net worth and long-term sustainability just from the renowned


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Retail co-branding is dominated by businesses that provide convenience benefits to

Consumers, for example: fast food franchises teaming up with service stations (fuel

retail)and grocery stores, as demonstrated by McDonalds and Hungry Jacks with Shell and

BP.

1.9 Brand Promotion Techniques

Personal selling, Advertisement, Sales promotion and Publicity are considered to the

elements of promotion mix; let it be a product or brand. In all these cases what is underlying

is the message and marketing communication that will convince, attract, and generate

interest.

The very store location, formats, category display, web-services, ambience ,availability

trained sales counter personnel, facilities of space, shopping cart, payment facilities etc all

can contribute to the promotion of different brands in the store. The very retailer store itself

is a brand by itself. The sales promotion techniques employed in a store can end up in

excellent viral marketing.

1.10 Consumer Sales Promotion Techniques

Price Deal: A temporary reduction in the price, such as happy hour. Loyalty rewards program: Consumers collect points, miles, or credits for purchases

andredeem them for rewards. Two famous examples are Pepsi Stuff and

Advantage.

Cents-off deal: Offers a brand at a lower price. Price reduction may be apercentagemarked on the package.

Price-pack deal: The packaging offers a consumer a certain percentage more of theproduct for the same price (for example, 25 percent extra).

Coupons: coupons have become a standard mechanism for sales promotions. Loss leader: the price of a popular product is temporarily reduced in order to

stimulateother profitable sales.

1.11 Direct Marketing


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It is easy to measure results because it is easy to know exactly how many peoplehave contacted in the first place and what are their requirements.


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Chapter-2 Advertising Management in Retail

V1.0, Jan 2013For Associates


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Confidentiality statement

This document should not be carried outside the physical and virtual boundaries of TCS and

its client work locations. The sharing of this document with any person other than TCSer

would tantamount to violation of confidentiality agreement signed by you while joining

TCS.



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Chapter 2- Advertising Management in Retail

Introduction

This chapter gives brief description of about what is advertisement management and how is

it used on retail sector. This chapter also describes what different features of advertising,

objectives and functions of advertising.It also includes todays growing new fields of the

Internet, digital, TV, Radio and much more, how advertisement helps in success of a

business. This chapter focus light on what are different types of retail advertising, what are

different techniques used in advertising, what is the role played by advertising in retail

sector. It also explains process of advertisement management how the budget is

determined in advertisement management.

Learning objectives

Through this chapter you will be able to know

What are features of advertising Different objectives and features of advertising Types of advertising Different advertising techniques Role of advertising in retail Advertising management process How budget is determined in advertising Integrated marketing communication.



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Contents

2.1 Overview ............................................................................................................... 52.2 Features of advertising .......................................................................................... 62.3 Objectives & Functions of advertising ................................................................... 62.4 Types of advertising .............................................................................................. 7

2.4.1 Classification based on purpose ..................................................................... 72.4.2 Classification based on customers ................................................................. 82.4.3 Classification Based on objective ................................................................... 8

2.6 Types of Retail advertising .................................................................................... 82.7 Advertising Techniques in retail ............................................................................ 92.8 Role of Advertising in Retail ................................................................................ 102.9 Advertising management process ....................................................................... 102.10 Determining the advertising budget .................................................................... 122.11 Integrated marketing communication ................................................................. 13

2.11.1 Advantages of IMC ...................................................................................... 13



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g g y

2.1OverviewOver the last few years, advertising has undergone many changes and today its about

people, products, services, education, information, and change. It also includes todays

growing new fields of the Internet, digital, TV, Radio and much more.

Planned Advertising process involves one year of planning, budgeting, marketing, creative,

printing, distribution which involves coordination between various departments and the

manual activities. However in the modern world, face of advertising is changing rapidly and

so the advertising planning by the retailers. Retailers are now exploring the new advertisingchannels and how to integrate these with the existing planned advertising processes.

Definition

Advertising is a form of communication for marketing and used to encourage or persuade

an audience to continue or take some new action.Advertising is nothing but a paid form of

non-personal presentation or promotion of ideas, goods or services by an identified sponsor

with a view to disseminate information concerning an idea, product or service.

(Source:http://en.wikipedia.org/wiki)



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g g y

As given the above definition focuses on 3 main aspects of advertising:

Advertising is a paid form of communication used by the firm to convey messagesto its customers.

It is a type of mass communication which can be both verbal and non-verbal andneeds a channel to transmit the information from sender to receiver.

Its main purpose is to help a firm sell its products and convey information of thecustomers.

2.2Features of Advertising1) Paid form: All forms of advertisings are paid forms and the mode and medium of

payment depends on the channel used for communication. Example: TV

advertisements are paid on basis of the span of the advertisements where as

magazine ads are paid based on the space occupied.

2) Non Personal: There is no face to face communication taking place inadvertisements, they use a mass transmission medium like TV, Radio etc to

communicate to its customers. The drawback of this form of communication is that

it is difficult to understand audiences reaction.

3) Identified Sponsor: Sponsor of an advertisement is the advertiser who is trying tosell his product or service. An advertisement should be able to convey the identity

of the sponsor and also the product. If the advertisement does not communicate

about either of the two then it cannot be called as an advertisement.

4) Any form : An advertisement can be of any form TV, radio, banners, print etc5) Mass communication: An advertisement generally uses mediums which

communicate to a large group of people example TV, Radio etc. It can

simultaneously communicate with a large audience without any personalisation.

6) Speedy way of communication: It is the fastest mode of communication asinformation can be passed to a major segment of target customer at a time.

7) Can be used by any type of organisation: An advertisement can be used by any typeof organisation be it a commercial, charitable, government etc. It can provide

i ki d f i i



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the larger markets and create awareness among people. The following are the main

objectives of advertising:

Introduction to market Advertising helps in preparing a ground for introduction of new product into the

market prior to its launch.

Creation of Demand

Advertising helps in creating a favourable climate for the product by reminding thecustomers about the product and its brand and thereby improving its sale.

Face the competition

Advertisements also help a brand to build up its brand image with an objectivetoface competition and improve customer loyalty towards the product.

Facilitate communication with the customers

Communicating about changes made in prices or in product in any way to improveits quality, packaging etc can be informed to customers through advertisements.

Restricting new entrants

A strongly built image helps in creating a certain kind of monopoly for a productwhich helps in keeping the new entrants away. Through long and study advertising

a strong image is built up for the products to keep new entrants away.

2.4Types of AdvertisingAdvertising is classified into many types based on various factors like the channel used for

communication, the purpose of advertisement, the customer segment targeted etc. Few of

them are as given below:

2.4.1 Classification Based on PurposeInstitutional advertising: The main objective of this type of advertising is to increase the

goodwill of the organisation rather than try to sell the product. This advertising is mainly

aimed to enhance supplier, customer, and distributor relationship with the company.

Generally large organisations try to link this type of advertising to their products to create



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most useful in early stages of the product introduction to give information of the

product to the customers.

Competitive advertising: this advertising comes into play after the product has beenintroduced and is trying to differentiate itself from the competitors products. The

basis for advertising is to develop a specific demand for a particular manufacturers`

product above its competitors.

Reminder advertising: In this type of advertising strategy the concentration is onreminding the customer of the product rather than trying to sell the product. It is

used when the product is already well established in the market and advertisements

are required only for maintenance of the position.

2.4.2 Classification Based on CustomersCustomer advertising: This includes selling of product or service to people for their own or

for someone else use.

Business to business advertising: organisations selling products or services to another

business rather than end customer use this advertising strategy. The concentration here is

to sell the products to mass consumer market rather than individual customer.

2.4.3 Classification Based on ObjectiveCommercial and non commercial advertising:

Main purpose of commercial advertising is to obtain profit on the other hand non

commercial advertising is used by government organisations, NGO and other service

organisations who seek donations and support.

2.5 Retail Advertising

The basic difference between retail advertising and consumer advertising is that a retailadvertisement is oriented more towards highlighting the price, availability of a product

where as consumer advertising is generally feature and benefit oriented.

2 6 Types of Retail Advertising



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Semi-Promotional: Here the sale products are mixed together with the items whichare not in sale. Example: This strategy is used in supermarkets, departmental stores

etc. Non- promotional Advertising: In these ads the emphasis is on the features like

quality etc

Many small and specialty store use this type of strategy. Assortment advertising: In this type of advertising the emphasis is on the store and

the products available in a store.

Omnibus Advertising: These ads are sale oriented and feature related items or avariety of nonrelated items from several departments.

2.7Advertising Techniques in RetailOld advertising methods/campaign still dominating the retail advertising market, however

new advertising techniques are becoming popular day-by-day. Since the evolution ofBroadband internet, high speed cable, satellite and technological advancement, new

adverting techniques are becoming increasingly popular in the internet user customer

segment. Study shows that more and more customers are showing interest in new

advertising methods retailers using nowadays.



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(Source: Forrester)

Fig 2.3 Statistics advertising in retail

2.8Role of Advertising in RetailAdvertising plays an important role in any retailers marketing strategy. The primary

purpose of advertising is to inform customers about retailers merchandise, services. There

are many other objectives for which a retailer may use advertising .Given below are few ofthem:

To create a specific image in customers mind of the retailers products, price, qualityetc.

To increase short term flow of cash by way of sale, promotional offers etc. Increase the demand for a product To communicate about the store services and policies. Advertisements attract the customers into the store. They act as a catalyst in

bringing the customers to the stores.



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Fig 2.4.Advertising management process

Business Analysis/ Market Research:

In order to identify the consumer market which the retailer plans to serve market research is

important. It also helps in understanding what appeals to the particular market and who are

the potential competitors in this market. This step also helps in finding out the availability

of resources needed in the process.

Key word research/Pay Per click research:

Linking all the keywords or phrases to most commonly used searches online will help to

maximize the pay per click advertising of a product or service. An extensive survey is done

to group all those key words and phrases that will provide maximum returns.Ad writing

This phase involves the process of deciding how to apply the data collected during research

stage. Here the selection of themessage. Depending on the product requirements and the



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A retailer may use any of the following: development of print ads for use in magazines and

newspapers, audio campaigns for radio advertising, or commercials appropriate for

television broadcast or streaming across the Internet or a combination of all of thesestrategies to create a unified image among the consumers.

Launch

After the developing of an appropriate advertisement campaign the retailer should identify

an apt way to launch the campaign to maximize the effectiveness of the campaign.

Launching a campaign that will successfully reach the right consumers will ensure to

generate a desired amount of revenue over the lifetime of the campaign

Monitor

To estimate the effectiveness of the campaign thus launched it is necessary to monitor the

performance. A few indicators like increase in the sale percentage after the advertising

campaign has been launched increase in the revenue after the ads have featured etc have to

be measured on regular basis to find the effectiveness of the campaign.

2.10 Determining the Advertising BudgetThere are a few methods followed by retailers in general to determine the advertising

budget. Some of these methods are as listed below

1. The percentage of sales:In this method the advertising budget is fixed as a percentage of their sales. This is themost common and simplest of all the methods used but the disadvantage with this

method is that it takes a very little consideration of the market conditions.

2. Competitive parity method:

The basis for fixing the budget here is the estimated competitors budget. The biggest

disadvantage with this method is that the information about competitors could be

wrong and there is no consideration of the market conditions.

3. Research Approach:

Here the retailer defines the goals, and the tasks required to achieve these goals. Then

cost of each of these tasks is estimated.A sum total of all these tasks gives the total of



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2.11 Integrated Marketing CommunicationThe increase in choices available to customers and stiff competition from other retailers has

given way to a more evolved form of advertising called integrated marketing

communication.As defined by the American Association of Advertising Agencies Integrated

marketing communications "recognizes the value of a comprehensive plan that evaluates

the strategic roles of a variety of communication disciplines advertising, public relations,

personal selling, and sales promotion and combines them to provide clarity, consistency, and

maximum communication impact. The bottom line being different components of

advertising like sales promotion, public relation and direct marketing shouldworktogether to

deliver same message to the target consumer. Communications and social media working

together as a unified force, rather than each of them work in isolation maximizes their cost

effectiveness. Unlike in general marketing mix of 4P`s (Product, Price, Place, Promotion)

integrated marketing communication uses 4C`s (Consumer, Cost, Convenience,

Communication).The increase in use technology enables retailers to access their audience

better using database technology. This in turn helps in understanding the target market

better.

2.11.1 Advantages of IMC1. It can create competitive advantage, boost sales and profits at the same time.

2. Integrated Marketing Communication consolidates the organizations image for the

customers and helps them move through the various stages of the buying process.

3. Integrated Marketing Communication enhances Relationship Marketing' and it cements

a bond of loyalty with customers which can prevent them from brand switching the

4. IntegratedMarketing Communication also increases profits through increased

effectiveness5. Carefully planned sequence of, when presented, helps the consumers move comfortably

through the stages of their buying process

6. IMC saves a lot of money as it maintains consistency in areas such as graphics and


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Title and Content


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Hyperlink

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Followed Hyperlink

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Tata Blue 50%

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Tata Blue 25%

179149

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Purple 50 %

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Purple 25 %

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Yellow 50 %

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Yellow 25 %

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Brown 50 %

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Brown 25 %

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Green 50 %

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Green 25 %

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Light Green 50%

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Light Green 25%

Chapter 1: Retail BrandingCertificate in Strategic Retail Management


Learning Objectives


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Learning Objectives

What is Retail Branding

Retail Branding strategic management

Architecture of Branding

Dimensions in Branding Brand equity

Brand assortment

Brand extension

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Retail co-branding

Brand promotion techniques

Sales Promotion Techniques

Topics Covered


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Topics Covered

Introduction

Retail branding strategic management

Retail brand architecture

Dimensions of retailer image\

Retail brand equity Brand assortment

Brand extension

-

3

Brand promotion techniques

Consumer sales promotion techniques

Direct marketing

I t d ti


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Introduction

Retail brands though share a lot of similarities with product brand theyare quite different when it comes to the application of the branding

principles.

Retail brands are more sensory in nature and tend to create an image

customers minds in a different ways by unique associations with thequality of their service, their product assortment and merchandising

policies etc.

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Retail Branding and Strategic Management


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Retail Branding and Strategic Management

There are six strategic models adopted by companies for management of retailbrands. Each of these models assigns different role and status for its brand.

The product brand

The line brand

The range brand

The umbrella brand

The source brand

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The endorsing brand

Brand Stratergies


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Brand Stratergies

The Product Brand Strategy

As known Brand is a combination of a word, object, color, logo, emblem, packaging and

design at a time. In Product strategy each product is assigned a unique name and

positioning irrespective of its parent brand.

The Line Brand Strategy

In this strategy the parent brand introduces a coherent product by proposing a brand name

and expands by introducing complementary products

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The Range Brand Strategy

This strategy is mostly found in food and cosmetic brands here all the products under the

parent brand follow a single theme and have similar concept.


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Umbrella brand strategyUmbrella Brand strategy is where in the parent brand produces several products in different

segments of the markets and each of these develop their own advertising and

communication concepts under a single brand name.

Source Brand StrategyThis strategy is similar to umbrella brand strategy the only difference being that each of the

products has their own name and are not addressed by a generic name brand name.

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Endorsing Brand Strategy

Consider famous automobile manufacturers such as Honda, Hyundai everyone easilyrecognizes them. We notice that next to their logos and their independent names we always

see the brand name

Retail Brand Architecture


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Retail Brand Architecture

Brand architecture plays a dual role of:

Improving brand awareness by giving a clear idea of the product and services

offered to the consumers.

Building the brand image of the products and services.

Few other advantages of brand architecture are:

Architecture of a brand when considered as a part of branding strategy helps

in effective communication of a brands strategy.

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It helps a brand in effective promotion either through direct retail experience or

through other forms.

Dimensions of Retailer image


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Dimensions of Retailer image

Researchers have found that there are five main parameters which affect the

brand image of a retailer namely:

1)Location/ access,

2) In-store atmosphere,

3) Price & promotion,

4) Cross-category product/service assortment and

5) Within-category brand/item assortment.

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Location/ AccessThe distance a consumer has to travel to shop plays an important role in choice of the

store. Consumer decides the store depending on his need for example small basket, fill-in

trips are very unlikely to be made to distant

Parameters Effecting Retailers Image


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STORE ATMOSPHEREMehrabian and Russell (1974) from their research found out that there are three main

parameters in retail atmosphere that arouse response from consumers pleasantness,

arousal, and dominance. A pleasing stores atmosphere always appeals consumers to

purchase more often

PRICE AND PROMOTIONIt is more likely that they develop a favorable image if the discounts offered are more

frequent on large number of products rather than steep discounts on less number of

products.

Parameters Effecting Retailers Image

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-

An assortment of a retailer is what pulls the customer to the store. A broad assortment canlure customer by offering convenience and ease of shopping.

Within-category assortment

Greater number of SKU s not always increase the satisfaction level of customers retailers

can actually reduce the number of SKUs and still create a positive brand image in

consumers perception.

Retail Brand Equity


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q y

Brand equity is defined as the marketing effects or outcomes that

accrue to the product or service with its brand name as compared to

the outcomes if that same product or service did not have the brand

name.

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Brand Assortment


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Brand assortment over the years has become an important assortmentstrategy for retailers to pull consumers and develop a brand image.

As Most of the retailers carry manufacturer brands the brands they carry

create an image for the retailer but of late, many of them are also offering their

private label products.

Private label branding strategy

Private brands are products that are controlled and marketed by retailers.

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requent y, ut not a ways, t ese pro ucts carry t e reta er s own name as t e

brand. Private brands are also known as corporate brand, store brands, ownbrand, and retailer brands.


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BRAND EXTENSIONBrand extension or brand stretching is a marketing strategy in which a firm marketing a

product with a well-developed image uses the same brand name in a different product

category.

RETAIL COBRANDINGCo-branding involves combining two brands to create a single product or offering. It

embraces a collaborative venture to further the interests of two or more organizations in a

planned, strategic format.

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BRAND PROMOTION TECHNIQUESPersonal selling, Advertisement, Sales promotion and Publicity are considered to the

elements of promotion mix; let it be a product or brand. In all these cases what is underlying

is the message and marketing communication that will convince, attract, generate interest.

Consumer Sales Promotion Techniques


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Consumer Sales Promotion Techniques

Price Deal: A temporary reduction in the price, such as happy hour. Loyalty rewards program: Consumers collect points, miles, or credits for

purchases and redeem them for rewards. Two famous examples are Pepsi

Stuff and Advantage.

Cents-off deal: Offers a brand at a lower price. Price reduction may be a

percentage

marked on the package.

Price-pack deal: The packaging offers a consumer a certain percentage

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more o t e

product for the same price (for example, 25 percent extra).

Coupons: coupons have become a standard mechanism for sales

promotions.

Loss leader: the price of a popular product is temporarily reduced in order to

stimulate other profitable sales.

Direct Marketing


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Among the trends that have made direct marketing more attractive tobuyers are time constraints and congestion. Sellers, meanwhile, like

direct marketing because of low access costs and databases, which

allow precise targeting.

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Thank you


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