chapter 17
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Chapter 17. Retail and Business-to-Business Advertising. Chapter Learning Objectives. Discuss retail advertising fundamentals. Summarize the media options for retailers. Explain business-to-business advertising objectives. Identify the various media used in business advertising. - PowerPoint PPT PresentationTRANSCRIPT
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Chapter 17
Retail and Business-to-Business Advertising
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Chapter Learning Objectives
Discuss retail advertising fundamentals.
Summarize the media options for retailers.
Explain business-to-business advertising objectives.
Identify the various media used in business advertising.
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Retail Advertising
Retail Advertising Used by merchants
to sell products and service directly to consumers.
Accounts for nearly half of all the money spent on advertising.
Retailers sell through a physical facility.
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Sell a Variety of ProductsSell a Variety of Products
Encourage Store TrafficEncourage Store Traffic
Deliver Sales MessagesDeliver Sales Messages
Store ImageStore Image
Establish a BrandEstablish a Brand
Local Retail AdvertisingRetail Advertising is Often Called Local Advertising Because the
Target Market Often is Local.
Retail Advertising Should Perform
Several Functions:
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Retail Advertising is Usually Targeted at People LivingIn the Store’s Local Community.
Retail Advertising is Usually Targeted at People LivingIn the Store’s Local Community.
Consumer Brand Advertising Supports Only the Sponsor’s Brands; Retail Advertising May Support Several Brands.
Consumer Brand Advertising Supports Only the Sponsor’s Brands; Retail Advertising May Support Several Brands.
Retail Advertising Directed at the Local Community Has An Inherent Urgency.
Retail Advertising Directed at the Local Community Has An Inherent Urgency.
Local Retail Advertising is Customized to Reflect the Local Store.
Local Retail Advertising is Customized to Reflect the Local Store.
Differences Between Local Retailing & National Brand Advertising
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Differences Between Local Retailing & National Brand Advertising
To Build and Maintain Store Traffic, a Retailer Must Meet Four Objectives:
Build Store Awareness Build Store Awareness
Convince Consumers That the Store’s Items Satisfy Needs
Convince Consumers That the Store’s Items Satisfy Needs
Create Consumer Desire to Shop At This Store
Create Consumer Desire to Shop At This Store
Create Consumer Understanding
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Station BreakGo to the Benetton Web site at www.benetton.com.
Examine how the company deals with controversial and culturally sensitive issues.
How does this help them sell clothing?
If you were a local distributor (retail store) that carried Benetton products, how would the Benetton ads or policies affect your sales?
Use this company as an illustration of how truly different national product advertisers can be from their local counterparts. Discuss.
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Structure of Co-op FundsStructure of Co-op Funds
CooperativeAdvertising
CooperativeAdvertising
Manufacturer ReimbursesRetailer for Ad Expenses
Manufacturer ReimbursesRetailer for Ad Expenses
Based on a % of SalesTo Retailer
Based on a % of SalesTo Retailer
SometimesCalled
AdAllowances
SometimesCalled
AdAllowances
Suppliers of Co-op CanFund Activity in Two Ways
Suppliers of Co-op CanFund Activity in Two Ways
Varies FromMonth to
Month
Varies FromMonth to
Month
Accrual Fund
Accrual Fund
Cooperative Advertising
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Nonstore Retailing Occurs When the Exchange Between the Manufacturer or Retailer and the Consumer Takes Place
Outside the Traditional Retail Store. Reasons For Growth:
Consumers Are No Longer Inclined to Spend Hours Shopping
Consumers Are No Longer Inclined to Spend Hours Shopping
Improvements in Quality and SelectionImprovements in Quality and Selection
Improvements in WarrantiesImprovements in Warranties
Nonstore Retailing
Improvements in Mailing ListsThat Target Consumers
Improvements in Mailing ListsThat Target Consumers
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Rapidly GrowingIndustry
Rapidly GrowingIndustry
Purchase:Computer Products,
Travel, Entertainment,
Apparel, Gifts, etc.
Purchase:Computer Products,
Travel, Entertainment,
Apparel, Gifts, etc.
E-Commerce is the Selling of Goods and Services (Commerce) Through the Internet.
Online Retailing and E-Commerce
MayUse Other Media to
Advertise Their Products or
Services.
MayUse Other Media to
Advertise Their Products or
Services.
Attractive to ThoseWho Value
Convenience and Don’t Have Much
Time.
Attractive to ThoseWho Value
Convenience and Don’t Have Much
Time.
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Institutional and Product Retail Advertising
Institutional Retail Sells the retail store
as an enjoyable place to shop.
Helps a store to establish its image.
Loyalty programs fall under this category.
Product Retail Presents specific
merchandise for sale and urges customers to come to the store immediately to buy.
Creates a store’s reputation through its merchandise.
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Station BreakGo to the following Web sites: www.foleys.com, www.may.com, www.macys.com, www.dillards.com, and www.gap.com.Which site seems to offer the most in the way of information and incentives to purchase?Are sales advertised? If so, on which sites?Which sites seem to match the image of the retail themselves? Discuss how your judgments were made. What improvements could be made to these sites to make them more competitive and attractive?
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Trends Affecting Retail Advertising
ConsolidationIncreased Use of Free-Standing
Inserts
ConsolidationIncreased Use of Free-Standing
Inserts
DemographicTime Stress, Aging Population,
Geomarketing, Market Fragmentation
DemographicTime Stress, Aging Population,
Geomarketing, Market Fragmentation
Heightened CompetitionMarkets Will Continue to Decrease in Size as Competitors Segment Them.
Heightened CompetitionMarkets Will Continue to Decrease in Size as Competitors Segment Them.
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Image or Price
Price is a FactorIn Image.
Some Products Are Difficult to
Differentiate (gas).
Price Can HelpConsumers to
Comparison Shop.
Image or Price
Price is a FactorIn Image.
Some Products Are Difficult to
Differentiate (gas).
Price Can HelpConsumers to
Comparison Shop.
Executing Retail Ads
Main Objective isTo Attract
Customers.
Mention Store Location & Phone.
May Save Money By Using Stock
Artwork.
Executing Retail Ads
Main Objective isTo Attract
Customers.
Mention Store Location & Phone.
May Save Money By Using Stock
Artwork.
Who Works onThe Creative?
In-house Staff
Media
Ad Agencies
Freelancers
Who Works onThe Creative?
In-house Staff
Media
Ad Agencies
Freelancers
Creating the Retail Ad
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Buying and Selling Local Media
Most rapidly changing area in retail advertising is the buying and selling of local media time and space. Media competition has increased significantly. Budgets are tighter. All large markets have at least one local magazine that
offers high-quality, four-color ads. New selling tactics are called for.
Local Retail Media Strategy Local retailers generally prefer reach over frequency. Successful retailers use media that minimize waste, such
as direct mail.
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MagazinesMagazinesDirect ResponseDirect Response
Online MediaOnline MediaShoppers &
PreprintsShoppers &
Preprints
DirectoriesDirectories Broadcast MediaBroadcast Media
SpecialtySpecialty
Media Alternatives
NewspapersNewspapers
Local Retailers Are Interested Only in Local Media and
Usually Select One of the Following:
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Organizations Buy Products or
Services in Business Markets.
Advertising Directed at People in Business Who Buy or Specify Products
for Business
Use.
Business-to-Business Advertising & Marketing
Organizations Buy Goods or Services to Support (1) Production Requirements, (2) Business Needs.
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Types of Business Markets and Products Purchased (Fig. 17.1)
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MarketConcentration
MarketConcentration
DecisionMakers
DecisionMakers
Business-to-Business Advertising Differs From the Creation of Consumer Advertising
Business-to-Business Advertising Differs From the Creation of Consumer Advertising
StrategicOrientation
StrategicOrientation
Business Versus Consumer Marketing
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Purchasing Objectives
Price Service
Quality Assurance of Supply
Purchas ingO bjec tives
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Creating Company
Awareness
Helps to ContactThose That Can’tBe Reached by
Salespeople
SupportingDistributors and
Resellers
Helps to AnswerCommon Questions
Business-to-Business Advertising Objectives
IncreasingOverallSelling
Efficiency
Also Helps
to:
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Select the Strongest BenefitSelect the Strongest Benefit
Dramatize the Most Important BenefitDramatize the Most Important Benefit
Visual Should be RelevantVisual Should be Relevant
Layout Should Have a Sense of Balance and FlowLayout Should Have a Sense of Balance and Flow
Offer Should be ClearOffer Should be Clear
Creating Business-to-Business Ads
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Business-to-Business Advertising Media
Media Choices Available
for Business-
to-Business
Advertisers
Business & Trade
PublicationsDirectory
Advertising
Direct Marketing
Consumer Media
The Web
Competitive Advantage
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Does Business Advertising Sell?Many question the effectiveness of business-to-business advertising. Studies show that: This form of advertising does create sales. Increased advertising results in increased sales. Paid to advertise to both dealers and end users when
the product was sold through dealers. Increased frequency leads to higher sales and profits. It takes 4-6 months to see gains. Use of color made a dramatic difference. Ad campaign is often effective long after it ends. Awareness and attitudes are affected favorably.
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More Accountability
Is Required
Ad Programs andStaff Are Being
Pared Down
Trends in Business-to-Business Advertising
AdvertisingMust Support
Customer SalesAnd Choices
Becoming More
People Oriented