promotion strategy of retailing
TRANSCRIPT
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Promotion Strategy of Retailing
Group 5
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Retail Promotion
Retail promotion includes any communication
by a retailer that informs, persuades and/ or
reminds the target market or the prospective
segment about any aspect of that firm.
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Why Retail Promotion?
Increasing store traffic by encouraging new
shoppers to visit the store
Informing customers about goods and servicesor company attributes
Increasing sale of a given product or category
Developing the store image or the retail brand Developing demand for private brands
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Elements of the Promotional Mix
Advertising
Sales promotion
Store atmosphere
Personal sellingE-mail marketing
Publicity Word of mouth
Impersonal Personal
Paid
Unpaid
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Comparison of Promotion methods
Control Flexibility Credibility Cost
Paid Impersonal
Advertising
Sales Promotion
Sales Atmosphere
Paid Personal
Personal Selling
Unpaid Impersonal
Publicity Unpaid Personal
Word-of-mouth
High High to Moderate Moderate Low Low
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Promotions by Westside
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Westside does brand building through advertisementsin the media, but they emphasize more on their in-house promotions, which peak during the three mainfestive seasons: summer, Diwali and Christmas. A sum
of Rs. 20 crore had been allocated for advertising andpromotions. The promotions are mostly theme based,with matching decorations, live brands, & otherattractions. So last years Westside show had aHawaiian theme and this year the chain has gone the
Wild West way. This is followed by a heavy mediaburst across print, outdoors, cinema theatres andFashion TV. Trent has signed cricketer Yuvraj Singh asthe brand ambassador for the Westside chain for threeyears
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AdvertisingAdvertising
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Advertising
Any paid form ofnon-personal presentation
of ideas, goods and services by an identified
sponsor
Key aspects
Paid form
Non-personal presentation
Identified sponsor
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Objectives
To promote a new product
To support the personal selling programme
To reach out to people not accessible to salesmen
To enter a new market for attracting customers To manage competition in the market by
stimulating sales
To enhance the goodwill of the retail organization
To improve dealer relations To warn the public against imitation for the
retailer's product
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Characteristics
AdvantagesAdvantages
Attracts a large audience
Low cost per contact
Many alternative media areavailable
Control over message content;
message can be standardized
Message study possible bytarget market
Editorial content surrounds ad
Self-service operations possible
DisadvantagesDisadvantages
Standardized messageslack flexibility
Some media require largeinvestments
Geographic flexibilitylimited
Some media require long
lead time Some media have high
throwaway rate
Some media limit theability to provide detailed
information
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Raymonds: The Complete Man
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Promotional strategy has a salient role in the building up ofa stores image. In all cases, the product and its utility isimportant, but the way the product is cultivated in theminds of the consumers is also equally important.
In retail, it is not only the product but also the entire retailenvironment along with its peripherals such as storeambience, packaging, promotions, how sales peoplecommunicate about the shopping experience whichtogether go to build a brand image for the retail store.
For Raymonds, the catch-line of TheC
omplete Manadvertised extensively on electronic and print media gotreflected not only in the products but also in retailenvironment in which it is offered.
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Benefits of retail Advertisements for
Customers
It helps in creating awareness among thecustomers about the existence, prices andavailability of products at different locations
for the satisfaction of their wants It educates customers about new products
and their diverse uses
It increases the utility of existing products It encourages the manufacturers to improve
the quality of the products through R&D
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Steps in Retail Advertisement
Campaigns
Selecting Advertisement Objectives
Advertising budget for a campaign
Designing Advertising Message
Selection of Media
Running an ad campaign
Measuring Advertising effectiveness
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Classification based on target
customers
Types of Advertising
PersuasiveAdvertising
InformativeAdvertising
CorporateAdvertising
FinancialAdvertising
ClassifiedAdvertising
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Classification by content and payment
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Differences between retailer and
Manufacturer Advertising Strategies
Retailers usually have more geographicallyconcentrated target markets than manufacturers
Many retailers are unable to utilize national media as
readily as manufacturers.O
nly largest retail chains andfranchises can advertise on national TV programs
Many retailers stress prices in ads, whereasmanufacturers usually emphasize key productattributes
Retailers often display several different products in onead, whereas manufacturers tend to minimize thenumber of products mentioned in a single ad
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Sales PromotionSales Promotion
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Sales promotion
Encompasses the paid communicationactivities other than advertising, publicrelations, and personal selling thatstimulate consumer purchases and dealereffectiveness
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Objectives
Increasing short-term sales volume
Maintaining customer loyalty
Emphasizing novelty
Complementing other promotion tools
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Characteristics
AdvantagesAdvantages
Eye-catching appeal
Distinctive themes Added customer value
Draws customer traffic
Maintains loyalty
Increases impulsepurchases
Fun for customers
DisadvantagesDisadvantages
Difficult to terminate
Possible damage toretailers image
More stress on
frivolous selling points
Short-term effects only
Used as a supplement
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Types of Sales Promotion
Displays
Contests
Sweepstakes
Coupons
Frequent shopper
programs
Prizes
Samples
Demonstrations
Referral gifts
Other limited-time
selling efforts
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Steps in designing Retail Sales
Promotion
Set Goals
Analyze benefits
Design the offer
Identify the sources for promotion
Design the response and follow up
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Wills Lifestyle: Gift Vouchers
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ITCs Wills Lifestyle, a nationwide retail chain of exclusive speciality
stores, presented Occasions, a range of exclusive gift vouchers. These
gift vouchers are redeemable against a tempting range ofWills classic
formal wear, Wills sport relaxed wear, Wills club life evening wear and
fashion accessories.
Salient features of the Occasion exclusive gift vouchers
Presents the perfect gift for any occasion
Comes with a message card that can be personalized
A flexible Gifting option in a wide range of denominations: Rs
250; Rs 500; Rs 2000; Rs 5000; Rs 10000Gives the recipients the freedom to choose a gift of their choice
available and redeemable at all ITCs Wills Lifestyle stores
A tempting choice of formal, relaxed, and evening wear for men and
women
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Personal SellingPersonal Selling
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Personal Selling
Personal selling involves two-way
communication with prospects and customers
that allows the salesperson to address the
special needs of the customer
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Objectives
Persuade customers to purchase
Stimulate sales of impulse items or productsrelated to a consumers basic purchases
Complete transactions with customers
Provide feedback and information to thedecision-makers
Provide adequate level of customer services and
maintain customer satisfaction Create awareness of items also marketed through
the Web, mail and telemarketing
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Personal Selling Characteristics
AdvantagesAdvantages
Message can be adapted
Many ways to meetcustomer needs
High attention span
Less waste
Better response
Immediate feedback
DisadvantagesDisadvantages
Limited number of
customers at one time High costs
Doesnt get customer in
store
Self-service discouraged
Negative attitudes toward
salespeople
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Types of Personal Selling
Order-taking salesperson
Order-getting salesperson
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Typical Personal Selling Functions
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Effective Personal Selling tips
Always maintain a positive attitude and beenthusiastic
Always maintain good eye contact, even when
under fire
Always listen closely to an objection
Always acknowledge the objection and then
give point of view Always remember that objections are a
natural part of the sales process
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Nike: Personal Selling
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Nike utilizes a personal selling technique in all of their retail
stores. The sales associates in these stores has direct contactand interaction with the buyers of Nike merchandise. They are
the individuals that communicate directly with the consumers
who are interested in Nike products. They sales men and women
must be able to help in the process of a successful sale. They are
suppose to be knowledgeable of the brand and should be
trained in asking customers the right questions in order to find
out what they are looking for. To make sure this is done Nike will
often send Nike representatives to retail stores that sell their
sneakers to give little presentations to keep the sales associatesup to date on the merchandise and the technology behind them.
I agree with this because sometimes people that work at the
store don't really know what they selling and need to b
reminded.
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Public Relations
Communication that fosters a favorable image forthe retailer among its public
It may be
Non-personal or personalPaid or nonpaidSponsor-controlled or not controlled
Publicity: Non-personal form of public relationswhereby messages are transmitted by mass
media, The time or space provided by the mediais not paid for, and there is no identifiedcommercial sponsor
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Objectives
Increase awareness of the retailer and itsstrategy mix
Maintain or improve the company image
Show the retailer as a contributor to thepublics quality of life
Demonstrate innovativeness
Present a favorable message in a highly
believable manner Minimize total promotion costs
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Characteristics
AdvantagesAdvantages
Image can be presented orenhanced
More credible source
No costs for messages timeor space
Mass audience addressed
Carryover effects possible
People pay more attentionthan to clearly identified ads
DisadvantagesDisadvantages
Some retailers do notbelieve in spending on
image-relatedcommunication
Little control over publicitymessage
More suitable for short run
Costs for PR staff, planningactivities and events
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Planning a Retail Promotional Strategy
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