Chapter 16

Retail Communication Mix

McGraw-Hill/Irwin
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Levy/Weitz: Retailing Management, 5/e Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Strong Brands Provide Value to

Retailers and Their Customers

Value to Retailers

• Attract Customers

• Build Loyalty Value to Customers

• Higher Prices Leading to • Promises Consistent Quality
Higher Gross Margin • Simplifies Buying Process

• Reduced Promotional Expenses • Reduces Time and Effort

Searching for Information
• Facilitates Entry into New Markets About Merchandise/Retailer
Gap Î GapKids
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Creating Brand Awareness

Memorable Repeated
Name Exposure

Brand
Awareness

Event
Symbols Sponsorship

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 McDonald’s Brand Associations

Golden
Arches
Fast
Big Mac
Food

McDonald’s

French
Fries Ronald
McDonald
Clean

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Types of Brand Association

• Merchandise Category – Office Depot

• Price/Quality – Target, Wal-Mart
• Specific Benefit – 7-Eleven Convenience
• Lifestyle – The Nature Company

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Integrated Marketing Communications

Present a Consistent Brand Image through All
Communications with Customers

•Store Design
•Advertising
•Web Site
•Magalog

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 Retail Communication Mix

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Communication Methods

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Types of Sales Promotions

Special sales
Merchandise demonstrations
Premiums
Coupons
Games, sweepstakes, and
contests

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 Steps in Developing a
Retail Communication Program

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Retail and Vendor

Communication Programs

Vendor Retailer

• Long-term objectives • Short-term objectives

• Product focused • Category focused

• National • Local

• Specific product • Assortment of

merchandise

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Methods for Setting Communication Budget

• Marginal analysis Advertising Sales

• Objective and task

• Rules of thumb Sales Advertising

- Affordable

- Percent of sales

- Competitive parity

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 Considerations in
Evaluating a Vendor Promotion

• Realized margin from the promotion

• Cost of the additional inventory

• Potential increase in sales from the
promoted merchandise
• Potential loss from switching
• Additional sales from more customer visits

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CRM Campaign Management System

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Implementing Retail Advertising Programs

• Developing the
Message
• Selecting the Media
• Determining Ad
Frequency and Timing

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 Suggestions for Developing
Print Ads

• Dominant headline

• Dominant element
• Simple layout
• Specific, complete presentation
• Distinct visuals
• Name and address of store

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Types of Advertising Media

& Newspapers & Direct mail

& Magazines & Outdoor
& Radio & Shopping guide
& TV & Yellow pages

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Types of Internet Advertising

• Banners - >50% of Expenditures

• Rich Media

• Microsites

• Sponsorships -Embedded in Site Content

• Email

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 Problems with
Measuring Effectiveness
• Comparison with Other Media for the
– Reach
• Counting Unique Visitors
• Use of Cookies
– Frequency
• Caching
• Prevent Cache
– Impact
– GRPs - Reach x Frequency

• Comparison of Internet Advertising Sites

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Generating Traffic for Site

• Domain Name/Brand
• Search Directories and Engines
– Registration, Top Listing

• External Links - Partnerships

• Publicity
• Paid Advertising
– Internet
– Other Media

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Monitoring Effectiveness of
Traffic Building Approaches

• Monitor Sources of Visits

• Link Behaviors to Sources
– Registration
– Time on Site
– Pages Downloaded
– Purchases
– Amount Purchased

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