Retail marketing communication

1. Retail Marketing Communication Presentation By :- Pranav Khullar (15019103912)

2. Retail Marketing communication Retail communication refers to the programs or schemes conducted by the retailers to inform the customers about their product, services and also about there Retail store. The main motive of Retail Marketing communication is to increase the customer base and to increase the sales volume of the company.

3. It also serves as a tool for building the store image. Retail communication has moved on from the time when the retailer alone communicated with the consumers. Today, consumers can communicate or reach the organizations. Examples of this include toll free numbers, which retailers provide for customer complaints and queries. Another example is the section called Contact Us on the websites of many companies

4. Key Functions of Retail Marketing communication are :- Information :- Providing information is a primary function of retail communication. Information should be relevant and it should be given timely. Retailers provide information about themselves and the products or services offered by them. For eg :- Retail stores like Big Bazaar, Reliance fresh advertise about their stores and schemes through newspapers and pamphlets.

5. Persuading :- Persuading involves asking people to visit the store and purchase the products. For eg :- distributing discount coupons through newspapers and motivate them to buy products. Reminding :- It involves reminding its customers frequently about its products and services so that customer loyalty increases. This can help in retaining the customers for the long time. For Eg :- Introducing new promotional strategies and conducting loyalty programs are a part of this function.

6. Retail communication Methods

7. Paid Impersonal Communication :- Advertising :- Newspapers, Visual Media, Radio etc Sales promotions – Special events, In-store demonstrations Store atmosphere - The combination of the store’s physical characteristics (architecture, layout, signs and displays, colors, lighting, temperature, sounds, smells) together create an image in the customers’ mind.

8. Website :- Retail store website should provide all the information about various products and services offered by them. Community building :- It offer opportunities for customers with similar interests to learn about products and services that support their hobbies and share information with others

9. 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)

10. Unpaid Impersonal Communication Publicity - Publicity is the act of attracting the media attention and gaining visibility with the public. Paid Impersonal Communication Word of Mouth :- Word of mouth can be positive as well as negative. 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 For eg :- www.plobal.com

11. Steps in Developing a Retail Marketing Communication :- 1. Establishing Communication Objectives 2. Determining budget - Marginal Analysis Method. - Affordable Budgeting Method. - Percentage (%) of sales Method. 3. Allocation of Budget 4. Implement and Evaluate Programs

12. Step 1 :- Communication objectives : Specific goals related to the retail communication mix’s effect on the customer’s decision-making process Long-term: ex) creating or altering a retailer’s brand image Short-term: ex) increasing store traffic

13. Step 2 :- Determine Budget Budget can be determined in 3 ways :- Marginal Analysis Method Based on the economic principle that firms should increase communication expenditures, as addition made to total expenditure will increase the contribution from the customer’s end and hence finally it will lead to increase in sales. Very hard to use because managers don’t know the relationship between communication expenses and sales.

14. Affordable Budgeting Method – Sets communication budget by determining what money is available after operating costs and profits are budgeted. Percentage of Sales Method – Communication budget is set as a fixed percentage of forecasted sales.

15. Step 3 :- Allocation of 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. The retailer allocate the budget to areas that will yield the greatest return.

16. Step 4 :- Implement and Evaluate Programs After Deciding and allocating the budget retailers evaluate the best combination of media –mix and they finally implement the Communication programs. Retailers can also change the proportion of Media-Mix combination to get the best results.

17. Thank You 