Retail promotion.ppt

Dr. Gopal Thapa: Retail Promotion

1. Retail Communication and
Promotion
Dr. Gopal Thapa
TribhuvanUniversity

2. Retail Promotion
Retailers communicate to their customers on a
continuous basis through the store atmosphere, the
products and services, promotional literature,
advertising and other promotional means
Retail promotion is the descriptive term for the
mix of communication activities which retail
companies carry out in order to influence those
publics on whom their sales depend.
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3. Retail Promotion
Retailing promotion will have the main objective
of influencing consumer perceptions, attitudes and
behaviourin order to increase store loyalty, store
visits and product purchase.
There is a need to influence trade contacts such as
agents and suppliers as well as opinion formers
such as journalists and writers.
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4. Objectives of Retail Promotion
The marketing objectives need to be clearly
defined so that the most effective types of
promotion can be utilized.
The mix strategies could specify a need to
achieve awareness; to inform; to educate;
create purchase action; improve loyalty;
change the perception of the customer, etc.
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5. Objectives of Retail Promotion
The promotional objectives should have some
precise terms for the purposes of carrying out the
promotion and then monitoring the results
–so-called SMARRTTobjectives
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6. SMARRTT objectives
Specific: Objectives have to be precise and clear
enough to offer direction as to the expected
outcome.
Measurable: Objectives need a quantifiable
outcome measurement statement against which an
evaluation can take place.
Achievable: Objectives should be achieved and
therefore budgets/resources need to be adequate.
Staffing or supply problems may restrict
achievements.
l
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7. SMARRTT objectives
Realistic: The expectations of what the promotion can
achieve have to be realistic. Promotion can only achieve so
much and therefore expected changes in attitude to a
brand, or demand for a retail offer, may not be realistic.
Relevant: Objectives have to be appropriate to the task set.
Targeted: All objectives need to be tied in with statements
related to achieving results in the target audience(s).
Different target audiences may need separate objectives.
Timed: Objectives have to be written with consideration of
effect or change within a time frame of achievement.
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8. Promotional Budget Approaches
Objectives and task method
Affordable method
Percentage of sales method
Competitive parity method
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9. Communication Effects
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11. Advertising
The term advertising includes any paid form of
non-personal communication through the media
about a product that has an identified sponsor.
Advertising is used to achieve a whole range of
objectives that may include changing attitudes or
building image as well as achieving sales.
Advertising is often described as above-the-line
promotion
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12. DAGMAR Model
Defining Advertising Goals for Measured
Advertising Results
unawareness;
awareness;
comprehension of the offer;
conviction;
action or inaction
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13. Types of Advertising
Product advertising
Markdown event advertising
Institutional advertising
Co-operative advertising
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14. Pull vs Push Strategies
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15. Sales Promotion
Sales promotion involves any paid non-personal
marketing communication activity, other than
advertising, which offers an incentive to induce a
desired result from potential customers, trade
intermediaries, or the sales force.
This is sometimes referred to by the term sales
incentive.
It is usual for a sales promotion campaign to be
used as a temporary offer to the customer in order
to stimulate an immediate response.
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16. Examples
displays,
contests,
sweepstakes,
coupons,
frequent user (loyalty) programmes,
prizes,
samples,
demonstrations,
referral gifts
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17. Relationship Marketing and
Loyalty Schemes
Retailers are adopting relationship marketing
(RM) schemes which aim to:
build greater customer loyalty and retention;
develop methods of creating longer-term
relationships;
lead ultimately to increased sales and profits.
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18. The Relationship Marketing
Ladder
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19. Personal Selling
Personal selling is the personal communication of
information to persuade somebody to buy
something. (Santon)
Personal selling is face to face interaction with one
or more perspective purchasers for the purpose of
making presentations, answering questions and
procuring orders. (Kotler)
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20. Importance of Personal Selling
Two-way communication
Persuasion
Relationship building
Non-selling functions
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21. Personal Selling Process (Indoor Selling)
Draw attention
Ascertain needs
Presentation
Meeting objections
Closing the sale
Additional sales
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22. Public Relations
Public relations involve a variety of programs
designed to promote and or protect a company’s
image or its individual products. (Kotler)
Public relations is a management tool designed to
favorably influence attitudes towards an
organization, its products and its policies.
(Stanton)
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23. Objectives of Public Relations
Announce new products
Build interest in established products
Announce policies and performance
Announce technological development
Maintain good relations with community
Counter negative publicity
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24. Nature of Public Relations
Media relations
•Personal communication
•News releases
•Feature articles
•Publications
Public service activities
Sponsorship of events
Lobbying
Exhibits and displays
Problem solving
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25. Public Relations Activities
Media information releases / contact / speeches
Production of PR materials (video, CDs, Web information,
press kits, corporate identity materials, etc.)
PR events, media conferences and newsworthy ‘stunts’
Advertorials (which require PR copy along with an
advertisement)
In-house and customer magazines
Facility visits to store etc.
Sponsorship and donations
Lobbying
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26. Effectiveness of the Four Major
Methods of Promotion
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27. Any Queries?
Thank You
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