Monday, February 25, 2013

Retail Promotional Strategy


Retail Promotional Strategy
Any communication by a retailer that informs, persuades, and/or reminds the target market about any aspect of that firm
Elements of the Promotional Mix
·         Advertising
·         Sales promotion
·         Store atmosphere
·         Web site
·         SEM

·         Personal selling
·         E-mail marketing

·         Publicity
·         SEM

·         Word of mouth
Planning a Retail Promotional Strategy- It involve the following aspects-
Promotional Objectives
          Increase sales
          Stimulate impulse and reminder buying
          Raise customer traffic
          Get leads for sales personnel
          Present and reinforce the retailer image
          Inform customers about goods and services
          Popularize new stores and Web sites
          Capitalize on manufacturer support
          Enhance customer relations
          Maintain customer loyalty
          Have consumers pass along positive information to friends and others
Public Relations- Any communication that fosters a favorable image for the retailer among its publics
        Nonpersonal or personal
        Paid or nonpaid
        Sponsor-controlled or not
Publicity – Any nonpersonal form of public relations whereby messages are transmitted through mass media, the time or space provided by the media is not paid for, and there is no identified commercial sponsor
Advantages
          Image can be presented or enhanced
          More credible source
          No costs for message’s time or space
          Mass audience addressed
          Carryover effects possible
          People pay more attention than to clearly identified ads
Disadvantages
         Some retailers do not believe in spending on image-related communication
          Little control over publicity message
          More suitable for short run
          Costs for PR staff, planning activities, and events
Advertising- Paid, nonpersonal communication transmitted through out-of-store mass media by an identified sponsor
          Key aspects
        Paid form
        Nonpersonal presentation
        Out-of-store mass media
        Identified sponsor
Advantages
          Attracts a large audience
          Gains pass along readership (for print)
          Low cost per contact
          Many alternatives available
          Control over message content; message can be standardized
          Message study possible
          Editorial content surrounds ad
          Self-service operations possible
Disadvantages
          Standardized messages lack flexibility
          Some media require large investments
          Geographic flexibility limited
          Some media require long lead time
          Some media have high throwaway rate
          Some media limit the ability to provide detailed information

Personal Selling- Oral communication with one or more prospective customers for the purpose of making a sale
Advantages
          Message can be adapted
          Many ways to meet customer needs
          High attention span
          Less waste
          Better response
          Immediate feedback
Disadvantages
          Limited number of customers handled at one time
          High costs
          Doesn’t get customer in store
          Self-service discouraged
          Negative attitudes toward salespeople (aggressive, unhelpful)
Sales Promotion- Encompasses the paid communication activities other than advertising, public relations, and personal selling that stimulate consumer purchases and dealer effectiveness
Advantages
          Eye-catching appeal
          Distinctive themes and tools
          Additional value for customer
          Draws customer traffic
          Maintains customer loyalty
          Increases impulse purchases
Fun for customers
Disadvantages
          Difficult to terminate
          Possible damage to retailer’s image
          More stress on frivolous selling points
          Short-term effects only
          Used as a supplement

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