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

What Does Retail Management Involve?

What Does Retail Management Involve?

Courtesy Gregory Thompson

If a business person is wondering what retail management involves, then the first thing he or she should know is that retail management is not just about revenue. Knowledge of merchandising, expenses and human resources are three things a retail manager must know besides how to generate revenue to succeed. One should have a business background, but it's not necessary.

Customers

A retail manager ensures customers are properly and efficiently served, especially in regards Employees

to complaints and issues.

Morale and overall happiness of employees need to be kept at a high level. Also, keeping them busy to abstain from boredom helps with morale. Effective retail management knows how to delegate and oversee time distribution.

Merchandising

Retail management oversees merchandising by ensuring stores are clean and visually appealing, while utilizing space to maximize sales.

Payroll and Reviews

A retail manager ensures employees are paid promptly and correctly. Timely reviews and appropriate raises for employees keep them at a store to reduce turnover.

Expenses

Bills need to be paid and controllable expenses monitored so the retail manager doesn't lose money.

About Retail Management

About Retail Management

Courtesy Sylvia Cochran

Retail management is a challenging career in an economically precarious industry. Getting started is simple, but remaining in demand and getting consistent opportunities for advancement may be tricky. Learn some insights about retail management, find out how to get started, how to pick a good retailer to work for, and how to get promoted to higher tiers of management.

Forms of Retail Management

Retail management differs in scope, depending on the position you attain, the size of the store you work for and the retail sales volume your store generates. Assistant store managers and store managers are the quintessential first tier of retail management.

Next come regional managers, who may manage two or more stores in a geographic locale. Store managers report to regional managers, receive their merchandising instructions from them, and rely on feedback and occasional visits to stay on track.

Home office retail managers are in charge of two or more geographic regions. They are in constant contact with region managers and seek to make all regions profitable with respect to their retail sales numbers.

Retail store owners are the highest tier of retail management. Their involvement varies, depending on the management structure they put in place. Some owners are very hands-on when it comes to the day-to-day store operations; others prefer to remain in the background and review quarterly figures.

Choosing a Retailer to Work for

Visit the National Retail Federation (see the link in Resources) and research the information available on various industry trends. It's unlikely that your career will take off if the retailer you choose to work for is on the verge of bankruptcy. Instead, find a retail venue, chain store or retail field that is currently profitable, going strong and shows a growth trend.

Getting Started in Retail Management

The easiest way to get started in retail management is to work your way up. Start as a cashier or stocker, impress your supervisor with your customer service skills, good attitude and dependability, and over the course of a few years you could find yourself promoted to shift supervisor and eventually assistant manager. When the time is right, you may also apply for manager positions and get a promotion into retail management. This is a time-consuming process, but many retail managers find this is how they got started.

Another option is to attend a career college, such as the online Ashworth College (see the link in Resources) and earn a retail management diploma. Associate degrees in marketing or business management--or bachelor's or master's degrees in management, business administration or marketing--might make you more appealing to a hiring manager. You may even start out as lead cashier, assistant manager or supervisor right away. From there, you still need to prove yourself to make it to the higher tiers of retail management.

Skills Needed in Retail Management

Retail management is a balancing act that requires a mix of human resources management, marketing, communications and sales experience. Other skills include the art of turning a customer's shopping experience into a positive outing, using a greeting to make a great first impression, understanding the steps of a sale in progress, and learning how to heighten employee efficiency when dealing with customers. Loss prevention is another skill that must be honed when working in retail management.

Misconceptions

It's a common misconception that retail management is similar from store to store. This is untrue, considering that the clientele, target demographics and merchandising schemes vary between locales. This is true even at chain stores; retail managers routinely cross-train in other venues to learn how to deal with different customers, their unique needs and the expectations they have.