retail promotions

RETAIL PROMOTIONS Presented by K.Rajeswari KCT Business School :

RETAIL PROMOTIONS Presented by K.Rajeswari KCT Business School

Retail promotion :

Retail promotion Retail promotion includes any communication by a retailer that informs,persuades and/or reminds the target market about any aspect of that firm.

Elements of the retail promotional mix:

Elements of the retail promotional mix Advertising Public relations Personal selling Sales promotion

Advertising :

Advertising Advertising is a paid,non-personalcommunication transmitted through out of store mass media by an identified sponsor. Four aspects of this definition Paid form - distinguishes from publicity Nonpersonal - std msg delivered to entire presentation audience Out of store -newspapers,radio,TV,web mass media Identified sponsor – sponsor’s name is clearly divulged unlike publicity

Objectives :

Objectives Lifting short term sales. Increasing customer traffic. Developing and/or reinforcing a retail image. Informing customers about goods and services and/or company attributes. Developing demand for private brands Creating awareness about the product or store . Communicate information ,in order to create a specific image in the customer’s mind interms of the store merchandise ,price quality,benefits,etc. Create a desire to buy a product. To communicate the store’s policy on various issues

Advantages :

Advantages A large audience is attracted. Costs per viewer ,reader,or listener are low. A number of alternative media are available. Retailer has control over message content, graphics,timing and size.

Disadvantages:

Disadvantages Standardized messages lack flexibility .They do not focus on the needs of individual customers. Require large investments. A 30 sec TV commercial or small newspaper ad does not have many details.

Media:

Media Papers White pages telephone directory Direct mail Radio TV ads Web Transit advertising Outdoor advertising Magazine Single page (flyers) or multiple-page (circulars) ads

Types: :

Types: Advertising content Manner of payment Institutional message Reminder message Full payment by retailer Cooperative advertising Competitive message Pioneer message Vertical Horizontal

Public relations :

Public relations Public relations entails any communications that fosters a favourable image for the retailer among its publics(consumers ,investors, government,channelmembers,employees,and the general public). It may be nonpersonal or personal,paid or nonpaid and sponsor controlled or not controlled. Publicity is 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.

Objectives :

Objectives Increase awareness of the retailer and its strategy mix. Maintain or improve the company image. Show the retailer as a contributor to the community’s quality of life. Present a favourable message in a highly believable manner. Minimize total promotion costs.

Advantages :

Advantages An image can be presented or enhanced. There are no costs for message time or space. A mass audience is addressed. People pay more attention to news stories than to clearly identified ads. Disadvantages Some retailers do not believe in spending any funds on image-related communication. It may be more suitable for short – run,rather than long- run,planning .

Personal selling:

Personal selling It involves oral communication with one or more prospective customers for the purpose of making a sale. Retail salespeople may work in a store ,visit consumer homes or places of work or engage in telemarketing.

Objectives :

Objectives Persuade customers to buy. Stimulate sales of impulse items or products related to customers’ basic purchases. Feedback information to company decision makers. Provide proper levels of customer service. Improve and maintain customer satisfaction.

Advantages :

Advantages Salesperson can adapt a message to the needs of the individual customer. Attention span of the customer is higher than with advertising. Immediate feedback is provided.

Disadvantages:

Disadvantages Only a limited number of customers can be handled at a given time. The costs of interacting with each customer can be high. Self-service may be discouraged. Some customers may view salespeople as unhelpful and as too aggressive.

Types :

Types Order - taking sales person. Order - getting sales person.

Personal selling Functions :

Personal selling Functions Sales person Demonstrates goods/services Shows merchandise Answers objections Closes the sale Greets customers Determines customer wants Gives a sales presentation feedback

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