7.Retail Communication Mix.ppt

Retail Communication MixA communication program that is designed to achieve a variety of objectives for the retailer, such as building a brand image of the retailer in the customers mind, increasing sales and store traffic, providing information about the retailers location and offering, and announcing special activities. In store -VM-Store esign -!mployees"utside the store -Advertising -- irect Mar#eting -- Social Media $etailers communicate %ith customers through & advertising, sales promotions, store atmosphere, 'eb sites, salespeople, e-mail, direct mail, m-commerce, community building, publicity, and %ord of mouth.(hese elements in the communication mi) must be coordinated so customers have a clear, distinct image of the retailer and are not confused by conflicting information. *an retailers build brand e+uity for their stores and their private-label merchandise,'hy do retailers-brands need to have an integrated mar#eting communication program 'hat steps are involved in developing a communication program,AgendaShort-termIncrease TrafficIncrease SalesLong-termBuild Brand (retailers name) ImageCreate Customer Loyaltyistinguishing name or sym!ol" such as a logo" that identifies the #roducts or ser$ices offered !y a seller and differentiates those #roducts and ser$ices from those offered !y com#etitorsValue to Retailers %ttract CustomersBuild Loyalty&igher 'rices Leading to&igher (ross MarginReduced 'romotional )x#enses*acilitates )ntry into +e, Mar-ets%llen Solly %llen Solly .omenValue to Customers'romises Consistent /ualitySim#lifies Buying 'rocessReduces Time and )ffort Searching for Information %!out Merchandise0RetailerBrand EquityCreate a High Level of Brand AwarenessCreate Emotional ConnectionsConsistent ReinforcementDevelopFavoraleAssociations%ided RecallTo# Mind %,arenessStimulates 1isits to RetailerBrandassociations2 anything lin-ed to or connected ,ith the !rand name in a consumers memoryBrandname is a set of associations that are usually organi3ed around some meaningful themes!cDonald"s!c" Aloo #i$$i%olden ArchesFast FoodFrench FriesCleanRonald !cDonald &'(&)The retailers !rand image is de$elo#ed and maintained through the retailers communication mixRetail Communication !i*Integrated Mar-eting Communication 'rogram% #rogram that integrates all of the communication elements to deli$er a com#rehensi$e" consistent message'ro$iding a consistent image can !e challenging for multichannel retailers 4 +eed to consider the needs of all channels early in the #lanning of its communication #rogram*ommunication Methods%d$ertising ('ioneer ads" Com#etiti$e ads" Reminder ads" Institutional ads)Sales #romotions Sale Contests Cou#onsStore atmos#here and $isuals.e!siteThe com!ination of the stores #hysical characteristics (architecture" layout" signs and dis#lays" colors" lighting" tem#erature" sounds" smells) together create an image in the customers mindMerchandise a$aila!le'rice rangeS#ecial offersStore locationsRetail sales#eo#le are #rimary $ehicle for #ro$iding #aid #ersonal communication to customers5'ersonal selling 4 sales#eo#le satisfy needs through face to face exchange of information)mail'R entails any communication that fosters a fa$oura!le image for the retailer among its #u!lics5 'u!licity is communication through significant un#aid #resentations a!out the retailer" usually a ne,s story" in im#ersonal media56 +e,s#a#er6 T1 co$eragePublicity.ord-of-mouthCan !e fa$ora!leCan !e detrimentalSocial Sho##ing% communication strategy in ,hich consumers use Internet to engage in the sho##ing #rocess !y exchanging #references" thoughts" and o#inions'roduct0ser$ice re$ie,sComparison of Communication !ethodsetermine #romotional o!7ecti$es)sta!lish an o$erall #romotional !udgetSelect the #romotional mixIm#lementing the #romotional mixRe$ie,ing and re$ising the #romotional #lanIncreasing salesRaise customer trafficReinforce !rand image'o#ulari3e ne, stores or #roducts)nhance customer relations%ll-you-can-afford methodThe remaining fundsIncremental Method% #ercentage is either added or su!tracted from one years !udget to determine the next yearsCom#etiti$e 'arity MethodBudget is raised or lo,ered !ased on com#etitors actions'ercentage-of-sales Method Sales used as a !ase Objective Budget Media/Task(ain a,areness of ,or-ing ,omenRs5 89"999 : #age ads in ,ee-ly #a#ers (Sunday edition)(ain attention of motoristRs5 ;8"999 Radio ads during #rime time on local radio stations (ain a,areness of #edestriansRs5 ; e$aluate si3e of audiencee$elo# and reinforce a #articular imageStudy image through sur$eys !efore and after #u!lic relations and #romotion effortsIncrease customer traffic> increase sales> reduce customer returns)$aluate sales #erformance and en=uiries made for a #roduct" study customer intensions to !uy !efore and after #romotion" re$ie, cou#on redem#tion