PPT th Edition

PPT 16-2 McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Retail Communication Mix Chapter 16

PPT 16-3 Merchandise Management Buying Systems Planning Merchandise Assortments Buying Merchandise Pricing Retail Communication Mix

PPT 16-4 Objectives of Communication Program Long-Term -Build Brand Image -Create Loyalty Short-Term -Increase Traffic -Increase Sales

PPT 16-5 Brands Distinguishing name or symbol, such as a logo, that identifies the products or services offered by a seller and differentiates those products and services from those offered by competitors

PPT 16-6 Strong Brands Provide Value to Retailers and Their Customers Value to Retailers Attract Customers Build Loyalty Higher Prices Leading to Higher Gross Margin Reduced Promotional Expenses Facilitates Entry into New Markets Gap  GapKids Value to Customers Promises Consistent Quality Simplifies Buying Process Reduces Time and Effort Searching for Information About Merchandise/Retailer

PPT 16-7 Building a Valuable Brand Brand Equity Heighten Brand Awareness Create Emotional Connections Consistent Reinforcement Develop Favorable Associations

PPT 16-8 Tar-Zhay

PPT 16-9 Benefits of High Brand Awareness Aided Recall Top Mind Awareness Stimulates Visits to Retailer

PPT Creating Brand Awareness Brand Awareness Memorable Name Repeated Exposure Symbols Event Sponsorship

PPT McDonald’s Brand Associations McDonald’s Big Mac Golden Arches Fast Food French Fries Clean Ronald McDonald

PPT L.L. Bean’s Brand Associations L.L. Bean Friendly New England Practical Expertise Outdoors Honest

PPT Types of Brand Association Merchandise Category – Office Depot Price/Quality – Target, Wal-Mart Specific Benefit – 7-Eleven Convenience Lifestyle – The Nature Company

PPT Integrated Marketing Communications Present a Consistent Brand Image through All Communications with Customers Store Design Advertising Web Site Magalog

PPT Brand Extensions Gap  GapKids and Old Navy Sears  Sears Auto Centers and the Great Indoors

PPT Using Brand Name on New Concept Pluses Develop Awareness and Image Quickly Less Costs Needed to Promote Extension Minuses Associations Might Not Be Compatible with Extension

PPT Retail Communication Mix

PPT Communication Methods

PPT Types of Sales Promotions Special sales Merchandise demonstrations Premiums Coupons Games, sweepstakes, and contests

PPT Comparison of Communication Methods

PPT Steps in Developing a Retail Communication Program

PPT Retail Communications Program Objectives Long-term Store, Private Label, Brand Building Short-term Immediate Sales Communication Objectives Affecting Specific Stages in Customer’s Decision Making Process

PPT Communication Objectives & Stages in the Consumers Decision-Making Process

PPT Retail and Vendor Communication Programs Vendor Long-term objectives Product focused National Specific product Retailer Short-term objectives Category focused Local Assortment of merchandise

PPT Methods for Setting Communication Budget Marginal analysis Objective and task Rules of thumb ­ Affordable ­ Percent of sales ­ Competitive parity AdvertisingSales Sales Advertising

PPT Marginal Analysis for Setting Communication Budget

PPT Illustration of Objective and Task Method for Setting a Communication Budget

PPT Financial Implications of Increasing the Communication Budget

PPT Illustrations of Communication Programs Advertising Program for a Specialty Home Furnishing Retailer Supermarket Chain Evaluating a Vendor Promotion Planning a Direct Marketing Program

PPT Communication Objectives - Furniture Store Communication Question Objective AwarenessWhat stores sell Oriental furniture? KnowledgeWhich stores would you rate outstanding on the following characteristics? AttitudeOn your next shopping trip for Oriental furniture, which store would you visit first? VisitWhich of the following stores have you been to?

PPT Evaluation of Program Before6 Mon12 Mon Awareness 38% 46% 52% (% of mentioning store) Knowledge (% outstanding rating) Attitude (% first choice) Visit (% of visited store)

PPT Considerations in Evaluating a Vendor Promotion Realized margin from the promotion Cost of the additional inventory Potential increase in sales from the promoted merchandise Potential loss from switching Additional sales from more customer visits

PPT CRM Campaign Management System

PPT Financial Analysis of Easter Promotion

PPT Implementing Retail Advertising Programs Developing the Message Selecting the Media Determining Ad Frequency and Timing

PPT Sources of Assistance in Developing Ad Campaigns Vendors – Co-Op Programs Agencies Media Companies

PPT Suggestions for Developing Print Ads Dominant headline Dominant element Simple layout Specific, complete presentation Distinct visuals Name and address of store

PPT Types of Advertising Media Newspapers  Newspapers Magazines  Magazines Radio  Radio TV  TV Direct mail  Direct mail Outdoor  Outdoor Shopping guide  Shopping guide Yellow pages  Yellow pages

PPT Media Capabilities

PPT Communication Objectives and Effectiveness of Media

PPT U.S. Expenditures on Advertising Television48 Billion Newspaper 44 Direct Mail 40 Radio14 Yellow Pages12 Magazine10 Outdoor 2 Internet 2 => $30B in 5 yrs Misc28 Total $200 Billion Television48 Billion Newspaper 44 Direct Mail 40 Radio14 Yellow Pages12 Magazine10 Outdoor 2 Internet 2 => $30B in 5 yrs Misc28 Total $200 Billion

PPT Internet Advertising Applications Retailers in General –Create Awareness –Convey Information –Brand Building -- Build Store Loyalty Multi-Channel Retailers –Build Web site Traffic

PPT Internet -- Advertising Medium

PPT Types of Internet Advertising Banners - >50% of Expenditures Rich Media Microsites Sponsorships -Embedded in Site Content

PPT Problems with Measuring Effectiveness Comparison with Other Media for the –Reach Counting Unique Visitors Use of Cookies –Frequency Caching Prevent Cache –Impact –GRPs - Reach x Frequency Comparison of Internet Advertising Sites

PPT Internet Ad Measurement Models Consumer Centric –Panels -- Nielsen TV –Advantages -- Representative, Relate usage to Viewer Characteristics, Comparison Across Sites –Disadvantage - Small Numbers-Unreliable, Ignores Business Usage Site-Centric –Accurate Measures of Hits, Visits, Downloads, etc –Problems in Measures, Can’t Relate to Viewer Characteristics

PPT Measuring Effectiveness Internet Marketer Perspective Generating Traffic –Hits - File Requested - Multiple Files Per Page Times Banner Served –Page Views - Varies with Length of Page –Visitors –Unique Visitors –Click Throughs –Pages Downloaded –Length of Stay

PPT Generating Traffic for Site Domain Name/Brand Search Directories and Engines –Registration, Top Listing External Links - Partnerships Publicity Paid Advertising –Internet –Other Media

PPT Monitoring Effectiveness of Traffic Building Approaches Monitor Sources of Visits Link Behaviors to Sources –Registration –Time on Site –Pages Downloaded –Purchases –Amount Purchased