Retail Value Creations- 1 By Dr. U. Srinivasa Raghavan

Retail Communications The purpose of Retail communications is- (i) to build Brand images (ii) to attract customers to the stores/internet sites (iii) to encourage customers to buy merchandise

OBJECTIVE of Communications Programme Objective of a communications programme can be – (A) Long term to create and maintain a long, differentiated image of the retailer and/or of its private labels (B) Short term to increase the sales during a particular period

What is Marketing “ Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others. “

Need – Want - Demand Need is a state of deprivation of some basic satisfaction. Wants are specific satisfiers of needs Demands are wants for specific products that are backed by an ability and willingness to buy them

What is “Market” “A Market consists of all the potential customers sharing a particular need or want who might be willing and able to engage in an exchange to satisfy their need or want “

Marketing Management Marketing Management is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy the individual and organizational goals.It has the task of influencing the level, timing and composition of demand in a way that help the organisation achieve its objectives “

Product Concept Product Concept holds that customers will favour those products that offer most quality, performance and innovative features It is the second stage towards the evolution of the ‘ Marketing Concept’ It implies the creation of superior prducts for sale

Selling Concept Selling concept holds that customers (consumers ), if left alone, will ordinarily not buy enough of the organisation’s products. The organisation must, therefore, should aggressively sell and promote its products. It implies to sell more to more people more often for more money in order to make more profit This is the third stage in the evolution towards the ‘ Marketing concept’

Marketing Concept Marketing Concept means finding and satisfying the needs and wants of the customers in a market Marketing Concept holds that the key to achieve the organisational goals consists of the company being more effective than competitors in creating, delivering and communicating superior customer value to its chosen target markets

What is “Brand” A BRAND is – “A name, term, sign, symbol or design or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of the competitors. “ -American Marketing Association

How to differentiate a brand / Differences can be – functional, rational or tangible, related to product performance or symbolic, emotional or intangible, relatedto what product represents

Functions of ‘Brands’ 1.They simplify product handling and tracing - Help organize inventory and accounting records 2.Offer firm legal protection to unique features of the product - Trademarks, patents, copyrights, designs 3.Signal quality - Predictability, security of demand, creates barriers

What ‘Brand “ does Branding endows products and services with the power of the Brand- Who – name and brand elements What – What the product is expected to do Why – The reasons why the consumer should patronize

What ‘Brand “ does Branding endows products and services with the power of the Brand- Who – name and brand elements What – What the product is expected to do Why – The reasons why the consumer should patronize

Scope for “branding” Branding can be for anything Physical good service Person Place Organisation Idea

What is “brand Equity “ It is the added value endowed to the product and services- Customer based brand equity :Differential effect that brand knowledge has on the customer response If there is no effect, probably it is a commodity Brand Knowledge- all thoughts, feelings, images,experiences,beliefs

Advantages in creating strong brands 1.Improved perceptions of product performance 2.Greater loyalty 3.Less vulnerability to competitive marketing actions 4.Larger Margins 5.More inelastic consumer response to price increases 6.More elastic consumer response to price decreases 7.Greater trade cooperation and support 8.Increased marketing communications – effectiveness 9.Possible licensing opportunities 10.Additional brand extension opportunities

What to know about Brands Presence – Do we know about this? Relevance – Does it offer us something? Performance – can it deliver? Advantage – does it offer something better than others? Bonding –does anything else beats it?