1. PPT 16-1 5 th Edition

2. 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

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

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

5. 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

6. 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

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

8. PPT 16-8 Tar-Zhay

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

10. PPT 16-10 Creating Brand Awareness Brand Awareness Memorable Name Repeated Exposure Symbols Event Sponsorship

11. PPT 16-11 McDonald’s Brand Associations McDonald’s Big Mac Golden Arches Fast Food French Fries Clean Ronald McDonald

12. PPT 16-12 L.L. Bean’s Brand Associations L.L. Bean Friendly New England Practical Expertise Outdoors Honest

13. PPT 16-13 Types of Brand Association Merchandise Category – Office Depot Price/Quality – Target, Wal-Mart Specific Benefit – 7-Eleven Convenience Lifestyle – The Nature Company

14. PPT 16-14 Integrated Marketing Communications Present a Consistent Brand Image through All Communications with Customers Store Design Advertising Web Site Magalog

15. PPT 16-15 Brand Extensions Gap  GapKids and Old Navy Sears  Sears Auto Centers and the Great Indoors

16. PPT 16-16 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

17. PPT 16-17 Retail Communication Mix

18. PPT 16-18 Communication Methods

19. PPT 16-19 Types of Sales Promotions Special sales Merchandise demonstrations Premiums Coupons Games, sweepstakes, and contests

20. PPT 16-20 Comparison of Communication Methods

21. PPT 16-21 Steps in Developing a Retail Communication Program

22. PPT 16-22 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

23. PPT 16-23 Communication Objectives & Stages in the Consumers Decision-Making Process

24. PPT 16-24 Retail and Vendor Communication Programs Vendor Long-term objectives Product focused National Specific product Retailer Short-term objectives Category focused Local Assortment of merchandise

25. PPT 16-25 Methods for Setting Communication Budget Marginal analysis Objective and task Rules of thumb ­ Affordable ­ Percent of sales ­ Competitive parity AdvertisingSales Sales Advertising

26. PPT 16-26 Marginal Analysis for Setting Communication Budget

27. PPT 16-27 Illustration of Objective and Task Method for Setting a Communication Budget

28. PPT 16-28 Financial Implications of Increasing the Communication Budget

29. PPT 16-29 Illustrations of Communication Programs Advertising Program for a Specialty Home Furnishing Retailer Supermarket Chain Evaluating a Vendor Promotion Planning a Direct Marketing Program

30. PPT 16-30 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?

31. PPT 16-31 Evaluation of Program Before6 Mon12 Mon Awareness 38% 46% 52% (% of mentioning store) Knowledge 9 17 24 (% outstanding rating) Attitude13 15 19 (% first choice) Visit 8 15 19 (% of visited store)

32. PPT 16-32 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

33. PPT 16-33 CRM Campaign Management System

34. PPT 16-34 Financial Analysis of Easter Promotion

35. PPT 16-35 Implementing Retail Advertising Programs Developing the Message Selecting the Media Determining Ad Frequency and Timing

36. PPT 16-36 Sources of Assistance in Developing Ad Campaigns Vendors – Co-Op Programs Agencies Media Companies

37. PPT 16-37 Suggestions for Developing Print Ads Dominant headline Dominant element Simple layout Specific, complete presentation Distinct visuals Name and address of store

38. PPT 16-38 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

39. PPT 16-39 Media Capabilities

40. PPT 16-40 Communication Objectives and Effectiveness of Media

41. PPT 16-41 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

42. PPT 16-42 Internet Advertising Applications Retailers in General –Create Awareness –Convey Information –Brand Building -- Build Store Loyalty Multi-Channel Retailers –Build Web site Traffic

43. PPT 16-43 Internet -- Advertising Medium

44. PPT 16-44 Types of Internet Advertising Banners - >50% of Expenditures Rich Media Microsites Sponsorships -Embedded in Site Content Email

45. PPT 16-45 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

46. PPT 16-46 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

47. PPT 16-47 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

48. PPT 16-48 Generating Traffic for Site Domain Name/Brand Search Directories and Engines –Registration, Top Listing External Links - Partnerships Publicity Paid Advertising –Internet –Other Media

49. PPT 16-49 Monitoring Effectiveness of Traffic Building Approaches Monitor Sources of Visits Link Behaviors to Sources –Registration –Time on Site –Pages Downloaded –Purchases –Amount Purchased