Retail Communications
Retail Communications
Retail Communications
McGraw-Hill/Irwin
Retailing Management, 7/e © 2008 by The McGraw-Hill Companies, All rights reserved.
Merchandise Management
Managing Buying
Merchandise Merchandise
Assortments
Chapter 12 Chapter 14
Retail
Communication
Mix
Chapter 16
Merchandise Retail
Planning Pricing
Systems
Chapter 15
Chapter 13
16-2
Questions
■ What can retailers build brand equity for their stores and their
private-label merchandise?
■ How are retailers using new approaches to communicate with their
customers?
■ What are the strengths and weaknesses of the different methods for
communicating with customers?
■ Why do retailers need to have an integrated marketing
communication program?
■ What steps are involved in developing a communication program?
■ How do retailers establish a communication budget?
■ How can retailers use the different elements in a communication mix
to alter customers’ decision-making processes?
16-3
Objectives of Communication Program
Long-term Short-term
Build Brand (retailer’s name) Image Increase Traffic
Create Customer Loyalty Increase Sales
16-4
Brands
The McGraw-Hill Companies, Inc./John Flournoy, photographer The McGraw-Hill Companies, Inc./Bob Coyle, photographer
16-5
Value of Brand Image
16-6
Building Brand Equity
Brand
Equity
16-7
Tar-Zhay
16-8
16-9
Apple
16-10
Benefits of High Brand Awareness
16-11
Creating Brand Awareness
Memorable Repeated
Name Exposure
Best Buy
Top-of-mind Starbuck’s
Home Depot
Brand Awareness
Event
Symbols Macy’s Sponsorship
16-12
Retailers Develop Associations
with their Brand Name
Golden
Arches
Fast
Big Mac
Food
McDonald’s
French
Fries Ronald
McDonald
Clean
16-14
L.L. Bean
16-15
L.L. Bean’s Brand Associations
New
England
Practical Friendly
L.L. Bean
Expertise Honest
Outdoors
16-16
Wal-Mart Associations
16-17
Target Associations
16-18
Consistent Reinforcement
16-19
Consistent Reinforcement through Integrated
Marketing Communication Program
16-20
Integrated Marketing Communications
•Store Design
•Advertising
•Web Site
•Magalog
16-21
Brand Extensions
16-22
Extending Brand Name to a New Concept
Pluses Minuses
■ Develop Awareness and ■ Associations Might Not
Image Quickly Be Compatible with
■ Less Costs Needed to Extension
Promote Extension
16-24
Paid Impersonal Communications
■ Advertising
■ Sales promotions – Special events, In-store demonstrations
■ Games, sweepstakes and contests
■ Coupons
Boxes of KrustyO’s cereal at a New York 7-
■ Store atmosphere Eleven stores, temporarily converted into a
■ Website Kwik-E Mart, to promote the Simpson Movie.
■ Community building
16-25
Store Atmosphere
16-26
Mediacart
16-27
Community Building
16-28
Paid Personal Communication
16-29
Unpaid Impersonal Communication
• Newspaper
• TV coverage
• Macy’s Thanksgiving Day Parade
16-30
PR
16-31
Unpaid Personal Communication
■ Word-of-mouth
Can be favorable
Can be detrimental
■ Social Shopping
A communication strategy in which consumers use
Internet to engage in the shopping process by
exchanging preferences, thoughts, and opinions
Product/service reviews
16-32
Social Shopping
16-33
Comparison of
Communication Methods
16-34
Planning the Retail Communication Program
16-35
Setting Objectives
■ Communication objectives:
Specific goals related to the retail communication
mix’s effect on the customer’s decision-making
process
Long-term: ex) creating or altering a retailer’s brand
image
Short-term: ex) increasing store traffic
16-36
Communication Objectives & Stages in
the Consumers Decision-Making Process
16-37
Retail and Vendor
Communication Programs
Vendor Retailer
• National • Local
16-38
Setting the Communication Budget
- Affordable
- Percent of sales
- Competitive parity
16-39
Setting the Communication Budget
16-40
Marginal Analysis for Setting
Communication Budget
16-41
Objective-and-Task Method
16-42
Illustration of Objective and Task
Method for Setting a Communication Budget
16-43
Financial Implications of
Increasing the Communication Budget
16-44
Rule of Thumb Methods
16-45
Rule of Thumb Methods
Drawback: This method (like the others) does not allow the retailer
to exploit the unique opportunities or problems they confront in a
market.
16-46
Allocation of the Promotional Budget
16-47