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Presentation By :- Pranav Khullar (15019103912)
Retail Marketing communication
• Retail communication refers to the programs or
schemes conducted by the retailers to inform the
customers about their product, services and also
about there Retail store.
• The main motive of Retail Marketing communication
is to increase the customer base and to increase the
sales volume of the company.
• It also serves as a tool for building the store image.
Retail communication has moved on from the time
when the retailer alone communicated with the
• Today, consumers can communicate or reach the
organizations. Examples of this include toll free
numbers, which retailers provide for customer
complaints and queries. Another example is the
section called Contact Us on the websites of many
Key Functions of Retail Marketing
communication are :-
• Information :-
Providing information is a primary function of retail
communication. Information should be relevant and it should
be given timely. Retailers provide information about
themselves and the products or services offered by them. For
eg :- Retail stores like Big Bazaar, Reliance fresh advertise
about their stores and schemes through newspapers and
• Persuading :-
Persuading involves asking people to visit the store
and purchase the products. For eg :- distributing
discount coupons through newspapers and motivate
them to buy products.
• Reminding :-
It involves reminding its customers frequently about
its products and services so that customer loyalty
increases. This can help in retaining the customers
for the long time. For Eg:- Introducing new
promotional strategies and conducting loyalty
programs are a part of this function.
Retail communication Methods
Paid Impersonal Communication :-
• Advertising :- Newspapers, Visual Media, Radio etc
• Sales promotions – Special events, In-store
• Store atmosphere - The combination of the store’s
physical characteristics (architecture, layout, signs and
displays, colors, lighting, temperature, sounds, smells)
together create an image in the customers’ mind.
• Website :- Retail store website should provide all the
information about various products and services
offered by them.
• Community building :- It offer opportunities for
customers with similar interests to learn about
products and services that support their hobbies and
share information with others
Paid Personal Communication
• Retail salespeople are primary vehicle for providing paid
personal communication to customers.
– Personal selling – salespeople satisfy needs through
face to face exchange of information.
• Email – retailers inform customers of new merchandise,
receipt of order or when order has been shipped
• Direct Mail
• M-Commerce (mobile commerce)
Unpaid Impersonal Communication
• Publicity - Publicity is the act of attracting the media
attention and gaining visibility with the public.
Paid Impersonal Communication
• Word of Mouth :- Word of mouth can be positive as well
• 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
– For eg :- www.plobal.com
Steps in Developing a Retail
Marketing Communication :-
1. Establishing Communication Objectives
2. Determining budget
- Marginal Analysis Method.
- Affordable Budgeting Method.
- Percentage (%) of sales Method.
3. Allocation of Budget
4. Implement and Evaluate Programs
Step 1 :-
– Specific goals related to the retail communication
mix’s effect on the customer’s decision-making
– Long-term: ex) creating or altering a retailer’s
– Short-term: ex) increasing store traffic
Step 2 :- Determine Budget
Budget can be determined in 3 ways :-
• Marginal Analysis Method
– Based on the economic principle that firms should
increase communication expenditures, as addition made
to total expenditure will increase the contribution from the
customer’s end and hence finally it will lead to increase in
– Very hard to use because managers don’t know the
relationship between communication expenses and sales.
• Affordable Budgeting Method – Sets
communication budget by determining what money is
available after operating costs and profits are
• Percentage of Sales Method – Communication
budget is set as a fixed percentage of forecasted sales.
Step 3 :- Allocation of Budget
• The retailer decides how much of its budget to
allocate to specific communication elements,
merchandise categories, geographic regions,
or long- and short-term objectives.
• Budget allocation decision is more important
budget amount decision.
• The retailer allocate the budget to areas that
will yield the greatest return.
Step 4 :- Implement and Evaluate
• After Deciding and allocating the budget
retailers evaluate the best combination of
media –mix and they finally implement the
• Retailers can also change the proportion of
Media-Mix combination to get the best