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Retail Communication
The document discusses developing a retail communication program. It outlines setting objectives for both short-term goals like increasing traffic and sales, and long-term goals like building a brand image and customer loyalty. It also discusses setting a communication budget and allocating funds across different communication elements, merchandise categories, and time horizons. Finally, it notes the importance of consistently reinforcing the retailer's brand image through an integrated marketing communication program using various paid, unpaid, impersonal and personal communication methods.
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Retail Communication
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- 3. 16-3 Objectives of CommunicationProgram Short-term Increase Traffic Increase Sales Long-term Build Brand (retailer’s name) Image Create Customer Loyalty
- 4. 16-4 Brands Distinguishing name orsymbol, 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 The McGraw-Hill Companies, Inc./Bob Coyle, photographerThe McGraw-Hill Companies, Inc./John Flournoy, photographer
- 5. 16-5 Value of BrandImage Value to Retailers (Brand Equity) ■ 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
- 6. 16-6 Building Brand Equity Brand Equity Createa High Level of Brand Awareness Create Emotional Connections Consistent Reinforcement Develop Favorable Associations
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- 8. 16-8 Benefits of HighBrand Awareness Aided Recall Top Mind Awareness Stimulates Visits to Retailer
- 9. 16-9 Creating Brand Awareness Top-of-mind BrandAwareness Memorable Name Repeated Exposure Symbols Event Sponsorship Best Buy Home Depot Starbuck’s Macy’s
- 10. 16-10 Retailers Develop Associations withtheir Brand Name Merchandise Category – Office Depot – office supplies Price/quality – Neiman Marcus –, high fashion merchandise Specific attribute or benefit – 7-Eleven – convenience Lifestyle or activity – Electronic Boutique – computer games Brand associations: anything linked to or connected with the brand name in a consumer’s memory Brand name is a set of associations that are usually organized around some meaningful themes
- 11. 16-11 McDonald’s Brand Associations McDonald’s BigMac Golden Arches Fast Food French Fries Clean Ronald McDonald
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- 13. 16-13 L.L. Bean’s BrandAssociations L.L. Bean Friendly New England Practical Expertise Outdoors Honest
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- 16. 16-16 Consistent Reinforcement The retailer’sbrand image is developed and maintained through the retailer’s communication mix Retail Communication Mix
- 17. 16-17 Consistent Reinforcement throughIntegrated Marketing Communication Program Integrated Marketing Communication Program ■ A program that integrates all of the communication elements to deliver a comprehensive, consistent message ■ Providing a consistent image can be challenging for multichannel retailers – Need to consider the needs of all channels early in the planning of its communication program
- 18. 16-18 Integrated Marketing Communications Presenta Consistent Brand Image through all Communications with Customers •Store Design •Advertising •Web Site •Magalog The McGraw-Hill Companies, Inc./Andrew Resek, photographer
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- 20. 16-20 Paid Impersonal Communications ■Advertising ■ Sales promotions – Special events, In-store demonstrations ■ Games, sweepstakes and contests ■ Coupons ■ Store atmosphere ■ Website ■ Community building Jack Star/PhotoLink/Getty Images Boxes of KrustyO’s cereal at a New York 7- Eleven stores, temporarily converted into a Kwik-E Mart, to promote the Simpson Movie.
- 21. 16-21 Store Atmosphere The combinationof the store’s physical characteristics (architecture, layout, signs and displays, colors, lighting, temperature, sounds, smells) together create an image in the customers’ mind
- 22. 16-22 Mediacart A shopping cartthat delivers point-of-decision advertising ■ Informs the customer about special deals as the customer passes them in the aisle ■ Each video screen is embedded with an RFID chip that interacts with chips installed on store shelves ■ Records shopping habits, dwell times, how shoppers travel through the store
- 23. 16-23 Community Building Retailers’ CommunityBuilding Websites offer opportunities for customers with similar interests to learn about products and services that support their hobbies and share information with others
- 24. Sponsorships 16-24 Salman Khan walkingthe ramp for designer Sanjana John, Wills India Fashion Week
- 25. 16-25 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)
- 26. 16-26 Unpaid Impersonal Communication Publicityis communication through significant unpaid presentations about the retailer, usually a news story, in impersonal media. • Newspaper • TV coverage • Macy’s Thanksgiving Day Parade
- 27. 16-27 PR The Gap, EmporioArmani, and Apple are among several retailers selling red products, a portion of the proceeds go to Product RED, a charity to wipe out AIDS in Africa
- 28. 16-28 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
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- 37. 16-37 Steps in Developinga Retail Communication Program Planning the Retail Communication Program
- 38. 16-38 Setting Objectives ■ Communicationobjectives: 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
- 39. 16-39 Communication Objectives &Stages in the Consumers Decision-Making Process
- 40. 16-40 Retail and Vendor CommunicationPrograms Vendor • Long-term objectives • Product focused • National • Specific product Retailer • Short-term objectives • Category focused • Local • Assortment of merchandise
- 41. 16-41 Setting the CommunicationBudget • Marginal analysis • Objective and task • Rules of thumb - Affordable - Percent of sales - Competitive parity Advertising Sales Sales Advertising
- 42. 16-42 Objective-and-Task Method ■ Determinesthe budget required to undertake specific tasks to accomplish communication objectives
- 43. 16-43 Allocation of thePromotional 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 High-assay principle: The retailer allocate the budget to areas that will yield the greatest return
- 44. Implementing and Evaluating CommunicationPrograms ■ Awareness ■ Knowledge ■ Attitude ■ Liking 16-44
- 45. Discussion ■ http://www.futuregroup.in/news/video.aspx ■ Caselets– Target Facebook 16-45