The document discusses retail communication and promotion. It describes the objectives of retail promotion as influencing consumer behavior to increase store loyalty and sales. It outlines SMARRTT objectives for promotion, which are specific, measurable, achievable, realistic, relevant, targeted and timed. The document then covers various promotion methods including advertising, sales promotion, public relations, and personal selling. It discusses push and pull strategies and relationship marketing approaches. The effectiveness of the major promotional methods is also addressed.

1. Retail Communication and
Promotion
Dr. Gopal Thapa
Tribhuvan University

2. Retail Promotion
 Retailers communicate to their customers on a
continuous basis through the store atmosphere, the
products and services, promotional literature,
advertising and other promotional means
 Retail promotion is the descriptive term for the
mix of communication activities which retail
companies carry out in order to influence those
publics on whom their sales depend.
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3. Retail Promotion
 Retailing promotion will have the main objective
of influencing consumer perceptions, attitudes and
behaviour in order to increase store loyalty, store
visits and product purchase.
 There is a need to influence trade contacts such as
agents and suppliers as well as opinion formers
such as journalists and writers.
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4. Objectives of Retail Promotion
 The marketing objectives need to be clearly
defined so that the most effective types of
promotion can be utilized.
 The mix strategies could specify a need to
achieve awareness; to inform; to educate;
create purchase action; improve loyalty;
change the perception of the customer, etc.
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5. Objectives of Retail Promotion
 The promotional objectives should have some
precise terms for the purposes of carrying out the
promotion and then monitoring the results
 – so-called SMARRTT objectives
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6. SMARRTT objectives
 Specific : Objectives have to be precise and clear
enough to offer direction as to the expected
outcome.
 Measurable: Objectives need a quantifiable
outcome measurement statement against which an
evaluation can take place.
 Achievable: Objectives should be achieved and
therefore budgets/resources need to be adequate.
Staffing or supply problems may restrict
achievements.
 l
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7. SMARRTT objectives
 Realistic : The expectations of what the promotion can
achieve have to be realistic. Promotion can only achieve so
much and therefore expected changes in attitude to a
brand, or demand for a retail offer, may not be realistic.
 Relevant: Objectives have to be appropriate to the task set.
 Targeted: All objectives need to be tied in with statements
related to achieving results in the target audience(s).
Different target audiences may need separate objectives.
 Timed: Objectives have to be written with consideration of
effect or change within a time frame of achievement.
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8. Promotional Budget Approaches
 Objectives and task method
 Affordable method
 Percentage of sales method
 Competitive parity method
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9. Communication Effects
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11. Advertising
 The term advertising includes any paid form of
non-personal communication through the media
about a product that has an identified sponsor.
 Advertising is used to achieve a whole range of
objectives that may include changing attitudes or
building image as well as achieving sales.
 Advertising is often described as above-the-line
promotion
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12. DAGMAR Model
 Defining Advertising Goals for Measured
Advertising Results
 unawareness;
 awareness;
 comprehension of the offer;
 conviction;
 action or inaction
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13. Types of Advertising
 Product advertising
 Markdown event advertising
 Institutional advertising
 Co-operative advertising
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14. Pull vs Push Strategies
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15. Sales Promotion
 Sales promotion involves any paid non-personal
marketing communication activity, other than
advertising, which offers an incentive to induce a
desired result from potential customers, trade
intermediaries, or the sales force.
 This is sometimes referred to by the term sales
incentive.
 It is usual for a sales promotion campaign to be
used as a temporary offer to the customer in order
to stimulate an immediate response.
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16. Examples
 displays,
 contests,
 sweepstakes,
 coupons,
 frequent user (loyalty) programmes,
 prizes,
 samples,
 demonstrations,
 referral gifts
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17. Relationship Marketing and
Loyalty Schemes
 Retailers are adopting relationship marketing
(RM) schemes which aim to:
 build greater customer loyalty and retention;
 develop methods of creating longer-term
relationships;
 lead ultimately to increased sales and profits.
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18. The Relationship Marketing
Ladder
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19. Personal Selling
 Personal selling is the personal communication of
information to persuade somebody to buy
something. (Santon)
 Personal selling is face to face interaction with one
or more perspective purchasers for the purpose of
making presentations, answering questions and
procuring orders. (Kotler)
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20. Importance of Personal Selling
 Two-way communication
 Persuasion
 Relationship building
 Non-selling functions
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21. Personal Selling Process (Indoor Selling)
 Draw attention
 Ascertain needs
 Presentation
 Meeting objections
 Closing the sale
 Additional sales
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22. Public Relations
 Public relations involve a variety of programs
designed to promote and or protect a company’s
image or its individual products. (Kotler)
 Public relations is a management tool designed to
favorably influence attitudes towards an
organization, its products and its policies.
(Stanton)
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23. Objectives of Public Relations
 Announce new products
 Build interest in established products
 Announce policies and performance
 Announce technological development
 Maintain good relations with community
 Counter negative publicity
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24. Nature of Public Relations
 Media relations
• Personal communication
• News releases
• Feature articles
• Publications
 Public service activities
 Sponsorship of events
 Lobbying
 Exhibits and displays
 Problem solving
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25. Public Relations Activities
 Media information releases / contact / speeches
 Production of PR materials (video, CDs, Web information,
press kits, corporate identity materials, etc.)
 PR events, media conferences and newsworthy ‘stunts’
 Advertorials (which require PR copy along with an
advertisement)
 In-house and customer magazines
 Facility visits to store etc.
 Sponsorship and donations
 Lobbying
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26. Effectiveness of the Four Major
Methods of Promotion
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27. Any Queries?
Thank You
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