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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10.
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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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