DISTRIBUTION AND

RETAIL MANAGEMENT

RETAIL
SCOMMUNICATION MIX
 RETAIL COMMUNICATIO MIX
 Communication is an integral part of retailers marketing
strategy. Primarily communication is used to inform the
customer about the retailer, the merchandise and the service.

 It is also serve for the build for the store image.

 Today consumers can communicate directly with the stores

with the help of free numbers which retail provide for
complaints and queries.

 The retailers can use various platforms/ channels for

communication.
 OBJECTIVES OF COMMUNICATION
PROGRAM
Long-Term Short-Term
-Build Brand Image -Increase Traffic
-Create Loyalty -Increase Sales
RETAIL COMMUNICATION MIX
COMMUNICATION METHODS
 RETAIL COMMUNICATIO MIX
 The most Common tools for Communication is :
1) Advertising .

1) Sales Promotion.

1) Public Relation.

1) Personal Selling.

1) Direct Marketing.
 RETAIL COMMUNICATIO MIX
 ADVERTISING :
 It can be any paid form of non-personal presentation and
communication through mass media.
 A retailer may use advertising any of the following
objectives:
1) Creating awareness about a product or store.
2) Communicate information, in order to create a specific image
in customer’s mind, in terms of the store merchandise, price
quality, benefits etc.
3) Create a desire to want a product.
4) To communicate the store’s policy on various issues.
5) To identify the store with nationally advertise brands.
 RETAIL COMMUNICATIO MIX
 ADVERTISING :
1) To increase the sales of specific categories or to generate the
short term cash flows- by way of sales.
2) To reinforce the retailer’s corporate identity.
3) For advertising retailers may use any one or combination of
the following mediums:
a) Press advertising.
b) Posters and leaflets, broachers and booklets;
c) Point of purchase displays
d) Through medium like radio, television, outdoor hoarding and
the internet.
TYPES OF ADVERTISING MEDIA

 Newspapers  Direct mail

 Magazines  Outdoor
 Radio  Shopping guide
 TV  Yellow pages
MEDIA CAPABILITIES
 INDIAN EXPENDITURES ON
ADVERTISING
Television 48 Billion
Newspaper 44
Direct Mail 40
Radio 14
Yellow Pages 12
Magazine 10
Outdoor 2
Internet 2
Misc 28 Total $200 Billion
 RETAIL COMMUNICATIO MIX
 HOW TO DETERMINE ADVERTISING BUDGET :
 There is definite formula for determining the advertising
budget or the overall promotional budget. The following
main methods that can be used to determine advertising
budget.
A)Percentage of Sales Method:
 This is most commonly used method for determine the
budget.
 Here the budget is a fixed percentage of the sales. The
biggest advantages of this method is it simple to apply and it
allows the retailer to set an affordable limit on promotional
activity.
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 HOW TO DETERMINE ADVERTISING BUDGET :
B) Competitive Parity Method:
 Here the budget is based on the estimated amount paid by the
competition.
 There is risk that it could be based on wrong information and
again there is little consideration for market conditions or
growth opportunities.
C) Incremental Method:
 This budget is simply based on the previousexpenditure.
 RETAIL COMMUNICATIO MIX
 HOW TO DETERMINE ADVERTISING BUDGET :
D) What Can be Afforded:
 The budget allocated for advertising or for promotions is
based on the basis of the money that can be allocated by the
retailers.

While determine which method to be adopted a retailer needs to

take into consideration the market that the firm is operating
in, its current market position, and how important advertising
is in that market.
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 HOW TO DETERMINE ADVERTISING BUDGET :
D) What Can be Afforded:
 The budget allocated for advertising or for promotions is
based on the basis of the money that can be allocated by the
retailers.

While determine which method to be adopted a retailer needs to

take into consideration the market that the firm is operating
in, its current market position, and how important advertising
is in that market.
 RETAIL COMMUNICATIO MIX
ADVERTISING COMMUNICATION FLATFORM:
 The main media used for advertising are press, television,
radio, cinema, posters, hoardings direct mail.
 Advertising may also be done on bus shelters, buses, road
dividers, balloons etc…
 The kind of media vehicle used by the retailer largely
depends on the reach of that particular medium. To the
target audience.
 Eg. Food Bazaar or Big Bazaar may advertise on bus,
hoardings in city where as some precious stores gives there
advertising in up market magazines.
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ADVERTISING COMMUNICATION FLATFORM:
 As the change of technology the internet has emerged as a
legitimate option for the marketers.
 On-line advertising allows the marketers to advertise
twenty-four hours a day, seven days a week at convenience
of the customer.
 As most of the retailers today have a web presence web
advertising can be integrated with other forms of
advertising.
 Advertising on internet may be in the form of banner ads-
where ads are placed on the sites that contain editorial
message.
 RETAIL COMMUNICATIO MIX
ADVERTISING COMMUNICATION FLATFORM:
 It allows the browser to visit the website by mealy clicking
on the ad
 A pop up ad may also be used. This type of ad appears
when the page is being loaded or after it has been loaded.
 Communication on internet may be by way of an e-mail
message sent to the receiver.
 Certain website ask permission from the users to send e-
mail updates on new existing items on interest. This is
called permission marketing.
SOCIAL SHOPPING
 RETAIL COMMUNICATIO MIX
SALES PROMOTION:
 It can be defined as a paid, non-personal form of
communication, that offer incentive to customers for
visiting a store and /or purchase merchandise during a
specific period of time.

 It helps a retailer by way of attracting customers traffic and

enable quick result to be achieve.

 Depending on the type of promotion carried out it can help

increase impulse buying, generate excitement .
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OBJECTIVES OF SALES PROMOTION:
 To estimate trial purchase: This is usually done when a
firm wants to attract new customers. A reduce price or a
rebate may induce in trial purchase .
 To encourage Purchase: In package coupons, valid for
next purchase are example of promotions aimed at
encouraging purchases.
 To encourage large Purchase: Price reductions, buy one
get two free, A discount on the second purchase are the eg.
 To introduce a new brand/ product: A sales promotion
may be done to attract attention to a new product / brand or
service that has been launched by the retailer and to induce
trial purchase.
TYPES OF SALES PROMOTIONS
 Special sales

 Merchandise demonstrations

 Premiums

 Coupons

 Games, sweepstakes, and

contests
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COMMON RETAIL PROMOTION:
 COUPONS: A coupons gives the buyer a reduction in the
price of specific merchandise or product at the time it is
redeemed. Coupons may be delivered through newspapers,
magazines, post, or in the products.

 CONTEST: A contest requires the consumer to compete

an the prizes are based on skill. In the case of sweepstakes
the customer only needs to enter in his name and the winner
is determine by chance. Many retailers allow customers to
enter into competitions on the basis of the amount for which
purchase have been made by them.
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COMMON RETAIL PROMOTION:
 DEMONSTRATION: Demonstration are used to show the
customers the performance capabilities of the products.
Video may also be used to aid the demonstration and
highlight the uses of the product. Most of the company
executive demonstrate the use of home appliance in a
supermarket .
 PRODUCT/ BRAND PROMOTIONS AND
SCHEMES: This is straightforward scheme in which the
consumer either gets a monetary discount on the purchase
of particular product or the two product of the same type for
the price of one Eg. “Buy one get one free”.
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COMMON RETAIL PROMOTION:
 SAMPLES: Sampling provide the consumer an opportunity
to use the product at no cost. And take there feedback about
the product. Eg. Provide substitute product with the main
one.
 PFREQUENT SHOPPERS PROGRAM: Most retailers
have frequent shoppers program where a member
accumulates points for every purchase. Member often get
invitations to events sponsored by retailer or associates.
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SALE PROMOTION AT TRADE OR CHANNEL
MEMBERS :
 A retailer may also use sales promotions to interact directly
with the members of trade.
 This may be done by the way of taking part in trade fairs,
exhibitions and conferences.
 Trade fairs and exhibitions are gradually popular in India.
 In India the International Garment Fair, India National
Leather Fair, Textile Machinery Exposition, Leather
Goods Fair etc. organized by government and various
commercial bodies.
 RETAIL COMMUNICATIO MIX
PUBLIC RELATIONS AND PUBLICITY:
 It is a marketing communication function which aims at
developing goodwill.
 By way of public relations the retail organization strives to
create and sustain a favorable image in the minds of its
consumer, shareholders, suppliers, and the public at large.
 The job of the public relation is generally handle by an
outside public firm and may undertake to promote goodwill
for the organization.
 An organization may conduct its public relations effort by
way of press release, feature stories and company newsletter
or through interviews with the press and press conferences.
 RETAIL COMMUNICATIO MIX
PUBLIC RELATIONS AND PUBLICITY:
 Public is non paid form of media coverage. It is rarely free and
fair amount of skill has to be exercised by the organization to
ensure that the right media coverage is achieved.
 Example of events in retail which may merit publicity are:
1) Store Opening
2) Store renovations
3) Celebrity Visits and affiliations
4) Designer Associations
5) New product range and Launches
6) Awards received by the retailers
7) Fashion Show and Sponsored events.
 RETAIL COMMUNICATIO MIX
PERSONAL SELLING:
 Personal selling is a paid form of personal advertising where
salespeople assists customers in satisfying their needs through a
person-to-person exchange of information.
 It is the process of learning the needs, and the wants of the buyer
and striving to satisfy them with required product or service.
 Personal selling may occur within the locality of the retail store
where personal selling deals with the sales satisfying the needs of
the consumes.
 It may also occur outside the retail store where orders are taken
from customers through the telephones, internet or mail which
are then serviced.
 MODERN COMMUNICATIO MIX
Some of the very good options for advertising offered by
retailers within the retail space are the following:

Events: Retail spaces are designed for offering the

atriums and other spaces for conduct of events. Events
are a craze in the mall based urban culture. They play an
important part in the Below the Line (BTL) promotions.
They can generate trials and samples.
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Space on Hire (SOH): Space on Hire (SOH) is the latest
trend catching up with retailers with large format
retailing. Though the costs are high, brands are willing to
pay premium prices to get the right place inside the
store or mall to put across his message. Within the store
various spaces are available to carry messages offering a
three dimensional use of retail space.
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Kiosk Cafes: One of the latest media being added to the
retailers and brand marketers is the kiosk internet cafes.
Set up within a large format retail establishment like a
mall or a large shopping center or a public place the
kiosk operator offers free internet surfing to shoppers. As
the potential shopper surfs the net or checks and
responds to emails, advertising messages in a non
intruding manner stream through on the screen offering
information on special offers and schemes that may be
on offer within the premises or at neighborhood retail
establishments.
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Apart from these, there are In-Store Audio-Visual
Communication facilities available in various retail
stores which can also be used to communicate effectively
with the consumers who spend a lot of time in today in
retails stores and malls. Two of the most important
modes of this kind are:
Retail TVs
Digital Signage's
 MODERN COMMUNICATIO MIX

Retail TVs: Numbers of retailers have shown great

innovation by installing TV sets at strategic locations
within the store. This can add to the recall of the place
that they are shopping. More bold retailers have started
appointing retail jockeys, similar to radio jockeys that
conduct entertainment and retail communications
programs within the store environment.
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Digital Signage's:
1. Digital Signage is a mechanism for distribution of digital
media by allowing motion pictures, graphics, scrolling
text and audio to be displayed simultaneously at multiple
locations using high definition digital displays, standard
displays, plasma displays or large LED displays.
2. These enable store owners to install channels of digital
signage displays that deliver specific departmental
advertising focused at the customer at the critical last
mile of the Retail buying decision, the point-of-purchase.
 MODERN COMMUNICATIO MIX
The above mentioned communication mediums can be
included under a broad frame work of Point of Purchase.
They allow retailers to focus on delivering the RIGHT
message to the RIGHT audience at RIGHT time.
!!! THANK YOU !!!