Retailing:

Retailing: Promotion
Promotion
 Retail Promotion

• Retail promotion is about all the

communication that informs, persuades,
reminds the target market or prospective
segment about the marketing mix of the
retail firm
 Objectives of Promotion Program

Long-Term Short-Term
-Build Brand Image
-Increase Traffic
-Create Loyalty
-Increase Sales
 Objectives

• Increase the store traffic flow

• Increase the share-of-wallet of all shoppers
• Increase sale of given product / category
• Build brand image / equity
• Profitability
 Promotion Mix

• Advertising
• Sales promotion
• Publicity
• Personal selling
Communication Methods
 Comparison of
Communication Methods
 Advertising

• Dissemination of information concerning

an idea, product or service to induce action
in accordance with the intent of the
advertiser
– Paid form of communication
– Non-personal presentation
– Identified by the sponsor
 Objectives of Advertising
• Promote a product / brand
• Reach large audience / awareness
• Enter new markets
• Deal with competition
• Enhance brand image
• Improve relationship (also vendors)
• Caution the public / consumer
 Types of advertising
• Consumer-oriented / Persuasive advertising
– Big Bazaar, Lifestyle, VLCC, Lakme,
• Informative advertising
– LG, Sony, Maruti,
• Corporate advertising
– Titan, Tata steel, Birla group, Videocon,
• Financial advertising
– ICICI, Citibank, Standard Chartered, Barclays,
• Classified advertising
– Sales, recruitment, local products,
 Advertising Campaign

• Vertical co-operative advertising

• Horizontal co-operative advertising
• Steps involved
– Objectives-budget-design-select media-
run campaign-evaluate effectiveness
• Timing / Geographical location
 Sales Promotion

• Communication strategy designed to

act as a direct inducement, or an added
value, or an incentive for the product to
consumers
• Short-term in nature
• Not discounts alone…
• Extensive use of PoP Display material
 Objectives & Types of Sales
Promotion

• Stop and shop

• Shop and buy
• Buy bigger / larger
• Repeat purchase
• Types
– Price off, gifts, self-liquidating gifts, personality
promotion, competition, sampling, coupons, multi-
packs, buy n get free, in-store sales personnel
 Advantages of Sales Promotion

• Eye-catching appeal
• Exclusive themes and tools
• Value for the consumer
• Increases impulse purchase
• Draw consumer traffic
• Maintain loyalty (gift vouchers)
 Publicity

• Communication that fosters good

image for the retail outlet among the
consumers & public at large
• Can be personal / non personal, paid /
non-paid & sponsor controlled / non
controlled
 Objectives of Public Relations

• Build brand equity

• Increase awareness of the merchandise mix
• Demonstrate innovativeness
• Better value for the promotion cost
• Present favorable message in a believable
manner
 Types of Publicity

• Planned public relations

• Unexpected public relations
• Complementary public relations
Methods for Setting Promotion Budget

• Marginal analysis Advertising Sales

• Objective and task

• Rules of thumb Sales Advertising

­ Affordable

­ Percent of sales

­ Competitive parity
Thank You!
satish.jkshim@gmail.com