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Retail Communication Mix

Retail Communication Mix

To develop & implement a communication program to build brand image, attract customers & encourage to buy merchandise Means by which retailers bring traffic into their stores & it includes advertising, sales promotion, publicity & personal selling.

Retailers use a combination of location, price levels, displays, merchandise assortments, customer service & promotion as a means to generate store traffic sales.

Objectives of Communication Program

Long-term Build Brand Image Create Customer Loyalty Creates strategic advantage

Short-term Increase Traffic Increase Sales

Distinguishing name or symbol, 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 Brands provide value to customer & retailers

Value of Brand Image

Value to Retailers (Brand Equity)

Attract Customers Build Loyalty Higher Prices Leading to Higher Gross Margin Reduced Promotional Expenses Strong Emotional Relationships 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

Building Brand Equity

Create a High Level of Brand Awareness Develop Favorable Associations

Brand Equity

Consistent Reinforcement

Create Emotional Connections

Creating Brand Awareness

Memorable Name

Repeated Exposure

Home Depot

Top-of-mind Brand Awareness




Event Sponsorship

Retailers Develop Associations with their Brand Name

Brand image is a set of associations that are usually organized around some meaningful themes Brand associations: anything linked to or connected with the brand name in a consumers memory Merchandise Category Home Town, Food World Price/quality Wills Lifestyle Premium Apparel Specific attribute or benefit 7-Eleven convenience Low Prices- Wal Mart

McDonalds Brand Associations

Quick Service Big Mac

Fast Food

French Fries Clean

Happy Meal

Consistent Reinforcement
The retailers brand image is developed and maintained through the retailers communication mix
Retail Communication Mix

Consistent Reinforcement through Integrated 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

Extending the Brand Name

Pluses Develop Awareness & Image Quickly Less Costs Needed to Promote Extension Minuses Associations Might Not Be Compatible with Extension

Gap Gap Kids & Old Navy

Koutons Koutons Kids Allen Solly Allen Solly Womens wear Wipro

Methods of Communicating with Customers

Strengths & Weaknesses of Communication Methods - Control - Flexibility - Credibility - Cost

Steps in Developing a Retail Communication Program

Setting Communication Objectives

Communication objectives:
Specific goals related to the retail communication mixs effect on the customers decision-making process Long-term: ex) creating or altering a retailers brand image Short-term: ex) increasing store traffic

Retail and Vendor Communication Programs

Vendor Long-term objectives Product focused Retailer Short-term objectives Category focused

Specific product

Assortment of merchandise

Setting the Communication Budget

Marginal analysis Objective and task Rules of thumb - Affordable - Percent of sales - Competitive parity Sales Advertising Advertising Sales

Setting the Communication Budget

Marginal Analysis Method

Based on the economic principle that firms should increase communication expenditures as long as each additional dollar spent generates more than a dollar of additional contribution Very hard to use because managers dont know the relationship between communication expenses and sales Objective-and-Task Method Determines the budget required to undertake specific tasks to accomplish communication objectives

Allocation of the Promotional Budget

The retailer decides how much of its budget to allocate to specific communication elements, merchandise categories, geographic regions, or longand 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

Implementing & Evaluating Communication Programs

Advertising Campaign: Developing the message Selecting the media Determining the timing & frequency of message presenting Evaluating the communication program