Retail Communication Mix
Communication program to develop brands and build customer
loyalty
Brand is a distinguishing name, symbol, logo, that identifies the
product or service offered by the seller and differentiates those
products and services from the offerings of the competitors
Value of Brand Image
Building a Brand Equity
Brand Awareness
Association
Extending the Brand name
Retail Communication Mix
Methods of Communicating with the Customers
Paid impersonal communication
Advertising
Sales Promotion
Contests
Coupons
Store Atmosphere
Website
Paid personal communication
Personal selling
E-mail
unpaid personal communication
Publicity
Retail Communication Mix
Planning the Retail communication process
Setting objectives
Setting the Communication budget
Allocation of the Promotional budget
Planning, Implementing and Evaluating communication programs
Choosing the most effective media
Newspapers, Magazines, Direct Mail
Television, Radio, Internet
Outdoor billboard, Shopping guides, yellow pages
Factors considered for selecting the media
Coverage, Reach, CPM
Frequency, timing, costs, etc.
Promotional Strategy
Steps involved in Retail Advertising Campaigns
Selecting Advertising Objectives
Advertising Budget for Campaign
Designing advertising message
Selection of media
Running and Ad. Campaign
Measuring Advertising Effectiveness
Promotional Strategy
Objectives of Sales Promotion
Stop and Shop
Shop and Buy
Buy Bigger
Repeat Purchase
Supplier originated Sales Promotion
In store Activities
Price of Pack, Premiums, Self liquidating premiums, Personality
promotions, Competitions, Co-operative Promotions, Sampling,
Coupons, Buy one get one free, Multi-packs, In store sales person,
point of purchase display material
Promotional Strategy
Objectives of Personal Selling
Persuade Customers to purchase
Stimulate sales of impulse items or products related to a consumer’
basic purchase
Complete transaction with customers
Provide adequate level of customer services and maintain customer
satisfaction
Types of Publicity
Planned public Relation
Unexpected publicity
Complementary Publicity
Retail Human Resource Management
Objectives of the Human Resource Management
Objective of HRM is to align the capabilities and behaviour of
employee with the short term and long term goals of the retail firms
Employee
Turnover 100 x [Link] people in set of position during a year – 100
= -------------------------------------------------------------------
[Link] Positions
Employee Retailers sales / Profits
Productivity = --------------------------------------------
No. of Employees
Retail Human Resource Management
The Human Resource Triad
HR Professionals
Line Managers
Employees
Special HR Conditions facing Retailers
Part time employee
Expense Control
Employee Demographics
Organization Design Considerations
Specialization
Responsibility and authority
Reporting Relationship
Matching organization structure to retail strategy
Retail Human Resource Management
Downward Performance Triad
Financial Performance Problems (Low profits / High Costs)
Retailers Response (Layoffs, freeze on hiring & promotions, reduced
training, salary freeze, greater use of part time employees and more
outsourcing)
Employee Response (Decreased motivation and efforts, Poor customer
service, lower job satisfaction, greater turnover)
Retail Human Resource Management
Retail Organization design Issues
Centralization Vs Decentralization
Coordinating Merchandise and Store Management
Motivating Retail Employees
Policies and Supervision
Incentives
Organization Culture
Building Employee Commitment
Developing Skills
Empowering employees
Creating partnership relationship
Retail Human Resource Management
Trends in Retail Human Resource Management
Managing Diversity – Training, support groups and mentoring
programs, career development and promotions
Legal and Regulatory Issues – Equal employment opportunity,
Compensation, Labour relations, Employee safety and health,
employee privacy, developing policies
Use of Technology
Customer Service
It is set of activities and programs undertaken by retailers to make
the shopping experience more rewarding for their customers
These activities increase the value customer receive from the
merchandize and services they purchase
All employees of a retail firm and all elements of the retailing mix
provide services that increase the value of merchandize
Customer Service
Customer Service Strategies
Customization Approach
Standardization Approach
Cost of Customer Service
Customer Evaluation of Service Quality
Role of Expectations
Perceived Service
The GAP Model
The Gap model indicates what retailers need to do to provide high
quality customer service
When customer expectations are greater than their perceptions of the
delivered service, customers are dissatisfied and feel the quality of
retailers service is poor
Retailers thus need to reduce the service gap I.e. the difference
between the customer expectation and perception of customer service
Factors affecting the Service Gap
Knowledge Gap
Standard Gap
Delivery Gap
Communication Gap
Service Recovery
Listening to Customers
Providing a fair solution: Distributive fairness, procedural fairness
Resolving Problem quickly: Giving clear instructions, Speaking the
customer language
Customer Relationship Management
It relates to the activities undertaken by the retailer to build long
term mutually profitable relationship with the customer
Customers are provided with loyalty cards or redeemable coupons,
etc.
Regular contact is maintained with the customer updating him the
information related to the new arrivals, special schemes, discounts,
etc.
Any customer query, complaint is immediately attended or resolved
If possible, product adaptations are also done to suit the specific
requirement of the customer
Customer Relationship Management
CRM is a business philosophy and set of strategies, programs and
systems that focuses on identifying and building loyalty with a
retailer’s most valued customers
CRM is based on the philosophy that retailers can increase their
profitability by building relationships with their better customers
The basic purpose is to develop a base of loyal customers who
patronize the retailer frequently
Through CRM activities, retailers provide more value to their best
customers using targeted promotions and services to increase their
share of wallet I.e. the percentage of the customer purchases made
from the retailer
Customer Relationship Management
Customer Loyalty
In context of retailer, it means that customers are committed to
purchasing merchandise and services from the retailer and will resist
the activities of competitors attempting to attract their patronage
Loyal customers have an emotional connection with the retailer. It
develops when customers receive personal attention from the retailer
CRM Process : It involves following activities
Collecting customer Data
Analyzing the customer data and identifying the target customers
Developing CRM programs
Implementing CRM programs
Customer Relationship Management
Customer database / Data warehouse
It contains all of the data the firm has collected
It contains the following information
Transactions
Customer contacts
Customer preferences
Descriptive information
Responses to marketing activities
Customer Relationship Management
Data Mining
It is a technique used to identify patterns in data.
The process includes analyzing the customer database and converting
the data into information that will help retailers develop programs for
building customer loyalty
Lifetime customer Value is the expected contribution from the
customer to the retailer’s profits over his or her entire relationship
with the retailer
RFM analysis referred to as Recency, Frequency and Monetary
analysis
Customer Relationship Management
Customer Retention : Approaches taken by the Retailers;
Frequent Shopping programs
Special Customer service
Personalization
Community
Cross Selling is selling a complementary product or service in a
specific transaction such as selling a customer printer along with the
PC
Up Selling refers to selling the premium priced or higher quality
products to the existing customers. It refers to enhancing the
aspirations of the customers
