RETAIL MANAGEMENT, 2/E

Chetan Bajaj,
Bajaj Director,
Sona School of Management, Salem, Tamil Nadu
Rajnish Tuli,
Tuli Director,
Millward Brown, South East Asia, Singapore
Nidhi Varma Srivastava,
Srivastava Director,
Millward Brown, India

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 Chapter - 13
RETAIL PROMOTION STRATEGY

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 Selection of promotion Mix
• Retailers usually employ a combination of advertising,
sales promotion, personal selling, and publicity to achieve
promotional and business objectives
• The degree and nature of usage of each of the promotion
methods depends on the objectives of the retail firm,
product, market profile, and availability of resources
• McDonald’s extensively relies on advertising in national
and local newspapers and national television channels

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 Advertising
• Advertising is recognized as an indispensable tool of
promotion
• Advertisement has acquired a lot of significance in the
national and international markets
• Advertising
- paid form of communication
- non-personal presentation of message
- issued by an identified sponsor

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Objectives of advertising

The fundamental objectives are:

Promote a new product
Support the personal selling programme
Reach out to people not accessible to salesmen

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Significance of advertising
Advertising is not only a provider of information about
products, services, and availability at different retail
locations, but also an important link between the adviser
and the receiver of the message.

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Benefits of advertisements
It helps in creating awareness
It educates about new products
It increases the utility of existing products
It encourages the manufacturers to improve the quality.

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 Types of advertising

Persuasive Corporate Classified

Advertising Advertising advertising

Informative Financial
Advertising Advertising

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 Media selection
• Media selection involves finding the most cost-effective
media to deliver the desired number of exposures to the
target audience
• In the desired number of exposures the advertiser seeks
a certain response from target audience
• The effect of exposures in the audience depends on
reach, frequency, and impact

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Popular media vehicles in Indian retail
sector
Leaflets or flyers Billboards
Posters/calendars Wall Paintings
Booklets Banners
Direct mail Deciding on Media timing
Magazines Deciding on geographical
Local cable channels allocation

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Sales promotion
• Sales promotion is one of the most important promotion
strategies followed by retailers
• Sales promotion refers to communication strategies
designed to act as a direct inducement, an added value, or
incentive for the product to customers
• Traditionally designed for immediate increase in product
sales
• Provides extensive tactical measures to marketers to
manage internal or external impediments to sales or profits
• Objectives
- Stop and shop
- Shop and buy
- Buy bigger

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 Personal selling
• Publicity (at time referred as public relation) entails
any communication that fosters a favorable image for
the retailer among its public

• Non-personal or personal, paid or non-paid and

sponsor controlled or non-sponsor controlled

• Publicity is a non personal form of promotion where

messages are transmitted through mass media, the
time or space provided by media is not paid for and
there is no identified commercial sponsor

• Public relation is beneficial for both small and large

retailers

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Publicity
Publicity is a non-personal form of promotion where
messages are transmitted through mass media, the
time or space provided by media is not paid for, and
there is no identified commercial sponsor.
Methods:
Eliminate junk mails to editors
Follow time limitation, TV.

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Types of publicity

The types are:

Planned public relations
Unexpected publicity
Complimentary publicity

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