Marketing bán hàng - Chapter 16: Retail communication mix

Chapter 16 Retail Communication MixMerchandise Management BuyingSystems ManagingMerchandiseAssortments BuyingMerchandisePricing RetailCommunicationMix2Objectives of Communication ProgramThe McGraw-Hill Companies, Inc./Andrew Resek, photographerShort-term Increase Traffic Increase SalesLong-term Build Brand Image Create Loyalty3Brands 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 competitorsThe McGraw-Hill Companies, Inc./Bob Coyle, photographerThe McGraw-Hill Companies, Inc./John Flournoy, photographerThe McGraw-Hill Companies, Inc./John Flournoy, photographer4Strong Brands Provide Value to Retailers and Their CustomersValue to RetailersAttract CustomersBuild LoyaltyHigher Prices Leading toHigher Gross MarginReduced Promotional ExpensesFacilitates Entry into New MarketsGap  GapKidsValue to CustomersPromises Consistent QualitySimplifies Buying ProcessReduces Time and Effort Searching for Information About Merchandise/RetailerBrands5Building a Valuable BrandBrand EquityHeighten Brand AwarenessCreate Emotional ConnectionsConsistent Reinforcement DevelopFavorableAssociations6The McGraw-Hill Companies, Inc./Lars Niki, photographerTar-Zhay7Benefits of High Brand AwarenessAided RecallTop Mind AwarenessStimulates Visits to Retailer8Creating Brand AwarenessBrand Awareness Memorable NameRepeated ExposureSymbolsEvent Sponsorship9Retailers Develop Associations with their Brand NameMerchandise Category – Office Depot – office suppliesPrice/quality – Neiman Marcus –, high fashion merchandiseSpecific attribute or benefit – 7-Eleven – convenienceLifestyle or activity – Electronic Boutique – computer games10McDonald’s Brand AssociationsMcDonald’sBig MacGolden ArchesFast FoodFrench FriesCleanRonald McDonald11L.L. Bean’s Brand AssociationsL.L. BeanFriendlyNew EnglandPracticalExpertiseOutdoorsHonest12Student Project on Brand Equity of Discount Retailers13Wal-Mart Associations14Target Associations15Wal-Mart Shopper: Staying AliveSingle motherFamily with childrenRetiredLower incomeHusband has a blue collar jobWife may stay at homeLiving on fixed incomeRuralPoor but happy16Wal-Mart Shopping List: Basic NecessitiesCleaning suppliesGroceriesBasic clothingFor babyFor kidsFor adultsDiapers, formula, baby suppliesToys and gamesPharmaceuticals and medicinesHealth and beautyPaper productsHousehold itemsCoke and beef jerky17Target Shoppers: Material GirlsEmployedProfessionalMay have home businessGood IncomeWomenMarried couplesWith small childrenYoungStudentsRecent graduatesSingle lady with roommate and a cat18Target Shopping List: More LuxuriesClothingBasic clothesHigher end / designerShoesHousewaresDecorator itemsPet suppliesHealth and beautyGreeting cardsToys for the grandchildrenMusic and electronicsSmall furnitureGardening suppliesSupplies for babiesTools19Brand ExtensionsGap  GapKids and Old NavySears  Sears Auto Centers and the Great IndoorsPottery Barn  Pottery Barn KidsThe McGraw-Hill Companies, Inc./Andrew Resek, photographer20Using Brand Name on New ConceptPlusesDevelop Awareness and Image QuicklyLess Costs Needed to Promote ExtensionMinusesAssociations Might Not Be Compatible with Extension21Retail Communication Mix22Integrated Marketing CommunicationsPresent a Consistent Brand Image through all Communications with Customers Store DesignAdvertisingWeb SiteMagalogThe McGraw-Hill Companies, Inc./Andrew Resek, photographer23Communication Methods24Paid Impersonal CommunicationsGames, sweepstakes and contestsAdvertisingCouponsStore atmosphereWebsiteJack Star/PhotoLink/Getty Images25Comparison of Communication Methods26Paid Personal CommunicationRetail salespeople are primary vehicle for providing paid personal communication to customers. Personal selling – salespeople satisfy needs through face to face exchange of information Email – retailers inform customers of new merchandise, receipt of order or when order has been shipped27Unpaid Impersonal CommunicationPublicity is communication through significant unpaid presentations about the retailer, usually a news story, in impersonal media. Newspaper TV coverage Macy’s Thanksgiving Day Parade28Unpaid Personal CommunicationWord of mouth: Can be favorable Can be detrimental© Royalty-Free/CORBIS29Steps in Developing a Retail Communication Program30Communication Objectives & Stages in the Consumers Decision-Making Process31Retail and Vendor Communication ProgramsVendor Long-term objectives Product focused National Specific productRetailer Short-term objectives Category focused Local Assortment of merchandise32Setting the Communication Budget Marginal analysis Objective and task Rules of thumb Affordable Percent of sales Competitive parityAdvertising SalesSales Advertising 33Marginal Analysis for Setting Communication Budget34Illustration of Objective and Task Method for Setting a Communication Budget35Financial Implications of Increasing the Communication Budget36Rule of Thumb MethodsAffordable methods – sets communication budget by determining what money is available after operating costs and profits are budgeted.Drawback: The affordable method assumes that the communication expenses don’t stimulate sales and profits.37Rule of Thumb MethodsPercentage of Sales Method – communication budget is set as a fixed percentage of forecasted sales.Drawback: This method assumes the same percentage used in the past, or by competitors, is still appropriate for the retailer.38Rule of Thumb MethodsCompetitive Parity Method – this communication budget is set so that the retailer’s share of communication expenses equals its share of the market.Drawback: This method (like the others) does not allow the retailer to exploit the unique opportunities or problems they confront in a market.39Illustrations of Communication ProgramsAdvertising Program for a Specialty Home Furnishing RetailerDiscounter Promoting a BrandPlanning a DirectMarketing ProgramMcGraw-Hill Companies, Inc./Gary He, photographer40Communication Objectives - Furniture StoreCommunication Question Objective Awareness What stores sell East Asian furniture?Knowledge Which stores would you rate outstanding on the following characteristics?Attitude On your next shopping trip for East Asian furniture, which store would you visit first?Visit Which of the following stores have you been to?41Evaluation of Program Before 6 Mon 12 MonAwareness 38% 46% 52% (% of mentioning store)Knowledge 9 17 24 (% outstanding rating) Attitude 13 15 19 (% first choice)Visit 8 15 19 (% of visited store) 42Considerations in Evaluating a Vendor Promotion Realized margin from the promotion Cost of the additional inventory Potential increase in sales from the  promoted merchandise Potential loss from switching Additional sales from more customer visits43CRM Campaign Management System44Financial Analysis of Easter Promotion45Implementing Retail Advertising ProgramsDeveloping the MessageSelecting the MediaDetermining Ad Frequency and TimingRyan McVay/Getty Images46Suggestions for DevelopingPrint Ads Dominant headline Dominant element Simple layout Specific, complete presentation Distinct visuals Name and address of store47Types of Advertising Media Newspapers Magazines Radio TV Direct mail Outdoor Shopping guide Yellow pages48Media Capabilities49Communication Objectives and Effectiveness of Media50Internet Advertising ApplicationsRetailers in GeneralCreate AwarenessConvey InformationBrand Building -- Build Store LoyaltyMulti-Channel RetailersBuild Web site Traffic51Internet -- Advertising Medium52Types of Internet AdvertisingBanners - >50% of ExpendituresRich MediaMicrositesSponsorships -Embedded in Site ContentEmail53Problems with Measuring Effectiveness Comparison with Other Media for theReachCounting Unique Visitors Use of CookiesFrequencyCachingPrevent CacheImpactGRPs - Reach x FrequencyComparison of Internet Advertising Sites54