Retail Communication and Promotion

 

Retail communication and promotion Marketing communications are the voice of the brand and are used to establish a dialogue and build relationships with customers

 

Retail promotions 

The mix of communication activities designed to influence retailer publics

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Influence consumer perceptions, attitude and behaviour in order to increase store visits, visi ts, product purchase and store loyalty 

Influence stakeholders such suppliers, other journalists and local andas national politicians

 

Common communication Advertising

Sales Promotions

platforms Contests

Print/Broadcast Packaging Brochures Posters Leaflets Billboards POP display Symbols/logos

Games Gifts Sampling Fairs Trade shows Coupons Discounts Finance options Trade-ins

Events and Experiences Sports Festivals Arts Causes

Factory tours Company museums

Direct marketing: Mailings, telesales, faxbroadcast, email, catalogues

PR Press packs Speeches Seminars Annual reports Charity Publications Community relations Lobbying Company magazine Personal selling Sales presentations Incentive programmes Trade shows Samples

 

For retailers MCP can build own brand equity Brand awareness

Advertising Sales promotion

Brand image

PR

Personal Selling

MARKETING COMMUNICATION PROGRAMME

BRAND EQUITY Brand responses

Direct Marketing Brand relationships Events and experiences

 

How persuasive communications work – Response Hierarchy Models

AIDA (1)

Hierarchy of   effects (2)

Attention

Awareness

Innovationadoption (3) Awareness

COGNITIVE Knowledge Interest AFFECTIVE Desire

BEHAVIOUR Action

Liking Preference Conviction

Communication model (4)

Exposure Reception Cognitive response

Interest

Attitude

Evaluation

Intention

Trial

Behaviour 

Purchase Adoption

1. Strong, The Psychology of selling. 2. Lavidge and Steiner. 3 Everett Rogers. 4. Various V arious sources from Kotler and Keller 

 

Promotional objectives 

Identify target group

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Identify specific product or category

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Set specific goals Agree main communication points and method

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Define the time horizon “To ensure that the parents of children aged between 4 and 16 within each store catchment area receive information on back to school children’s offers. To grow sales for these products by £xx for school wear and £xx for school related equipment by September 1.”

 

Advertising 

Paid for time or space media communication

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Change attitudes, build image, encourage

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trial, grow sales Create awareness of the store and range of  offers Can reach large numbers simultaneously with simple message “Spend a little. Live a lot”

“Every little helps” “More reasons to shop at Morrisons”

 

 Types of advertising 

Product: new, exclusive, superior merchandise or  service

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Markdown event: create excitement about genuine “sale” event

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Retailer brand: sell the store, core vales, commitment to customers, experiences

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Co-operative: manufacturer funded mail drops/leaflets promoting offers and discounts Windows: capture focal attention, distinctive image, promote seasonal activity

 

Window displays 

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ID Magasin research suggest only 7% - 9% of passing traffic will notice store display Bottom third of window has greatest impact View through the door is more important

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Clear simple messages

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Use of technology, movement, lighting, colour  to create dramatic effect

 

Push and pull promotional Push strategy – push the t he consumer through the channel strategy by advertising store benefits

RETAILER

CUSTOMER

MANUFACTURER

Promotes the productthe benefits of  Pull strategy – create demand for the product through advertising and fund retailer promotional pr omotional activity

 

Sales promotion 

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Offers and incentive to achieve a desired result Mostly short term use but can become central to marketing effort and difficult to terminate Often used in combination with other tools to supplement overall marketing effort

 

Types of sales promotions pr omotions POINT OINT OF SALE SALE

Win ind dow,, ow,,fl floo oorr, cou count nter er di disp spla lay y to to ind indu uce impul pulse buy buy

CONTESTS

Competitions for prizes to promote retailer brand

SWEEPSTAKES

Random prize draws

COUPONS

Money off voucher for in-store purchase

REPE RE PEAT AT SHO SHOPP PPER ER

Poin Points ts/s /sta tamp mps/ s/re rewa ward rds s for for freq frequen uentt purch purchas ase e

LINKED LIN KED PURCHA PURCHASE SE

Thresh Threshold old leve levell spend spending ing leads leads to money money off off othe otherr goo goods ds

DEMONS DEM ONSTRA TRATIO TIONS NS

In-sto In-store re demon demonstra stratio tion n of bene benefi fits ts or prod product uct testin testing g

REFERRAL GI GIFTS

Gifts to to in intro rod duce new us users

BOGOF

Money saving but can stimulate demand for other items

BRANDED GI GIFTS

Pens, bags ot other bra bran nded gi giveaways

SAMPLES

Sachets, samples instore or in print media

PREMIUM

Include free gift to encourage repeat purchase

SPEC SP ECIA IAL L EVEN EVENT T

Fash Fashio ion n show shows, s, auto autogr grap aph h se sess ssio ions ns,, sto store re open openin ing g even events ts

 

Relationships and loyalty CRM “Identify and establish, maintain and enhance and 

when necessary terminate relationships with customers, at a profit so that the objectives of all

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parties areand met;fulfilment and this of is promises” done by mutual exchange (Gronroos) “Managing detailed information about individual customers and carefully managing all customer  touch points to maximise loyalty…to provide excellent realtimecustomer service through the effective use of individual account information” i nformation” (Kotler and Keller)

 

Loyalty 

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Retention can be a measure of inertia and apathy – not loyalty Griffin (1995): attachment to company/bran company/brand d is shaped by degree of preference and degree of perceived differentiation

 

How loyalty schemes create value More purchases more often – conscious choice to commit to 

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brand in exchange for reward. Additional valued reason for  choice Mass customise marketing communication – talk to individual customers Asset value of the data – what’s actually happening in every store to every customer  Trend tracking – what customers are buying and what they’re not Minimise wasted marketing effort – better targeting through real customer insight Promote trust – built on knowledge and understanding and consistently delivering on promises

 

 The Clubcard customer contract Enable more personal more relevant service to customers

Identify individual customers

The customer  contract

Create accurate segmentation for  marketing efficiency

Reward involvement, spend, consolidation of spend.

Build dynamic customer knowledge

 

Loyalty segments

(based on Dick and

Basu 1994) Behaviour  High repeat purchase

TRUE LOYAL High attachment

Attitude Low attachment

Low repeat purchase

LATENT LOYALTY

Gofton 1995 only 17% buy Well disposed but not heavy user  same brand in 50%+ product service sectors Using other suppliers? they use. Understand why Create attitudinal loyalty is divided attachment FALSE LOYALTY NO LOYALTY Apathy, inertia, high No perceived difference switching costs Frequent price switches Increase degree of positiveCommunicate distinct differentiation

advantages

 

Loyalty lessons from Tesco: the dunnhumby loyalty cube Championing

All customers can be placed at some point in the loyalty cube

Location determines marketing action to earn

Commitment

loyalty

Customer 

Contribution

 

Contribution 

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Should you reward “profitability” or “loyalty” eg low spending loyal versus high spending but promiscuous High spender may take more rewards but not be loyal

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Encourage loyalty, not just profitability

 

Commitment 

Future value based on “headroom”

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Potential to be more valuable in the future

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What emerging financial needs can be assumed/identified and targeted

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Strengthen the bond

 

Championing 

Loyal customers as brand ambassadors

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Benefits become an aspiration for friends and

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associates Word of mouth/pass on your long term opinion Long term value of a low value but loyal l oyal customer may be in recruiting higher  customers

 

Emotional attachment 

“Marketing people use the expression emotional attachment in too free a way. People have an emotional bond to Tesco in that they feel we are on their we deliver look outonforour their interests…and most side…that important we promises. It’s the sort of customer thinking that says ‘Tesco has always done alright by me.’ On the one hand that sounds rather dull, but it is actually massively valuable. It is, infact, branding” Tim Mason

 

Other ideas about loyalty  

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Clubs that identify real emotional needs “The only club that is worth running is one that satisfies a genuine customer need, because they’re the ones that consumers are interested in” Tim Mason Unconditional benefits are powerful. An up-front reward gains positive perceptions and influences shopping behaviour in a valuable direction Be a “chosen” not a “given”. People value most what they actively choose

 

Personal selling 

Retailer gain through face to face or telephone contact between seller’s representative and customers/clients

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Based on trust (perceived credibility) of seller  representative and seller company Trust is an important driver of loyalty intention and loyalty behaviour 

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Sales staff activity in low-risk low-priced retailer  environment is transaction based In high – risk, high – price activity is information/expertise based

 

 The retail selling process (Gilbert)

1. Preparing through skills and Feedback and learning from prior listening and knowledge training 2. Anticipating and identifying a Feedback and learning from prior listening and prospective sale understanding customer  3. Method of approaching potential customer and task

Feedback and learning from prior listening and asking appropriate questions

4.Presenting the features and benefits

Establish customer need and pocket, active selling and listening to check acceptability

5. De Dealing with concerns

Active listening to revise a arrgument a an nd overcome objections

6. Building obligation and commitment

Active listening to ensure offer is acceptable and sale can be concluded

7. Establish affinity and relationship

Close the sale, reinforce the relationship through customer delight

 

Summary: retail promotions 

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A complex series of communications concerning store and offerings Traditional promotional mix tools include advertising, sales promotion, personal selling and PR Retail atmospherics and visual merchandising play a vital role in promotional strategy A consistently good set of promotional campaigns help establish a store’s long term image and position

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Advertising is used to inform, persuade and remind consumers of  the store’s value proposition Sales promotions encourage trial, repeat purchase and generate short term sales increase PR allows other media channels to act as opinion leaders for the retailer’s personality and image