RETAIL COMMUNICATION/PROMOTION

BY, MS. NATASHA DHAWAN

COMMUNICATION

DEFINITION MACROMODEL MICROMODEL MODES OF RETAIL COMMUNICATION BARRIERS IDEAL COMMUNICATION FRAMEWORK CONCLUSION

Communication

What is Communication ?
Simple Terms, Communication is the transfer of information-from a sender to a receiver - with the information being understood by the receiver. Communication Process Macromodel & Micromodel

Communication
Communication Process Model Macromodel

THOUGHT >ENCODING SENDER

RECEPTION>DECODING >UNDERSTANDING RECEIVER

Communication
CHANNELS

PERSONAL

FACE-TO-FACE PERSON-TO -AUDIENCE TELEPHONE E-MAIL MEDIA PRINT- NEWSPAPERS & MAGAZINES BROADCAST-T.V & RADIO NETWORK-TELEPHONE,CABLE,SATELLITE ELECTRONIC-CD,VCD,WEB DISPLAY-BILLBOARDS-BILLBOARD,SIGNS,POSTERS SALES PROMOTION EVENTS PR

NON-PERSONAL

MESSAGES

WRITTEN ORAL NON-VERBAL ENVIRONMENT E.G.: T.V , Radio STATIC IN CHANNEL E.G.: Telephone Connection INATTENTION OF RECEIVER E.G.: Work Stress LANGUAGES E.G.: Cross-Cultural Communication

NOISES

Communication
Communication in Retail
Good Product , Attractive Price & Beautiful Store THEN WHAT ??? VOICE of the Company

Inform the Customer about latest offering Persuade / Remind Customers to Buy the Product Create Brand awareness Improve Customers Perception of the Brand

Establish a DIALOGUE & Building Relationships with CONSUMERS

Communication
So , there must be clarity w.r.t the following :

WHAT TO SAY ? HOW TO SAY ? WHEN TO SAY ? TO WHOM TO SAY ? HOW OFTEN TO SAY ?

CONSUMERS DIVIDED ATTENTION LARGE NO. OF COMPANIES

BRAND /ICE CREAM PURCHASE

AWARENESS KNOWLEDGE LIKING PREFERENCE CONVICTION PURCHASE

Communication
Micromodel of Consumer Responses
HIERARCHY-OF-EFFECTS MODEL E.G.: SHAMPOOS

C O N S U M E R

STAGES COGNITIVE LEARN AFFECTIVE

HIERARCHY-O-EFFECTS MODEL AWARENESS KNOWLEDGE LIKING PREFERNCE

FEEL CONVICTION BEHAVIOUR PURCHASE DO

R E T A I L E R

Communication
Modes of Retail Communication
Advertising Sales Promotion BRAND EQUITY Public Relations & Publicity BRAND AWARENESS Personal Selling BRAND IMAGE Direct Marketing BRAND RESPONSES Interactive Marketing (Online) BRAND RELATIONSHIPS Events Word-of-Mouth Usually , COMBINATION E.g.: How well does the AD Campaign contribute to Brand Awareness . . ??

Communication

ACTIVITES MUST BE INTEGRATED TO DELIVER A CONSISTENT MESSAGE TO ACHIEVE DESIRED EFFECT- DESIRED BRAND POSITIONING E.G.: Launch of Scorpio by Mahindra

Communication
Scorpio by Mahindra & Mahindra Competition from Toyota Qualis, Tata Sumo & Tata Safari Multipronged Approach

TV Ad : 73 AD Spots in different TV Channels

August 15th Independence Day Communicate the Intl. image & Emotional Benefits

Event

Sponsorship : Independence Day Events by these channels Print Medium : Functional benefits of the brand Publicity : Scorpios & Bikes Mumbai Roads Peak Hours Radio: Live coverage of the Publicity + Listener Contest Movie Promotion : The Scorpion King Web Launch In 2003 , Scorpio was rated most successful new-brand launch in India

Communication
Developing Effective Communication

Communication
BRAND CONTACT
PRODUCT STYLING PRICE SHAPE COLOR PACKAGE STORE DCOR SALESPERSON MANNER DRESS COMPANY STATIONERY

Communication

Barriers in Communication

Lack of Planning Poorly Expressed Message Poor Retention

Internationally , Communication more Difficult due to different languages, cultures & etiquettes.

Communication
Ideal Communication Framework : Specify Target Market Clearly define communication objective E.g: Increase Store Traffic, Inform Sale Define information to be communicated E.g.: Upto 50 % Discount Create attractive message Choose best possible medium & time. E.g.: HT City / Delhi Times on 2nd & 4th Friday in March Calculate cost of the activities involved (BUDGET) Identify who will be responsible for the profile Execution Feedback & Review Bata Sale

Communication
Communications Budget

AFFORDABLE METHOD COMPETITIVE-PARITY METHOD INCREMENTAL METHOD

E.G.: 10% Increase Annually Cosmetic Co.s 40-50% of Sales

PERCENTAGE-OF-SALES METHOD
E.G.:

OBJECTIVE-AND-TASK METHOD

Communication
Latest Developments on Communication

Facebook Twitter SMS Mall Brochures

Conclusion
Communication is a process , wherein every stage is important, and if monitored well ,the message will be received and acted upon as intended.

Communication
Listening A Smart Skill According to John W. Newstorm & Keith Davis Stop Talking Show the Talker you want to listen Remove Distractions Empathize with Talker Be Patient Hold your Temper Ask Questions No arguments No criticism

E.G.: Sagar ,Westside, Zara, MajorBrands

ASSIGNMENT NO.1
10 Groups of 6 Choose Product & Brand Define STP Poster - A3 Size - Color BRAND NAME (TOP) PRODUCT IMAGE CENTRE (MIDDLE) STP (BOTTOM)
PRESENTATION TIME : 5 MINS DUE : NEXT CLASS ADVERTISING LECTURE

RETAIL PROMOTION

RETAIL PROMOTION

What do we mean by Retail Promotion ?

Retail Promotion includes any communication , by a retailer that informs, persuades and/or reminds the target market about any aspect of the firm.

RETAIL PROMOTION
Elements of Retail Promotional Mix

Advertising Public Relations Personal Selling Sales Promotion

Significant Amount is devoted to Promotion Generally ,Department Stores spend 4% of Sales on Advertising 8-10% of Sales on Personal Selling

ADVERTISING

ADVERTISING

What is Advertising ?
Advertising is paid, non-personal communication transmitted through out-of-store mass media by an identified sponsor.

TV Ads Print Ads Radio Ads Film Ads

ADVERTISING
Advertising Objectives

Specific communication task to be accomplished with a specific target audience during a specific period of time.

Informative Advertising Brand Awareness & Prod. Knowledge Persuasive Advertising Conviction & Purchase E.g.: Sony DVD Comparative Advertising E.g.: Subhiksha - leaflets with comparative prices of the product Reminder Advertising Repeat Purchase E.g.: Coca-Cola Reinforcement Advertising Right choice made E.g.: Car Ads with Satisfied Owner

ADVERTISING
Advertising Objective

Corresponds to Hierarchy-of Effects Model Micromodel of Consumer Responses Depends on PLC

Product is MATURE > Stimulate Usage Product in NEW > Inform the Target Market

ADVERTISING
Advertising Budget

Depends On the stage in the Product Lifecycle. New Products More Awareness On the Market Share Building Market Share Competition & Clutter Undifferentiated Brands Closely Resemble other Brands in their Product Class Soft drinks, Laundry Detergents
B-C ( Consumer Co.s) VS. B-B Advertising Budgets

ADVERTISING
Advertising Strategy

Creatives vs. Media Planners

ADVERTISING
Advertising Message

MESSAGE STRATEGY To decide what General Message will be communicated to consumers Consumer Benefit Creative Concept BIG IDEA
Copywriter & Art Director
Advertising

Appeals

Meaningful Believable Distinctive E.g.: Swatch vs. Rolex

ADVERTISING
Advertising Message

MESSAGE EXECUTION BIG IDEA > Actual Ad

Execution Styles Personality Symbol E.g.: Amul Butter Slice of Life E.g.: Maggi Noodles Lifestyle E.g.: Mountain Dew Testimonial E.g. : Aamir Khan Pesticide Issue Scientific Evidence E.g.: Colgate Toothpaste Technical Expertise E.g..: Taaza Tea Tone ,Memorable & Attention-Getting Words Format Elements Illustration ,Headline, Copy

ADVERTISING
Advertising Media Planning
1) 2) 3) 4)

DECIDING REACH,FREQUENCY,IMPACT CHOOSING AMONG MEDIA TYPE SELECTING MEDIA VEHICLE DECIDING ON MEDIA TIMIMG

ADVERTISING
Advertising Media Planning

1.DECIDING REACH,FREQUENCY,IMPACT REACH MEASURE OF % OF PPL IN TARGET MKT EXPOSED TO AD FREQUENCY MEASURE OFHOW MANY TIMES AVG PERSON OF TARGET MKT EXPOSED TO AD IMPACT QUALITATIVE VALUE OF MESSAGE EXPOSURE

ADVERTISING
Advertising Media Planning
2. Choosing Advertising Media Type
MEDIUM NEWSPAPERS TV DIRECT MAIL RADIO MAGAZINES OUTDOOR INTERNET ADVANTAGES LOCAL MKT COVERAGE, HIGH BELIVABILITY MASS MKT COVERAGE, SIGHT SOUND & MOTION HIGH AUDIENCE SELECTIVITY, NO AD COMPTT IN SAME MEDIUM GOODN LOCAL ACCEPTANCE, LOW COST LONG-LIFE MATERIAL, PASS-ALONG READERSHIP HIGH REPEAT EXPOSURE LOW COST,INTERACTIVE CAPABILITIES DISADVANTAGES SHORT LIFE HIGH COST,LESS AUDIENCE SELECTIVITY HIGH COST ,JUNK MAIL IMAGE NO VISUALS,HALF-HEARD MEDIUM HIGH COST,LONG AD PURCHASE LEAD TIME CREATIVE LIMITATION AUDIENCE CONTROLS EXPOSURE

ADVERTISING
Media Planners make their choice based on the following : Target Audience Media Habits

Radio & T.V. effective for Teens

Product Characteristics
Womens

Dresses - Magazine Cameras / Mobiles - T.V.

Message Characteristics
Technical

Data Magazine Sale Tomorrow - -Newspaper

Cost
Cost

per Thousands to be calculated

ADVERTISING
Alternative Advertising Options Place Advertising / Out-of-Home Advertising
Billboards Public Spaces Hotel Elevators Subways Trains Petrol Pumps Urinals Product Placement T.V shows use Branded products Advertorials P-O-P (Point of Purchase) - Floor Space for Co. Logos

ADVERTISING
3. SELECTING MEDIA VEHICLE Specific Media within each General Media Type E.g.: Newspapers TOI/ HT Reader Profile for the Adv of every Publication Summary of Characteristics of Readers w.r.t : Age, Income Occupation Education Leisure Activities ,etc

ADVERTISING

Audience Measurements
Circulation Audience Effective

Audience Effective Ad-Exposed Audience

ADVERTISING
Cost per Thousand Persons reached
TOI Full Page Color Ad costs Estimated Readership of Cost per Thousand Persons HT Full Page Color Ad costs Estimated Readership of Cost per Thousand Persons Rs. 2.72 Milliion 2.8 Million ppl Rs.970 Rs. 3.06 Milliion 2.6 Million ppl Rs. 1170

ADVERTISING
4.DECIDING ON MEDIA TIMING & ALLOCATION Macro scheduling Scheduling advertising in relationship to Seasons & Business cycle Micro scheduling Allocating advertising expenditures within a short period to obtain maximum impact. Continuity Concentration Flighting Pulsing

ADVERTISING
CONTINUITY Exposure appear evenly throughout a given

period. CONCENTRATION Spending all of advertising budget in a single period. FLIGHTING Advertising for a period, followed by no advertising, followed by second period of advertising. PULSING Continuous advertising at low weight levels with periodic waves of higher activity. Effective Pattern depends on the Comm.Obj. in relationship to the nature of product, target customer & distribution channels

ADVERTISING
Advertising Evaluation Communication Effects/Copy-Testing
Consumer-Feedback Method What is the Main Message from the Ad ? What do you they want you to know ,believe or do ? How much will it be able to influence the target market ? What works well/poorly in the Ad ? How does the Ad make you feel ? What is the best way to convey the Ad ? Portfolio Recall level after exposure to portfolio of Ads Laboratory Tests Measure Heart beat, B.P,etc.

ADVERTISING
Advertising Evaluation

Sales Effects

HISTORICAL APPROACH : PAST DATA EXPERIMENTAL DESIGN : TRACKING DEVICES

ADVERTISING
Major Advertising Decisions

ASSIGNMENT NO.2
CREATE AD FOR YOU ORIGINALLY SELECTED PRODUCT BRAND VIDEO/AUDIO TIME : 2 MINS DOCUMENT
JUSTIFY THE AD USING THE LEARNINGS OF ADVERTISING LECTURES COSTING OF THE AD DOCUMENT PRECISE ,TO-THE-POINT TIMES NEW ROMAN 12

PRESENTATION TIME : 5 MINS ( INCLUDING AD TIME )

SALES PROMOTION

SALES PROMOTION

ASSIGNMENT NO.3
USE ELEMENTS OF SALES PROMOTION TO PROMOT

YOUR BRAND & PRODUCT.

CREATE PROTOTYPE DOCUMENT

JUSTIFY THE CHOICE OF SALES PROMOTION ELEMENT, USING THE LEARNINGS OF SALES PROMOTION LECTURES COSTING OF THE IDEA DOCUMENT PRECISE ,TO-THE-POINT TIMES NEW ROMAN , 12

PRESENTATION TIME : 5 MINS TOTAL DUE : 2 WEEKS

Thank-You