Professional Documents
Culture Documents
Questions
What can retailers build brand equity for their stores and their private-label merchandise? How are retailers using new approaches to communicate with their customers? What are the strengths and weaknesses of the different methods for communicating with customers? Why do retailers need to have an integrated marketing communication program? What steps are involved in developing a communication program? How do retailers establish a communication budget? How can retailers use the different elements in a communication mix to alter customers decision-making processes?
Objectives of Communication Program Long-term Build Brand (retailers name) Image Create Customer Loyalty Short-term Increase Traffic Increase Sales
Brands
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 competitors
Value to Customers
Promises Consistent Quality Simplifies Buying Process Reduces Time and Effort Searching for Information About Merchandise/Retailer
Brand Equity
Consistent Reinforcemen t
Memorabl e Name
Fast Food
French Fries
McDonald s
Ronald McDona ld
Clea n
Consistent Reinforcement
The retailers brand image is developed and maintained through the retailers communication mix
Retail Communication Mix
Consistent Reinforcement through Integrated Marketing Communication Program Integrated Marketing Communication Program A program that integrates all of the communication elements to deliver a comprehensive, consistent message. Providing a consistent image can be challenging for multichannel retailers Need to consider the needs of all channels early in the planning of its communication program.
Brand Extensions
Coke Coke to Diet Coke Dove Dove cream bar to Dove shampoo Parle Parle G to Parle G Atta
Communication Methods
Store Atmosphere
The combination of the stores physical characteristics (architecture, layout, signs and displays, colors, lighting, temperature, sounds, smells) together create an image in the customers mind
Mediacart
A shopping cart that delivers point-of-decision advertising
Informs the customer about special deals as the customer passes them in the aisle Each video screen is embedded with an chip that interacts with chips installed on store shelves Records shopping habits, how shoppers travel through the store, etc.
Community Building
Retailers Community Building Websites It offer opportunities for customers with similar interests to learn about products and services that support their hobbies and share information with others
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 shipped Direct Mail M-Commerce (mobile commerce)
PR
The Gap, Emporio Armani, and Apple are among several retailers selling red products, a portion of the proceeds go to Product RED, a charity to wipe out AIDS in Africa
Can be favorable Can be detrimental Effective medium for creating interest and desire for any brand and it is available at no very cheap cost. A communication strategy in which consumers use Internet to engage in the shopping process by exchanging preferences, thoughts, and opinions Product/service reviews
Social Shopping
Setting Objectives
Communication objectives:
Specific goals related to the retail communication mixs effect on the customers decision-making process Long-term: ex) creating or altering a retailers brand image Short-term: ex) increasing store traffic
Advertising
Sales
Based on the economic principle that firms should increase communication expenditures as long as each additional dollar spent generates more than a dollar of additional contribution Very hard to use because managers dont know the relationship between communication expenses and sales
Objective-and-Task Method
Determines the budget required to undertake specific tasks to accomplish communication objectives
Affordable Budgeting Method 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 dont stimulate sales and profits.
Percentage 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.
Competitive Parity Method this communication budget is set so that the retailers 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.