MKT 4624 RETAIL MANAGEMENT

Week 11 : Managing A Retail Business : Branding and Promotion

MKT 4624 / Year 2010 / Wk 11 1

Weekly Learning Outcomes

Explore Retail Brand and Elements of Retail Promotion Mix

Study Elements of Retail Promotion Mix and Objectives

Discuss Strategic Process of Developing Retail Promotion

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Retailer Brand

What is a Brand

A brand is a unique identity. It is the way the public thinks about what you do, produce, serve and sell. In retailing context, the name of the retailer is a brand that indicates to consumers the type of merchandise and services offered by that retailer, including the services, personality and atmosphere of the store.

What is a Brand

The customer in effect believes, The only way I can be who I am is to have specific products or services.

How to Build a Retailer Brand

1.

Identify and Define Brand Promise - values we commit to deliver Construct the Branded Customer Experience - deliver the brand promises through every interaction with our customers

2.

e.g. Starbucks Brand

Starbucks is not in the coffee business serving people. Starbucks is in the people business serving coffee. Third place: between work and home, to relax, meet friends and enjoy a great cup of coffee.

How to Build a Retailer Brand

3.

Process

Map the customer points Examine every touch point On-brand: what can we do to reinforce the experience Off-brand, what do we need to change and improve the experience

4.

Promotion is the important tool to build the brand and create sales.

Advertisement

Public Relations

Personal Selling

Sales Promotion

Typical Touch Points of Retail Customers

Web-sites and Virtual Social Network Other Tangible Items Store Design And Atmosphere

MKT 4624 / Year 2007 / Wk 11

Retail Promotion Mix

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Definition of Retail Promotion

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

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Retail Promotion Objectives

Long-term

Build store brand and image

Short-term

Inform customers what they have Persuade customers to patronage or buy Remind customers
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MKT 4624 / Year 2008 / Wk 10

Retail Promotion Mix

Advertising
Objectives : Brand Building + Sales

Public Relations

Sales Promotion

Personal Selling 13

Overall : To build store image and brand

Retail Promotion Mix

Advertising
Nature

Public Relations

Paid, non-personal Non-paid communication with out of communications of store mass media information about the company or product Build good relations with various publics Build good image Handle unfavorable news

Objectives Build long-term image Attract new customers Increased patronage

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Advantages of Advertising and Public Relations

Advertising

Public Relations

Large audience is attracted Lower cost per viewer Wider choice of media Better control over the message content, graphic and timing In print media, a message can be studied and restudied by the target market

Enhance image Address mass audience Higher credibility Attract attention & arouse interest Relatively lower cost

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Retail Promotion Mix

Personal Selling
Nature Involves two ways, personal communication with the consumer

Sales Promotion
Mass communication technique with incentives to buy now Attract in-store traffic Stimulate short-term sales Clear old inventories Improve cash flow

Objectives Stimulate sales Provide customer service Collect customer feedback

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Personal Selling
Greets Customers Determines Customer Wants Shows Merchandise

Salesperson

Typical Process of Personal Selling

Gives a Sales Presentation

Feedback

Closes the Sale

Answers Objections

Demonstrates Goods/ Services

MKT 4624 / Year 2007 / Wk 11

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Advantages of Personal Selling and Sales Promotion

Sales Promotion Personal Selling High flexibility to adapt Eye-catching appeal Draw customer traffic message Higher flexibility in Increase impulse offerings purchase Higher customers Customers receive attention span something of value Immediate feedback Can be fun and Tailor-made offers to entertaining satisfy customer needs 18

Strategic Process of Developing Retail Promotion

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Process in Developing a Retail Promotion Program

Determining Communication Objectives e.g. increase sales, raise customer traffic

Establishing an Overall Communication Budget

All-you-can-afford method / Incremental method / Competitive parity method / Percentage-of-sale method

Selecting the Communication Mix

Implementing the Communication Mix

Choosing specific media, timing, message content, make up of sales force and etc.

Reviewing and Revising the Communication Plan

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Communication & the Hierarchy of Effects

Hierarchy of Effects Awareness Provide Information Knowledge Behavioral Objective of Communication Communication Mix Relevant to Each Step Pioneer Advertising, Public Relations, Point-of-Purchase, Window Displays

Liking Change Attitudes and Feelings Preference

Competitive Advertising, Personal Selling, Sales Promotions, Assertive Efforts, POP Displays

Conviction Stimulate Desires Purchase MKT 4624 / Year 2007 / Wk 11

Reminder and Institutional Advertising, Personal Selling, Sales Promotion, VIP Programs

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Key Success Factors in Promotion and Branding Strategy

Cater to needs of the customer segments Align with the image/brand of the retailer Be active in the market and create noises Employ multi-channels and media Ensure every customer touch point (i.e. MOT) must align with the brand promise Ample use of Sales Promotion to attract traffic

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Reading :

Textbook :
Chapter 19 (p. 529 to p. 555) 11th ed. Chapter 19 (p. 567 to p. 593) 10th ed.

Reference : The most Valuable US Retail Brands, 2009, Interbrand Design Forum

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