Class Retail 8

From AlexBrownRacing

Advertising and Promotion

Promotion: Advertising; Sales Promotion; Publicity; Personal Selling

Promotional decisions must integrate with: location; merchandise; credit; cash flow; building and fixtures; price; customer service levels

Primary trading area versus Secondary trading area, as they relate to promotional decisions.

Basic guidelines: consistent with store image; review; test; realistic measurable and obtainable; campaign versus individual promotions

Tradeoffs: lower the rent, the higher the promotional budget needed to offset; new stores require more promotional budget; location determines a level of budget

Retailers versus Manufacturer's use of promotion: product image versus availability; product benefits versus price; focused image versus cluttered ads

Long term objectives: Institutional promotions

Short term objectives: Promotional advertisements

6 Steps in Planning a Retail Advertising Campaign

Selecting Advertising Objectives

Budgeting for Campaign (Retailer: Affordable Method; Percent of Sales; Task and Objective Method) (Co-Op Campaigns: Vertical cooperative campaigns; Horizontal cooperative campaigns)

Designing the Message

Selecting the Media (Newspapers; Local cable and TV; Radio; Magazine; Direct Mail; Social Media)

Coverage; Reach; Cumulative Reach; Frequency; Cost per Thousand (CPM); Cost per Thousand - Target Market (CPM-TM); Impact

Scheduling the Advertisements

Management of Sales Promotions and Publicity

Sales Promotions (Sole Sponsored): Premiums; contests; frequent buyer programs

Sales Promotions (Joint Sponsored): Coupons; in-store displays; demonstrations and samplings

Evaluating the Results