06 PROMOTION Store Mng Stud.ppt [Modo de compatibilidad] retail_mk_dejuan.pdf · Store Community...

mm

ons

Cre

ativ

e Com

RETAIL MARKETING

una

Lic

enci

a ua

l 3.0

, Spa

ine

publ

ica

bajo

Com

part

ir I

gu

Instructor :

Dr. Mayo De Juan Vigaray

y Es

ta o

bra

se C

omer

cial

–C y g y

Power points: conceptual framework

e Ju

an V

igar

ayci

mie

nto

–N

o Power points: conceptual framework

May

o D

eRec

onoc

PART 6

gara

y

ayo

De

Juan

Vig

Ma

RETAIL SALES PROMOTION


ELEMENTS OF RETAIL IMAGEP.1.

P.2. The Retail Promotion Mix

P.3. Objectives, Characteristics, Disadvantages, Advantages

igar

ay Types of sales promotionsP.4.

May

o D

e Ju

an V

M

O G

SALES PROMOTIONElements of

Retail ImageP.1.

Att ib t f

ELEMENTS OF RETAIL IMAGE

Attributes ofPhysical FacilitiesTarget

Market

Firm’s Shopping

CustomerService

Firm sPositioning

ShoppingExperiences

Service

Store

CommunityService

OverallRetailImage

igar

ay

Promotional Tools• Advertising

StoreLocation

MerchandiseAttributes

Image

May

o D

e Ju

an V • Advertising

• Public Relations• Personal Selling• Sales Promotion

Attributes

PricingM • Sales PromotionPricing



P.1. Elements of Retail Image

P.2. THE RETAIL PROMOTION MIX


igar

ay P.4. Types of sales promotions

May

o D

e Ju

an V

M

SALES PROMOTIONRetail

Promotion MixP.2.

THE RETAIL PROMOTION MIX (I)

Paid nonpersonal communication Ad ti i Paid nonpersonal communication transmitted through out-of store mass media by an identified sponsor

Advertising

Customers do not tend to make up their mind at the TV & billboards

igar

ay

& billboards stage, even though they might be

May

o D

e Ju

an V might be

interested in the product

M


Promotion MixP.2.

ADVERTISING OBJECTIVES

Lifting short-term salesLifting short-term sales

Increasing customer traffic

Developing and/or reinforcing a retail image

Informing customers about goods and services and/or

company attributes

igar

ay

Easing the job for sales personnel

D l i d d f i t b d

May

o D

e Ju

an V Developing demand for private brands

M


Promotion MixP.2.

THE RETAIL PROMOTION MIX (II)

Personal Personal selling

Oral communication with one or more prospective customers for the purpose of making sales

igar

ay

May

o D

e Ju

an V

M


Promotion MixP.2.

PERSONAL SELLING OBJECTIVES

Persuade customers to buyPersuade customers to buy

Stimulate sales of impulse items or products related to customers’ basic purchases

Complete customer transactions

Feed back information to company decision makers

igar

ay Provide proper levels of customer service

f

May

o D

e Ju

an V Improve and maintain customer satisfaction

Create awareness of items also marketed

M

through the Web, mail, and telemarketing


Promotion MixP.2.

THE RETAIL PROMOTION MIX (III)Public

Entails any communication that fosters a favorable image for the retailer among its public.

Publicrelations

g p

Nonpersonal, personal, paid, nonpaid, sponsor controlled or not controlled

igar

ay

May

o D

e Ju

an V

M


Promotion MixP.2.

THE RETAIL PROMOTION MIX (IV)Sales

Short-term incentives to increase the effectiveness of the promotional efforts

Salespromotions

effectiveness of the promotional efforts

Store atmosphere &

visual merchandising

igar

ay

May

o D

e Ju

an V

M





P.3. OBJECTIVES, CHARACTERISTICS, DISADVANTAGES, ADVANTAGES

igar

ay P.4. Types of sales promotions

May

o D

e Ju

an V

M

O C

SALES PROMOTIONObjectivesP.3.

OBJECTIVES

INFORM PERSUADE REMIND

In-store displays designed to increase sales

INFORM PERSUADE REMIND

I i h t l lIncreasing short-run sales volume

Maintaining customer loyalty

igar

ay

Maintaining customer loyalty

Emphasizing novelty

May

o D

e Ju

an V

Supplementing other promotion tools

M

C C C

SALES PROMOTIONCharacteristicsP.3.

CHARACTERISTICS

Offer extra value and incentives to customers to visit a store and/or purchase merchandise

during a specific period of timeduring a specific period of time

igar

ay

May

o D

e Ju

an V

M

G


DISADVANTAGES

It may be difficult to terminate certain promotions without adverse customer reactions

The retailer’s image may be hurt if trite promotions are used

Sometimes “frivolous” selling points are stressed rather than the retailer’s product assortment, prices, customer services, and other factors

igar

ay

and other factors

Many sales promotions have only short-term effects

May

o D

e Ju

an V

It should be used only as a supplement to other promotional forms

M

G


ADVANTAGES

The themes and tools can be distinctive

It often has eye-catching appeal

The consumer may receive something of value, such as coupons or free merchandise

The themes and tools can be distinctive

It helps draw customer traffic and maintain loyalty to the

coupons or free merchandise

igar

ay

Impulse purchases are increased

retailer

May

o D

e Ju

an V

Customers can have “fun”, particularly with contests and demonstrations

p p

M demonstrations






igar

ay TYPES OF SALES PROMOTIONSP.4.

May

o D

e Ju

an V

M

O O O O

SALES PROMOTIONTypesP.4.

TYPES OF SALES PROMOTIONS

Di lDisplays1.

Contests & Sweepstakes2.

Coupons3.

Frequent-shopper program/ Clubs4 Frequent shopper program/ Clubs4.

Prizes5.

igar

ay

Samples & Demonstrations6.

Referral gifts7.

May

o D

e Ju

an V

g

Other limited-time selling efforts outside of the ordinary promotion routine

8.

M ordinary promotion routine

( )

TypesP.4.SALES PROMOTION

1 DISPLAYS (I)

Display Distributed to Retailers Used to CallCustomer’s Attention to Product Promotions

Some of the Most Popular POP Tools & Techniquesp q

Carton Displays

igar

ay Banners

Special Racks

May

o D

e Ju

an V

Price Cards

Signs

M

Point of Sale


1 DISPLAY

In-store displays designed to increase sales

Window floor and counter Window, floor and counter displays that allow a retailer to remind customers and to remind customers and stimulate impulse purchases

igar

ay

May

o D

e Ju

an V

M

(C O )


1 DISPLAY (CARTON DISPLAY)

t i d t to remind customers and stimulate impulse purchasespurchases

1 DISPLAY (SIGNS)

igar

ay

( )

Displays or other communications just inside the entrance of a store generally go

May

o D

e Ju

an V the entrance of a store generally go

unnoticed ….

M

…. as customers are still in transition mode

( )


1 DISPLAYS (II)

remind customers

stimulate impulse b h i behaviour

allow self-service to be li d MAY applied

reduced a retailer’s

MAY

igar

ay

reduced a retailer s promotions costs when manufacturers provide displays

May

o D

e Ju

an V displays

M

CO &


2 CONTESTS & SWEEPSTAKESSeek to attract and retain customers by participation in

CONTESTSCONTESTS SWEEPSTAKES

events that can lead to substantial prizes

SWEEPSTAKES

Compete for a prize basedCompete for a prize basedon some skill or ability Participants submit namesParticipants submit names

to be included in drawing

igar

ay

y to be included in drawingto be included in drawing

May

o D

e Ju

an V

Generates high degreeof consumer

Can help revive

lagging type of sweepstakes;Game –

type of sweepstakes;M of consumerinvolvement

laggingsales

type of sweepstakes;type of sweepstakes;time frame much

longer

CO


2 CONTESTS

Effective way of getting the

ADVANTAGES DISADVANTAGES

Customer reliance on y g gconsumer to become involved with the brand by making the p omotion

these tools as the reason for continued retailer patronagemaking the promotion

relevant

retailer patronage

igar

ay

Generate interest in orexcitement over a brand

d tt ti tt ti t

Effort required of consumer

May

o D

e Ju

an V and attracting attention to

advertising

M

CO


2 CONTESTS

Customers compete for prizes by completing a contest (game) such as a crossword puzzle, a

slogan, or a football lottery.g , y

Winning is at leastat least partially based on a correct answer (skill)on a correct answer (skill)

Requires a customer to d t t kill i

igar

ay

demonstrate some skill in return for a reward

Diff f i ff l i

May

o D

e Ju

an V Differ from price-off sales in

that only a few customers receive rewardsM receive rewards

SWEEPSTAKES


2 SWEEPSTAKES

Similar to a contest, except that participants merely fill out application forms and the winner is picked randomly (chance)picked randomly (chance)

No skill is involved

igar

ay

Direct-mail retailers use this tool quite often

May

o D

e Ju

an V

M

CO O ( )


3 COUPONS (I)

R t il d ti i l di t f Retailers advertise special discounts for customers who redeem advertised coupons

Customers clip coupons from print media or POP displays, and redeem them with the retailer

igar

ay

May

o D

e Ju

an V

Discounts from the

regular selling prices of

f t d M manufacturer and

retailer brands

CO O ( )


3 COUPONS (II)

Many cases manufacturers pay to advertise Many cases, manufacturers pay to advertise and redeem coupons

Are very helpful to an ongoing ad campaign Are very helpful to an ongoing ad campaign and increase store traffic

E t t t bli h d ADVANTAGES Encourages non-users to try an established brand or users to repeat use

igar

ay

Its use increases the consumer’s perception that a retailer offers good value

May

o D

e Ju

an V

Ad effectiveness can be measured by counting redeemed coupons

M

CO O ( )


3 COUPONS (III)

Possible negative effect on the retailer’s image

Consumers shop onlyonly if coupons are available – do not show loyalty

DISADVANTAGESy y

Low redemption rates

igar

ay

The clutter of coupons

Retailer and consumer fraud

May

o D

e Ju

an V Retailer and consumer fraud

Handling costs

M

Q O OG ( )


4 FREQUENT-SHOPPER PROGRAM (I)

Simply making a sale isn’t enough Although a Simply making a sale isn t enough. Although a customer may like a retailer, the retailer is vulnerable to appeals made by competitors

Retailers need to build repeat sales and loyalty by reminding customers about their offering and its benefits

Customers are given points or discounts based on the dollar amounts of their purchases

benefits

igar

ay

the dollar amounts of their purchases

The points are accumulated to acquire goods or services

May

o D

e Ju

an V

Foster customer relationships by awarding special discounts or prizes to people for their continued

M

p p ppatronage

Q O OG ( )


4 FREQUENT-SHOPPER PROGRAM (III)

Loyalty bred, customers can accumulate points only by patronizing a specific firm points only by patronizing a specific firm or firms (as previously shown)

ADVANTAGESThe “free” nature of awards to many consumers

igar

ay The competitive edge for a retailer that

is similar to others

May

o D

e Ju

an V is similar to others

M

Q O OG ( )


4 FREQUENT-SHOPPER PROGRAM (IV)

Some consumers feel these programs are not really free & would rather shop at lower-priced stores without these at lower priced stores without these system

It may take customers a while to gather enough points to get meaningful gifts

DISADVANTAGES

igar

ay Profit margins may be smaller if retailers

with frequent-shopper programs try to

May

o D

e Ju

an V with frequent-shopper programs try to

price competitively with firms that do not have these programs

M

Para ayudarle a proteger su privacidad, PowerPoint evitó que esta imagen externa se descargara automáticamente. Para descargar y mostrar esta imagen, haga clic en Opciones en la barra de mensajes y, a continuación, haga clic en Habilitar contenido externo.


C ( )4 CLUB (I)

…..difference between a …..difference between a

CLUB & a FREQUENT SHOPPER PROGRAM?

CLUB advantages can only be used within that particular organisation & there is usually a minimum sale of a product/year

igar

ay

minimum sale of a product/year

FREQUENT SHOPPER PROGRAM advantages, b d ith ti l i ti & it

May

o D

e Ju

an V can be used with a particular organisation & its

partners

M



C ( )4 CLUB (II)

Is almost the same as the frequent shopper programm

Consists usually of professionals/distributors that are specialized (for example Bertelsmann Club, that is specialised in books and music) that offer special types of promotion to their customerstypes of promotion to their customers.

igar

ay

Being a member of those clubs brings certain

May

o D

e Ju

an V

g gadvantages, like special sales or money voucher

M


O O C4 OTHER TYPES OF CLUBS

There are different types of clubes available

l l b

igar

ay

regular clubdiscount clubshopper club

May

o D

e Ju

an V

ppexecutive clubVIP club

M



C ( )Intensive operation

4 CLUB (III)p

the advantage is customer loyalty (buying and receiving a reward for it)

companies can analyse shopping habits

The disadvantage is

shopping habits

igar

ay

The disadvantage is HIGH MAINTENANCE

May

o D

e Ju

an V

M



CO C4 DISCOUNT CLUB

Simple membership where one Simple membership, where one receives plenty of discounts for various goods in a specific shop with specific

t partners

igar

ay

May

o D

e Ju

an V

M



O C4 SHOPPER CLUB

A newsletter or mail service that brings you information about sale prices and special purchases as they happen

You learn about special pricing on products as soon as they become

igar

ay

p yavailable.

No more expired sale prices!

May

o D

e Ju

an V No more expired sale prices!

M



C4 NEWSLETTER CLUB

The information is being forwarded to members by mail, either email or postal mailpostal mail

Ihr weltweiter online Hotelreservierungsservice

Lieber THOMAS,Fantastische Last-Minute-Angebote von HotelClub

igar

ay

May

o D

e Ju

an V

M



C C4 EXECUTIVE CLUB

It is designed to reward the customer, for his/her loyalty You can take advantage of several benefits, usually the higher your tier the greater the usually the higher your tier, the greater the benefits available to you With all airlines, special lounges available –

igar

ay

, p genjoy snacks/ drinks or relax in comfortable areas

May

o D

e Ju

an V

M



C4 VIP CLUB

VIP CLUB

Special members are in posession of VIP (Very Important People) cards

igar

ay

This will lead to a preferred treatment, free entrance, free drinks

May

o D

e Ju

an V

M

( )


5 PRIZES (I)Similar to frequent-shopper programs, except that the q pp p g pretailer gives prizes immediately, such as glasses, silverware, and others

Usually, one piece of a set is obtained with each purchase

Prize giveaways encourage loyalty

d

igar

ay

Premiums are used to increase consumption for the current consumers and to

May

o D

e Ju

an V

persuade new customers

M

( )


5 PRIZES (II)

Cost of the prizes

DISADVANTAGES Difficulty of termination

Possible impact on image

igar

ay

May

o D

e Ju

an V

M

& O O


6 SAMPLES & DEMONSTRATIONS

F t t ll f it i t t Free tastes or smells of items are given to customers to build excitement in the store and stimulate purchases

Taste of a cake & cooking Smell of a perfume

igar

ay

Smell of a perfumeFashion shows

May

o D

e Ju

an V

M

& O O


6 SAMPLES & DEMONSTRATIONS

In department stores, fashion shows and cookingdemonstrtions draw customers to the store and encourageimpulse purchases (*)impulse purchases (*)

ADVANTAGES DISADVANTAGES

• Effective because customers become involved • Loitering

igar

ay • Impulse purchases increase

• Costs

May

o D

e Ju

an V

M

Owens, S. (2001) “The Price is Righter; The Rewards of In-Store Sampling are Greater than you Think” Promo, September, p. 10.

G


7 REFERRAL GIFTS

if iPresents or gifts are given to current customers when they bring in new customers

Used to encourage existing customers to bring in new customers

Direct marketers (book and record clubs) often use this tool

igar

ay Is a technique with no important

shortcomings

May

o D

e Ju

an V ADVANTAGES

shortcomings

Recognizes the value of friends in influencing purchasing decisionsM influencing purchasing decisions

O O


8 OTHER EFFORTS

h i PItems that contain the retailer’s name

are given to

Pens

Calendars

Shopping bagsg

customers

Promote retailer’s names but are not part of a setPromote retailer s names but are not part of a set

These items should be used as supplements

igar

ay

ADVANTAGES Longevity

May

o D

e Ju

an V ADVANTAGES Longevity

DISADVANTAGES There is no real disadvantageM There is no real disadvantage

06 PROMOTION Store Mng Stud.ppt [Modo de compatibilidad] retail_mk_dejuan.pdf · Store Community...

Documents

Transcript of 06 PROMOTION Store Mng Stud.ppt [Modo de compatibilidad] retail_mk_dejuan.pdf · Store Community...