Retail PromotionsProfit by Collaborating withComplementary Businesses

Retail Promotions• Promote district goods & services

– Events, seminars related to specific events

• Generate immediate sales– Old merchandise liquidation, new merchandise sale

• Ensure satisfaction– Customer Appreciation Days– Special Invitation Sales

• Support an economic development goal– See table

• Cooperative Promotionis Key

Existing New

ExistingMarket

PenetrationProduct

Development

NewMarket

DevelopmentDiversificationC

ust

om

ers

Products

• Enables greater visibility & reach• Provides greater selection & value• Solves customer PAIN• Builds customer base• Capitalizes on common customers• Enables involved businesses to more

effectively compete• Lines up channel partners who can

regularly refer customers• Uses current mix of assets, while creating

a larger asset• Leverages marketing dollars• Increases sales

Why cooperative promotion?

www.1662designzone.com

Successful Coop Promotion• Focus on defined target

customer groups• Consider customer pain and

how customers calculate value• Any # of businesses• Cooperative . . .

– Learns from operations– Evaluate its efforts– Invest in what works

• Common Cluster Promotions cluster businesses within the same category

• Cross Cluster Promotions groups businesses with complimentary goods/services

• Geographic Cluster Promotions group businesses in a target area

Always start with the customer!

Coop Promotions Defined

You & Your Business• Decide what you’re willing to offer

– Strategy, Information, Investment

Your Group• Start small and be clear about goals• Develop standards & process for new members• Be committed to a joint marketing plan – set a schedule to do

research, plan and implement• Have steps, timelines, persons responsible• Agree to learn about customers• Agree to a process, don’t depend on personalities

Before Getting Started

Community Marketing PlanningHandbook & Banners @ www.eightpoints.com/communitymarketingplanning.htm

Find the Opportunity

Customers: Different Groups, Different Needs• Analyze demographics

– Age, education, family status, income

• Understand customer behavior– Buying behavior & preferences

• Talk with customers– Satisfaction– Surveys – formal or informal– Hold focus groups

• Competitors’ customers• Segment into groups

Knowledge Sources• Best Customer Demographics

– Household Spending, Best Customers by New Strategists Publications (Central Library)

– Esri.com, claritas.com

• Customer Behavior– Marketresearch.com

• Surveys– Eightpoints.com– Stop, Start, Continue– Surveymonkey.com

Simple Data Collection• Business card drop• Contest with an entry form

– Hagerstown, MD

• Ask for zip codes• Count customers• Discounts for Company IDs• Sum the # transactions

per day• Security cameras• Internet• What ways to you collect

and use customer info?

What to do with this info?• Create a coop of firms

that share the same customer

• Understand current penetration

• Draft copy, images & materials

• Plan a geographic distribution strategy

• Choose media• Pool resources• The more you know,

the less you put at risk

Channel Partners• Suppliers

– Major product suppliers– Common vendors

• Distributors– Civic groups– Contractors

• Supports– Municipalities– Tourism bureaus– Foundations

Set Strategy per Customer

Cooperative Products• Expected Products

– Your product or service– The products/services

referred most often– Suppliers’ products

• Product Add-Ons– Coming or going– Long term maintenance– Disposal

• Provide value & solve pain!

• AwarenessAwareness building promotions sell the benefits and image you want customers to remember. Not sales oriented.

• EducationEducation promotions encourage customer curiosity and activity; generate eventual - typically not immediate - sales

• SellSell promotions generate sales in a particular time period

• PurchasePurchase promotions add to the sale at the moment

• SatisfactionSatisfaction promotions encourage repurchase

Retail Promotions

Awareness Promotions• Image Advertising &

Promotional Tools• Print Materials• HTML Newsletters• Media Relations• Image Building Events• Google Maps &

Switchboard.com ads• Google Adwords• Direct mail

• Focus on benefits messages • Select the compelling means to

communicate message• Coordinate the image campaign

with other promotion activities• Encourage and enable customers

to get more info• Distribute effectively

This marketing plan for this community is in the Community Marketing Planning handbook.

Good Awareness Promotions

• Educate buyers about the value of what you provide

• Change customers’ knowledge and opinion of you over time – change their behaviors

• Create reasons for customers to call or come in

• Give customers a compelling reason to buy

• Help customers evaluate you against the competition

Education Promotions

• Target specific audiences• Give customers all the

information they need• De-emphasizes the commercial

nature of your business – the ‘sell’

• Are creative, lighthearted,informational, and fun.

Good Education Promotions

• Cause sales• Are sharply focused on

connecting potential shoppers with goods and services customers value

• Magnify good times, minimize bad times

Sell Promotions

Good Sell Promotions• Get target customer groups to buy• Are not regular – this can lower

prices over the long run• Can be tracked• Are promoted in several

ways – professionally• Are evaluated

Purchase, Satisfaction Promos

Purchase Promotions– Get customers to buy more– Add to ticket

Satisfaction Promotions– Ensure satisfaction– Build loyalty– Encourages repurchase

Use www.goleads.com

• Time of day & day of week• Seasons & times of year• Temporary places

– Festivals

• On consignment• Non-places, such as:

– Internet– Toll-free phone numbers– Mail order

• Put a $ in a merchant’spocket & you can do anything

Appropriate Places

Best Prices for Promotions• Great opportunity to

liquidate slow-moving merchandise

• Nominal amount• Consider competitors’ prices• Bundle• Un-bundle• Fill a bag

• Know your customer• Make sure to have a

balance in all areas of promotion

• Look at sales data for your area . . Plan retail events near peak or trough sales

• Develop a theme and name the event

• Assign responsibility• Work with the media• Document the promotion• Evaluate the promotion• Involve channel partners• Have fun

Planning Promotions

• All partners should invest• Work with an economic

development agency• Look to suppliers for $

or investment• Have different levels for

participation • Buy & sell space among

members• Lakeland Day & Night

Funding Coop Promotions

Customer Satisfaction

0

10

20

30

40

50

60

70

80

90

100

CustomerService

MerchandiseQuality

Store Prices ParkingAvailability

Traff icCongestion

Variety ofRestaurants

Store Hours CustomerService

Variety ofStores

Cleanliness Lighting Sidew alks Appearancesof Stores

Fairmount Garden Court Kingsbridge Lawndale Ridge Ave Average

Dynamic Model

People

BusinessProperty

Number (N) of Customer Merchandise Store Parking Traffic Variety of Store Customer Variety of AppearancesDistricts Respondents Service Quality Prices Availability Congestion Restaurants Hours Service Stores Cleanliness Lighting Sidewalks of StoresFairmount 323 0.49 0.60 0.57 0.35 0.40 0.35 0.47 0.49 0.48 0.52 0.51 0.50 0.51 Garden Court 223 0.58 0.44 0.72 0.43 0.58 0.71 0.61 0.58 0.66 0.69 0.56 0.62 0.68 Kingsbridge 154 0.43 0.55 0.31 0.27 0.41 0.41 0.46 0.43 0.44 0.53 0.46 0.53 0.53 Lawndale 99 0.36 0.67 0.56 0.39 0.35 0.60 0.36 0.63 0.62 0.68 0.75 0.52 Ridge Ave 291 0.56 0.71 0.49 0.50 0.60 0.61 0.56 0.64 0.64 0.64 0.59

1,090

Primary Satisfaction Subcales Quality Hours Store Variety Clearnliness Lighting SidewalksSecondary Satisfaction Subscales Prices Restaurant Variety Store Appearance

Thanks!

More ideas at www.eightpoints.com

Market Knowledge, 302.777.2279, info@eightpoints.com