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RETAIL MARKETING
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Instructor :
Dr. Mayo De Juan Vigaray
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Power points: conceptual framework
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an V
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o Power points: conceptual framework
May
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PART 6
gara
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De
Juan
Vig
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RETAIL SALES PROMOTION
RETAIL SALES PROMOTION
ELEMENTS OF RETAIL IMAGEP.1.
P.2. The Retail Promotion Mix
P.3. Objectives, Characteristics, Disadvantages, Advantages
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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
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Promotional Tools• Advertising
StoreLocation
MerchandiseAttributes
Image
May
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• Public Relations• Personal Selling• Sales Promotion
Attributes
PricingM • Sales PromotionPricing
RETAIL SALES PROMOTION
RETAIL SALES PROMOTION
P.1. Elements of Retail Image
P.2. THE RETAIL PROMOTION MIX
P.3. Objectives, Characteristics, Disadvantages, Advantages
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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
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& billboards stage, even though they might be
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interested in the product
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SALES PROMOTIONRetail
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
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Easing the job for sales personnel
D l i d d f i t b d
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SALES PROMOTIONRetail
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
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SALES PROMOTIONRetail
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
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f
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Create awareness of items also marketed
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through the Web, mail, and telemarketing
SALES PROMOTIONRetail
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
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SALES PROMOTIONRetail
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
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RETAIL SALES PROMOTION
RETAIL SALES PROMOTION
P.1. Elements of Retail Image
P.2. The Retail Promotion Mix
P.3. OBJECTIVES, CHARACTERISTICS, DISADVANTAGES, ADVANTAGES
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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
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Maintaining customer loyalty
Emphasizing novelty
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Supplementing other promotion tools
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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
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SALES PROMOTIONCharacteristicsP.3.
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
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and other factors
Many sales promotions have only short-term effects
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It should be used only as a supplement to other promotional forms
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SALES PROMOTIONCharacteristicsP.3.
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
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Impulse purchases are increased
retailer
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Customers can have “fun”, particularly with contests and demonstrations
p p
M demonstrations
RETAIL SALES PROMOTION
RETAIL SALES PROMOTION
P.1. Elements of Retail Image
P.2. The Retail Promotion Mix
P.3. Objectives, Characteristics, Disadvantages, Advantages
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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.
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Samples & Demonstrations6.
Referral gifts7.
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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
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Special Racks
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Price Cards
Signs
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Point of Sale
TypesP.4.SALES PROMOTION
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
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(C O )
TypesP.4.SALES PROMOTION
1 DISPLAY (CARTON DISPLAY)
t i d t to remind customers and stimulate impulse purchasespurchases
1 DISPLAY (SIGNS)
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( )
Displays or other communications just inside the entrance of a store generally go
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unnoticed ….
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…. as customers are still in transition mode
( )
SALES PROMOTIONTypesP.4.
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
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reduced a retailer s promotions costs when manufacturers provide displays
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CO &
SALES PROMOTIONTypesP.4.
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
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y to be included in drawingto be included in drawing
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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
SALES PROMOTIONTypesP.4.
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
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Generate interest in orexcitement over a brand
d tt ti tt ti t
Effort required of consumer
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advertising
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SALES PROMOTIONTypesP.4.
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
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demonstrate some skill in return for a reward
Diff f i ff l i
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that only a few customers receive rewardsM receive rewards
SWEEPSTAKES
SALES PROMOTIONTypesP.4.
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
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Direct-mail retailers use this tool quite often
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CO O ( )
SALES PROMOTIONTypesP.4.
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
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Discounts from the
regular selling prices of
f t d M manufacturer and
retailer brands
CO O ( )
SALES PROMOTIONTypesP.4.
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
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Its use increases the consumer’s perception that a retailer offers good value
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Ad effectiveness can be measured by counting redeemed coupons
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CO O ( )
SALES PROMOTIONTypesP.4.
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
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The clutter of coupons
Retailer and consumer fraud
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Handling costs
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Q O OG ( )
SALES PROMOTIONTypesP.4.
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
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the dollar amounts of their purchases
The points are accumulated to acquire goods or services
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Foster customer relationships by awarding special discounts or prizes to people for their continued
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p p ppatronage
Q O OG ( )
SALES PROMOTIONTypesP.4.
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
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is similar to others
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Q O OG ( )
SALES PROMOTIONTypesP.4.
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
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with frequent-shopper programs try to
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price competitively with firms that do not have these programs
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SALES PROMOTIONTypesP.4.
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
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minimum sale of a product/year
FREQUENT SHOPPER PROGRAM advantages, b d ith ti l i ti & it
May
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partners
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SALES PROMOTIONTypesP.4.
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.
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Being a member of those clubs brings certain
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g gadvantages, like special sales or money voucher
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SALES PROMOTIONTypesP.4.
O O C4 OTHER TYPES OF CLUBS
There are different types of clubes available
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regular clubdiscount clubshopper club
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ppexecutive clubVIP club
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SALES PROMOTIONTypesP.4.
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
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The disadvantage is HIGH MAINTENANCE
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SALES PROMOTIONTypesP.4.
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
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SALES PROMOTIONTypesP.4.
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
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p yavailable.
No more expired sale prices!
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SALES PROMOTIONTypesP.4.
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
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SALES PROMOTIONTypesP.4.
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 –
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, p genjoy snacks/ drinks or relax in comfortable areas
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SALES PROMOTIONTypesP.4.
C4 VIP CLUB
VIP CLUB
Special members are in posession of VIP (Very Important People) cards
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This will lead to a preferred treatment, free entrance, free drinks
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( )
SALES PROMOTIONTypesP.4.
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
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Premiums are used to increase consumption for the current consumers and to
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persuade new customers
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( )
SALES PROMOTIONTypesP.4.
5 PRIZES (II)
Cost of the prizes
DISADVANTAGES Difficulty of termination
Possible impact on image
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& O O
SALES PROMOTIONTypesP.4.
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
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Smell of a perfumeFashion shows
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& O O
SALES PROMOTIONTypesP.4.
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
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• Costs
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Owens, S. (2001) “The Price is Righter; The Rewards of In-Store Sampling are Greater than you Think” Promo, September, p. 10.
G
SALES PROMOTIONTypesP.4.
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
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shortcomings
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shortcomings
Recognizes the value of friends in influencing purchasing decisionsM influencing purchasing decisions
O O
SALES PROMOTIONTypesP.4.
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
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ADVANTAGES Longevity
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DISADVANTAGES There is no real disadvantageM There is no real disadvantage