Advertising and PromotionLearning ObjectivesThe Retail Promotion MixSlide 4Types of PromotionSlide 6Slide 7Promotion in the Supply ChainPromotional ObjectivesLong-Term ObjectivesPositive Store ImageCorporate CitizenshipPossible Promotion Objectives in RetailingShort-Term ObjectivesInterdependenceSteps in Planning a Retail Advertising CampaignSelecting Advertising ObjectivesSlide 18Slide 19Slide 20Slide 21Slide 22Slide 23Slide 24Slide 25Slide 26Slide 27Slide 28Slide 29Slide 30Budgeting for the Campaign: Retailer-Only CampaignsSlide 32Advertising as a Percentage of SalesSlide 34Task and Objective Method of Advertising Budget DevelopmentSlide 36Slide 37Slide 38Slide 39Factors in Allocating Advertising DollarsCo-Op CampaignsDesigning the MessageMedia AlternativesSlide 44Slide 45Slide 46Media SelectionSlide 48Slide 49Scheduling of AdvertisingEvaluating the ResultsSlide 52Slide 53Question to PonderDoes this Ad Discriminate?Management of Sales Promotions and PublicityTypes of Sales PromotionsTypes of Sales PromotionSlide 59Slide 60Eight Most Popular Types of Joint-Sponsored Sales PromotionsPercentage of Rebates Redeemed by Dollar ValueEvaluating Sales Promotions: What Sales Promotions Can and Cannot AchieveSlide 64Publicity Management1Advertising and PromotionAdvertising and PromotionChapter 11Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.2Learning ObjectivesLearning Objectives•Name the four basic components of the retailer’s promotion mix and discuss their relationship with other decisions.•Describe the differences between a retailer’s long-term and short-term promotional objectives.•List the six steps involved in developing a retailer’s advertising campaign.•Explain how retailers manage their sales promotion and publicity.3The Retail Promotion MixThe Retail Promotion Mix•Promotionis a means that retailers use to bring traffic into their stores, and it includes advertising, sales promotion, publicity, and personal selling.LO 14The Retail Promotion MixThe Retail Promotion Mix•Types of Promotion•Promotion in the Supply ChainLO 15Types of PromotionTypes of Promotion•The four basic components of the retailer’s promotional mix:•Advertising is paid, nonpersonal communication through various media by business firms, nonprofit organizations, and individuals who are in some way identified in the advertising message and who hope to inform or persuade members of a particular audience; includes communication of products, services, institutions, and ideas.LO 16Types of PromotionTypes of Promotion•Sales Promotion involves the use of media and non-media marketing pressure applied for a predetermined, limited period of time as the level of consumer, retailer, or wholesaler in order to stimulate trial, increase consumer demand, or improve product availability.•Publicity is non-paid-for communications of information about the company or product, generally in some media form.•Personal Selling involves a face-to-face interaction with the consumer with the goal of selling the consumer merchandise or service.LO 17Types of PromotionTypes of Promotion•Promotional decisions relate to and most be integrated with other management decisions, such as location, merchandise, credit, cash flow, building and fixtures, price, and customer service.•Primary Trading Area is the geographical area where the retailer can serve customers, in terms of convenience and accessibility, better than the competition.•Secondary Trading Area is the geographic area where the retailer can still be competitive despite a competitor having some locational advantage. LO 18Promotion in the Supply ChainPromotion in the Supply Chain•Major differences in the way retailers and manufacturers use promotion: •Product image versus availability.•Specific product benefits versus price.•Focused image versus cluttered ads. LO 19Promotional ObjectivesPromotional Objectives•Long-Term Objectives•Short-Term Objectives•Interdependence LO 210Long-Term ObjectivesLong-Term Objectives•Institutional Advertisingis a type of advertising in which the retailer attempts to gain long-term benefits by promoting and selling the store itself rather than the merchandise in the store.•Creating a positive store image.•Public service promotion.LO 211Positive Store ImagePositive Store ImageDee Lincoln, cofounder of Del Frisco’s Double Eagle Steakhouse, paid a record $80,000 for a 1,309-pound Main-Anjou Cross-breed at Denver’s National Western Stock Show to introduce her new store and to generate a positive store image.LO 212Corporate CitizenshipCorporate CitizenshipWal-Mart sponsors a variety of community and public service programs, which help to promote its role as a good corporate citizen.LO 213Possible Promotion Objectives in RetailingPossible Promotion Objectives in RetailingLO 2: Exhibit 11.1Improve Long-Run PerformanceImprove Short-Run PerformanceStore Image and PositioningPublic ServiceAttract New CustomersIncrease Patronage of Existing CustomersFrom Existing Trade AreaExpand Trade Area14Short-Term ObjectivesShort-Term Objectives•Promotional advertisingis a type of advertising in which the retailer attempts to increase short-term performance by using product availability or price as a selling point.•Increased patronage form existing customers.•Attraction of new customers.LO 215InterdependenceInterdependence•Although promotion objectives can be established to improve either long- or short-term financial performance, programs designed to achieve either objective will benefit as well.LO 216Steps in Planning a Retail Advertising CampaignSteps in Planning a Retail Advertising Campaign•Selecting Advertising Objectives•Budgeting for the Campaign•Designing the Message•Selecting the Media to Use•Scheduling the Ads•Evaluating the ResultsLO 317Selecting Advertising ObjectivesSelecting Advertising Objectives•Factors unique to retailing that should be considered when determining objectives: •Age of the store•Store location•Type of merchandise sold•The competition•The size of trading area•Supplier supportLO 318Selecting Advertising ObjectivesSelecting Advertising ObjectivesLO 3 Make consumers in your trading area aware that you offer the lowest prices...Wal-Mart’s “ Always Low Prices”19Selecting Advertising ObjectivesSelecting Advertising ObjectivesLO 3 Make newcomers in your trading area aware of your existence...The
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