Ch 15 Retail Communication Mix Integrated Marketing Communications CTE 3806 blue what she said in review Advertising o Integrate a variety of communication elements to deliver a comprehensive consistent message to all customers over time across all elements of a retail mix across all deliver channels Can be challenging for multichannel retailers they need to consider needs of all channels early in the planning of communication o Entails the placement of announcements and persuasive messages purchased by retailers and other organizations that seek to inform and or persuade members of a particular target market or audience about their products services organizations or ideas Newspapers magazines television co op programs radio Types of Sales Promotion Sales Promotion Opportunity o Coupons rebates premiums samples POP displays special events pop up stores o Many sales promotion opportunities undertaken by retailers are initiated by vendors To evaluate a trade promotion the retailer considers Realized margin from the promotion Cost of the additional inventory carried Potential increase in sales Potential loss Additional sales Personal selling Public Relations PR o Communication process in which sales associated help customers satisfy their needs through face to face exchanges of information o Managing communications and relationships to achieve various objectives Building and maintaining a positive image of the retailer Handling or heading off unfavorable stories or events Maintaining positive relationships with the media o In many cases public relations activities support other promotional efforts by generating free media attention and general goodwill o Websites blogs mobile communication Online Marketing Direct Marketing telephones o Mobile marketing marketing through wireless handheld devices such as cellular o M commerce mobile commerce involves completing a transaction w a cell o Direct Mail brochure catalog ad or other printed marketing material delivered directly to the consumer through the mail or a private delivery company o E mail can be personalized to the specific consumer is similar to communications delivered by salespeople Brands distinguishing name term or symbol such as a logo that identifies the products or service offered by a seller and differentiates those products services from those offered by competitors o Value of Brand Image Value to retailers brand equity Attract customers build loyalty higher prices leading to higher gross margin reduced promotional expenses facilities entry into new markets Gap Gap Kids Value to customers Promises consistent quality simplifies buying process reduces time effort searching for information about a product retailer o Building Brand Equity Create a high level of brand awareness Develop favorable associations Create emotional connections Consistent reinforcement o Benefits of high brand awareness Aided recall top of mind awareness stimulates visits to retailer o Creating brand awareness Memorable name symbols repeated exposure event sponsorship Retail Communication Mix establish objects establish budget allocate budget implement evaluate program Establish Objectives o Communication objectives Specific goals related to the retail communication mix s effect on the customer s decision making process Long term ex Creating or altering a retailer s brand image Short term ex Increasing store traffic Communication Budget o Marginal Analysis Method Based on the economic principle that firms should increase communication expenditures as long as each additional dollar spent generates more than a dollar of additional contribution Difficult to use managers don t know relationship between communication expenses sales o Determines the budget required to undertake specific tasks to accomplish Objective and Task Method communication objectives Rule of Thumb o Affordable budgeting method money is available after operating costs profits are budgeted sets communication budget by determining what Drawback affordable method assumes that the communication expenses don t stimulate sales profits o Percentage of Sales method communication budget is set as a fixed percentage of forecasted sales Drawback This method assumes the same percentage used in the past or by competitors is still appropriate for the retailer o Competitive Parity Method communication budget is set so that the retailer s share of communication expenses equals its share of the market Drawback This method like the others does not allow the retailer to exploit the unique opportunities or problems they confront in a market Allocate Promotional Budget o Retailer decides how much of its budget to allocate to specific communication elements merchandise categories geographic regions or long and short term objectives Budget allocation decision is more important than budget amount decision o High assay principle retailer allocates the budget to areas that will yield greatest return CH 16 MANAGING THE STORE Store Management o Store managers responsible for managing two of the retailer s most important assets employees and real estate Employment Management Process o 1 Recruit select employees o 2 Socialize and train new employees o 3 Motivate and manage employees to achieve store performance goals o 4 Evaluate employee performance and provide feedback o 5 Compensate and reward employees Recruiting Socializing Training Employees o Prepare job description activities to be performed performance expectations o Locate prospective employees use employees as talent scouts o Screen candidates references testing job preview social media o Select employees Legal Considerations in hiring and selecting employees o Equal employment opportunity commission Age Discrimination Employment Act disparate treatment disparate impact Americans with disabilities act Socialization of New Store Employees o Orientation program o Training store employees Motivating evaluating rewarding and compensating store employees o Motivating to perform up to their potential may be store managers most important Goals Evaluation o Who o When o Employee performance improves when employees feel That their efforts will enable them to achieve the goals set for them by their managers That they ll receive rewards they value if they achieve their goals System is designed by HR dept done by immediate supervisors Annually or semiannually Feedback is most effective method for improving employee skills o Factors used to evaluate sales