CTE3806 Final Exam Guide Chapter 15 Retail Communication Mix Integrated Marketing Communications 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 and across all delivery channels o Providing a consistent image can be challenging for multichannel retailers need to consider the needs of all channels early in the planning of its communication program o IMC delivers a consistent message retailers use IMC to get out a consistent message METHODS OF COMMUNICATING WITH CUSTOMERS Advertising 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 o Think of advertising as an announcement a message o The first part of advertising is awareness you want the customer to be aware of that product or brand In terms of budget McDonald s is the number 1 advertiser in America they spend the most per year on advertising Different Forms of Advertising o Newspapers Can have freestanding inserts inside print inserts o Co op Programs o Magazines o Radio o Television o Direct Mail Catalogs product Product Placement when they put a product in a movie or tv show as an ad for a o Example have Jennifer Aniston hole and drink a Coke in a movie o In the show The Big Bang Theory Penny works at the Cheesecake Factory which is tremendous product placement for that restauranat Sales Promotions are used to get people in the door they offer extra value and incentives to customers to vist a store or purchase merchandise during a specific period of time o Many sales promotion opportunities undertaken by retailers are initiated by vendors store o They try to build excitement with promotions o Special Events sales promotion program comprising a number of sales promotion techniques built around a seasonal cultural sporting musical or other even o Coupons offer a discount on the price of specific items at the time of purchase at the Most common promotional tool used by supermarkets Distributed in newspaper ads in store kiosks and through direct mail o Pop Up Stores an extreme type of sales promotion Temporary storefronts that exist for only a limited time and generally focus on a new product or limited group of products o Rebates store makes money because most consumers don t send them in used especially for high priced merchandise o Premiums a toy in a box of cracker jacks o Samples SALES PROMOTIONS Personal Selling A communication process in which sales associates help customers satisfy their needs through face to face exchanges and information Public Relations PR 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 Online Marketing o Web Sites o Blogs o Mobile communications Direct Marketing goes straight to you o Mobile marketing is marketing through wireless handheld devices such as cellular telephones and m commerce or mobile commerce involves completing a transaction via the cell phone o Direct Mail any brochure catalog advertisement or other printed marketing material delivered directly to the consumer through the mail or a private delivery company Neiman Marcus keeps a database of all purchases made by its credit card customers which they can then target their direct mail to Example if a customer buys a lot of perfume they d sent direct mail about a new perfume to them The Neiman Marcus Christmas book is the nation s best known retail catalog largely due to its tradition of ultra extravagant his and her gifts first distributed in 1915 as a Christmas card inviting customers to visit the store during the season o E mail can be personalized to the specific consumer and thus is similar to communications delivered by salespeople Brand Distinguishing name term or symbol such as a logo that identifies the products or services offered by a seller and differentiates those products and services from those offered by competitors o One of the most famous brands worldwide is Coca Cola the name shape of the bottle has the most value more people know it worldwide than any other brand o When asked why they buy branded apparel 81 of consumers said the brand assures them that a reliable company stands behind the product There is a range of awareness from aided recall to top of mind awareness o Aided Recall when consumers indicate they know the brand when the name is presented to them o Top of Mind Awareness the highest level of awareness occurs when customers mention a specific brand name first when they are asked about the type of retailer a merchandise category or a type of service The Container Store is big for top of mind awareness you need a container you think to go there Also known for paying high employee salaries Brand Associations are anything linked to or connected with the brand name in a consumer s memory o Example some associations that consumers might have with Apple are its products such as iPhones Ipod Mac computers as well as its easy to use computer interface and innovative stores o Strong bran associations influence consumer buying behavior Macy s first Thanksgiving day parade was in 1924 it s a huge advertisement for the company Zara doesn t pay for advertising Abercrombie barely pays anything for advertising People eat faster around the colors red and yellow Value of Brand Image o Brands are good for the retailer as well as for the customer o Value to Retailers Brand Equity Attract customers Build loyalty Higher prices leading to higher gross margin Reduced promotional expenses Facilitates entry into new markets Gap creating Gap Kids they made it multigenerational o Value to Customers Promises consistent quality Simplifies buying process Reduces time and effort searching for information about a product retailer Makes it easier for the customer Consistency is key for building brand equity o McDonald s is known for their consistency o Consistency is a big part of brand equity Planning the Retail Communication Program o Establish Objectives Specific goals related to the retail communication mix s effect