Business Builders Retail Support Seminars May 14

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Business BuildersRetail Support SeminarsMay 14

• Techniques
• for retaining and generating business
• in
• Rockbridge County

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Your Goal

• Keep the customers you have
• Identify Them
• Reach Out to Them
• Give Them Special Incentives
• Fact Most customers are lost due to apathy

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Your Goal

• Attract New Customers
• Locals
• Push them to your door with Advertising and
  promotion
• Keep your promises and build your brand
• Tourists
• Your windows MUST invite
• You must WELCOME everyone

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Business Builders

• Successful selling is a combination of forces
  (outside) and factors (inside)
• Outside Forces
• The customers that come to Lexington
• What are they like? How can I appeal to them?
• The economic picture
• Do they have expendable income to spend on my
  goods or services?
• The weather (even)

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• Inside Factors
• What does my store, restaurant, business look
  like?
• Have I delineated sales items?
• Do I have any promotions in place?
• Is my sales staff appealing?

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Marketing is the combination of everything you do.
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Push Pull Marketing

• Retail marketing derives from a sound strategy,
  as should any marketing effort.
• Push Marketing
• creating a stimulus through advertising, side
  walk boards and windows to bring customers (push
  them) to your business.
• Pull Marketing
• creating a stimulus in-store to bring customers
  (pull them) into your store.

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Push Marketing

• Traditional Methods
• Advertising
• Broadcast Print
• Broadcast TV and Radio
• Print newspaper, flyers, signage, outdoor
• Wireless
• A hot item that is growing beyond the young . .
  . Active websites internet advertising, blogs,
  twitter, facebook, etc.

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Push/Pull Combo Marketing

• Guerrilla
• The term that has come to represent
  non-traditional marketing.
• All of the out of the box tactics you can think
  of to creatively put a positive message in the
  minds of potential customers.

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Pull Marketing

• These are things you can do yourself, at the
  store level.
• Sales Promotion programs
• Signage, posters around town
• Coupons and price-off opportunities
• Referral (often the best kind)

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Sales Promotion

• Sales Promotion moves the product toward the
  buyer, while traditional advertising moves the
  buyer toward the product
• 
  

Source Albert W. Frey,

Professor, Tuck School
of
Business-Dartmouth
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Sales Promotion

• What is Sales Promotion?
• Sales promotion is often described as below the
  line advertising, as opposed to media
  advertising, or theme advertising.
• Both are funded by the same clients advertising
  and promotion budgets
• PG does it, Dell does it, Pepsi does it, almost
  everyone does it.

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• Sales promotion is
• the other half of the
• job begun by
• traditional advertising.
• Note the coupons on the
• right side of this ad.

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We see them all the time

• Coupon ads
• redeemable at the market-
• Probably the most
• common form of
• sales promotion.
• ___________________________

A promotion is a device that enables your
business to stimulate sales on a one time or
limited time basis.
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• Traditional
• Advertising
• creates IMAGE
• ______________
• Promotion creates
• a REASON

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Two Criteria

• Sales Promotion always involves
• 1. Money
• (A Discount or Price Off)
• 2. Time
• (A Limit on the offer)

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Multiple Tactics

• There are different types of tactics utilized in
  promotions
• Sweepstakes/lotteries
• Collectibles
• Sampling
• Contests
• Price-Offs
• Coupons
• Premium Offers

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Sales Promotionis big business

• There are 3 different types/categories of
  Promotions
• Consumer Promotions 33 Billion
• Business to Business Promotions 36 Billion
• Direct Mail Promotions 41 Billion
• Total 110 billion
• (All of the above based on 2008 annual
  expenditures.)

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Sales Promotion

• Some of the best, most frequently promoted
  brands
• Olay
• Oreo
• Pepsi
• Frito-lay
• Gatorade
• Dunkin Donuts
• Harry Potter

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Concept ComparisonsThe Basics

• The essential characteristics are
• - The creative concept or the offer
• - The vehicle or system for delivering it
• - The fulfillment of the reward promised
• Promotion is Advertisings undervalued sister.

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The Lycra/DuPont Fibers Promotion

• The Concept Lycra
• provides freedom of
• movement in clothing
• The vehicle DuPont
• sponsored advertising
• and print material
• The Reward more sales
• at the retail level
• Their TA is
• Fashion-conscious women.

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No interestfor a year!

• Grand Home
• Furnishings
• Concept buy now
• Vehicle ads/coupons
• Reward no interest
• for a year

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Price Elasticity

• Gerald Tellis, Professor at the University of
• S. California, did a well regarded study that
  involved a study of 367 brands.
• He found that high price elasticity was
• Pervasive-and persuasive!
• For an average brand in his study, reduction of
  price would boost sales by 1.67, meaning that a
  10 price reduction (which is normal) would boost
  sales by 17.6 -making it worth doing.

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Pepsi/Grease Promotion

• Concept
• Get free tickets to
• the new movie
• Vehicle Pepsi
• Reward The movie

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Fast Food Promotions

• Concept discounted meals
• Vehicle come in to get it
• Reward
• hamburger or
• a toy

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Wheaties/General Mills Promotion

• General Mills Wheaties ran a 100th
• Anniversary promotion-consumers
• could Select and enter an amateur
• athlete For the honor of going on
• the box face.
• The ballots were inside the boxes.

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Bordens Promotion

• Borden Foods has a very popular
• snack food, called Cracker Jack. We
• designed a group of baseball cards,
• contracts and membership
• cards for selected baseball teams
• -all offered through a coupon packed
• into Cracker Jack boxes.

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Pull With Promise
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Sometimes the pitchis less commercial

• Carnegie Hall new
• members drive in 1990

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Sales Promotion can utilize matches, towels, golf
balls, signs (Guerrilla) tactics effectively.
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Push Promotion and Positioning

• The Basics
• Good slogans

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Evolution or Revolution

• Enhancement of an existing message is the
  evolution of the brand.

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Ten Sure-Fire Techniquesfor generating new
business

• 1 Reach customers where THEY are
• Let them know you are here.
• Use the mail-send post cards, use creative hand
  outs
• and use the internet to send out an offer.

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Treasure Tree Outreach

• Without a store front
• Treasure Tree must
• Push and Pull for
• every sale

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Treasure Tree Outreach

• Everything
• drives
• the
• Website

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PUSH Sales

• Development ofsupportive communicationsenhances
  salesopportunities.

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PUSH your story

• Tell your prospectiveclients what youdo and
  positionyour business totheir needs.

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PUSH Value

• Your customer needs a reasonto do businesswith
  you.
• Value in productbuilds the brand

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Ten Sure-Fire Techniquesfor generating new
business

• 2 Attend Chamber of Commerce meetings and
  business programs regularly.
• We all share the same problems, and we can all
  offer support and generate new ideas to attract
  customers.

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Ten Sure-Fire Techniquesfor generating new
business

• 3 Learn more about your clients and customers
• If you dont understand your target audience
  well, you cant possibly reach them.
• Know typical age, typical gender, typical
  spending level, typical areas of interest.

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PUSH your target market

• DebCo. developeda year round marketof holidays
  froma Christmascustomer base.

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Ten Sure-Fire Techniquesfor generating new
business

• 4 Advertise
• Get your prospects attention.
• Let them know you care
• Let them know you will reward
• them for coming to your Business

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Ten Sure-Fire Techniquesfor generating new
business

• 5 Start a Referral Program
• Ask your best customers to tell their friends to
  come in, find out why you like my shop.
• And, REWARD them both

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LGCC Push / Pull Campaign

• Invitation
• Expectation
• Offer
• The Win / Win
• Invitation

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The Expectation

• All the amenitiesof a metropolitanclub. . .

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The Offer

• Just like a coupon, the PULLmarketinghas an
  absolutetime structure

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Ten Sure-Fire Techniquesfor generating new
business

• 6 Expand your horizons
• Increase your universe of contacts join clubs,
  show up at events, show interest in the lives,
  hobbies and opinions of your customers.

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Ten Sure-Fire Techniquesfor generating new
business

• 7 Start a newsletter, a sales info sheet.
• Write about how your companys products benefit
  your clients lifestyle.
• Ask for E-mails and stay in regular contact with
  your clients

Daily Specials and full menu sent out everyday
Started in February, doubling the size of the
kitchen in May!
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Ten Sure-Fire Techniquesfor generating new
business

• 8 Become a public speaker.
• Communications is vital. Get the word out by
  your own effort. Many groups need and want a
  speaker each month.

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Ten Sure-Fire Techniquesfor generating new
business

• 9 Plan and execute a Public Relations
  Program.
• Prepare press releases on your business, special
  awards, special openings, trunk shows, new
  products for the new season.

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Ten Sure-Fire Techniquesfor generating new
business

• 10 Joint Ventures
• You have common goals and problems with your
  fellow retailers share the marketplace, share
  your problems, share the gains.
• Do shared ad campaigns, shared customers, shared
  costs.

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Summary The Positives

• Communication Sales Promotion work in the short
  term for the long term.
• They are a part of American Commerce, absorbing
  almost as much revenue as mainstream advertising.
• Sales promotion moves the product toward the
  buyer - while,
• Advertising moves the buyer toward the product.
• - Albert Frey, the Tuck School of business,
  Dartmouth

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Summary The Negatives

• There are three identifiable negatives to
  extended sales promotions
• 1. Promotions have limited long term
  effect-meaning that after the promotion ends,
  prices return to earlier levels and brand loyalty
  doesnt happen (This is called the mortgaging
  effect)
• 2. Promotions often fuel competitive retaliation,
  meaning a price war could break out.
• 3. Promotions often devalue the image of the
  brand.