Retail Communication

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Retail Communication

• Communication program (C.P.) needed to build
  appealing brand images, attract customers to
  stores and internet sites and encourage them to
  buy merchandise
• CP informs customers about the retailer as well
  as about merchandise and services it offers and
  also plays a role in developing repeat visits and
  customer loyalty.
• CP-1-long term- to create differentiated image,
  which develops 1-customer loyalty , provides
  strategic advantages., 2- short term- for
  increasing sales ,discount coupons for specified
  periods.,3-motivates repeat visits and purchases.
• CP- develop brands and build customer
  loyalty.-value of brand image offered to store
  i.e. a brand equity- brand a distinguishing
  name or a symbol which 1-identifies class of its
  products or services at store , 2-differentiates
  from competitors. 3-helps increasing margins,4-
  leverage to introduce new concepts, launches
  with limited mktg efforts.
• Activities to build brand equity for store and
  its pvt labels merchandise r-1-create high level
  of brand awareness,2-develop favorable
  associations with the brand name, 3- consistently
  reinforce the image of the brand.

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• Creating brand awareness- i.e. the ability of a
  potential customers to recognize or recall that
  the brand name is a type of retailer or product
  /service.
• Brand awareness is the strength of the link
  between the brand name and type of merchandise or
  service in the mind of customer.
• Range of brand awareness from aided recall i.e.
  when consumer indicate they know the brand when
  name is presented to them to TOM awareness-
  highest level of awareness, when consumer
  mentions the brand name first when they r asked
  about type of retailer.
• Retailers build TOM awareness by repeated
  exposures to C thru advt, sponsorships and using
  memorable symbols. Symbols-visual images r more
  easily recalled than words. e.g. MacDonald.
  Sponsorships of TV programs helps.
• Creating brand associations- linked to consumers
  memory with brand name. Some common associations
  r like-1-merchandise category- fast
  food-MacDonald, book stores-cross word,,2-price/
  quality-walmart,3-specific attribute or benefit-
  service of dominos,4-lifestyle or activity-high
  end stores.

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• Creating brand image- It is a set of
  associations that r usually organized around some
  meaningful themes.
• Consistent reinforcements needed for developing
  and maintaining retailers brand image thru
  communication programs as well as thru elements
  of communication mix such as merchandise
  assortments, and pricing, the design of its store
  and websites, and the customer service it offers.
• To develop a strong set of associations and a
  clearly defined brand image, retailers need to b
  consistent in portraying same message to
  customers over time and across all of the
  elements of its retail mix.
• Role of marketing in retail org is 2 fold-1-
  informing to existing consumers,2-for getting
  closer to the end users.
• Retail marketing mix- 1-product/merchndise-its
  a) line-group of products closely related-,e g
  menswear section at dept store -formal casual
  accessories. b) Variety- different merchandise
  lines-men's wear women's wear c)
  breadth-assortment number of merchandise brands
  say of formals .d) depth average number of
  SKUs-as it carries individual products defined
  by rand ,size, colors, styles ,price points

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• 2-price- policy related to target for its range
  of products and whether unique or substitute
  products available. e.g. designer clothing always
  expensive.
• 3-Place-Still important although IT and TV
  shopping
• 4-promotion-advt budgets, s.p. publicity, and
  p.r. r very imp in a competitive world of
  retailing. All promotion activities to b
  developed in line with target market and
  products.
• 5-Presentation-store layout, ambience created,
  visual merchandising -orderly display in store.
• 6-customer service- credit policy, product return
  policy need to b clear to sales staff,
  relationship mktg, CRM enhances customer service.
• 7-people- front end people r face of retail org
  for customers, their attitudes product knowledge
  plays a big role in building long term relations
  with customers.
• STP approach in retail mktg.- geographic,
  psychographic, target mkt, position based on
  merchandise, trading format, customer service
• Retail Image-

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• Image of a retail store- affected A) primarily by
  features of merchandise, place/location of store,
  pricing of products, manner of presentation of
  products, advt and promotion of store, B)
  shopping experience, customer service, sales
  staff, and brand associations also contribute to
  image of store.
• Retail communication mix-
• Communication an integral part of retail
  marketing as it informs customers about the
  retail org, products and services. Unlike one way
  from store ,now two way as interactive needs of
  customers to b fulfilled.
• Use of IMC rather than creating unique CP.
  Without coordinated CP thru IMC, some methods ay
  work at cross purposes-e. g.. simultaneous
  announcement of low price and exceptional
  customer service
• Elements of retail communication mix-
  1-advertising, 2- sales promotion 3- Public
  relations, 4 Personal selling,,5-direct
  marketing
• 1- Advertising
• paid form of non-personal presentation and
  communication thru mass media. Aims to selling to
  a wide mix of consumers and also to induce repeat
  purchases.

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• Advertising-functions- 1-Creates awareness,2-
  informs to create image, 3-create desire to want
  a product,4-informs store policy,5-inform abt
  national brand associations,6- to reposition
  store,7- inform bargain sales, and CP schemes.
• Medias to advertise in retail-press,
  print-posters, brochures, pop displays, outdoor.
  internet banners.
• Advertising budgets planning- methods-1- of
  sales.2-competitive parity,3- research or task
  based,4-incremental , 5-affordable.
• Deciding message-communication platform- base
  on target customers select platform stressing
  unique features, lifestyle, testimonials.
• 2-Sales promotion-
• paid non-personal form of communication, that
  incetivises customers to visit store and purchase
  merchandise during specific period of time.
• S.P. Programs 1- attract traffic and enables
  quick results.2-Help increasing impulse
  buying,3-generate excitement ,4-motivates other
  channel members.

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• S.P. aimed at consumers (C.P.) for various
  reasons like-1-to stimulate trial purchase,2-to
  encourage repeats and large purchases, thru
  coupons for next buy ,price reductions/discounts
  for large,3-to introduce new brand /product,4-to
  counter competitors strategy. common sales s.p.
  (fig)
• S.P.(T.P.)-participate in trade fairs and
  exhibitions and conferences organized by a
  sectors like textiles, leather, jewelry.
• 3-P.R. and publicity.
• It is a mktg communication function for creating
  goodwill. Retail store creates and sustain
  favorable image with consumers, stake holders and
  public at large.
• Retail org makes integrated p.r. efforts thru
  press releases, feature stories, and cos news
  letters or interviews with pres, press
  meets/conferences
• Publicity is a important component of P.R. It is
  a non-paid form of media coverage. Difficult to
  get free media coverage these days but some
  events like opening of store, renovation,
  celebrity visit, awards received celebrations,
  fashion shows etc merit publicity.

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• 4-Personal selling-
• A paid form of personal advertising where sales
  people assist customers in satisfying needs thru
  P 2 P exchange of information. Aimed at specific
  individuals. Expensive method.
• POP displays-Help in- store product branding,
  enhance retail sales, provides info to customers.
  almost 70 purchase decisions r made in-store
  and so use of pop in styles, fashions, quality,
  price to b emphasized.
• Direct marketing- data base provides buying
  occasions and preferences. Types of
  communications used in direct mktg r,1-direct
  mail,2-catlogues and mail order,3-telemarketing
  few retailers use it a combination,4-Electronic
  retailing-many have started combining with store
  retail.
• Store positioning- it stand test of time
• IMC- to add value strategically stores use as a
  concept