CHAPTER
CHAPTER15
2
1
Retail
Communication
Mix
CHAPTER 16
Retailing Management 8e
The McGraw-Hill Companies, All rights reserved.
15 - 1
COMMUNICATION MIX
CHAPTER
CHAPTER15
2
1
refers to specific methods
used to promote the company
or its products to targeted
customers.
--
15 - 2
BRANDS
CHAPTER
CHAPTER15
2
1
Distinguishing name 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
The McGraw-Hill Companies, Inc./John Flournoy, photographer
The McGraw-Hill Companies, Inc./Bob Coyle, photographer
15 - 3
VALUE OF BRAND IMAGE
Value to Retailers
(Brand Equity)
Attract Customers
Build Loyalty
Higher Prices Leading to
Higher Gross Margin
Reduced Promotional Expenses
Facilitates Entry into New Markets
CHAPTER
CHAPTER15
2
1
Value to Customers
Promises Consistent Quality
Simplifies Buying Process
Reduces Time and Effort
Searching for Information
About Merchandise/Retailer
Gap GapKids
15 - 4
BUILDING BRAND EQUITY
CHAPTER
CHAPTER15
2
1
15 - 5
BRAND EQUITY
CHAPTER
CHAPTER15
2
1
Brand equity is a phrase used in the
marketing industry which describes the
value of having a well-known brand
name
15 - 6
Benefits of High Brand
Awareness
CHAPTER
CHAPTER15
2
1
15 - 7
BRAND AWARENESS
CHAPTER
CHAPTER15
2
1
Brand awareness is the extent to which
a brand is recognized by potential customers,
and is correctly associated with a particular
product
15 - 8
AIDED AWARENCESS
CHAPTER
CHAPTER15
2
1
Aided Awareness This type of
awareness is generated in a consumer.
When asked about a product category, if the
consumer is aided with a list of company
names and he recognizes the company from
the given set it is categorized as aided
awareness.
15 - 9
TOP MIND AWARENESS
CHAPTER
CHAPTER15
2
1
Top of the mind Awareness When the
name of the company is automatically
recollected because the consumer very
promptly associates the brand with the
product category, it is called a top of the
mind awareness of the product. Its the first
brand name listed by the consumers when
asked to name brands they know without any
cues.
15 - 10
Creating Brand Awareness
CHAPTER
CHAPTER15
2
1
Memorable
Name
Best Buy
Repeated
Exposure
Home Depot
Top-of-mind
Brand Awareness
Starbucks
Symbols
Macys
Event
Sponsorship
15 - 11
Consistent Reinforcement through
Integrated Marketing Communication
Program
CHAPTER
CHAPTER15
2
1
Integrated Marketing Communication Program
A program that integrates all of the
communication elements to deliver a
comprehensive, consistent message
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
15 - 12
Integrated Marketing
Communications
CHAPTER
CHAPTER15
2
1
Present a Consistent Brand Image through all
Communications with Customers
Store
Design
Advertising
Web Site
Magalog
The McGraw-Hill Companies, Inc./Andrew Resek, photographer
15 - 13
Brand Extensions
CHAPTER
CHAPTER15
2
1
Gap GapKids and Old Navy
Abercrombie & Fitch Hollister and Gilly
Hicks
Sears Sears Auto Centers and the Great
Indoors
Pottery Barn Pottery Barn Kids
The McGraw-Hill Companies, Inc./Andrew Resek, photographer
15 - 14
CHAPTER
CHAPTER15
2
1
METHODS OF
COMMUNICATING WITH
CUSTOMERS
15 - 15
Direct Marketing
CHAPTER
CHAPTER15
2
1
15 - 16
Direct Marketing
CHAPTER
CHAPTER15
2
1
Mobile marketing
is marketing
through wireless
handheld devices,
such as cellular
telephones, and mcommerce or
mobile commerce
involves completing
a transaction via
the cell phone.
15 - 17
Online Marketing
CHAPTER
CHAPTER15
2
1
15 - 18
Social Media
CHAPTER
CHAPTER15
2
1
15 - 19
Public Relations (PR)
CHAPTER
CHAPTER15
2
1
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
In many cases, public relations activities support
other promotional efforts by generating free
media attention and general goodwill.
15 - 20
Planning the
Retail Communication Program
CHAPTER
CHAPTER15
2
1
15 - 21
Establish Objectives
CHAPTER
CHAPTER15
2
1
Communication objectives:
Specific goals related to the retail
communication mixs effect on the
customers decision-making process
Long-term: ex. creating or altering a
retailers brand image
Short-term: ex. increasing store traffic
15 - 22
Determine the Communication
Budget
CHAPTER
CHAPTER15
2
1
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
Very hard to use because managers dont
know the relationship between
communication expenses and sales
15 - 23
Objective-and-Task Method
CHAPTER
CHAPTER15
2
1
Determines the budget required to
undertake specific tasks to accomplish
communication objectives
15 - 24
Rule of Thumb Methods
CHAPTER
CHAPTER15
2
1
Affordable Budgeting Method sets
communication budget by determining what
money is available after operating costs and
profits are budgeted.
Drawback: The affordable method assumes
that the communication expenses dont
stimulate sales and profits.
15 - 25
Rule of Thumb Methods
CHAPTER
CHAPTER15
2
1
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.
15 - 26
Rule of Thumb Methods
CHAPTER
CHAPTER15
2
1
Competitive Parity Method this
communication budget is set so that the
retailers 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.
15 - 27
Allocate the Promotional
Budget
CHAPTER
CHAPTER15
2
1
The 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
budget amount decision
High-assay principle: The retailer allocate the
budget to areas that will yield the greatest
return
15 - 28
