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Retail Promotion: By: Shivani Taya

The document discusses retail promotion strategies, including defining retail promotion, planning promotion programs by setting objectives and budgets, using promotional mixes, and distinguishing retailer and manufacturer promotion approaches. It also covers cooperative campaigns between retailers and manufacturers, promoting to loyalty card and co-branded credit card customers, and push versus pull promotion strategies.

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112 views15 pages

Retail Promotion: By: Shivani Taya

The document discusses retail promotion strategies, including defining retail promotion, planning promotion programs by setting objectives and budgets, using promotional mixes, and distinguishing retailer and manufacturer promotion approaches. It also covers cooperative campaigns between retailers and manufacturers, promoting to loyalty card and co-branded credit card customers, and push versus pull promotion strategies.

Uploaded by

tayaisgreat
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Retail promotion

By: Shivani taya


Content
• Meaning of retail Promotion
• Role of retail promotion program
• Planning Retail promotion program:
1. Promotional objectives
2. Promotional budgets
3. Promotion mix
4. Review
• Distinction between promotional strategy of manufacturer and retailer
• Co-operative campaign
• Promotion strategy
• Loyalty card customers
• Co – branded cards customers
Meaning of retail Promotion

• Retail promotion is communicating with the


public in an attempt to influence them toward
buying your products and services. The word
retail promotion is also used specifically to
refer to a particular activity that is intended
to promote the business, product or service.
• Retail promotion should be too good that a
passer – by may stop at the retailer and may
make impulse buying.
Role of retail promotion program

Informing

Reminding
Planning Retail promotion program
Step 1 Promotional Objectives
●

Step 2 Promotional budget


●

step 3 Promotional Mix


●

Step 4 Review
●
PROMOTIONAL OBJECTIVES

• Positioning of the retailer


• Attract new customer
• Concentrate on existing customers
• Increasing the sales
• Announcing the special event
• Providing information about store location and
merchandise offered
Promotional budget

• Promotional budget means the sum allocated in a


particular accounting period for expenditure on promotion

• METHODS OF PREPARING PROMOTIONAL BUDGETS


 Affordable method
Percentage of sales method
Competitive parity method
Task and objective method
Promotional Mix

Adver
tising
Sales
Sales
promo
promo
tion
tion
Public
Public
relatio
relatio
n
n
Person
Person
al
al
selling
selling
Word
Word
of
of
mouth
mouth
Store
Store
atmos
atmos
phere
phere
Types of retailer Preferred Media Emphasis on personal
selling

Chemist shop Trade journals, doctors


by personal contact High

Restaurant Local newspaper, point


of purchase Moderate

Auto spare parts Local press, yellow


pages Moderate

Beauty parlors' Exterior signboards,


magazine like femina
and cosmopolitan, Moderate
yellow pages
Bookstores Local press, mails to
academic institution Moderate
DISTINCTION BETWEEN PROMOTIONAL STRATEGY OF
MANUFACTURER AND RETAILER

Manufacturer Retailer

A manufacturer have geographically wider A retailer has geographically-confined


market spread. concentrated market.
National level firms on the contrary try to Retailer ads are geared to immediate
develop a favorable attitude for long-term needs, and short-term sales.
effects.
Manufacturer ads emphasize on product Retailers ads emphasize on price.
features
Manufacturer advertise for single Retailer advertise for multi-products.
product/brand or a few products/brands.
Spending on promotion by manufacturer Spending on promotion by retailer is less
is more than retailer. than manufacturer.
Co-operative campaign
sometime other retailers or a manufacturer join hands
with the retailer in the promotional efforts.

Vertical co – Horizontal co-


operative operative
advertising advertising
●Here retailer share his ad ●It is a system where some
expenditure with other channel
members. For e.g. manufacturers come
●If a retailer spends rs. 100000 on together to share the cost
advertising he is paid back rs of advertising.
300000 by manufacturer, if his ●Mostly such campaign are
total purchases amount to
rs.1000000 event related.
Promotion strategy

● A “push” promotional strategy makes use of a


company's sales force and trade promotion
activities to create consumer demand for a product.
● The producer promotes the product to
wholesalers, the wholesalers promote it to
retailers, and the retailers promote it to
consumers.

Pull promotion strategy

● A “pull” selling strategy is one that requires high


spending on advertising and consumer promotion
to build up consumer demand for a product.
● If the strategy is successful, consumers will ask
their retailers for the product, the retailers will
ask the wholesalers, and the wholesalers will ask
the producers

Push promotion strategy


Loyalty card customers
In marketing generally and in retailing more
specifically, a loyalty card, rewards card, points
card, advantage card, or club card is a plastic or
paper card, visually similar to a credit card or debit
card, that identifies the card holder as a member in
a loyalty program. A retail establishment or a retail
group may issue a loyalty card to a consumer who
can then use it as a form of identification when
dealing with that retailer. By presenting the card,
the purchaser is typically entitled to a discount on
the current purchase.
Co – branded cards customers

• They are credit cards, which are associated with


a particular firm like an airlines or retail outlet.
These cards can be used just like regular credit
cards but they also offer benefits to users of the
relevant product like special discounts.
• Today co-branded cards are available for a large
number of sectors including travel, telecom,
retail, entertainment so on.
• ICICI has silver co-branded cards with Big
Bazaar, HPCL, Amway and Airtel. The benefits,
of course, include discounts and incentives at
the respective company's outlets and on their
products. For the first year, this card has no fee
but from the second year onwards, it has an
annual fee of Rs 750.

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