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RetailManagement 14

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10 views24 pages

RetailManagement 14

Uploaded by

Astir Le
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Retail Management

Module 14: Introduction to Retailing


Integrated Marketing Communications and
Promotions
Learning Outcomes: Integrated Marketing Communications
and Promotions
14.1 Explore the concept of integrated marketing communications and retail promotions
• 14.1.1 Explain the value of effective communication with customers
• 14.1.2 Define integrated marketing communications
• 14.1.3 Differentiate between traditional and new media elements
• 14.1.4 Examine the different budget calculation methods
Practice Question: Customer Communication

What is required for effective communication with customers?


Integrated Marketing Communications

Optimizes communication of firm’s message by harnessing and leveraging their benefits

Active vs. passive


• Active: visiting brand’s website, following on social media
• Passive: hearing advertisements on radio or on television

Unifies and coordinates organizations to promote consistent message


Media Elements

Traditional media (one-direction communication):


• Television
• Radio
• Billboards
• Print
New media (two-way communication):
• E-mail marketing
• Social media
• Internet search
Practice Question

What is the difference between one-way communication and two-way communication with
customers?
Budget Calculations

• Rating, reach, frequency, response rate, etc.


• Common terms used: traffic, engagement, efficiency

• Cost per sale = (total marketing spend / total units sold)

• Cost per incremental sale = total marketing spend / total units sold – baseline sales

• Return on marketing investment = [(incremental revenue x contribution margin) – marketing


spend] / marketing spend
Communication Programs
Learning Outcomes: Communication Programs

14.2 Explain how retailers build a brand image and increase customer loyalty by using
communication programs
• 14.2.1 Define brand equity
• 14.2.2 Outline the steps involved in the creation of a marketing communication program
(SMART)
Brand Equity

• Intrinsic value a brand has, given consumers’ awareness of and affinity for it
• How a brand represents itself and value publicly, and Brand Image
• Studied from two perspectives: cognitive psychology and information economics
• Important for marketers because relative strength of brand governs how manufactures
market the brand
• Difficult to quantify
• Quantitative includes numerical values but fails to capture prestige
Marketing Communication Program (SMART)

• Keep three things in mind:


• How can we maximize coverage, given budgets? What channels will be the most effective? How will we
assess campaign performance?
• Maximize coverage: finite limit to what organizations can and should invest in their
marketing activity
• Being present in every channel may lead to diminishing returns
• If marketer messages on website, Facebook, etc., then it pays for banner ads, billboards, &
print ads
Marketing Communication Program (SMART) cont.

• Examine customer journey to understand how consumers shop product and how channels
function to deliver
• If product/service is complex or highly visual: consider how best to share details with your
target
• Need to determine how best to measure effectiveness of campaign (messaging, channels,
impact)
• Advertising can be useful, if brand equity has been impaired
• SMART (specific, measurable, achievable, relevant, time)
Activity: SMART Goals

The best way to measure the effectiveness of campaign is to use the SMART acronym. With a
group of four to five peers, discuss what SMART stands for, and how it can be applied to
planning and measuring a marketing campaign.
Integrated Marketing Communications Mix
Learning Outcomes: Integrated Marketing Communications
Mix
14.3 Evaluate the key elements of the integrated marketing communications mix
• 14.3.1 Describe how advertising is used by retailers
• 14.3.2 Outline the types of sales promotions used by retailers
• 14.3.3 List some direct marketing tactics used by retailers
• 14.3.4 Discuss the various online media elements used by retailers
Advertising in Retail

• Marketing & promotion help facilitate exchange: provide information and context to help
better understand
• Advertising is necessary to communicate differences in assortment, pricing, & other tactics
(Wal-Mart vs. Target)
• In-store promotion reinforces differentiation, showing consumers how assortment pricing,
signage solve issues
• Manufacturers and brands are desperate to grab consumer’s attention to encourage
action/transaction
• Product packaging can be updated to offer:
• Seasonal graphics, specialty sizes, bonus packs, trial packs, special/variety packs
Advertising in Retail (cont.)

Number of ways for brands to breakthrough to customers:


• Floor graphics
• Vinyl graphics customized for images/messages

Displays
Shelving and shelf location can be used
• End caps
• Side caps
• Shoppable pallets
• Displays
Sales Promotions in Retail

Common retail sales promotions


• Variety is limited by creativity of marketer
• Price multiples, BOGO
• Rebates
• Coupons
• Trial packs
• Bonus packs
Direct Marketing in Retail

• New Media: interactive and decentralized, two-way communication


• Easier to see potential advantages of new media channels
• Understanding that firms are able to track customer activity on digital platforms
• Customer relationship management tools help firms segment customers by behavior
• Goal should be to quickly try to recapture the lost sales
• Direct marketing gives retailers several tools
Online Media and Retail

Very easy to conflate online activity with e-commerce, thinking of the web as a place to
transact

Important to step back from e-commerce and evaluate online search as tool that helps
consumers interact

Digital marketing is used to connect sellers with potential buyers


• Requires web development, optimization, and maintenance
• Firms bid on key words to ensure that when searches are made, their website appears among search
results
Social Media and Retail

Why social media is a powerful element


• Consumers opt-in to engage with firm, brand, or products
• Communicate level of interest that cannot be determined through traditional media

Firm, brand, or products can optimize message for channel


• Communicates in natural way with consumers and customers

Social media allows for two-way communication


• Gives consumer a platform with which to engage the firm or brand directly
Other Media Elements

• Throughout the course, you’ve been introduced to a number of promotional tools and how
marketers might use them as part of IMC

• Examples shared are illustrative of how traditional and new media can be leveraged inside
and outside

• Want to select best channels for campaign given budget, strategy, and competitive
environment
Quick Review

Emergence of technology, social media, and mobile devices has led to significant changes in
how consumers shop

Emergence of omni-channel

Resulting proliferation and fragmentation means that advertising and promotional, activity must
be integrated

Benefit is that it creates multiplier effect

Must ensure that all messaging is consistent and customized

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