ADVERTISING IN THE RETAIL COMMUNICATION MIX

Objectives of Communication Program Long-Term -Build Brand Image -Create Loyalty Short-Term -Increase Traffic -Increase Sales

Brands

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

Strong Brands Provide Value to Retailers and Their Customers

Value to Retailers

• Attract Customers • Build Loyalty • Higher Prices leading to Higher Gross Margin • Reduced Promotional Expenses • Facilitates Entry into New Markets Gap  GapKids

Strong Brands Provide Value to Retailers and Their Customers

Value to Customers

• Promises Consistent Quality • Simplifies Buying Process • Reduces Time and Effort Searching for Information About Merchandise/Retailer

Building a Valuable Brand Heighten Brand Awareness Develop Favorable Associations Brand Equity Consistent Reinforcement Create Emotional Connections

Creating Brand Awareness Memorable Name Repeated Exposure Brand Awareness Symbols Event Sponsorship

McDonald’s Brand Associations Golden Arches Fast Food Big Mac McDonald’s French Fries Ronald McDonald Clean

Types of Brand Association • Merchandise Category – Office Depot • Price/Quality – Target, Wal-Mart • Specific Benefit – 7-Eleven Convenience • Lifestyle – The Nature Company

Integrated Marketing Communications Present a Consistent Brand Image through All Communications with Customers •Store Design •Advertising •Web Site •Magalog

Retail Communication Mix

Communication Methods

Types of Sales Promotions •Special sales •Merchandise demonstrations •Premiums •Coupons •Games, sweepstakes, and contests

Comparison of Communication Methods

Communication Objectives & Stages in the Consumers Decision-Making Process

Retail and Vendor Communication Programs • • • •

Vendor Long-term objectives Product focused National Specific product

• • • •

Retailer Short-term objectives Category focused Local Assortment of merchandise

Illustration of Objective and Task Method for Setting a Communication Budget

Communication Objectives Furniture Store

Communication Objective Awareness Knowledge Attitude Visit Question

What stores sell Asian furniture?

Which stores would you rate outstanding on the following characteristics?

On your next shopping trip for Asian furniture, which store would you visit first?

Which of the following stores have you been to?

Evaluation of Program

Awareness

(% of mentioning store)

Knowledge

(% outstanding rating)

Attitude

(% first choice)

Visit

(% of visited store)

Before

38% 9 13 8

6 Mon 12 Mon

46% 17 15 15 52% 24 19 19

Media Capabilities

Communication Objectives and Effectiveness of Media

Internet Advertising Applications • • Retailers in General – Create Awareness – Convey Information – Brand Building -- Build Store Loyalty Multi-Channel Retailers – Build Web site Traffic

Involvement Reach Targeting Information Delivery Information Richness Measurability Cost Application TV, Radio Push, passive Broad Limited Limited Mm, audio Modest $12/8 per m Brand Image Awareness Internet Pull, active Narrow Extensive Extensive Multi-Media High $20 per m Product Evaluation Brand Loyalty

Problems with Measuring Effectiveness • Comparison with Other Media for the – Reach • • Counting Unique Visitors Use of Cookies – Frequency • • Caching Prevent Cache – Impact – GRPs - Reach x Frequency

Internet Ad Measurement Models • • Consumer Centric – Panels -- Nielsen TV – Advantages -- Representative, Relate usage to Viewer Characteristics, Comparison Across Sites – Disadvantage - Small Numbers-Unreliable, Ignores Business Usage Site-Centric – – Accurate Measures of Hits, Visits, Downloads, etc Problems in Measures, Can’t Relate to Viewer Characteristics

Measuring Effectiveness Internet Marketer Perspective • Generating Traffic – Hits - File Requested - Multiple Files Per Page • Times Banner Served – Page Views - Varies with Length of Page – Visitors – Unique Visitors – Click Throughs – Pages Downloaded – Length of Stay

Generating Traffic for Site • • • • • Domain Name/Brand Search Directories and Engines – Registration, Top Listing External Links - Partnerships Publicity Paid Advertising – Internet – Other Media

Monitoring Effectiveness of Traffic Building Approaches • • Monitor Sources of Visits Link Behaviors to Sources – Registration – Time on Site – Pages Downloaded – Purchases – Amount Purchased