Retail Communication Mix

A communication program that is designed to achieve a

variety of objectives for the retailer, such as building a brand
image of the retailer in the customers mind, increasing sales
and store traffic, providing information about the retailers
location and offering, and announcing special activities.
In store
-VM
-Store Design
-Employees
Outside the store
-Advertising
-- Direct Marketing
-- Social Media

Retailers communicate with customers through :

advertising,

sales promotions,
store atmosphere,
Web sites,
salespeople,
e-mail,
direct mail,
m-commerce,
community building,
publicity,
and word of mouth.
These elements in the communication mix must be coordinated so
customers have a clear, distinct image of the retailer and are not
confused by conflicting information.

Agenda
Can retailers build brand equity for their stores and
their private-label merchandise?
Why do retailers/brands need to have an integrated
marketing communication program
What steps are involved in developing a
communication program?

Long-term
Build Brand (retailers name)
Image
Create Customer Loyalty

Short-term
Increase Traffic
Increase Sales

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

Value to Retailers

Attract Customers
Build Loyalty
Higher Prices Leading to
Higher Gross Margin
Reduced Promotional Expenses
Facilitates Entry into New Markets
Allen Solly Allen Solly Women

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

Create a High
Level of
Brand
Awareness

Develop
Favorable
Associations
Brand
Equity

Consistent
Reinforceme
nt

Create Emotional
Connections

Aided Recall
Top Mind Awareness

Stimulates Visits to
Retailer

Brand name is a set of associations that are usually

organized around some meaningful themes
Brand associations: anything linked to or connected with
the brand name in a consumers memory

Fast
Food

French
Fries

Golde
n
Arches

Mc Aloo
Tikki

McDonald
s

Clea
n

Ronald
McDonal
d

16

The retailers brand image is developed and maintained through

the retailers communication mix
Retail Communication Mix

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

Communication Methods

Advertising (Pioneer ads, Competitive ads, Reminder ads,

Institutional ads)
Sales promotions
Sale
Contests
Coupons

Store atmosphere and visuals

Website

The combination of the stores physical

characteristics (architecture, layout, signs
and displays, colors, lighting,
temperature, sounds, smells) together
create an image in the customers mind

Merchandise available
Price range
Special offers
Store locations

Retail salespeople are primary vehicle for providing

paid personal communication to customers.

Personal selling salespeople satisfy needs through face to

face exchange of information

Email

PR entails any communication that fosters a

favourable image for the retailer among its
publics.

Publicity
Publicity is communication through significant unpaid
presentations about the retailer, usually a news story, in
impersonal media.
Newspaper
TV coverage

Word-of-mouth
Can be favorable
Can be detrimental

Social Shopping
A communication strategy in which consumers use Internet
to engage in the shopping process by exchanging
preferences, thoughts, and opinions
Product/service reviews

Comparison of
Communication Methods

Determine promotional objectives

Establish an overall promotional budget
Select the promotional mix
Implementing the promotional mix
Reviewing and revising the promotional plan

Increasing sales
Raise customer traffic
Reinforce brand image
Popularize new stores or products
Enhance customer relations

All-you-can-afford method
The remaining funds

Incremental Method
A percentage is either added or subtracted from one years budget to
determine the next years

Competitive Parity Method

Budget is raised or lowered based on competitors actions

Percentage-of-sales Method
Sales used as a base

Objective

Budget

Media/Task

Gain awareness of
working women

Rs. 20,000

page ads in weekly

papers (Sunday edition)

Gain attention of
motorist

Rs. 12,000

Radio ads during prime

time on local radio
stations

Gain awareness of
pedestrians

Rs. 15,000

Shopping bags

Combination of advertising, PR, Personal Selling and Sales

Promotion.

Firm with limited budget store displays, flyers, e-mails,

publicity, customer traffic.

Firm with larger budget Newspapers and TV.

The promotional mix is affected by the type of retailer.

Depends on where a retailer has reached in terms of hierarchy of

effects.

Timing: Frequency and

Reach

Content of Messages
Pioneer message,
Competitive message,
Reminder message,
Institutional message

Coordination
Makeup of Sales Force
Qualification, training,
compensation, supervision

Displays
Products

Retail Promotional Goals

Approach for Evaluation

Acquaint potential customers with

new offerings

Study company and product

awareness before and after
promotion; evaluate size of audience

Develop and reinforce a particular

image

Study image through surveys before

and after public relations and
promotion efforts

Increase customer traffic; increase

sales; reduce customer returns

Evaluate sales performance and

enquiries made for a product, study
customer intensions to buy before
and after promotion, review coupon
redemption