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MKT 4624 / Year 2010 / Wk 11 1

MKT 4624MKT 4624

RETAIL MANAGEMENTRETAIL MANAGEMENT

Week 11 :Week 11 :

Managing A Retail Business :Managing A Retail Business :

Branding and PromotionBranding and Promotion

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2

Weekly Learning OutcomesWeekly

Learning Outcomes

Explore Retail Brand and Elements of

Retail Promotion Mix Study Elements of Retail Promotion

Mix and Objectives

Discuss Strategic Process of

Developing Retail Promotion

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3

Retailer BrandRetailer Brand

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A brand is a unique identity. It isthe way the public thinks aboutwhat you do, produce, serve and

sell. In retailing context, the name of

the retailer is a brand thatindicates to consumers the type of

merchandise and services offeredby that retailer, including theservices, personality andatmosphere of the store.

What is a BrandWhat is a Brand

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What is a BrandWhat is a Brand

The customer in effect believes,

The only way I can be

who I am

is to havespecific products or services.

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1. Identify and Define Brand Promise- values we commit to deliver

2. Construct the Branded CustomerExperience - deliver the brand

promises through every interactionwith our customers

How to Build a Retailer BrandHow to Build a Retailer Brand

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e.g. Starbucks Brande.g. Starbucks Brand

Starbucks is not in the

coffee business serving

people. Starbucks is in thepeople business serving

coffee.

Third place: between workand home, to relax, meet

friends and enjoy a great

cup of coffee.

http://hk.wrs.yahoo.com/_ylt=A8tU3qJwq.tKGJoAezHwzAt./SIG=156k4gjph/EXP=1257045232/**http%3A//hk.image.search.yahoo.com/search/images%3Fview=detailed%26p=starbucks%2Bcoffee%26ei=UTF-8%26meta=rst%253Dhk%26b=1%26pstart=1%26curr_index=2

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3. Process Map the customer points Examine every touch point On-brand: what can we do to reinforce

the experience Off-brand, what do we need to change

and improve the experience

4. Promotion is the important tool to

build the brand and create sales.

How to Build a Retailer BrandHow to Build a Retailer Brand

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Typical Touch PointsTypical Touch Points

ofof

Retail CustomersRetail Customers

Public

Relations

Personal

Selling

Web-sites

and Virtual

Social Network

Advertisement

Store Design

And

Atmosphere

Sales

Promotion

Other

Tangible Items

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RetailRetail

Promotion MixPromotion Mix

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Definition of Retail PromotionDefinition of Retail Promotion

Includes any communication bya retailer that informs,persuades, and/or reminds thetarget market about any aspectof the firm.

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Long-term

Build store brand and image Short-term

Inform customers what they have

Persuade customers to patronage or

buy

Remind customers

Retail Promotion ObjectivesRetail Promotion Objectives

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Advertising

Sales

Promotion

Public

Relations

Personal

Selling

Retail Promotion MixRetail Promotion Mix

Overall : To build store image and brand

Objectives :Objectives :

BrandBrand

BuildingBuilding

++

SalesSales

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Retail Promotion MixRetail Promotion MixAdvertising Public Relations

Nature Paid, non-personalcommunication with out of

store mass media

Non-paidcommunications of

information about thecompany or product

Objectives Build long-term image Attract new customers Increased patronage

Build good relationswith various publics

Build good image

Handle unfavorablenews

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Advantages of Advertising andAdvantages of Advertising and

Public RelationsPublic RelationsAdvertising Large audience is

attracted Lower cost per viewer Wider choice of media Better control over the

message content,graphic and timing

In print media, amessage can be studiedand restudied by the

target market

Public Relations

Enhance image

Address massaudience

Higher credibility

Attract attention &

arouse interest Relatively lower cost

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Retail Promotion MixRetail Promotion MixPersonal

SellingSales Promotion

Nature Involves two ways,

personal communicationwith the consumer

Mass communication

technique with incentivesto buy now

Objectives Stimulate sales Provide customerservice

Collect customerfeedback

Attract in-storetraffic

Stimulate short-termsales

Clear old inventories Improve cash flow

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Typical Process of

Personal Selling

Determines

Customer Wants

Shows

Merchandise

Answers

ObjectionsCloses

the Sale

Greets

Customers

Demonstrates

Goods/

Services

Gives a

Sales

Presentation

Salesperson

Feedback

Personal SellingPersonal Selling

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Advantages of PersonalAdvantages of Personal

Selling and Sales PromotionSelling and Sales PromotionPersonal Selling

High flexibility to adapt

message Higher flexibility in

offerings

Higher customers

attention span Immediate feedback

Tailor-made offers to

satisfy customer needs

Sales Promotion

Eye-catching appeal

Draw customer traffic Increase impulse

purchase

Customers receive

something of value Can be fun and

entertaining

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Strategic ProcessStrategic Process

of Developingof Developing

Retail PromotionRetail Promotion

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Determining Communication Objectives

Establishing an Overall Communication

Budget

Selecting the Communication Mix

Implementing the Communication Mix

Reviewing and Revising the

Communication Plan

Process in Developing aProcess in Developing a

Retail Promotion ProgramRetail Promotion Program

e.g. increase sales,

raise customer traffic

All-you-can-afford method /

Incremental method /

Competitive parity method /

Percentage-of-sale method

Choosing specific media,

timing, message content,

make up of sales force and etc.

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21MKT 4624 / Year 2007 / Wk 11

Awareness

Stimulate

Desires

Provide

Information

Change

Attitudes

and Feelings

Pioneer Advertising, Public

Relations, Point-of-Purchase,

Window Displays

Competitive Advertising,

Personal Selling, Sales

Promotions, Assertive Efforts,

POP Displays

Reminder and Institutional

Advertising, Personal Selling,

Sales Promotion, VIP Programs

Knowledge

Liking

Preference

Conviction

Purchase

Hierarchy of Effects Behavioral Objective

of Communication

Communication Mix

Relevant to Each Step

Communication & the Hierarchy of EffectsCommunication & the Hierarchy of Effects

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Key Success Factors inKey Success Factors in

Promotion and Branding StrategyPromotion and Branding Strategy Cater to needs of the customer segments

Align with the image/brand of the retailer Be active in the market and create

noises

Employ multi-channels and media

Ensure every customer touch point (i.e.

MOT) must align with the brand promise

Ample use of Sales Promotion to attract

traffic

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Reading :Reading :

Textbook :Chapter 19 (p. 529 to p. 555) 11th ed.

Chapter 19 (p. 567 to p. 593) 10th ed.

Reference :

The most Valuable US Retail Brands, 2009,Interbrand Design Forum