the basics of advertising, marketing & promotion · the basics of advertising, marketing &...
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© Bill Napier 2010 All Rights Reserved
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Advertising, Marketing & Promotion
Made Easy
The Basics Of Advertising, Marketing & Promotion
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© Bill Napier 2010 All Rights Reserved
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About The Presenter 30 Years in Consumer Product Marketing
Promotion Agency Owner
Numerous awards for best strategy, creative and tactics. Engineered many package centered promotions including Patent #5,571,358
Partner – Napier Marketing Group, Inc.
More information on LinkedIn
12 years in the Home Furnishing’s Industry
CMO Ashley Furniture, LeatherTrend & Napier Marketing Group.
Winner Gold Reggie - Best Promotion in North America from the Promotional Marketing Association while at Ashley Furniture – implemented the largest promotion ever in the HF Industry.
Published many articles in NHFA Retailer, HFB and more
Bill Napier
[email protected] 612-217-1297
Join My Discussion on
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The Basics Of Retail Planning
For Advertising, Marketing &
Promotion
General Information
&
Reference Materials
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Table of Contents I. The Planning Process
II. Marketing Definitions & Terminology Marketing
Integrated Marketing
Branding
Advertising
Promotion
Public Relations
III. The Seven Steps to Developing an Integrated Retail Marketing Communications Campaign Step I: Develop a Situation Analysis
Step II: Identify Key Issues to Address
Step III: Identify Objectives Marketing & Communications Needs
Step IV: Identify Select Media to Use
Step V: Develop the Creative Message
Step VI: Develop the Media Plan
Step VII: Develop the Promotional Plan
Promotion
Role of Promotion
The In-Store Experience
Planning Elements
IV. The Internet I. 125 pages of relevant information
II. Complete Market Research
III. How To Build a great website
IV. The key to social marketing
V. Appendix
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To Identify The Core Competencies And
Associated Elements That Are Necessary In
Developing An Integrated Sales/Consumer Retail
Marketing Plan.
Objective
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Why is it..
Why is it a man wakes up in the morning, after sleeping on his advertised bed, on his advertised mattress in his advertised pajamas. He will bathe in his advertised tub,
shave with his advertised razor and shaving cream, have breakfast with his advertised juice, cereal and toast….toasted in his advertised toaster, put on advertised branded clothes and quickly glance at his advertised watch. He will catch the news on his new advertised flat screen that he purchased at a heavily advertised store. He will ride to work in his advertised car, sit at his advertised desk and write with his advertised pen
or utilize his advertised computer.
Yet it’s ironic that when he’s approached to advertise his business, he says advertising doesn’t pay…..until his business fails and then he’ll gladly advertise the sale and liquidation of his business……why, so people will come and liquidate his assets.
Why is it
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Planning The Process
It’s All About Velocity
I
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Marketing
Advertising
Public Relations
Promotion
In-Store Experience
CRM & Retention
PROACTIVE … NOT REACTIVE
Integrated Elements
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LEARN
THINK
ACT
REFLECT
PROACTIVE … NOT REACTIVE
THE PROCESS
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Information Gathering
Situation Analysis
Objectives
Planning Considerations
Approval Process
LEARN
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Objective
Secondary
Supporting
Points
Values Benefits
Primary
Communication
Platform
Copy
Positioning
Statement
THINK
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THINK Strategy Session
Information Gathering
Strategy Session
Strategic Screening Process
Operations
Financial
Image
Integration
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Tactics
Strategy Considerations
Short and Long Term
Tactics
Legal
Creative
Implementation
Tactics
Trade
Promotion
Public Relations
Collateral
Ad Books/Trade
Broadcast
Television
Radio
Cable
Electronic
Website
Events/Sponsorship
Merchandising
ACT
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Measurement Plan
Oncoming Research
Measurement of Objectives
Strategies Initiated
Evaluation
Re-Process
LEARN
THINK
ACT
REFLECT
REFLECT
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II
Marketing Definitions & Terminology
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Marketing Is The Process Of Planning And
Executing All Of The Elements That Bring
A Product To Market Including Packaging,
Pricing, Advertising, Promotion, Public
Relations; In A Manner That Satisfies The
Perceived Needs, Wants And Objectives
Of The Target Audience.
Marketing
Definitions & Terminology
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Integrated Marketing
Today’s Consumer “Consume” Marketing (Brand) Messages From A Wide Variety Of Channels
(E.G. TV, Cable/Satellite TV, Radio, Newspaper, Outdoor, Internet, Magazines, Direct Mail,
Telemarketing, Special Events, Etc). It Is In The Best Interest Of The Retail Community To Make
Use Of Multiple Marketing Communications Vehicles And It Is Equally As Important To
Insure The Messages Conveyed On The Various Channels Are Coordinated (Integrated) In Order
For The Marketing Message To Be Communicated Clearly And With Adequate
Frequency.
Definitions & Terminology
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Integrated Marketing
What’s Missing ???
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Branding The Goal Of Getting Consumers To Recognize Your Store Name And It’s
Attributes In A Positive Way. For Example, ‘Fun Place To Shop,’ ‘Courteous Staff,’ And ‘Quality
Products.’
The Brand Image Can Be Communicated Via Various Forms Of
Marketing Communications Vehicles.
Definitions & Terminology
C.
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To Communicate A Positive Message To The
Consumer About Products And Services
The Paid For Communication Of A Product
Or Service That Communicates The Desired
Marketing Message Thereby Providing
Reasons For And Motivating The Consumer
To Respond In The Desired Manner.
FUNCTION
Advertising
Definitions & Terminology
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Promotion Promotion Is The Act Of Providing A
Specific Reason For A Targeted Consumer To Make An Immediate/Short
Term Decision By The Retailer:
Desired Action Promotion Store Visit: Come in and register to win XXX
Buy Now: Buy X and get Y free
Provide Name/Address: Sign up to win X
Make a Return Visit: Get a coupon good on next purchase
Promotional Messages Can Be Communicated Via A
Variety Of Mediums.
Definitions & Terminology
E.
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The Non-Paid-for Communication Of Positive
Information About The Company Or
Products. PR Messages Or Content Cannot
Be Controlled, But At Best Managed. Honest,
Proactive Reputation Management.
FUNCTION
To Communicate Information At No Media
Cost To The Company.
Public Relations
Definitions & Terminology
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III
The 7 Steps to Developing An Integrated
Retail Marketing Communication
Campaign
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Step 1 –
Develop a Situation
Analysis
Share of Market Current
Desired
Market Trends Population
Income
Movement
Lifestyle trends Aging
Recreational habit
Competitive efforts Advertising strategy
Store locations
Product mix
Pricing
Sales History/Trends Internal Data
Product Mix And Pricing
Identification Of Target Audience And Their Media Consumption Habits
Traffic Pattern/Location
Budget And Operation Limitations
Review All Data That May Impact The Marketing Of The Product Or Service.
Examples
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The P’s Product
Purpose
Positioning
Potential
Place
Price
Promotion
Performance
Profit
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PEST Analysis
SWOT Analysis
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PEST Analysis
Political
Economic
Social
Technology
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Political Ecological/Environmental Issues
Current Legislation Home Market
Future Legislation
European/International Legislation
Regulatory Bodies And Processes
Government Policies
Government Term And Change
Trading Policies
Funding, Grants And Initiatives
Home Market Lobbying/Pressure Groups
International Pressure Groups
Wars And Conflict
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Economic Home Economy Situation
Home Economy Trends
Overseas Economies And Trends
General Taxation Issues
Taxation Specific To Product/Services
Seasonality/Weather Issues
Market And Trade Cycles
Specific Industry Factors
Market Routes And Distribution Trends
Customer/End-user Drivers
Interest And Exchange Rates
International Trade/Monetary Issues
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Social Lifestyle Trends
Demographics
Consumer Attitudes And Opinions
Media Views
Law Changes Affecting Social Factors
Brand, Company, Technology Image
Consumer Buying Patterns
Fashion And Role Models
Major Events And Influences
Buying Access And Trends
Ethnic/Religious Factors
Advertising And Publicity
Ethical Issues
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Technological Competing Technology Development
Research Funding
Associated/Dependent Technologies
Replacement Technology/Solutions
Maturity Of Technology
Manufacturing Maturity And Capacity
Information And Communications
Consumer Buying Mechanisms/Technology
Technology Legislation
Innovation Potential
Technology Access, Licensing, Patents
Intellectual Property Issues
Global Communications
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SWOT Analysis
Strengths,
Weaknesses,
Opportunities
Threats
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Strengths Advantages Of Proposition?
Capabilities?
Competitive Advantages?
USP's - (Unique Selling Points)?
Resources, Assets, People?
Experience, Knowledge, Data?
Financial Reserves, Likely Returns?
Marketing - Reach, Distribution, Awareness?
Innovative Aspects?
Location And Geographical?
Price, Value, Quality?
Accreditations, Qualifications, Certifications?
Processes, Systems, It, Communications?
Cultural, Attitudinal, Behavioral?
Management Cover, Succession?
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Weaknesses Disadvantages Of Proposition?
Gaps In Capabilities?
Lack Of Competitive Strength?
Reputation, Presence And Reach?
Financials?
Own Known Vulnerabilities?
Timescales, Deadlines And Pressures?
Cash flow, Start-up Cash-drain?
Continuity, Supply Chain Robustness?
Effects On Core Activities, Distraction?
Reliability Of Data, Plan Predictability?
Morale, Commitment, Leadership?
Accreditations, Etc?
Processes And Systems, Etc?
Management Cover, Succession?
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Opportunities Market Developments?
Competitors' Vulnerabilities?
Industry Or Lifestyle Trends?
Technology Development And Innovation?
Global Influences?
New Markets, Vertical, Horizontal?
Niche Target Markets?
Geographical, Export, Import?
New USP's?
Tactics - Surprise, Major Contracts, Etc?
Business And Product Development?
Information And Research?
Partnerships, Agencies, Distribution?
Volumes, Production, Economies?
Seasonal, Weather, Fashion Influences?
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Threats Political Effects
Legislative Effects
Environmental Effects
IT Developments
Competitor Intentions - Various
Market Demand
New Technologies, Services, Ideas
Vital Contracts And Partners
Sustaining Internal Capabilities
Obstacles Faced
Insurmountable Weaknesses
Loss Of Key Staff
Sustainable Financial Backing
Economy - Home, Abroad
Seasonality, Weather Effects
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54% of consumers are brand loyal once they find
a brand that “satisfies me”
46% are “national” brand loyalists -
The Ultimate Consumer
51% are willing to pay more for products and
services that “make life easier” for them and
their families
53% buy “only what they need”
50+% spend a great deal of time researching
brands before making a purchase
Brand Loyalty 7
The Brand Elements
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Building The Brand
KEY ELEMENTS 7
PRICE AND VALUE
Value
Quality
Desirable Product Improvements
Product Innovations
Appealing Image
Effective Advertising
More Americans See a “Great Deal Of Difference”
Between Well-known Brands of Products
Consumers Perceive Quality Claims As Having
Reached Parity
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KEY ELEMENTS OF A POWER BRAND 6
Brands that work continuously and
creatively to prove their value to
consumers are crossing over more
quickly to Power Brand Status than
those that don’t
Consumers perceive these brands as being
“different or better and worth paying more
for.”
ROPER STARCH WORLDWIDE
The Brand Elements
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Consumers are looking for convenience
WE AS CONSUMERS ARE…
Turning away from Mega-Center Supermarkets and shopping
more at drug stores and convenience stores for purchases of
food and beverage
Parents continue to seek out discount stores when buying school
clothes and supplies
They seek out specialty stores when they need more
information and knowledge
Over half of small businesses are home-based today,
up from 38% just two years ago Dun & Bradstreet
Home-based and women-owned companies are changing the face of
small business today, with flexibility a key consideration for workers,
either home - or office-based.
Planning Information
Lifestyles
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SOCIETY IS QUICKLY BECOMING TWO TIERED The HAVES
The HAVE-NOTS
LifeStyles For LifeStages
MAJOR LIFESTYLE SHIFTS ARE AHEAD AS THE POPULATION AGES
Market fragmentation
WE ARE IN THE AGE OF AUTONOMY - SELF
RELIANCE
Consumers are “tuning in” when they need us.
Consumers are doing their own research.
We will need to be “on call”, when the consumer decides they want us.
Planning Information
Lifestyles
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ENTERTAINMENT Average household spends $1,841
Books,TV, Movies, Theatre, Toys
We spend nearly 50% of food budget “eating out” in restaurants.
Increasing demand for more prepared or “easy” to prepare foods.
CREDIT IS KING 50%+ of consumers pay for major durable expenses, travel and
mail order with plastic.
Spending Habits
Baby Boomers, entering lower echelons of the “mature market” 65+, their spending from
1990-2008 has risen “significantly”.
Grandparents spend $30 billion/year and purchase 20% of all children’s products sold
We will sacrifice any number of things in the interest of “Saving Time”.
A Furniture “buying” decisions is now made in 1.2 visits per store (2011) from 2.6
visits per store (1996)
Planning Information
Lifestyles
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Women Influence over 82% of All Household “Buy”
Decisions And Are….
Earning Over 50% of Bachelor/Masters Degrees
Most Likely to be “Very Stressed”
Single Mothers 9.8 Million + 36% From 1980’s
Unmarried Co-habitating Mothers Who Eventually Marry -
44%. Down From 57% in 1990
Account for the Overwhelming Majority of Increases on Savings, Investing,
Financial Decisions. A New Dimension of POWER.
As a Group, More Suspicious of Advertising
70% Are More Willing to Purchase a Brand Based on Experience
20% Are Motivated by Advertising or Brand Popularity
Women Are More Likely Than Men to Try to Buy Things on Sale
MEN ARE...
Single Fathers…2.9 Million From 1.7 Million From 1995 to 2010
Planning Information
Lifestyles
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KIDS ARE... Directly influencing more than 20% of ALL PURCHASE
DECISIONS
40% To 80% In many categories
380 billion dollars in purchases
Parents influence them more than anyone else
At 8 years old, many kids are required to take on adult responsibilities
Have high confidence in themselves and very high standards for their leaders
Growing Up Faster Than Ever Before
Kids under 12 have over $15 billion dollars of discretionary income and influence in
excess of $765 billion dollars in purchases
Are Tuned In
Are more visual in their learning and understanding - media savvy
Girls seek out more information than boys
Adult comedy shows on television dominate teen viewing habits
72% think commercials are annoying and interrupt their shows
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PLANNING INFORMATION
LIFESTYLES
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Ethnic Diversity
4 in 5 African Americans are more likely to patronize businesses with a long
history of supporting their communities
Hispanic Americans are the most Brand Loyal. They “cling” to brands
80% of population clustered in 16 states
Population growth outpaces Anglo Americans 2 to 1 between 1995 - 2050
Anglo Americans will be minority
$500,000,000+ Purchasing Power
African Americans have a disproportionate representation in 11 of the top 12 markets for consumers.
90% of Hispanics live in 10 states
Large immigration factor Less educated Hispanic Population continues to get older and more prosperous
Planning Information
Demographics
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Ethnic Marketing - The Market
General
African
American
Hispanic
Other
General
African
American
Hispanic
Other
General
African
American
Hispanic
Other
2000 2010
2050
80% of population clustered in 16 states
Population growth outpaces Anglo
Americans 2 to 1 between 1995 - 2050
Anglo Americans will be minority
$500,000,000+ Purchasing Power
African Americans have a
disproportionate representation in 11 of
the top 12 markets for consumers.
90% of Hispanics live in 10 states
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Situation Analysis
Demographics
Population continues to get older
51% of future retirees plan to live in the “same place”
down 16 percentage points from 1974.
33% of future retirees will most likely move… up from
24%
18% are unsure, up from 9%
Housing Market driven by repeat buyers moving up to more expensive
homes
Married buyers up 16.4%
Widowed, divorced, separated buyers up13.6%
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FEMALES Population, all ages 141,080
MALES Population, all ages 134,979
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Step 1
Develop a Situation Analysis
(cont’d)
Brand Platform
Who We Are
Why Consumers Should Shop With Us
What Is Our Competitive Advantage
Media Options
Beneficial Relationships
Trend Setters
Celebrities
“Experts”
Etc.
Review All Data That May Impact The Marketing Of The Product Or Services.
Examples
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Step 2 Identify Key Issues to Address
Location
Price
Hours Of Operation
Product Mix/
Quality/Availability
Reputation/History
Added Value
(Promotion)
Personality Of
Ownership/Management
Parking
Proximity To Other
Primary Shopping Areas
Ambiance
Guarantee/Warranty
Based On The Situation Analysis Identify The Issues That Can Be
Addressed Via Marketing Communication Elements In Rank
Order Of Importance To The Target Consumer:
Examples
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Step 3 Identify the Objectives Marketing
Communications Needs to Achieve
Need increased store traffic
Overall
Days
Time periods
Need increased sales of specific products
Need increased marketplace awareness of the “brand”
Need to increase awareness of special offers – promotions
Need to promote grand opening
Etc.
Based On The Situation Analysis Identify Primary
Marketing Needs That Can Be Addressed Via Marketing
Communications Elements. Examples
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Step 4
Identify/Select Media to Use in
Communicating the Marketing
Message
Television
Cable
Broadcast
Radio
Newspaper
Daily Metro
Daily Suburban
Weekly
Run Of Press
Inserts
Special Sections
Outdoor
Billboard
Transit
Magazines
Direct Response
Television
Direct Mail (Solo, Co-op)
Telemarketing
Inbound
Outbound
Public Relations
Point of Sale
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Objectives
Secondary
Supporting
Points
Values Benefits
Primary
Communication
Platform
Copy
Positioning
Statement
Step 5
Develop the Creative Message
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Step 6
Develop The Appropriate Media Plan
Select the most appropriate media to use is part art – part science. The number of variables are staggering and almost every media can make a good case to be considered.
The following section will provide you with the basis when it comes to selecting media.
In selecting media, the most important fact is to have a good handle on the demographics of the target audience since most media is either targeted at a specific demographic segment or it is measured based on its ability to reach specific demographic audiences.
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DEMOGRAPHICS
Demographics are attributes—like age, income, and
family composition—that help to define individuals and
groups. When demographic data is collected and
analyzed, shopper profiles can be used to predict how
different types of people will spend money.
For example, 60-year-old “empty nesters” and 30-year-
old couples with small children have different buying
habits. Advertising is most effective when messages are
directed to the most likely buyers. This can be
accomplished by adjusting the creative message and/or
the media in which the message appears.
III. Advertising A. Targeting
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Psychographics
III. Advertising A. Targeting
Psychographics groups people according to
psychological features. With information like values,
attitudes, personality, and lifestyles, marketers can
classify people according to what they feel, believe, and
the way they live. This information helps indicate what
products, services and media they use.
The VALS (Values and Lifestyles) System assigns
consumers to eight (sometimes overlapping) groups
exhibiting distinctive behavior, decision-making, and
product or media usage. Groups range from abundant
resources to minimal resources, as well as principle
oriented, status oriented or action oriented.
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Two Variables — Reach And Frequency — will
Determine The Overall Success Of Your
Media Strategy. Be CONSISTANT
1. REACH is the number of people who see or hear your
advertising. (e.g. a 50 reach means 50% of the desired target will
be exposed to one or more message).
2. FREQUENCY is the number of times your message is received.
The importance of the first variable is obvious—the more people
you REACH with an advertising message, the more people you
see walking through the store. Unfortunately, a single advertising
impression is not likely to generate sufficient awareness. People
need a certain amount of repetition and reinforcement before
name recognition is fully achieved, and that’s why you need
FREQUENCY.
III. Advertising A. Measuring
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3. RATING is the % of a given population group consuming a medium at a particular time. Generally used for broadcast media.
Ex: A TV program with a 10 rating with adults 18-49, means 10% of the adult population between the ages of 18-49 viewed an average minute of programming.
4. GROSS RATING POINT (GRP) is the sum of all ratings delivered by a given list of media vehicles.
Ex: Rating of 10 x 3 announcements = 30 GRP
III. Advertising B. Measurement (cont’d) 3
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III. Advertising B. Measurement (cont’d)
5. Cost per Thousand (CPM): universal means of
measuring cost-efficiency
Medium cost divided by medium audience
delivery=CPM
Ex: Ad costs $350, reaches 12,000 women 18-49:
CPM= $29.17 (350/12000)
6. Cost per rating point (CPP): cost to reach one
percent of homes or individuals in specified area
Medium cost divided by GRP= CPP
Ex: Ad costs $350, GRP is 30: CPP= $11.67
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TV Is The Most Powerful Of All Marketing Communication Mediums Given Its Ability To Deliver Both Visual And Audio Messages. In Addition, TV Has The Ability To Reach The
Greatest Number Of People At Lower Cost With The Exception Of The Internet
TV Can Be Bought Two Ways – Either Broadcast (Traditional Over-the-air Local TV Stations) Or
Cable.
III. Media Television
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Buy advertising in programming that
reaches your target audience.
In small markets, prime time and highly
rated shows may be affordable.
If specific programming is too expensive
(e.g. you cannot get the frequency
desired) then consider buying “Day
Parts”.
III. Media A. Television - – Over-the-Air Broadcast
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Day Parts:
- Morning News: 5A-9A - Early News: 5P-7P
- Morning: 9A-Noon - Access: 7P-8P
- Daytime: Noon-3P - Prime: 8P-11P
- Early Fringe: 3P-5P - Late News: 11P-11:30P
- Late Friday: 11:30P-1A
Some stations will offer better rates to
a new advertiser.
III. Media Television - Broadcast
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All Things Are Negotiable:
Bonus spots in other programming/day parts
Rate
Level of pre-emtability
Participation in promotions
Product exposure on “soft” news shows
Merchandise for traffic building promotions
Listing in stations TV ads: “ABC” Show brought to
you by XYZ
Term of commitment
III. Media A. Television - Broadcast 3
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At certain investment levels the local TV station can
justify producing spots as part of the buy (some cable
systems also have studios and can offer the same
advantages).
Commercial length is an important factor to consider;
:30 second units are the most effective in delivering a
brand and “buy now” message. :10’s can be effective
as part of a TV campaign that utilizes :30’s since the :10
becomes a “reminder” message.
III. Media A. Television - Broadcast
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Cable offers excellent geographic targeting – in larger markets because of the “zones” they offer. In smaller markets with fewer “zones” the benefits of cable is absolute cost (low).
Cable TV presents an excellent opportunity, especially in larger markets with many cable zones for the retailer with smaller budgets.
Cable networks are primarily focused on offering one type of programming so they can reach people with a high degree of interest in their programs:
ESPN – Sports
HGTV, Food Channel & More
III. Media B. Television - Cable 3
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Cable networks are sold by the sales-reps from the local system.
Cable systems will sell a “rotator” or a spot they schedule. These are usually very low cost/unit, but should never make up more than 10-15% of a cable buy because of the uncertainty of when the “rotator” spot will air….Late – late night filler spots, etc.
III. Media B. Television - Cable 3
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Like broadcast, cable can also offer
added value elements:
Extra spots
Billboards
Cable can also offer retailers a chance to be involved in the systems promotions to attract or upgrade customers. This is an excellent opportunity to gain exposure in the cable systems advertising and promotion materials.
III. Media Television - Cable
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Understand cable ratings are not the same as regular TV ratings. They are based on the % of homes in a market that have cable TV. For example:
A 3 rating in a market with 200,000 overall
TV HH’s is 6,000 HH’s (HH=House Holds)
A 3 cable rating in a market with 200,000
HH’s of which 100,000 have cable equates
to 3,000 HH.
III. Media B. Television - Cable 3
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Advertising on Television - FAQ’s
As a Dealer We Now Have a Choice of Over-the-air or Cable
Television. What Are the Differences?
Both Are Mediums That Can Provide Tremendous Marketing
Muscle. Over-the-air Television Covers a Very Wide Market
Area With Broad Based Programming While Cable Television Is
Designed to Cover Smaller Market Areas With More Targeted
Programming Material.
Is Television Advertising Affordable?
Television Advertising, Both Cable and Over-the-air, in Most
Markets Costs Less Than Many of the Other Major Mediums
Like Newspaper and Radio. However, the Coverage Area Is So
Much Larger That the Individual Commercial Costs May Seem
Larger. Broken Down Into a Cost-per-thousand (What It Would
Cost to Reach 1000 Customers) Television Is Generally One of
the Most Cost Effective Mediums Available.
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How Big a Budget Do I Need to Use Television?
More Than Budget, the Primary Consideration Should Be Length of Your
Television Advertising Campaign.
For Events Like a Holiday Sale, Weekend Sale, Etc., You Need to Concentrate As
Much As Possible Into a Few Days, and Make Sure the Audience Sees Your
Message the Proper Amount of Times. A Good Guide Is to Reach the Audience
With Your Message a Minimum of 3-5 Times. On an Extended Campaign, Like a
Summer Sale, Where Your Message Will Be on Television for Multiple Weeks in a
Row, You Can Stretch a Bit More an Have the Cumulative Effect Help Reach This
3 Time Benchmark.
When You Add the Number of Times You Have Reached Your Audience, With the
Overall Number of People Your Message Reached, You Get What Media
Professionals Call Total Rating Points or TRP’s In Any Campaign You Should
Expect to Run No Less Than 50 TRP’s a Week, With the More Concentrated
Event Campaigns Requiring a Minimum Investment of 100 TRP’s.
How Do I Know What a Rating Point Costs in My Market?
Cable companies have a Cost Per Rating Point Breakdown for Every Market in
the United States. Your Regional Rep Can Share These Estimated Costs With
You So You Can Determine If Your Budget Can Support the Power of Television
Advertising.
Advertising on Television - FAQ’s
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I’ve Never Used Television Before. How Do I Choose
Between Cable and Over-the-air?
Used Properly, a Mix of Both Works Best. As a Rule of Thumb, If
You’re Looking to Concentrate You Efforts on a Tight Radius Around
Your Location, Then Cable Will Be Your Choice. If You Are Looking to
Send Your Message to the Largest Geographic Footprint Available,
Then Over-the-air Is Your Choice. Again, the Combination of Both
Works Best, and for Most B, C, and D Sized Markets Is Realistic.
In A Markets (New York, Chicago, Philadelphia, Atlanta As Examples)
You Will Need to Consider Number of Locations and Trade Radius,
Along With Cost Per Points of the Market. These Are the Most
Expensive Media Markets, and You Should Consider Proposals From
Both Before Making Any Decision.
How Do I Get Information for My Market?
Local representatives in your market for the various media outlets
Advertising on Television - FAQ’s
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Cable Pre-Buy Analysis
Dealer Demographic Data
Dealer Trade Area Mapped
Dealer Budget Analyses
Dealer Customized Proposal From
Local cable Affiliate
III. Media B. Television - Cable 3
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III. Media Television: Buying
What To Do When Buying Television Time
Ask which programs are available? At what cost?
Analyze efficiency of available programs
Negotiate on price of advertising
Figure the reach and frequency of considered programs
Read and sign the necessary contracts
Track performance
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III. Media Television: Buying 7
Be Prepared
• Demographics/Target
• Geographics
• Reach & Frequency Goal
• Getting the Proper Information
• Comparing Costs
• Buying enough to be EFFECTIVE
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Demographics
- Define who your Target Customer is:
• How old are they?
• Are they male or female?
• What is their income?
• Are they homeowners? Do they have
children?
III. Media Television: Buying
Be Prepared
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III. Media Television: Buying
Be Prepared
Geographics
Define where your Target Customer lives:
• DMA
• Metro
• County
• Specific Zip Code
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III. Media Television: Buying
Be Prepared Reach & Frequency
1. Define how many of your Target Customers
you want to reach
2. Define how many times you want to reach
them.
3. Average delivery is a 60% Reach with a 3
Frequency equaling 180 GRP’s
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III. Media Television: Buying
Be Prepared
Customer Profile
Women 25-49
Owns their home
50k+ Household Income
2 or more children living at home
Harrisburg Metro Area
Reach 60% with a 3 Frequency
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III. Media Television: Buying
Be Prepared
Numbers Don’t Lie - Getting The Proper Information
Request ratings and rankers from your media
representative
Ask for information based on your customer profile
Get specific rates by specific dayparts (ex: M-F 6a-7p)
Build your own schedules or ask a media rep to build
the schedules the way you want them
Keep the information consistant and you will be able to
compare costs
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III. Media Television: Buying
Be Prepared
Rules of Thumb Buy Enough to be Effective
A media schedule with a 60% Reach and a Frequency of 3 or more will be
EFFECTIVE
When using more than one medium you will most likely achieve sufficient
Reach.
A Frequency of 3 is the minimum barrier to recall - A 5-7 Frequency is
preferred
Base your media schedules on Reach and Frequency Goals, not GRP Goals.
100 GRP’s can deliver: 30% Reach with a 3.3 Frequency
Or 50% Reach with a 2 Frequency
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Get Something for Nothing!
Bonus Spots
News/Weather/Traffic Sponsorships
Web Links
On air Give-a-ways
Trade
Promotional tie-ins
III. Media Television: Buying
Be Prepared
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TV is a “shotgun” medium—it hits large numbers. 81% of the U.S.
population 18+ listen to radio daily. Radio is a “rifle” medium —it hits
smaller numbers of listeners with more specific demographic profiles.
Though radio suffers from the same limitations as cable TV—too many
channels—there are other downsides.
First, radio is not a visual medium—the customer cannot see your
product.
Second—radio spots may actually cost more than TV spots—and
evening audiences are very low. Many stations program for young age
groups. Look for formats that target older households with average or
higher disposable income.
Some Retailers have gotten good results with live in-store broadcasts
tied to special events. Since federal deregulation of station ownership,
radio conglomerates have appeared. In some markets, multi-station
packages offer broader demographic reach
III. Media Radio
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III. Media Radio
Radio stations “Demographics Breaks” provide
you with a guide on who the station has for an
audience.
Men or Women
12-17
18-24
25-34
35-44
45-54
55-64
65 and older
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III. Media Radio
Try to buy as narrow a target as possible and do not look at very broad categories (e.g. adults 18+).
Ratings are published each quarter – the key piece of information is how a station ranks against all other in the market reaching your target audience (i.e. the cumulative number of listeners in your target group).
Because of the relative inexactitude of radio, ratings always try to evaluate stations based on an average of at least two rating periods.
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III. Media Radio
Since you will use radio to build message frequency, the TSP (Time Spent Listening) is as important to look at as is average quarter hour (AQH) ratings.
Stations also sell “day parts” (e.g. Morning drive 6A-10A) but the best schedule includes spots in almost all day parts. So identify specific day parts and also ask for a few “rotators.”
Radio requires frequency to be effective (minimum of 4 x’s).
The first quarter is the best time to get deals on radio rate.
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III. Media C. Radio 3
Radio stations are very promotion driven and almost all of them are experts at staging events. When buying a station, ask to be part of their events or share in the visibility at they have at someone else’s event. Some stations will even use your retail location as a site for one of their events.
Stations get a computer generated report – the ranker – which shows the demographic audience for each station in the market. These are based on CUME; ratings, AQH, Average Quarter-Hour Persons…the number of persons listening to a particular station for at least five minutes during a 15-minute period. share, etc. and by listeners purchase habits. Use this data to help find your customers/prospects.
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III. Media C. Radio 3
Radio Stations Added Benefits That Can Be Negotiated:
Free spot production (even writing!)
Free spots
Better positions in day parts
Better positions in a commercial
Tickets to local events
Remote at your location
Merchandise to use as traffic builders for your promotions
ID on their web site and hot link
Billboards
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III. Media C. Radio 7
Preparing A Radio Schedule
Find stations with the greatest concentration of your target audience
Determine which stations have a format which offers the highest concentration of potential buyers
Find which part of the day would offer most potential buyers
Design your scheduling with a strong mix of day-parts
Determine the reach and frequency
Figure cost per 1,000 of target persons reached
Negotiate a price, buy the time
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Most consumers who buy furniture also read
newspapers, but display ads can be expensive. Pre-
printed inserts—also known as “circulars” or “Sunday
supplements”—may be more cost effective. Ask your
newspaper rep about geographic “breakouts”—portions
of the home-delivery circulation that can be selected by
postal zip code. High-income neighborhoods buy more
new furniture.
Newsprint periodicals — those with nothing but
advertising—cater to people who buy things. That may
be good, but the demographic profile is low—most
readers are looking for second-hand items.
BUT….Who reads newspapers anymore ???
III. Media Newspaper/Shoppers
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Sample Ads
Design Questions
Which Products?
How Large?
Color or B&W?
Offers & Descriptions
Proofs
III. Media Newspaper - Circulars/Shoppers Checklist
File Transfer
Tips on Buying Print Ads
Compare Actual Sizes
Contracts and Insertion Orders
Placement
Small Ads are OK
Sample Ad Sizing
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Fixed Cost
Quantity Prices
Shipping Cost
Grand Opening Format
Special Runs
IV. Media Newspaper - Circular/Shoppers -Checklist
Circular Size
In-Home Date
Print Date
Order Cut-Off Date
Comp Date
Imprint Space
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III. Media Newspaper/Shoppers
Terms:
• Standard-size newspaper: 22” deep, 13” wide, six columns
• Tabloid-size newspaper: 14” deep, 11” wide
• Standard Advertising Unit (SAU), or column inch:
1” deep, 2 1/16” wide
• Run of Press (ROP) ads: an on-page newspaper ad
• Circulars/ Free Standing Inserts (FSI): pre-printed ads inserted into a newspaper
Size and readership:
24% of readers notice a fractional page ad
40% of readers notice a one page ad
55% of readers notice two page spreads
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How To Read A Demographic Profile
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Delivery Options for Circulars
Newspaper
Shared Mail
III. Media Newspaper/Shoppers
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III. Media Newspaper/Shoppers Shared Mail (Red Plum)
Largest Private Customer of the US Post Office Distribute to ~65 million households weekly Distribute to another ~35 million households monthly via their ANNE network Have established distribution agreements w/newspapers in select markets.
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17 Items To Consider In Your Print Advertising
1. Prominently show your 800 number
and stress the call is toll free.
2. Put a phone bug next to the toll-
free number. It will boost calls.
3. Use a street return address. It’s
more reassuring than a P.O. Box.
4. Consider a free catalog/sample
offer. Use a picture of the “freebie.”
5. If you have space, include
testimonials from satisfied
customers.
6. State your guarantee. This is
essential.
7. Use a coupon with clip marks.
Ovation has tested this extensively
and the coupon pulls best.
8. Mention quick delivery in your ad.
8. If express delivery is available,
mention that too.
9. Provide some history of the
company—boosts your credibility.
10. Use a benefit headline.
11. Follow your headline with as
many features as possible.
12. Bigger is better. Start with smaller
ads, and then “test up.”
13. Code your ad for tracking
purposes.
14. Use 9 pt. type (at least) for
readability.
15. Use logos and pictures when
possible.
16. State your credit terms.
17. Be sure to ask for the order
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A billboard on a heavily traveled route
could be a good investment, but keep the
message simple. The average billboard can
be seen for no more than seven seconds,
so four words and one visual image is all
you can count on getting across. If you can
find billboard placements close to your
store, messages like “turn at the next
corner” are good traffic builders.
III. Media Billboards
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III. Media Billboards
Three Standard Sizes:
8-sheet Junior Poster: 11’ x 5’
Visibility: 30%
Readership: 29%
Re-examination: 1.3
30-sheet Poster: 21’7” x 9’7”
Visibility: 37%
Readership: 29%
Re-examination: 1.5
Bulletin: 48’ x 14’
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Shoppers no longer rely heavily on listing in their telephone
directories. They may have seen or heard your ads, but where
exactly is your store located, and when is it open? The
Internet is where you NEED TO BE
Yellow pages used to be referred to at that critical moment
when shoppers are finally ready to get in the car and shop for
what they want. So don’t skimp on the listing your store on all
the internet Yellow Page sites. A huge display is not
necessary, but your ad should stand up well against others in
the category.
Yellow Pages are losing ground each year to on-line yellow
pages and the GOGGLE Search
Don’t waste your money
III. Media Yellow Pages
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Magazines that cater to local urban dwellers
can be effective, and readership demographics
are excellent. Most cities have “relocation”
magazines that target newcomers. Use these
publications to highlight your newest designs
and most expensive items. Beware of hotel-
distributed “entertainment guides”—the
readers are just passing through.
III. Media
G. Local Magazines/Print
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Direct-mail companies can offer you a
variety of customized lists, but
postage and printing costs are
relatively high. Former customers are
your best future customers, so use
your own lists first. Mail is good for
clearance sales and seasonal
promotions.
Women LOVE Direct mail !!!!
III. Media
H. Direct Mail
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Direct Mail
Mailing Lists
Labels
Print Formats
Self Mailers
Printing
Postage
Local Production
III. Media
Direct Mail
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For the purpose of bringing people into retail stores,
telemarketing has limited value, if any with the Do Not
Call Lists. Like direct mail, phone solicitation works
best when the prospects you target are prior
customers, especially if you know something about
their buying habits. Begin by building a database of
customers and credit applicants. With each entry, list
the types of products the customer already has. If
customers purchased single items, you may be able
to interest them in matching pieces or related groups.
That strategy is known as “cross marketing.”
III. Media
I. Telemarketing
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III. PROMOTION
Promotion can reinforces the positioning enhances image but cannot lead the establishment of a position or image
Promotion can be an important tool in building customer retention and purchase provides continuity
Promotion is often the center piece of an integrated effort
Promotion helps establish a positive point of difference with competition
Promotion can add value to offset competition
Promotion can help obtain trail of new products
Promotion can stimulate a sales force
Promotion can stimulate a customer to take direct action
Role
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III. Promotion
Most marketing communications efforts of retailers is promotional in nature since the communication more often than not includes some “additional enticement” to attract traffic/build sales other than just listing products and price.
There are a wide variety of promotional concepts that can be used to drive traffic/encourage purchase at retail.
Selling add-on items can be the difference between a store succeeding or barely getting by.
Role
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III. Promotion
The most effective promotional activities to drive retail traffic are:
Free gifts On-site entertainment Instant win games (everyone wins)
The most effective promotional tool to build a database is a sweepstakes
The most effective promotional tool to encourage purchase are;
- Sales - Extended warranty - Gift w/purchase - Payment options - Purchase w/purchase - Free delivery or
service
The most effective way to enhance brand image is via sponsorships or charitable tie-ins
Tools
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III. Promotion
Special Events at stores:
Select a topic that fits with your products and bring in experts in the field to attract attention (e.g.)
Furniture – decorators, free advice
Kitchen table – chefs, cooking lessons
Sporting goods – coaches, free clinics
Families- child-centered activities
Can easily be tied in with a prize drawing or contest as well
Special Events
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Store Display - 71%
Radio Advertising -
29%
Internet - 26%
Store Circulars -
58%
Magazine -
Newspaper - 74%
Word
of
Mouth -59%
TV -51%
Product Packaging -
68%
Direct Mail - 66%
What Form of “Advertising” is Used to Communicate Promotions to Consumers? 1
Newspaper
Insert - 71%
III. Promotion
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Free Stuff - 30.%
Charity - 19.0%
Coupons - 71.4%
Points Program -
17.2%
Gift W/Purchase 12%
Buy One/Get One -
64.7%
Rebates - 29.3%
Sweepstakes - 14.4%
Most Popular Promotions 1 III. Promotion
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III The In-Store Experience
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Planograms
Adjacencies
Space allocations
Promotional Programs
Special fixturing
Merchandise quantities
Required productivity, i.e. stock turns
III. The In-Store Experience
Planning Elements
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III. The In-Store Experience
Floor plan, traffic flow, space allocation, adjacencies
Fixturing placement
Store Design
Interior furnishings, components and layout
Decor
Colors
Lighting
Flooring treatments
Wall treatments
Ceiling treatments
Fixture selection
Display techniques
Graphics & Signage - Incorporate marketing concept
Exterior - Logo / Identity
Interior Informational Graphics & Signage - i.e. departmental
Interior Promotional Display Graphics & Signage
Planning Elements
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III. The In-Store Experience The Experience of Shopping 8
A store has three distinct aspects:
Design, or premises
Merchandising, or product
Operations, or what employees do
Buying is based on trial and touch today more than ever
Operations, or what employees do
A store can offer shoppers:
Touch, trial, sensory stimuli
Immediate gratification
Social interaction * Source: Why we Buy: the Science of Shopping, Paco Underhill,
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III. The In-Store Experience
Entering the Store
Windows
Small-scaled signs or merchandise cannot be seen while rushing in from a parking lot
Message must be big, bold, short, simple
Store Entry
Customers need a transition zone of about 10 feet
Americans automatically move toward the right
Store Viewing
Merchandise should be displayed to greet shoppers face on, not sideways
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III. The In-Store Experience Women
Women influence 80+% of purchasing decisions
Take pride in providing good value to their family through their shopping skills
Shopping is a process of searching, examining, questioning, acquiring, absorbing
Shopping can be a transforming experience method of becoming a newer, perhaps slightly improved person. Products turn you into the other, idealized version of yourself
Women are more likely than men to ask another person for product information or store directions
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III. The In-Store Experience
Men
A woman’s comfort level plunges with an anxious or bored man by her side
If he can be occupied, she’ll spend more time & money
Be careful of where you place relaxation areas:
Practicality, aesthetics, intimidation of other shoppers
Men more likely to consult product packaging, signs, and brochures for product information or store directions
Male shoppers require more and more child considerations
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III. The In-Store Experience
Children
Children are an economic force: now and in the future
If a store is unwelcoming to children, parents will stay away
Leave width for baby strollers and passerby if you don’t
want to shut out 50% of all women and men age 20-30
Children are enthusiastic consumers if needs are considered
Place items within eye level and reach of a child walking or
riding in a cart
Place items in an aisle where parents likely to be
If Mom won’t buy it, Dad will
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The Internet
III
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Old Dog New Tricks
Me Me
Again
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If a retailer does not recognize the changing dynamics of the consumer; how they will shop and connect with brands in the
future, they will not just be punished; they will be punished
with impunity.
2005
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The ability to learn faster than your competitor
may be the only sustainable competitive
advantage
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In The 60’s It Was All About
PLASTICS
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Today & Beyond It’s All About
Being Connected
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June 24, 2010
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2000
46% Of Adults Use Internet
5% With Broadband At Home
50% Own A Cell Phone
0% Connect Wirelessly
10% Use “Cloud”
0% = Tech Social Networkers
THEN: Slow, Stationary
Connections Built Around My
Computer
The Internet Is The Change Agent
Then And Now
2010
79% Of Adults Use Internet
64% Have Broadband At Home
82% Own A Cell Phone
59% Connect Wirelessly
66% Use The “Cloud”
48% = Tech Social Networkers
NOW: Faster, Mobile Connections
Built Around Outside Servers And
Storage
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To Reach 50,000,000 Users… It Took:
Telephone - 38 years
Television - 13 years
Internet - 4 years
iPod - 3 years
Facebook - 2 years
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How We Are Connected
The number of internet devices in 1984 was 1,000
The number of internet devices in 1992 was 1,000,000
The number of internet devices in 2008 was 1,000,000,000
The number of internet devices in 2015 will be 15,000,000,000
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Today The Internet Has Changed
Everything
In a recent survey, 72+% Of
women surveyed said they were
doing online research before
buying shampoo.
The Breck Girl is being replaced by a “shopping bot”.
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Traditional Ways to Get “DEALS”
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The New Way
Click & Print - FREE
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How We Market 12 Items Of Home Furnishings In 30
Seconds AND….
The Consumer is Supposed to Retain This Message ???
OR How We Can WIN The Race To The
Bottom With 99% Off Retail
Let’s Get Visual
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Average Time Consumers Spend “PER DAY” With Major Media
Source: e-Marketer December 2011
“US adults now spend more time on mobile
devices each day than they do with print
media.”
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For First Time In History, TV Ownership Declines
A.C. Nielsen
November 2011
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Video – Sharing Site Usage Over Time
2006-2011
Are You Streaming Video on Your Website?
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Visits To Online Video-Sharing Sites By Regions
A Great Way To show off your store, share your brand platform and more….without trying to cram it into a 30
second spot
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Meanwhile More Than 1,000,000,000,000
(One Trillion) Playbacks On YouTube
This Year (Yep, Count ‘Em, 12 Zeroes).
That’s About 140 Views For Every Person On The Earth. More Than Twice As Many Stars As In The Milky Way.
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78% Of The U.S. Is Connected To The Internet
272,100,000 Individuals
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1 In 2 Smart Phone Users Have Searched On Their Phones For Nearby Stores
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How Are You Marketing Your Store And To Whom ?
Integrated Marketing?
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Everything Has Changed
BUT….
The Most Profound Change Relates To The Demographic
Shift in the Past 7 Years
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Older BOOMERS
58 – 63 Years of Age
PAST - Primary Target Market for Home Furnishings
Total BOOMER Population 76,985,270
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Young BOOMERS
45 – 50 Years of Age
PAST - Primary Target Market for Home Furnishings
Total BOOMER Population 76,985,270
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Middle BOOMERS
51 – 57 Years of Age
PAST - Primary Target Market for Home Furnishings
Total BOOMER Population 76,985,270
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Gen “X”
33 – 44 Years of Age
NEW Primary Target Market for Home
Furnishings
Total “X” Population 49,660,301
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15– 32 Years of Age
NEW Upcoming & Secondary Target Market for Home
Furnishings
Total GEN “Y” Population 76,370,030
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Total Gen “X” + Gen “Y” Population
126,030,331
Are You Prepared For This Consumer?
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The Vast Majority Of Gen X Is Already Online (88%) And,
By 2015, That Figure Will Have Topped 90%.
In Fact, The Report Found That Gen X's Digital Media
Consumption Is Strikingly Similar To That Of Gen “Y” - Millennials.
They Use Social Networks, Watch Video On Their Computers And Mobile Devices, And Enjoy Shopping Online. They Methodically
Research And Evaluate Products Prior To Purchase And Place Great Value On The Opinions Of Their Friends And Family.
E-Marketer
December 2011
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Little Dog
Big Dog When It Comes To Your Business Model, Who Would You Rather Be?
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Everyone is doing it…..Is Your Store or Brand There to Participate IF They want To Find
You?
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3 Fundamentals Of a Great Internet Marketing Strategy
Attract - Getting found
Engage – engaging them with lots of content and information so they can make an “informed” decision
Connect – consumers with your sales people/store with sales, marketing and communication tools
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Internet Marketing The Basics….
Get Found
There are 3 fundamental ways
Consumers
search for Home Furnishings
General Searches
Category Searches
Branded Searches 42% Of Organic Searches In The Last Year Are 4+ Words
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Search Attracting Consumers
General Searches
General searches are the most common search phrases among non dealer-specific furniture searches. These phrases use terms such as "furniture" or "furniture store" combined with a geographic term such as "Minneapolis" or "Twin Cities."
Category searches
Category searches are the next most common type of furniture search. Category or "room" searches are comprised of furniture specific keywords such as "bedroom furniture" or "reclining sofa" combined with geographic terms.
Branded searches
Manufacturer branded searches are made up of a manufacturer's brand name, collection name or specific item/SKU name combined with a geographic term.
You MUST Have Content That Addresses All 3 To Be Successful !!!
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Over the past few years, Google has attracted 65-70% of all
internet searches.
97% of American internet users use the internet to shop of which 57% characterize their behavior as shop online, purchase offline (NPD Group)
90% of online commercial searches result in offline purchases (comScore)
82% of local searchers follow up offline via an in-store visit, phone call or purchase (TMP/comScore)
74% of Internet users perform local searches (Kelsey Group)
61% of local searches result in purchases (TMP/comScore)
54% of Internet users would rather use the Internet and local search then phone books (comScore)
35% of all searches are local (DM News)
March 11, 2011
Around three quarters of all internet users perform local searches while an astonishing 82% of these searches result in an offline phone call, in-store visit or
purchase.
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Once They Find You… Now What?
Engage Them
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Lance Hanish • Taking it a step further, part of the success of the mobile sales is due to the interactivity QR Codes bring. 57% of consumers who have scanned a QR code say they shared the information with someone and 18% who made a purchase, according to a survey released in January 2012 by Chadwick Martin Bailey (CMB). Those who have scanned a QR code, 41% said that they found the information they received useful. 70% of these consumers found QR codes easy to scan, compared to just 7% who found them difficult. Overall, just 21% of the survey respondents said they had heard of QR codes, although 81% recalled seeing one when presented with an image. According to an October 2011 survey from strategic marketing firm Russell Herder, 72% of consumers said they had seen a QR code, but nearly 30% did not know what it was. Home furnishings has to get on top of this issue in order to create new sales.
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Once They Find What They Want……
Contact us form
Contact us form on every page
Call the store
Call the store on every page
Sign up for email
Sign up for email on every page
Visit the store
Turn by turn directions to your store
3.) Connect With Them Offering The Consumer a “Variety” of Tools For Communication, Your Promotions, Specials and More….
Add to wish-list - Add to favorites
Request information with product info
Print this page
Forward to friend
Send to social media
View current ad page
Current ad-promotion on every page
Apply for financing
Product tagging for clearance, special, hot buy
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Now What?
Choosing a Home Furnishing Web Site Development Team
&
How To Create a RFP
© FurnitureDealer.net 2012 All Rights Reserved
Excerpts From Andy Bernstein’s Furniture Today Conference 2011
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What’s In This Presentation…. FOR YOU
You think you've clearly explained the type of Web site you want for your company, yet the quotes you get back from Web developers range from a few thousand dollars to tens of
thousands of dollars.
How could the price be so different? What other criteria are critical when selecting a Web development firm to work for your
company?
What questions must you ask to be sure your Web project is delivered on time, in budget and works the way you intended?
In this document, you'll get the straight answers and tools you need to feel confident when selecting a vendor for your next
Web-based project.
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Every Retailer NEEDS a Successful
Website - BUT It’s Not Easy or Inexpensive
More than 3 out of 4 furniture purchases are influenced by online research
81% of home furnishings shoppers cite the internet as their #1 source of information
An online shopper can visit 10 websites in 15 minutes and consumers have NO patience for bad websites.
Very few furniture companies have implemented successful internet strategies.
Approximately 92.3% of local brick and mortar furniture retailers have poor websites that disappoint consumers.
Making a good internet strategy and website decision is very
difficult to do.
BUT…..
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Why Have So Many Retailers Failed With Their Website?
Good websites are expensive – they require a lot of time, money and skill.
But, money alone cannot buy a good website.
Most home furnishings executives (people above the age of 35) simply are
not expert about the internet. They do not understand it well.
It's tough to tell the difference between great, average and bad website providers
yet, this decision will have a major impact on your company’s business.
To make matters worse, it is very easy to build a website (any kid can do
it) and it is easy to throw around internet buzz words (like social
networking, blog, e-commerce, search engine optimization, pay per click,
analytics, etc.) that can make some salesman seem expert to someone
who is not experienced or confident.
The fact of the matter is that big talk is much easier than big success
when it comes to furniture websites.
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What makes a retail website bad?
SEO – Search Engine Optimization
Does the site get found on Google, Yahoo, MSN and Bing by local
consumers who are searching for the products and services that the
retailer sells. If not, it doesn’t matter how good everything else is on
the site. You don’t get a chance at that business.
Product Shopping Environment
The vast majority of local retailer websites hardly show any product.
If you don’t show it, the consumer will assume that you don’t offer it.
It sounds obvious, but it is crazy how many retailer websites don’t
even show their entire inventoried offering, let alone the extended
special order options available from their key suppliers. If you take a
look at which sites are influencing the most business, you will see
extensive and well done product catalogs.
There are a lot of things that make great websites great. However, there are really two things that are hands down the
most important at separating good (or successful) websites from bad (unsuccessful) ones.
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What should your top priorities be?
• Product Content
• Search Engine Optimization
• Software/Site Features
• Service and Maintenance
• Your Contract is Key
Your Internet Marketing Plan
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What Should Your Top Priorities Be? Hands Down…..Product Content
Perhaps the single most important driver of a successful website is the
product content.
Furniture products are complex and information rich.
You make your money by selling products. The primary purpose
consumers visit retail websites is because they are considering
purchasing products.
Search engines read words…. NOT PICTURES or Flash Videos!!! Selection is key for attracting more visitors.
Your site navigation will be based on good data structure and disciplined
data entry.
Suppliers introduce and discontinue products all the time but they are
not good at providing dealers with that product information for websites.
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What Should Your Top Priorities Be? Product Content
Breadth and Depth of Selection From Your Key Brands Does your web provider have content for the products and brands you
carry?
If not, what is your strategy for creating or obtaining it? It is a lot of work.
If you do NOT show it, consumers will assume you do NOT offer it.
You need to show your inventory plus your extended offering from key
suppliers?
Commitment to Updating and Maintaining Merchandise
Content
How good is your web provider at updating and maintaining the product
information? It changes often. Are they on top of it, or will you need to
be? How much will that cost?
If your web provider does not have a content library, are you prepared?
Additional cost: Time & Resources
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What Should Your Top Priorities Be? Product Content
Quality of Product Presentations How good are their product presentations? Home Furnishings products are
complicated and there is a lot to show, tell, explain and demonstrate about
them. Are they “Content/Attribute” Rich or are they like a simple catalog
page with bare minimum content?
Do they provide good descriptive information, dimensions, features and
construction to help your people show, tell & sell so consumers have enough
information to decide?
Does your web provider have multiple images to show alternate views,
configuration options, style options, room settings, details, quality.
Do they incorporate video and PDF rich media?
Original Descriptive Copy is Extremely Important
Are the descriptions original and keyword rich to come up when
consumers search on Google, or are they scraped and copied from
manufacturer sites?
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Prove It – Do your homework. You’ll be glad you did.
How To Check The Content Library? Ask to see the current unfiltered content library. Seeing a list of
brands can be misleading. Many brands are incomplete
and not kept current.
If the web developer is unable to give you access to the content
library, provide them with a confidential list of your lineup and
ask them to provide you with an inventory of what they have in it
and what they don’t.
Make sure new collections are published. Look at the
collections and see if they are well done. Original romance copy
is important too.
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What Should Your Top Priorities Be? SEO
• If your website does not get found when local consumers are searching online for
what you sell, your store probably will not be considered by them.
• Sometimes consumers search for your company by name. Most of the time, they
get specific and ask Google to find what it is that they are looking for.
• On our network of sites, more than 70% of the site traffic comes from unpaid
search and just about 50% of the visits come from non-branded search – meaning
a search phrase that does not include the retailer’s company name.
• There are two types of search engine optimization – static and dynamic. Static
means the information pages are created by hand. Dynamic means that they are
generated through powerful database tools.
• A typical SEO specialist who produces static content will talk about being able to get you
first page listings for a small number of keyword search phrases (Maybe 10, 20 or 100).
They sometimes offer guarantees.
• Dynamic sites that are well designed to be search engine friendly that utilize original rich
product descriptions will achieve thousands of keyword phrase visits through thousands
of landing pages. The difference is dramatic, but the descriptions and marketing sound
similar.
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Prove It – Do Your Homework. You’ll Be Glad You Did.
How To Inspect SEO? Try to see analytics for a couple clients of theirs who are similar sized to
your company and who operate in a similar sized market. Those are the
two main variables that have a big impact on traffic volume.
Reports to look at:
Non-Branded/Unpaid Search - Percentage of traffic that comes through unpaid
search that excludes the retailer’s own name.
Number of Keywords – VERY IMPORTANT
Number of Landing Pages
Before and After Comparison - Ideally, you could see analytics before and after
developer launched.
Check Google – do searches in nearby towns for brands and items
Ask a competitor to evaluate the SEO of those sites
Use online tools like our FREE 93 Point Assessment
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What Should Your Top Priorities Be? Product Content
Data Structure Allows for Site Navigation
and Usefulness
Data structure allows for site navigation,
categorization, narrow your search, compare,
coordinating items, alternate finish.
Modular components and packages may be
necessary for your pricing and selling needs.
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What Should Your Top Priorities Be? Software Features
It Is Important That Your Software Have The Features That You Want And
Need To Tell Your Story And Sell Your Products. Important Features To
Consider Include:
• Site design and page layouts
• Product Coordinating Items to show the related items in a collection – i.e. if a bed has
matching case pieces or if a sofa has matching chair, ottoman, loveseat and sectional
• Multiple Image Viewer and Rich Media to better show and demonstrate products
• Site Navigation – it should be logical, easy to use and simple to understand
• Merchandise Tagging and Sort Order
• Inventory Data Integration – ability to show what’s on the floor and/or availability
• Administrative tools to make changes and updates on your site
• Integrated Marketing to Communicate Promotions and Marketing Messages on Every Page of
the Site – Do You Have an Internet Presence/Policy or Strategy?
• Wish List/Save Projects – tools that enable consumers to save their favorites and
salespeople to save client projects
• Store location and information page with interactive maps
• Financing tools like online special financing applications are important for retailers that offer
this
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What Should Your Top Priorities Be? Service and Maintenance
What are my full service, self service and
integration/automation maintenance
options?
What is NOT included, and how much does it
cost?
How are requests submitted? Will I be able
to speak to a person? How long does it take
to get a response and a completion?
What sorts of training and support are
included or available?
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What Should Your Top Priorities Be? Service and Maintenance
Merchandising
• Tell me about my merchandising controls? Do I have control of
adding and removing products? How long do updates take to get
published on the site?
• Can I tag inventory, enter prices, tag clearance, tag specials, identify
special order only, private label, package products, append
materials in content library?
• What is the process, cost and timing for adding new products to the
site? Self publish, You publish?
• Do you offer inventory data integration/automation service? How
much does it cost and what is involved?
Marketing
• Self service, full service options for ad posting and ad scheduling?
• Email signup offer and list. How do those work?
• Access to Analytics?
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What Should Your Top Priorities Be? Service and Maintenance
Other or Static Pages (Additional Pages In The Site)
• What’s included? How much do they cost? How do we create and manage
them? Full service or self service?
Customization and Personalization
• How much can we customize the templates – about us, merchandising,
advertising, page layouts, site design…
Software Improvements
• What software improvements and enhancements are you working on and
planning on? Will they be included in my package, or how much will they
cost?
• What improvements or enhancements were created over the past 9 months,
and how much were existing clients charged for them?
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What Should Your Top Priorities Be? Service and Maintenance
Hosting/Site Uptime
• How reliable is your network? What kind of outages and
slowness have you have experienced in the past 6 months?
• What happens if the network becomes unavailable or slow?
Do you notify clients? How do you respond? How long does it
take to fix?
• What steps have you taken to ensure reliable service and
prevent problems?
How much training, strategic advice and idea sharing
can I expect? Do I have a “Support Team” that are
experts in their field to make my site ROCK?
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Prove It – Do Your Homework. You’ll Be Glad You Did.
Advice About Checking References?
Do NOT take anyone’s word on it. Check references.
Do NOT accept the hand picked references or recorded testimonials that a web developer
provides to you. Everyone has a few happy customers.
Require seeing their entire client list and you choose who to talk with. That’s the only
way to get a sense of their true track record. Get between 5 and 10 references.
Ask how many clients have terminated or switched in the past year? Why?
Questions to ask?
Is the site having an impact on your business?
How responsive is their service? Is their product content up to date?
What are the two most frustrating things about your site?
If you could change anything, what would it be?
Are there a lot of hidden fees?
Talk to Salespeople
Call the stores and talk with salespeople.
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Questions to Ask the Developer
• How many clients has the company lost in the past 18 months? Who
and why. Ask for contact information and contact them.
• What sorts of problems and complaints have they had from clients in
the past six months? Why?
• What do they see as the biggest weaknesses, deficiencies with their
product or service?
• What are the three reasons that I am most likely to be frustrated with
your service – if I sign with you?
• How likely is it that I will NOT incur any costs other than the monthly fee
and setup that I’m signing up for? What additional expense items might
come up? Please list all. I don’t like surprises. Think about all your
clients. What kinds of additional costs have come up? How much do
they cost?
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What Should Your Top Priorities Be? Your Contract Is Key
• What is the cost?
• Up-front setup fees
• Ongoing licensing and subscription
• When do you start paying?
• How long is the term?
• What’s NOT included “hidden fees” that you may
want or need (like site redesigns, product content
maintenance, ad posting, training and support)?
What will it cost?
• Require clearly defined responsibilities and
services. Are there guarantees?
• What sorts of maintenance and upgrades are
included.
• How quickly you can expect response time? What
is the update schedule?
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Stay Focused On Your Top Priorities
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What Should Your SECONDARY Priorities Be?
The Following Are Secondary Priorities – Don’t Make The Mistake
Of Making These Top Priorities. • Branding / Look and Feel -- (your web developer should be able to work with you)
• Shopping cart
• Blogs
• Room planner
• Financing
• Reporting and analytics
• Project management and wish list
• Fabric draping?
• E-mail marketing
• Marketing networks
• Private labeling
• Label printing
• Admin Tools
• Innovation - technology, training, content, ideas
• Open publishing
Be careful not to make these higher priorities than the top priorities.
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Want a winning website?
Choose the right partner.
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Area of Expertise Wish List For Your Web Developer
Web Developer
Who Has
The Ideal Skills
Retail Furnishings Know How Technology,
Software & Hosting
Search Engine
Optimization
Furnishings Product Content
Graphic Design & Branding
Passionate about
Learning, Innovating &
Sharing
Retail Call Center Selling
Expertise
Great Customer Service –good with
Non-Technical Clients
Online Marketing,
Social Media, e-Mail
Marketing
Integrated Marketing
Multi-Channel Retailing & Customer
Experience
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The 6 Most Common
Mistakes Made On Retailer Websites
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1 - The Sizzle vs. Steak Mistake
The most common mistake is designing a website to
look great at the expense of it being search engine
friendly.
It can also mean spending too much budget on
visual branding versus other more important things
like product presentation and navigation.
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2 - Who Put the IT Guy In Charge Mistake
Another common mistake is placing too much emphasis
on computer integration with the inventory / POS system
and having e-Commerce - instead of product content
(navigation, selection and explanation).
The internet is much more about marketing and selling
than it is about creating operational efficiencies.
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3 - We Need to Control and Own Everything
Mistake
Another common mistake is under estimating how much time,
money and effort it is going to be to create and maintain your digital
product presentations and software.
People often don’t realize how much maintenance and ongoing
improvements are required for success. This is often a function of
wanting to own and control the site.
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4 - Get Caught Up In The Hype Mistake
Buzzwords can act like an intoxicant and drive emotional
decisions that get decision makers focused on the wrong
things.
There is limited time and money. Don’t be fooled by the
hype.
The only people making money on some of this stuff are
the guys selling it.
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5. I Hate Paying Salespeople’s Mistakes
Cost reductions and a lack of consumer loyalty have eroded
the sales profession. Commissions are costly. Bad
salespeople are a problem
Business today is being won before consumers ever step in
the store. Expert salespeople are your key to winning.
Websites with shopping carts are better order takers
than people are.
Furniture is NOT a self service product category. The vast majority of customers
want and need assistance buying big ticket home furnishings.
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5 - I Hate Paying Salespeople's Mistakes
Furniture is NOT a self service product category. The vast majority of customers
want and need assistance buying big ticket home furnishings.
Is your goal to build a SELF SERVICE
Vending Machine?
Do you really think many consumers will visit
your site, select a living room set, enter their
credit card, and purchase it unassisted?
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6 - Let’s Go National Mistake
Everybody’s doing it. You’ve heard about some guy who is selling
a bunch of stuff all across the country.
Most local retailers do NOT have the core competencies to
compete and win over the long run as a national shipper.
National shippers do so well largely because local retailers do
internet so poorly.
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What Can Manufacturers Do To Help?
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What Should Manufacturers Do?
•Invest heavily to help prevent their retailers
from getting this so wrong,
•Create and provide better content (portable
digital assets) and make it easier for retailers
to show, tell and sell your products.
•Make it easy for web developers and people
maintaining the retail websites to know when
products are introduced and discontinued.
• Don’t favor the national shippers.
• MAP (Minimum Advertised Price)
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It’s Much Easier To SPEND A Lot Of
Money On A Furniture Website Than It Is To
MAKE Money With One.
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Thank You
Bill Napier
612-217-1297
Join My Discussion on
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The Supporting Data H. Internet
Nielsen has published new statistics on the overall online shopping trends – Over 875 Million Consumers Have Shopped Online – the Number of Internet Shoppers Up 40% in Two Years.
Among Internet users with Internet access using it shop, the highest percentage shopping online is found in: South Korea (99%)
UK (97%)
Germany (97%)
Japan (97%)
US (94%)
Online retailers are acquiring new customers at a 15% annual rate versus 2% for brick and mortar stores. --Deloitte & Touche USA, November 2006
54% of consumers referred a friend to a vendor found online. --Nielsen/Net Ratings
21% of consumers visited a retail website within 30 days of receiving direct mail; up from 14% in 2003.
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Social networking use among internet users ages 50 and older nearly doubled—from 22% in April 2009 to 42% in May 2010.
Jul 7, 2010Aaron Smith
Six in ten Americans go online wirelessly using a laptop or cell phone; African-Americans and 18-29 year olds lead the way in the use of cell phone data applications, but older adults are gaining ground.
One of the most important things to understand about statistics associated with the internet, internet use and internet marketing is the speed with which things change. Some simple facts will explain this progression.
The number of internet devices in 1984 was 1,000
The number of internet devices in 1992 was 1,000,000
The number of internet devices in 2008 was 1,000,000,000 -
The Supporting Data H. Internet
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How fast is information growing, it is estimated that a week's worth of reading the New York Times contains more information than a person was likely to come across in a lifetime in the 1800's.
The amount of new technical information is said to be doubling every two years - for students starting a 4yr technical program and college or university, this means that half of what they learn in their first year will be outdated by 3rd year!!!!
The Supporting Data H. Internet
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Consumer insights: How furniture shoppers use the Internet
Implications for your business
Furniture shoppers have embraced the Internet
Furniture shoppers use multiple channels at different stages of their
decision process.
72% of furniture shoppers use the Internet at some point.
Furniture is the 8th most searched product on search engines.
They use the Internet primarily as a research tool
They prefer the convenience of researching multiple brands in one
place
They overwhelmingly prefer to purchase furniture from local retailers
Furniture doesn’t play to the strengths of e-commerce
IV. Media
H. Internet
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Previous research has estimated that between 70% and 80% of U.S. adults have purchased something online. And according to Furniture/Today and HGTV's 2009 Consumer Views Survey, 44% of adult U.S. consumers have purchased home furnishings online. Occasional tables, entertainment furniture and youth furniture are the leading furniture categories purchased online, followed by desks and master bedroom. Home accents, such as wall décor and area rugs, have higher purchase rates through the Web.
The exclusive consumer data shows that Generation X - currently between the ages of 34 and 44, numbering 44.5 million or 16% of the U.S. population - is the No. 1 generation purchasing furniture online. And higher-income households, those with incomes of $100,000 or more, are more likely than lower-income groups to purchase furniture through the Internet.
The Supporting Data H. Internet
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Winning Internet Strategy for Furniture Retailers
Don’t limit your brand story to
your web site.
Think of the Internet as a cost-efficient way to showcase
your products and tell your brand story in real-time—
without space constraints—to an audience actively
searching for it.
Distribute your store’s product catalog wherever
consumers are researching home furnishings.
Don’t allow your channel to
control your brand story
Control your brand story through your channel by
helping consumers by expanding your showrooms
online.
The big winners will be retailers who invest in creating digital assets and
aggressively distribute them wherever consumers are looking for them.
Don’t settle for getting your web
site listed first in search engine
results
Dominate the first page of search engine results
Two objectives 1. Help shoppers researchers and find where to buy it
2. Help retailers convert Internet leads into store sales
Strategies Tactics
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IV. Media Internet
There are always a wide variety of benefits in using the internet to promote your retail location. Virtually everyone today is Wired! You can offer products on-line
You can advertise for very little money
The information stays “on” and available 24/7/365
Creative can be changed quickly and relatively inexpensively
But there are drawbacks: Only a small % of people who see your logo or
message will click to your site.
YOU MUST HAVE A WEBSITE !!!!
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IV. Media J. Internet 3
How to Pay for Internet Exposure:
CPM: Cost per thousand times an ad is displayed
CPC: Cost per each time some click your ad
CPT: Cost per transaction or sale
Email:
If you can obtain the email addresses of a prospect or customer and they “opt in” or given permission you can effectively e-market to them over the internet.
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IV. Media J. Internet 3
Email: Some keys to successful e-marketing:
Keep records of the “permission granted” material
Keep lists secure
Be informative and provide valuable and useful
information in addition to asking for business
Respond to email inquiries rapidly
Always offer consumers a chance to opt of out of
getting information
State your privacy policy
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IV. Media Internet
Finding the most effective message/creative is not easy. Traditional “ads” are not as effective as they are in the traditional media where the consumer cannot easily “click them off.” Internet advertising needs to be enrobed in “content” (e.g. advertorial vs. advertising – as most web visitors are searching out information on which to base their buying decision).
Banner ads can work …sometimes…but they should be interactive.
The most trafficked web sites in a market are those tied to traditional media (radio, TV, newspapers) hence the best web buy is one made in concert with a traditional media buy.
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IV. Media Internet
Internet Measurement:
Impressions: # of times ad appears on web page
Conversion Rate*: rate at which visitors take a specific action
Hit: every component of a web page a visitor sees
Click Through: # of times people select/click on your banner
Click Through Rate (CTR): # of times the ad is clicked on divided by the total # of times an ad is seen on screen
* Most important
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Measurement Plan
Oncoming Research
Measurement of Objectives
Strategies Initiated
Evaluation
Re-Process
LEARN
THINK
ACT
REFLECT
REFLECT
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Thank You
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V. Appendix
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References 1. “Annual Survey of Promotion Practices.” Promo Magazine Stamford: Primedia.
2. Arens, William F. “Contemporary Advertising.” Chicago: Irwin.
3. Dahl, Gary “Advertising for Dummies.” New York: Hungry Minds.
4. Hiam, Alexander “Marketing for Dummies.” New York: Hungry Minds.
5. Leprine, Janet, et. al. “The Official PMA Glossary of Promotion Terms.”
New York.
6. “Power Brands on the Rise.” Roper on Retail- Roper Starch International
(Oct.2000).
7. Roper Starch Worldwide. “Research Alert Yearbook 2000: The Year in Review.”
8. Underhill, Paco “Why We Buy: The Science of Shopping.” New York: Simon & Schuster.
9. U.S. Census, National Database
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GLOSSARY
Above-the-line: Refers tot he cost of paid advertising in mass media versus "below the line" expenses for promotion,
PR events, etc.
AC Nielsen: An auditing service that tracks product movement in stores to establish share of market and measures
audiences in measured media.
Acceptable price range: The range of prices that buyers are willing to pay for goods or services.
Account specific programs: A marketing support campaign designed by a marketer to accomplish previously-
established objectives for a specific retailer.
Advertising media: The various media that can be used to carry advertising messages to potential audiences or
target markets for products, services, organizations, or ideas. These media include newspapers, magazines, direct-
mail, Yellow Pages, radio, broadcast television, cable television, outdoor, transit, online and specialty.
Advertising weight: A measurement of media support for a brand, normally expressed in Gross Rating Points (GRP).
Alternative media: Those vehicles considered secondary to traditional media. Ex: in-store point-of-sale advertising.
Audit Bureau of Circulation (ABC): An organization sponsored by advertisers, advertising agencies, and print media
publishers that verifies the audience circulation figures claimed by newspapers and magazines.
Awareness: A consumer's recall of information about a brand, ad, or promotion. Normally there are two types:
"unaided awareness," and "aided awareness," in which the consumer is prompted.
Bait and switch: A deceptive sales practice in which a low-priced product is advertised to lure customers into a store,
where they are then induced to buy higher-priced models when the less-expensive product is disparaged or there is an
insufficient supply of the low-priced product.
Best Food Day (BFD): The day on which a newspaper runs editorial material on food. Retailers should consider this
day when planning advertising if it fits with their target audience.
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Bleed: The areas of printing plates that extend beyond the edges of the final trimmed sheet, thus eliminating a
white margin around the edges.
Body copy: The words in an ad or promotional piece that describe the headline offer. Normally much smaller in
type size than headline and subhead copy.
Boilerplate: Standard legal copy normally required to explain and define an offer or product claims.
Borrowed-interest promotion: A promotion that uses the recognition and/or impact of a well-known event or
personality to capture the attention and interest of the target audience via the implied endorsement.
Brand: A name, term, design, symbol, or any other feature that distinguishes one seller's good or service from
those of other sellers. The legal term for brand is trademark. A brand may identify one item, a family of items, or all
items from that seller. If used for a line of products or for the firm as a whole, the preferred term is trade name.
Brand Development Index (BDI): A measure of the concentration of a brand's consumption; typically, the units or
dollars of a product sold to a consumer per thousand population in a designated geographic area each year.
Brand equity: The value of a brand. From a consumer perspective, brand equity is based on consumer attitudes
about positive brand attributes, awareness, and favorable consequences of brand use. The brand equity of the
most famous brands in the world is measured in billions of dollars.
Brand image: The perception of a brand in the minds of consumers- its image or personality. It is what people
believe about a brand- their thoughts, feelings, and expectations.
Brand loyalty: The inclination of a consumer to buy the same brand of product or service repeatedly over time
rather than buying from multiple manufacturers within the category.
Brand name: Words, letters or numbers that can be spoken to identify an item. Trademark is synonymous but is
derived from the legal rights on how to sue those words, letters, or numbers as your exclusive identity description.
Brand personality: The image or psychological profile that the manufacturer intends to convey to the public as
opposed to the brand image, which refers to the consumer's perception and the image the consumer has of a
brand.
Brand switching: The tendency of consumers to switch from one brand of product to another.
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Bulk mail: A large mailing of identical pieces that is delivered to the post office in bulk to quality for reduced-rate postage.
Burst: A printed graphic device that is used to draw attention, used either in and/or on a package or in point of sale. Example: "New"
Buy One Get One Free (BOGO): An offer to a consumer or retailer of a free unit with the purchase of one unit of the same product.
Buying power: A term found in economic psychology that refers to the income available for discretionary spending among segments of the
population. It is a measure of the ability and willingness to buy goods or services.
Captive market: The potential clientele of retail or service businesses in a locale where consumers do not have reasonable alternative sources of
supply. Example: Posters in a subway car
Card-base marketing: A term used by retailers for their database marketing efforts drawn from their frequent-shopper card database.
Carrier-route presort: Sorting mail into nine-digit ZIP code sequence so it is ready to be distributed to individual U.S. Postal Service carriers. Saves
additional postage over five-digit code sequencing.
Category Development Index (CDI): The sales-volume ratio of the sales of an entire category versus a specific set population, either in a given area
or nationally.
Cause-related marketing: The use of a tie-in with a charity or not-for-profit organization to support a promotion.
Channel marketing/management: The method of developing different marketing efforts by trade class to fit its particular needs. Examples: drug,
mass merchandise, food, etc.
Co-branding: A tactic that merges two or more brands into a joint promotional/advertising campaign. Also called partnership marketing.
Column inch: A unit of space used by magazines and newspapers that is one column wide by 1 inch deep (14 agate lines).
Co-marketing: Promotional events where manufacturers join with key retailers to accomplish joint objectives.
Controlled circulation: The distribution of a newspaper or magazine, usually free, to selected individuals who are members of an audience that's of
special interest to advertisers.
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Copyright: A copyright offers the owner of original work that can be printed, recorded, or "fixed" in any manner the sole
right to reproduce and distribute the work, to display or perform it, and to authorize others to do so during the author's lifetime
and for fifty years thereafter.
Cost in the Mail (CIM, ITM): The total cost associated with any individual unit mailing. This normally includes the costs of
postage, printing, the item mailed, handling, etc.
Cost per Thousand (CPM): The cost of advertising needed to reach one thousand persons, homes, or other audience units.
With periodicals, the advertising rate or actual advertisement cost is divided by the circulation, interpreted as the estimated
number of readers or ad notaries. With television, radio, and online ads, the rate charged for commercial placement is divided
by the average number of persons or homes tuned in, expressed in thousands.
Courtesy days: The days on which stores extend to credit customers the privilege of making purchases at sale prices in
advance of public advertising of the sale. Popular with department stores.
Demographics: The study of total size, gender, territorial distribution, age, composition, and other characteristics of human
populations; the analysis of changes in the makeup of a population.
Designated Marketing Area (DMA): A geographical definition of a shopping area within a metropolitan statistical area
(MSA). Each MSA contains a population of 50,000.
Direct-mail advertising: The use of mail delivered by the United States Postal Service or other delivery service, such as e-
mail or fax, as an advertising media vehicle.
Direct marketing: A form of retailing in which customers are exposed to merchandise through an impersonal medium and
then purchase the merchandise by telephone, computer, or mail.
80/20 rule: A fairly accurate business theorem that states 20 percent of your consumers account for 80 percent of your sales.
Economic indicator: Data collected by government and private organizations on a regular basis that are used to analyze and
measure current economic activity and general business conditions.
Effective frequency: An advertiser's determination of the optimum number of exposure opportunities required to effectively
convey the advertising message to the desired audience or target market.
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Event marketing: Brand marketing or promotion that takes place at an event. Example: sporting event, country fair.
Federal Communications Commission (FCC): A federal regulatory agency that determines the rules and requirements
for many promotional and advertising tactics, such as those used on sweepstakes, games, new product copy, etc.
Free Standing Insert (FSI): A four-color insert containing multiple pages of advertising that's inserted into Sunday
newspapers.
Frequent-shopper programs: Card-based incentive systems that reward loyal and frequent shoppers, usually through
price cuts granted automatically at checkout time.
Frequency: The number of times a person, household, or member of a target market is exposed to a media vehicle or an
advertiser's media schedule within a given period of time. This number usually is expressed as an average frequency
(average number of exposures during the time period) or as a frequency distribution (the number of people exposed once,
twice, three times, etc.)
Gatefold: A brochure or an ad that folds upon itself toward the gutter. When opened, it creates a large billboard effect.
Gross Rating Point (GRP): A unit of measure of audience size for television, radio, or outdoor advertising that is equal to
one percent of the total potential audience universe. Used to measure the exposure of one or more programs or
commercials, without regard to multiple exposure of the same advertising to individuals. Also, the product of media reach
times exposure frequency.
Image-related: Refers to promotions that work to enhance a brand's name, use, or perceived quality.
Impulse purchase: A purchase typically made in-store with little or no decision-making effort. An unplanned consumer
purchase.
In-ad coupon: A coupon placed in a store's or chain's own retail advertisement, redeemable on the specified product only
at the particular store or chain.
Integrated marketing communications: A communication process designed to assure that all brand contacts received
by a customer or prospect for a product, service, or organization are consistent and unified.
Linage: A measurement of newspaper advertising space. A full-page ad equals 2,400 lines.
Loyalty: A measurement of consumer commitment to a brand.
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Loyalty programs: Promotional programs designed to develop and maintain loyalty to a brand.
Market penetration: A measure of the percentage of a market reached by a particular product. An often-sought goal is to
increase a product's market penetration.
Market potential: An estimate of the maximum possible sales of a commodity, a group of commodities, or a service for an
entire industry in a market during a stated period.
Market profile: A breakdown of a facility's market area according to income, demographic, and life cycle.
Market share: The proportion of total sales in a market obtained by a given facility or chain.
Marketing: The process of planning and executing the conception, pricing, promotion, and distribution of goods and services.
Marketing mix: The mix of controllable marketing variables that the firm uses to achieve the desired level of sales in the target
market. The most common classifications are the "four Ps"- price, product, promotion, and place.
Marketing plan: An annual document that sets the objectives, strategy, and tactics for the year. Within this plan, budgets are
detailed for each of the elements.
Metropolitan Statistical Area (MSA): An area that contains a city of 50,000 population, or an urban area that contains 50,000
persons within a metropolitan area of at least 100,000 persons.
National brand: A brand that is marketed nationwide, as opposed to regionally or locally. Usually advertised and owned by a
manufacturer.
Niche strategy: A marketing plan employed by a firm that specializes in serving particular market segments in order to avoid
clashing with the major competitors in the market.
Overlay: Any sheet, image, printed matter, etc. superimposed on an existing design or piece of artwork.
Overrun: A number of additional copies of a printed piece in excess of those required for general circulation.
Perceived-value pricing: A method of pricing in which the seller attempts to set the price at the level at which the intended buyers value the product.
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Point-of-purchase (POP): Promotional materials placed at the point of sale to attract consumer interest by calling
attention to a special offer other attention-getting device.
Point-of-purchase advertising: Advertising, usually in the form of window and/or interior displays, in establishments
where a product is sold to the ultimate consumer.
Point of sale (POS): Material, usually in printed form, that is displayed at retail to attract consumer attention.
Position: In marketing strategy, the consumer perception of a product's or service's benefit or benefits, in comparison to its
competition, which the manufacturer attempts to create and encourage via advertising, packaging, and/or promotion.
Promotion: Marketing that stimulates the purchaser to buy the product or service being promoted.
Promotion Marketing Association (PMA): The trade association for the promotion industry.
Psychographics: The study of the lifestyle and behavioral traits of a target audience for potential use in a marketing
campaign.
Publicity: A marketing tool that attempts to gain editorial coverage in the media for increased public awareness.
Qualitative: A research term used to describe a non-projectable quality or performance.
Quantitative: A research term that refers to data or testing that is projectable.
Rate card: A printed listing of the charges associated with different amounts of time or space, different placements in the
vehicle, and other conditions of sale.
Rating: The percentage of the total potential audience that is exposed to a particular media vehicle.
Reach: The number of people or households exposed to a particular advertising media vehicle or media schedule during a
specified period of time.
Relationship Marketing: Marketing with the conscious aim of developing and managing long-term and/or trusting
relationships with consumers, distributors, suppliers, etc.
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Relationship Marketing: Marketing with the conscious aim of developing and managing long-term and/or trusting relationships with
consumers, distributors, suppliers, etc.
Repositioning: Altering the message or formulation of a product or device to broaden consumer appeal, energize the brand, or counter
competitive claims.
Return on Investment (ROI): The difference between the gross revenue generated by a program and the total of all costs associated with
it.
Run of Press (ROP): Refers to daily newspapers that carry advertising along with editorial and news reporting.
Sales Aids: Devices produced to help a salesperson sell a product or program. Example: brochures, videos.
Sales Demonstration: An in-person showing of a product to one or more consumers to demonstrate how the product works and the
benefits it offers to the customer.
Share: The percentage of total retail purchase, in terms of dollars or units, for a given category of product that is enjoyed by any one brand
in that category.
Share Point: Once percent of the total market or audience.
Specialty Advertising: The placement of advertising messages on a variety of items of interest to the target market. Example: calendars,
pens.
Standard Advertising Unit (SAU): A formula applied to newspaper space advertising that standardizes ad space, thus compensating for
different production formats.
Target-Market Identification: The process of using the income, demographic, and lifestyle characteristics of a market together with
census information for small areas to identify the most favorable locations.
Trademark: A legal term that's synonymous with brand. A trademark identifies a seller's product and differentiates it from the products of
other sellers.
Traffic: The number of shoppers who visit a retailer's store.
Traffic Builder: A promotional activity that generates increased store visits by shoppers.
Value-added: Refers to a promotional technique perceived by the consumer to add value to the product purchase