CH 16- Retail Marketing

What are the four major pillars of the Retail Promotional Mix?

1.Advertisng (Paid/Mass) 2. Public Relations 3. Publicity (Unpaid/Media-driven) 4. Personal Selling

Define Retail Advertising

It is a paid, non-personal communication transmitted through out-of-store media by an identified sponsor. Because it is non-personal, the message, the message is exactly the same for every person who sees it (like a billboard)

What are the three primary Goals of Advertising?

1. Inform- customers about products or company attributes (Education)

2. Develop demand- for private (store) brands

3. Reinforce a retail image- through “brand storytelling” (e.g. Spotify’s fun/comical ads)

Retail Advertising

Aims to drive business to a specific store (e.g., shop at Sephora, not Ulta)

Manufacturer Advertising

Aims to increase awareness of a specific brand regardless of where it is bought (e.g. Pepsi just wants you to buy soda, whether at Publix or Kroger)

Advantages of Advertising

Reaches a massive audience, has a low cost per contact, offers many media alternatives, and gives the retailer high control over the message

Disadvantages of Advertising

Inflexible( cannot change for individuals) can require large upfront investments, and often has a high throwaway rate( people ignore it)

Define Pioneer Advertising and explain why it is rare in retail

Pioneer advertising focuses on awareness for a product category (e.g. “Got Milk”) rather than a specific brand. It is rare in retail because retailers almost always want to mention their specific location rather than just promoting a general type of product

Define Competitive Advertising

This is the most common type of advertising; it focuses on stimulating demand for a specific brand or retailer over its rivals

Define Public Relations (PR)

Communication aimed at fostering a favorable image for a retailer, essentially serving as reputation management

Define Publicity

A non-personal form of communication transmitted by mass media where the media is not paid, and there is no identified commercial sponsor( e.g. media outlets sharing the “IHOb” name-change prank)

Between PR and Publicity, which is “stronger” and why?

PR is generally considered stronger for credibility and long term image building because it is seen s more authentic/reliable source than a paid ad. However, Publicity is “stronger” for building massive, rapid hype at no cost, though the retailer has almost no control over the final message

When should a retailer use PR instead of Advertising?

Use PR for crisis management (putting out fires), showing corporate social responsibility, or when they need the message to be viewed as highly credible by the public

What are the retail benefits from PR

Large firms, celebrities, or retailers facing a crisis benefit from PR’s reputation management

What are the retail benefits from Publicity

Retailers with “viral” or quirky stories “like IHOb) or those looking to steal attention from larger competitors with a “stunt”

Define Personal Selling

Oral, direct communication with one or more prospective customers for the purpose of making a sale

Why is Personal Selling considered the opposite of advertising?

Unlike advertising, which uses mass-produced, standardized message, personal selling allows the retailer to completely customize the message for an individual buyer and places a heavy emphasis on the transaction