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MKT 4624 / Year 2010 / Wk 11 1
MKT 4624MKT 4624
RETAIL MANAGEMENTRETAIL MANAGEMENT
Week 11 :Week 11 :
Managing A Retail Business :Managing A Retail Business :
Branding and PromotionBranding and Promotion
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Weekly Learning OutcomesWeekly
Learning Outcomes
Explore Retail Brand and Elements of
Retail Promotion Mix Study Elements of Retail Promotion
Mix and Objectives
Discuss Strategic Process of
Developing Retail Promotion
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Retailer BrandRetailer Brand
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A brand is a unique identity. It isthe way the public thinks aboutwhat you do, produce, serve and
sell. In retailing context, the name of
the retailer is a brand thatindicates to consumers the type of
merchandise and services offeredby that retailer, including theservices, personality andatmosphere of the store.
What is a BrandWhat is a Brand
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What is a BrandWhat is a Brand
The customer in effect believes,
The only way I can be
who I am
is to havespecific products or services.
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1. Identify and Define Brand Promise- values we commit to deliver
2. Construct the Branded CustomerExperience - deliver the brand
promises through every interactionwith our customers
How to Build a Retailer BrandHow to Build a Retailer Brand
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e.g. Starbucks Brande.g. Starbucks Brand
Starbucks is not in the
coffee business serving
people. Starbucks is in thepeople business serving
coffee.
Third place: between workand home, to relax, meet
friends and enjoy a great
cup of coffee.
http://hk.wrs.yahoo.com/_ylt=A8tU3qJwq.tKGJoAezHwzAt./SIG=156k4gjph/EXP=1257045232/**http%3A//hk.image.search.yahoo.com/search/images%3Fview=detailed%26p=starbucks%2Bcoffee%26ei=UTF-8%26meta=rst%253Dhk%26b=1%26pstart=1%26curr_index=28/3/2019 RM_H_Wk 11_10
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3. Process Map the customer points Examine every touch point On-brand: what can we do to reinforce
the experience Off-brand, what do we need to change
and improve the experience
4. Promotion is the important tool to
build the brand and create sales.
How to Build a Retailer BrandHow to Build a Retailer Brand
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Typical Touch PointsTypical Touch Points
ofof
Retail CustomersRetail Customers
Public
Relations
Personal
Selling
Web-sites
and Virtual
Social Network
Advertisement
Store Design
And
Atmosphere
Sales
Promotion
Other
Tangible Items
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RetailRetail
Promotion MixPromotion Mix
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Definition of Retail PromotionDefinition of Retail Promotion
Includes any communication bya retailer that informs,persuades, and/or reminds thetarget market about any aspectof the firm.
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Long-term
Build store brand and image Short-term
Inform customers what they have
Persuade customers to patronage or
buy
Remind customers
Retail Promotion ObjectivesRetail Promotion Objectives
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Advertising
Sales
Promotion
Public
Relations
Personal
Selling
Retail Promotion MixRetail Promotion Mix
Overall : To build store image and brand
Objectives :Objectives :
BrandBrand
BuildingBuilding
++
SalesSales
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Retail Promotion MixRetail Promotion MixAdvertising Public Relations
Nature Paid, non-personalcommunication with out of
store mass media
Non-paidcommunications of
information about thecompany or product
Objectives Build long-term image Attract new customers Increased patronage
Build good relationswith various publics
Build good image
Handle unfavorablenews
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Advantages of Advertising andAdvantages of Advertising and
Public RelationsPublic RelationsAdvertising Large audience is
attracted Lower cost per viewer Wider choice of media Better control over the
message content,graphic and timing
In print media, amessage can be studiedand restudied by the
target market
Public Relations
Enhance image
Address massaudience
Higher credibility
Attract attention &
arouse interest Relatively lower cost
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Retail Promotion MixRetail Promotion MixPersonal
SellingSales Promotion
Nature Involves two ways,
personal communicationwith the consumer
Mass communication
technique with incentivesto buy now
Objectives Stimulate sales Provide customerservice
Collect customerfeedback
Attract in-storetraffic
Stimulate short-termsales
Clear old inventories Improve cash flow
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Typical Process of
Personal Selling
Determines
Customer Wants
Shows
Merchandise
Answers
ObjectionsCloses
the Sale
Greets
Customers
Demonstrates
Goods/
Services
Gives a
Sales
Presentation
Salesperson
Feedback
Personal SellingPersonal Selling
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Advantages of PersonalAdvantages of Personal
Selling and Sales PromotionSelling and Sales PromotionPersonal Selling
High flexibility to adapt
message Higher flexibility in
offerings
Higher customers
attention span Immediate feedback
Tailor-made offers to
satisfy customer needs
Sales Promotion
Eye-catching appeal
Draw customer traffic Increase impulse
purchase
Customers receive
something of value Can be fun and
entertaining
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Strategic ProcessStrategic Process
of Developingof Developing
Retail PromotionRetail Promotion
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Determining Communication Objectives
Establishing an Overall Communication
Budget
Selecting the Communication Mix
Implementing the Communication Mix
Reviewing and Revising the
Communication Plan
Process in Developing aProcess in Developing a
Retail Promotion ProgramRetail Promotion Program
e.g. increase sales,
raise customer traffic
All-you-can-afford method /
Incremental method /
Competitive parity method /
Percentage-of-sale method
Choosing specific media,
timing, message content,
make up of sales force and etc.
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Awareness
Stimulate
Desires
Provide
Information
Change
Attitudes
and Feelings
Pioneer Advertising, Public
Relations, Point-of-Purchase,
Window Displays
Competitive Advertising,
Personal Selling, Sales
Promotions, Assertive Efforts,
POP Displays
Reminder and Institutional
Advertising, Personal Selling,
Sales Promotion, VIP Programs
Knowledge
Liking
Preference
Conviction
Purchase
Hierarchy of Effects Behavioral Objective
of Communication
Communication Mix
Relevant to Each Step
Communication & the Hierarchy of EffectsCommunication & the Hierarchy of Effects
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Key Success Factors inKey Success Factors in
Promotion and Branding StrategyPromotion and Branding Strategy Cater to needs of the customer segments
Align with the image/brand of the retailer Be active in the market and create
noises
Employ multi-channels and media
Ensure every customer touch point (i.e.
MOT) must align with the brand promise
Ample use of Sales Promotion to attract
traffic
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Reading :Reading :
Textbook :Chapter 19 (p. 529 to p. 555) 11th ed.
Chapter 19 (p. 567 to p. 593) 10th ed.
Reference :
The most Valuable US Retail Brands, 2009,Interbrand Design Forum
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