DPR40083
RETAIL PROMOTION
HERE ARE SOME FUN LEARNING E-BOOK ABOUT
RETAIL PROMOTION FOR RETAIL STUDENTS.
LET'S LEARNS TOGETHER.
PREFACE
Retail Promotion is design to help students understanding about promotion in a practice way and usefullness.
Students will find self-learning questions for each chapter starting from Chapter 1 (Overview of Retail Promotion
Mix) until Chapter 6 (Personal Selling). The content is design in line with latest syllabus prescribed in Malaysian
polytechnics. The interactive learning included in this e-book is covered by self-learning for each chapter. Students
will practice and understanding more for every concept and theories by doing exercises. We hope that this book
helps students to understand retail promotion concept well. Suggestions for improving the coverage and the
content of this book are welcome from the end-users.
Nurul Fazlena Binti Mohd Mohradi
Mariam Binti Samsudin
RETAIL PROMOTION PAGE 1
WRITERS
NURUL FAZLENA BINTI MOHD MOHRADI
MARIAM BINTI SAMSUDIN
EDITOR
DR. INTAN IDIANA BINTI HASSAN
ILLUSTRATOR
NURUL FAZLENA BINTI MOHD MOHRADI
MARIAM BINTI SAMSUDIN
Jalan Raja Musa Mahadi,
Politeknik Ungku Omar,
31400 Ipoh, Perak
Tel: 05-545 7656
http://www.puo.edu.my
https://www.facebook.com/politeknikungkuomarofficial
ACKNOWLEDGEMENTS
ASSALAMMUALAIKUM AND SYUKUR ALHAMDULILLAH TO ALLAH S.W.T FOR HIS GUIDANCE TO COMPLETE THE
FIRST EDITION E-BOOK TITLE RETAIL PROMOTION.
FIRST OF ALL, FULL OF LOVES AND THANKS TO OUR PARENTS, FAMILY MEMBERS, WHO GAVE FULL OF
PRAYERS AND SUPPORT FROM THE BEGINNING OF THE EBOOK JOURNEY UNTIL THE FINISHING LINE OF
PUBLISHING THE E BOOK RETAIL PROMOTION.
WE SINCERELY WOULD LIKE TO THANKFUL FOR MORALE SUPPORT FROM OUR MASTER TRAINER , THE HEAD
OF COMMERCE DEPARTMENT,PROGRAMME COORDINATOR OF RETAIL MANAGEMENT AND OUR REVIEWER
PUAN ZAIDAH BINTI ABD AZIZ.
First Published 2021
Published @Politeknik Ungku Omar
Jalan Raja Musa Mahadi
31400 Ipoh,Perak
Tel :05-54507656
http://www.puo.edu.my
https://www.facebook.com/politeknikungkuomarofficial
All rights reserved. No part of this publication may be reproduced,stored in retrieval system, or transmitted in any form or by any means,
electronic,techanical,photocopying,recording or otherwise, without the prior permission of owner. Negotiation is subject to all or honorarium
arrangements.
EISBN 97
8-967-2421-24-5
PAGE 1
TABLE OF CONTENT
PAGE 5 PAGE 13 PAGE 21
PAGE 3 PAGE 49
PAGE 27 PAGE 36 PAGE 42 PAGE 2
E BOOK AUTHOR
NURUL FAZLENA BINTI
MOHD MOHRADI
LECTURER
COMMERCE DEPARTMENT
POLITEKNIK UNGKU OMAR
10 YEARS EXPERIENCE IN EDUCATIONAL FIELD
MARIAM BINTI SAMSUDIN
LECTURER
COMMERCE DEPARTMENT
POLITEKNIK UNGKU OMAR
6 YEARS EXPERIENCE IN EDUCATIONAL FIELD
PAGE 3
COURSE LEARNING OUTCOME (CLO)
Upon completion of this course, students should be able to :
CLO 1: PROPOSE RETAIL PROMOTION MIX TO COMMUNICATE WITH CUSTOMER AT A RETAIL STORE.
CLO2 : ORGANIZE THE RETAIL PROMOTION PROGRAMS WITH APPROPRIATE RETAIL PROMOTION MIX IN
RETAIL OPERATION
CLO3 : DEMONSTRATE PERSONAL SELLING BY USING RELEVANT STAGES TO PROMOTE PRODUCT OR SERVICE
PAGE 4
CHAPTER 1 OVERVIEW OF
RETAIL
PROMOTION MIX
PAGE 5
DEFINITION
WHAT IS RETAIL PROMOTION?
Retail promotion discussess the range methods used by the retailers to
promote their product and services. It examines various factors that
determine the effectiveness of retail promotion mix and the choices of
suitable promotional tools to deliver to the consumer.
PAGE 6
TYPES OF RETAIL PROMOTION MIX
SALES
ADVERTISING PROMOTION
Sales promotion encompasses the paid communication
Advertising is defined as any form of paid, activities other than advertising, public relations, and personal
nonpersonal communication through selling that stimulate consumer purchases and dealer
various media by business firms, non profit effectiveness. Consumer incentives could be samples, coupons,
organizations, and individuals who are in free trial and demonstration. Trade incentive could be price
off, free goods and allowances. Sales force incentive could be
some way identified in the advertising
convention, trade shows, competition among sales people
message and with hope to inform or
OBJECTIVES OF SALES PROMOTION:
persuade members of a particular
audience; it includes communication of Increasing short-term sales volume.
products, services, institutions, and ideas. Maintaining customer loyalty.
Emphasizing novelty.
Complementing other promotional
tools.
PAGE 7
TYPES OF RETAIL PROMOTION MIX
PUBLICITY SOCIAL MEDIA PERSONAL
SELLING
Is non paid for communication of Social media is interactive
information about the company digitally-mediated technologies Personal selling involves
that facilitate the creation or oral communication with
or product, generally in some sharing or exchange of one or more prospective
media form. customers for the purpose
information, ideas, career of making a sale. Personal
interests, and other forms of selling is selling that
involves a face- to -face
expression via virtual interaction with the
consumer.
communities and networks.
PAGE 8
RETAIL PROMOTIONAL OBJECTIVES
LONG TERM Institutional advertising is an attempt by the retailer
OBJECTIVES to gain long-term benefits by selling the store itself
rather than the merchandise in the store
Creating A Positive Store Image is to establish or reinforce a positive store image, relative to its
competitors, in its customers’ minds. The retailer seeks to gain a differential advantage by establishing a
favorable impression that is distinct from other retailers. By this image, the retailers hope to develop an
ongoing relationship with the customer.
Public – Service Promotion is directed at getting the customer to perceive the retailer as goo
citizen within the community. For instance, retailers may sponsor public-service
advertisements to honor local athletes and scholars as well as provide cash and merchandise
to local charities.
PAGE 9
RETAIL PROMOTIONAL OBJECTIVES
SHORT TERM Promotional advertising is to attempt to bolster short-
OBJECTIVES term performance by using product availability or prices
selling point. Two most common objectives of this type of
promotion are increasing patronage from existing
customers and attracting new customers.
Increase Patronage From Existing Customers – is one of the common
promotion objectives found in retailing. Simply stated, promotion
expenditures should be directed at current customers to encourage them to
make more of their purchases at the retailer’s store.(customer retention).
Attracting New Customer – is to increase the number of customers that can be
attracted to the store. One approach is to try to attract new customers from
the retailer’s primary trading area
PAGE 10
DISSCUSSION AND
QUESTIONS
CHAPTER 1
PAGE 11
DISCUSSION & QUESTION
1.Define retail p
romotion.
2.Differentiate between long term objectives
and short term objectives.
3. Explain the THREE (3) types of retail
promotion mix with relevant example.
PAGE 12
ADVERTISING
CHAPTER 2
PAGE 13
PAGE 14
Retail ADvertising Objectives
Informative Persuasive Reminder
Informative advertising involves the delivery Persuasive advertising is a form of advertising Reminder advertising is important for mature
of advertising messages through various that attempts to influence a customer to product. It’s helps to maintain and keeps the
purchase a particular merchandise or service. consumers thinking about the merchandise or
media outlets with the intent of informing a The process of advertising will become more service. In reminder advertising, the retailer and the
target audience about the benefits offered important as competition increase. It is used to products names, previous user testimonials and
and the usefulness of a retailer’s product, increase the demand of existing merchandise public response are repeated with hope of reminding
especially a new product, relaunched and or service. The objective is to build selective existing customers and attracting new ones. This
keeps the brand and its core message in the
updated one. demand forefront of the customers' minds.
PAGE 15
BUDGET ALLOCATION FUNDS
A. Gross margin percentage
B. Advertising
C. Market share dominance
D. Backup resources
PAGE 16
PREPARE ADVERTISING MESSAGE
A. Attract and retain attention
B. Achieve the adv
ertising objectives
C. Free from errors, especially legal one
PAGE 17
IDENTIFY MEDIA ALTERNATIVES
NEWSPAPER RA
DIO TELEVISION
INTERNET MISCELLANEOUS MAGAZINE
MEDIA
PAGE 18
DISSCUSSION AND
QUESTIONS
CHAPTER 2
PAGE 19
DISSCUSSION & QUESTIONS
1. Identify THREE (3) retail objectives with relevant
examples.
2. Explain the THREE (3) media alternatives in retail
activities with relevant examples.
PAGE 20
CHAPTER 3 SALES PROMOTION
PAGE 21
TYPES OF SALES PROMOTION
A. SOLE-SPONSORED B. JOINT – SPONSORED
Just like advertising, sales promotion
expense to the retailer that may or may not Joint- sponsored sales promotions offer retailers the
be shared by others. With sole-sponsored advantage of using other people’s money (OPM). Although
sales promotions, the retailer has complete in some cases, promotions require the retailer to partially
relinquish control. Retailers generally consider the several
control over the promotion but is also
completely responsible for its cost. In short, sales promotions tools to be jointly sponsored.
the retailer is in control of all the cost and The examples of sales promotion tools under joint-sponsored
the promotional activities. category are coupons, in store display (point of purchase),
The examples sales promotion tools demonstration and product sampling, and rebates.
under sole sponsored category are
premiums, contest and sweepstakes,
frequent-buyer program and loyalty
programs
PAGE 22
www
TOOLS OF SALES PROMOTION
Premiums Contest and coupon rebates
sweepstakes
Loyalty programs or In-store displays or Product Sampling Demonstration
loyalty cards Point of Purchase (POP)
PAGE 23
EVALUATING THE SALES PROMOTION
A. TASKS THAT SALES PROMOTION CAN ACCOMPLISH.
1.Get consumers to try a new product.
2. The sales of mature products.
3. Competitive advertising and sales promotion
4. Repeat usage by current users
5. Reinforce advertising
B. TASKS THAT SALES PROMOTION CANNOT ACHIEVE.
1.Change the basic non-acceptance of an undesired product
2.Compensate for a poorly trained sales force
3.Give consumers a compelling reason to continue purchasing a product
over the long run
4.Permanently stop an established products’ declining sales trend.
PAGE 24
DISSCUSSION AND
QUESTIONS
CHAPTER 3
PAGE 25
DISSCUSSION & QUESTIONS
1. Differentiate between sole-sponsored and
joint-sponsored.
2. Explain THREE (3) tools of sales
promotion with relevant examples.
3. Describe FIVE (5) tasks that sales
promotion can accomplish.
PAGE 26
CHAPTER 4 Publicity
PAGE 27
Nowadays is part of PUBLICITY Retail industry needs the
promoting a business publicity in order to sell
to create awareness
among customers via the company
It is comes from establishments and also
media and public giving speeches, to attract customers to
communication without interviews, seminars,
charity donations and their store.
paid any things.
so on.
PAGE 28
OBJECTIVES OF PUBLICITY
Increase Maintain or Show the Demonstrate Present a Minimize total
awareness of improve the retailer as a innovation favorable promotion
the retailer. company's contributor to awareness. message. cost.
community.
image.
PAGE 29
News Publicity Special
Release Tools Events
PAGE 30
By Press
Lined Article Conference
News Releases
News releases also called a
s press release; is a written
document or recording directed to members of media
for the purpose of announcing something highly
newsworthy. The contents of a news release can be
related to any positive developments made by the
company. For example, launching of a new product,
adoption of a latest technology, company mergers,
international expansion and future growth plans. The
media practitioners then prepare interesting reports or
articles based on the news release and publish or
broadcast them in the mass media.
PAGE 31
By Lined Article
A special article which deals in depth with a topic or
person. The contents of by lined article are similar to
those in news release, only in by lined articles the
content is presented in greater depth.
PAGE 32
Press Conference
A press conference is a meeting organized by
an organization with the purpose to distribute
information to and answer questions from
members of the media. This tools assist the
retailer get the attention of investors and other
big companies.
PAGE 33
Special Events
Publicity can be obta
ined through organizing a
special event. The event can be opened to the
public, for certain groups of people only, for a
charitable cause or for any public causes. The
organizer can invite media practitioners and
personalities to participate in the event, not to just
cover it. The event itself and the photographs
taken throughout the event can also be part of the
organization’s news releases. If the special event is
for fundraising, the media should be notified of the
results of the fundraising endeavor.
PAGE 34
EXERCISES
&
DISCUSSION QUESTIONS
1.Differentiate between
news releases
and by lined article.
2.Differentiate between special events
and press conference.
3.Identify six objectives of publicity.
4.Explain four objectives of publicity.
PAGE 35
CHAPTER 5 abc
Social Media
PAGE 36
www
TYPES OF SOCIAL MEDIA
1.Internet
2. Forums
3. Weblogs and Social Blogs 4. Sharing of videos
5. Podcasts (is a new media) 6. Social Bookmarking
PAGE 37
The Application of Social Media in Promotional Activities
Internet Forums
Internet retailing is the Online forums enable
fastest growing channel. consumers to review,
communicate about, and
It involves retailers aggregate information
interacting with about products, prices,
consumers via the and promotions. These
forums also allow users
Internet, whether they
use a traditional to interact among
themselves (e.g., form a
computer or a laptop, a
variety of sizes of tablets community).
or a smartphone.
PAGE 38
3. Weblogs and Social Blogs 4. Sharing of videos
An individual blogger or a A group of users
group of users regularly regularly post their
post their opinions and opinions and various
topical information on
various topical
information on a web a web page. The
page. The administrator of administrator of the
the blog can either be a blog can either be a
retailer, an independent
retailer, an
person or a firm. independent person or
a firm.
PAGE 39
5. Podcasts (is a new media) 6. Social Bookmarking
It is an audio version of blogging. It is the process of tagging a
Podcasts are MP3 audio files that website page with a
are available for free online and are
browser-based tool so that
accompanied by written blogs. you can easily visit it again
Podcasting is a way of publishing
later. Instead of saving
sounds files to the internet, social media posts to your
allowing users subscribe to a feed browser bookmarks, you
can use different platforms’
and receive new audio files features to bookmark posts.
automatically.
PAGE 40
EXERCISES
&
DISCUSSION QUESTIONS
1.Differentiate between
forums and
sharing of videos.
2.Identify six (6) types of social media in
retail business.
3.Explain the application of social
media in retail promotion.
PAGE 41
CHAPTER 6 PERSONAL SELLING
PAGE 42
Objectives of Personal Selling
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