DDPPRR4400008833 RREETTAAIILL PPRROOMMOOTTIIOONN NOR ALWANI BINTI ABD WAHAB Jabatan Perdagangan 2023
DPR40083 RETAIL PROMOTION PROMOTION N o r A l w a n i B i n t i A b d W a h a b
P ol i t eknik Sul t an A z l an Shah B ehr an g S t e s en, B ehr an g , 3 5 9 50 P e r ak T e l : 05 -454443 1 Fa x : 05 -45449 9 3 Ema i l : ht tp:// w w w .ps a s . edu.my PUBLI SHED BY: F i r s t P ubl i shed 202 3 A l l r i g ht r e s e r v ed. N o pa r t of thi s publ i c a t ion ma y be r eproduc ed s tor ed in a r e t r i e v a l s y s t em or t r ansmi t t ed in any form or by any me ans , e l e c t roni c , me chani c a l , photocopy in g , r e cordin g or othe r w i s e w i thout pe rmi s s ion of Sul t an A z l an Shah P ol y t e chni c s . P E R P U S T A K A A N N E G A R A M A L A YS I A D P R 40083 R ET A I L P R O M O T I O N e I S B N - 9 78- 9 6 7 - 2409 - 98-4
CONTENT Definition Element of retail promotion mix Retail promotional objectives Possible promotion objective in retail promotion Promotional Guidelines for retailers Long term objectives Short term objectives 1 2- 8 9 10 11 11 12 CHAPTER 1:THEOVERVIEW OF RETAILPROMOTION CHAPTER 2: ADVERTISING Introduction Explain seven (7) steps in planning a retail advertising program. Retailer's advertising objectives Explain budget for the campaign. Describe the budget allocation funds. Prepared advertising message 15 16-20 21 22 23 24 Introduction Type of sales promotion Tools of sales promotion Evaluating sales promotion 26 27 28-37 38 CHAPTER 3:SALESPROMOTION
CONTENT Definition Identify the objectives of publicity Publicity tools 40 41 42-53 CHAPTER 4:PUBLICITY CHAPTER 5:SOCIAL MEDIA Introduction Definition of social media Identify types of social media The application of social media in promotional activities 55 56 57-62 63 Introduction Objectives of personal selling Stages of personal selling 66 68 69-70 CHAPTER 6:PERSONALSELLING
THE OVERVIEW OF RETAIL PROMOTION CHAPTER 1
DEFINITION “ Any communication by a retailer that informs, persuades and / or reminds the target market about any aspect of that firm.” Page: 1
THE ELEMENTS OF RETAIL PROMOTIONAL MIX • Advertising Activities • Publicity Activities • Personal Selling Activities • Sales Promotion Activities • Social Media Page: 2
ADVERTISING ACTIVITIES • Definition: Is paid non personal communication through various media by business firms, nonprofit organizations and individuals who are in some way identified in the advertising message and who hope to inform and persuade members of a particular audience, includes communication of products, services, institutions and idea. • ADVANTAGES & ADVANTAGES Page: 3
PUBLICITY • DEFINITION: Is non paid for communications of information about the company or product, generally in some media form. • ADVANTAGES & DISADVANTAGES Page: 4
PERSONAL SELLING • DEFINITION: Is selling that involve a face to face interaction with the consumer. Personal selling and other services provided by retailers which will be discussed in detail occur when the retailer’s promotional efforts cause a shopper to choose a specific selling area. • ADVANTAGES & DISADVANTAGES Page: 5
SALES PROMOTION • DEFINITION: Involve the use media and non media marketing pressure applied for a predetermine, limited period of time at the level of consumer, retailer or wholesaler in order to stimulate trial, increase consumer demand, or improve product availability. • ADVANTAGES & DISADVANTAGES Page: 6
SOCIAL MEDIA • DEFINITION: Refer to websites and applications that enable users to create and share content or to participate in social networking. It is computer-based technology that facilitates the sharing of ideas, thoughts, and information through the building of virtual networks and communities. • ADVANTAGES & DISADVANTAGES Page: 8
RETAIL PROMOTIONAL OBJECTIVES • To efficient manage the promotion mix, retail managers must firs establish their promotional objective. As such, all promotional objective must ultimately seek to improve their retailer’s financial performance, because this is what strategic and administrative plans are intended to accomplish. Page: 9
POSSIBLE PROMOTION OBJECTIVE IN RETAIL PROMOTION Page: 10
PROMOTIONAL GUIDELINES FOR RETAILERS Institutional Advertising Creating a Positive Store Image Public Service Promotion LONG TERM OBJECTIVE Page: 11
PROMOTIONAL GUIDELINES FOR RETAILERS Promotion Advertising Increase Patronage from Existing Customers Attracting New Customers SHORT TERM OBJECTIVE Page: 12
ADVERTISING CHAPTER 2 13:09 Page: 13
LEARNING OUTCOME.. •Explain seven (7) steps in planning a retail advertising program •Describe retailer’s advertising objectives •Explain budget for the campaign •Describe advertising budget allocation •Prepare advertising message 13:09 Page: 14
Introduction.. Is paid, non personal communication through various media by business firms, nonprofit organizations and individuals who are in some ways identified in the advertising message and who hope to inform or persuade members of a particular audience, includes communication of products, services, institutions and ideas. 13:09 Page: 15
Explain seven (7) steps in planning a retail advertising program Selecting advertising objectives The advertising objectives should flow from the retailer’s promotion objectives, but should be more specific because advertising itself is a specific element of the promotion mix. 13:09 Page: 16
Budgeting for the campaign & allocating • A well-designed retail advertising campaign requires money that could budget.. be spend on other areas. Retailers hope that the dollar spent on advertising will generates sales that will in turn produce added profits, which can then be used to finance the other activities of the retailers. 13:09 Page: 17
Designing the message & selecting media to use.. • Creative message cannot be developed without knowing which media will be used to carry the message to the target market. • Creative decision are especially important for retailers because their advertising message generally seek an immediate reaction from the consumer while having a short life span.. • MEDIA ALTERNATIVES • Newspaper • Television • Radio • Magazine • Direct Mail • Internet • Miscellaneous Media 13:09 Page: 18
Scheduling of Advertising… • When should retailer time its advertisements to be received by the consumer? • What time of day, day of week, week of month and month of year should the ads appear. 13:09 Page: 19
Evaluating the result… • A consistent records of a good retail advertising decision making can be made only if the retailer effectively plans its advertising program. • Advertising Effectiveness – I the extent to which the advertising has produced the result desired • Advertising Efficiency - Is concerned with whether the advertising result was achieved with the minimum financial expenditures. 13:09 Page: 20
RETAILER’S ADVERTISING OBJECTIVE.. INFORMING • Involve the delivery of advertising messages through various media outlets with the intent of informing a target audience about the benefit offered and usefulness of a retailer’s product especially the new, relaunched and updated one. PERSUADING • Is a form of advertising that attempts to influence a customers to purchase a particular merchandise or services. It is used to increase the demand of an existing merchandising or services. REMINDING • Is important for mature products. Its helps to maintain relationships and keeps the retailer and its products stuck in the mind od its customers. 13:09 Page: 21
Explain budget for the campaign.. RETAILER- ONLY CAMPAIGN • The affordable method • Percentage of sales method • Task and objective method CO-OP CAMPAIGN • Vertical cooperative advertising • Horizontal cooperative advertising • TYPES OF ADVERTISING AGENCY • In house Advertising Department • Outside Advertising Specialist 13:09 Page: 22
DESCRIBE ADVERTISING BUDGET ALLOCATION FUNDS.. • Gross Margin Percentage – Merchandising lines that have a high gross margin percentage benefit more from advertising dollars and produce more profit for a retailer than other merchandise lines with the lower gross margin percentage. • Advertising elasticity of demand – Refers to the percentage of change in sales as a result of 1 percent change in advertising. In other words, how sensitive is sales in 1 per cent change in advertising. • Market Share Dominance – There is a close association between market share by product category and profit. Typically, retailers with large market shares enjoy large customer based that can be protected only with high level of advertising. • Backup Resources – A merchandise line should not be allocated with high a merchandise is to be promoted, the retailer must ensure that it has enough stock in hand, sufficient space to display the merchandise. And enough staff in anticipation of increased demand and customer traffic level in its store. 13:09 Page: 23
Prepared advertising message.. • Attract attention and retain attention. – They must be able to break through the competitive clutter. Should use quick element of surprise at the beginning followed with a longer of joy with punch line at the end. • Achieve the advertising objectives’ – The storyline of advertisement should address the retailer’s objective. • Free from errors, especially legal ones. – The advertising is considerably time-consuming and costly thus should avoid in making mistakes. 13:09 Page: 24
SALES PROMOTION CHAPTER 3 13:09 Page: 25
Introduction Sales promotion comprises promotional activities other than advertising, personal selling and public relations. It is short term incentive to encourage a stronger market response and stimulate consumer purchase. It is designed to support other communication activities. 13:09 Page: 26
TYPE OF SALES PROMOTION • SOLE SPONSORED • Sales promotion are expenses to the retailer that may or may not be shared with others with sole sponsored sales sponsored sales promotions. The retailer has complete control over the promotions but is also completely responsible for the costs. • Example - premiums, gift, games, contest. • JOINT SPONSORED • Jointly sales promotions of the retailers the advantage of using “other people money” (OPM). Although in some cases such promotions require the retailer to relinquish some control, the cosponsors monetary offering to the retailer more than makes up for it. Some are controlled by retailer and some controlled by manufacturer and cosponsor monetary offering the retailer. • Example - coupon, demonstration and sampling, in store display 13:09 Page: 27
TOOLS OF SALES PROMOTION PREMIUM Goods offered either free or low costs as an incentive to buy a product. A premium is tangible compensation, an incentive, given for rendering a particular deed, usually buying a product. Four variants of direct premium programs may be identified. • simple direct premium • in-packs • on-packs • container premiums Advantages & Disadvantages 13:09 Page: 28
CONTEST Contest is a promotional game of skill or chance. It requires customers to show how some skill. In contest, customers have to compete for prizes by completing a contest such as a crossword puzzle or a slogan. Winners are at least partially based on a correct answer. Advantages • Cost • Entries by non shoppers • Customer effort Advantages & Disadvantages 13:09 Page: 29
Sweepstakes • Sometimes refer to a lucky draw, based on lucky rather than skill-based. • Winner are determined through random selection. Anyone can participate because it does not require any purchase to be qualifies as participant. • Advantages and disadvantages 13:09 Page: 30
LOYALTY CARD • Consumer collect point or credit for purchase and redeem them for rewards • Example : Tesco member card • Advantages & Disadvantages 13:09 Page: 31
Rebates Rebate or cashback is a promotional tool that requires consumers to pay the full price at the time of purchase. The consumer then receives the cashback in the form of check mailed to the consumer’s address or direst transfer to the consumer’s bank account. • Its includes: • credit card cashback rebate • Mail in cashback • Online cashback. Advantages & Disadvantages 13:09 Page: 32
Coupon Coupon offers a discount on the price of specific items at the same time of purchase at the store. Coupons are the most common promotional tool used by supermarkets. The reasons to use coupons include: To Increase Number of New Customers To Increase Sales of a Specific Product To Increase Branding & Awareness To Reward Current Customers To Entice Return of Former Customers To Create An Opportunity to Up-sell a More Profitable Product Highly Measurable Form of Marketing Advantages & Disadvantages 13:09 Page: 33
POINT OF PURCHASE DISPLAYS A point-of-purchase or POP display is marketing material or advertising placed next to the merchandise it is promoting. These items are generally located at the checkout area or other location where the purchase decision is made. Point of purchase displays (POP displays) include posters, banners, back lit sign, attractive display stands and fixtures placed near, on or next to the product’s shelves and checkout counters. Advantages & Disadvantages 13:09 Page: 34
DEMONSTRATIONS • Allow potential cost to touch or taste a product before they buy. Demonstrations create an excellent attention getters • Manufactures offer them temporarily to encourage trial use and purchase of a product or to show how a product works because labor costs can be extremely high, are not used widely. For example, in fashion product. Advantages & Disadvanges 13:09 Page: 35
SAMPLING • Sampling is the most expensive sales promotion method because production and distribution (at local events), by mail and door to door delivery, online, in store and on packages (entail high cost) - Offer potential customer to opportunity to try a product or service before they make a buying decision. - Use to stimulate trial of a product - Increase sales volume in the early stages of a product life cycle - Obtain desirable • In designing a free sample, marketers should consider factors such as Seasonal demand for the product Market characteristic Prior advertising •Advantages & Disadvantages 13:09 Page: 36
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Evaluating sales promotion Task that sales promotion can accomplish • Get consumers to try a new product • Neutralize competition advertising & sales promotion • Encourage repeat usage by current users • Reinforce advertising Task that sales promotion cannot achieve • Change the basic nonacceptance of an undesired product • Compensate for a purely trained sales force • Give consumers a compelling reasons to continue purchase a product over the long run. • Permanently stop an established product’s declining sales trend 13:09 Page: 38
PUBLICITY PROGRAMS CHAPTER 4 13:10 Page: 39
Definition of Publicity • Publicity (a tool used in public relations) is non personal communication that is typically in the form of a news story, which is transmitted through the mass media. • Publicity is any unpaid form of non personal presentation of ideas, goods, or services. • Publicity is the deliberate attempt to manage the public's perception of a subject. The subjects of publicity include people (for example, politicians and performing artists),goods and services, organizations of all kinds, and works of art or entertainment. 13:10 Page: 40
Identify the objectives of publicity • a. Increase awareness of the retailer • b. Maintain or improve the company image. • c. Show the retailer as a contributor to community. • d. Demonstrate innovation awareness. • e. Present a favorable message. • f. Minimize total promotion cost. 13:10 Page: 41
Publicity Tools a) PRESS RELEASE • Definition: • A press release or news release is written material that announces a news type event. Television networks, radio stations, magazines, and newspapers as well as online resources will publish the announcement if your news story peaks interest. 13:10 Page: 42
Advantages: i. Large audiences – some press audiences can reach into millions, so it can be an effective way to reach a lot of people. ii. Fast results – today’s newspaper is tomorrow’s fish and chip wrapper so responses will come in quickly. iii. Large volumes of responses – although a magazine or newspaper response rate is very low (around 0.01%), with such a large audience this can equate to a lot of responses still. iv. Negotiable rates – many advertising salespeople are open to negotiation, especially as the publication nears the deadline, so you could pick up a good deal by playing hard ball. v. More traffic to your site - The press release that gets published on one of the media outlets will have your website link provided within it. Those who have reviewed your release and want more information will click through the link or check out the website. 13:10 Page: 43
Disadvantages: i. Cost – advertising is not cheap. You could be looking at many hundreds of pounds for just a small space. ii. Competition – unless you can afford a big ad in a prime position on a page (top right of the right hand page is considered the best position to have an ad) then your advert may get lost in amongst the host of other messages screaming for attention. iii. Low readership of ads – millions of people may read the newspaper, but how many actually scour all the adverts? • Less targeted – advertising is broadcasting your message to everyone without cast effectively 13:10 Page: 44
PRESS CONFERENCE • Definition: • A meeting organized for the purposes of distributing information to the media and answering questions from reporters. Normally the press conference is led by the company's executive management or their appointed press liaison. • Given the media's limited resources, it may be difficult to attract major media attention to a press conference unless the company has a truly unique or newsworthy announcement to share. Press conferences can also be 13:10 issued in response to addressing public relations issues. Page: 45