CHAPTER 8: PROMOTIONAL STRATEGY

  There are a few elements of retail promotion in the promotional strategy such as advertising, public relations, personal selling, and sales promotion. First, advertising is paid, nonpersonal communication transmitted through out-of-store mass media by an identified sponsor.The objectives of advertising for retailers are to  lift short-term sales, increase customer traffic,  develop a retail image, to inform customers about goods and services.

Advertising Characteristics
Advantages	Disadvantages
Attracts a large audience    Gains pass along readership (for print)    Low cost per contact    Many alternatives available    Control over message content; message can be standardized    Message study possible    Editorial content surrounds ad    Self-service operations possible	Standardized messages lack flexibility    Some media require large investments    Geographic flexibility limited    Some media require long lead time    Some media have high throwaway rate    Some media limit the ability to provide detailed information

Figure 19-4: Types of Advertising

Public Relations are the communication that fosters a favorable image for the retailer. Meanwhile, publicity is nonpersonal form of public relations whereby messages are transmitted by mass media.  The time or space provided by the media is not paid for, and there is no identified commercial sponsor. Besides, there a few public relations objectives for retailers which are to increase awareness of the retailer and its strategy mix, maintain or improve the company image and show the retailer as a contributor to the public’s quality of life.

Public Relations Characteristics
Advantages	Disadvantages
ü  Image can be presented or enhanced ü  More credible source ü  No costs for message’s time or space ü  Mass audience addressed ü  Carryover effects possible ü  People pay more attention than to clearly identified ads	û  Some retailers do not believe in spending on image-related communication û  Little control over publicity message û  More suitable for short run û  Costs for PR staff, planning activities and events

Personal Selling is an oral communication with one or more prospective customers for the purpose of making a sale. There are a few personal selling objectives for retailers which are persuading customers to buy, provide proper levels of customer service, improve and maintain customer satisfaction and create awareness of items also marketed through the Web, mail, and telemarketing.

Personal Selling Characteristics
Advantages	Disadvantages
ü  Message can be adapted ü  Many ways to meet customer needs ü  High attention span ü  Less waste ü  Better response ü  Immediate feedback	û  Limited number of customers at one time û  High costs û  Doesn’t get customer in store û  Self-service discouraged û  Negative attitudes toward salespeople

Sales Promotion encompasses the paid communication activities other than advertising, public relations, and personal selling that stimulate consumer purchases and dealer effectiveness. There are many  types of sales promotions such as displays, coupons, prizes, samples, demonstrations. The objectives of sales promotions for retailers are increasing short-term sales volume, maintaining customer loyalty, emphasizing novelty, and complementing other promotion tools.

Sales Promotion Characteristics
Advantages	Disadvantages
ü  Eye-catching appeal ü  Distinctive themes ü  Added customer value ü  Draws customer traffic ü  Maintains loyalty üIncreases impulse purchases ü  Fun for customers	û  Difficult to terminate û  Possible damage to retailer’s image û More stress on frivolous selling points û  Short-term effects only û  Used as a supplement