Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Chapter 15: Advertising and Promotion

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Promotional Activities Advertising Fashion shows Demonstrations In-house video programming Special campaigns Celebrity appearance Institutional events Visual merchandising

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Advertising The paid form of non-personal presentation of the facts about goods, services, or ideas to a group. Illustrated through the use of copy and/or artwork.

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Internal Structure Copy area creates written message Production creates technical aspects of ad reproduction, proofreading, and placement Art section produces photos or drawings used in the ads

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved External Ad Sources Specialists guide clients through process of becoming better known. Advertising agencies Freelance designers Merchandise resources The media Market consulting firms

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Types of Fashion Ads Promotional advertising Institutional advertising Combination advertising

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Promotional Advertising The retailer uses the ad space to promote a particular item for sale. Immediate sales results can be determined.

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Institutional Advertising When the retailer does not attempt to sell a particular product in the ad space, but instead is selling the idea of shopping at their store(s).

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Cooperative Advertising The financial contribution by manufacturers towards the cost of a retailer’s advertising. The dollar amount offered by the manufacturer is based upon the retailer’s purchase volume. (Robinson-Patman Act)

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Media Outlets Print Media  Newspapers  Magazines  Direct Mail Broadcast Media  Radio  Television  Web sites  Outdoor Media

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Why Advertise in the Newspaper? 1. Daily publication schedule 2. Short lead time 3. Mass appeal 4. Large audience 5. Low cost per prospective customer 6. Longer lifespan when compared to radio and television 7. Full-color ad supplements on high quality stock, leading to longer life span 8. Reach specific target market 9. Geographical target

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Why Advertise in Magazines? 1. High quality paper stock and color reproduction 2. Long life span 3. National audience reach 4. Great for institutional ads (life span) 5. Placement of contact information for a national audience: Web address, toll number, mail order information 6. Regional editions allow more effective use of ad dollars

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Direct Mail Is Successful Because Target specific groups with desired characteristics Can be combined with other mailings for lower costs Separation from other ads allows DM pieces to gain more consumer attention Can be examined at leisure

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Outdoor Media Choices Billboards Backlit transparencies Posters

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Budgeting Ad Dollars Percent of sales method Objective and task method Unit of sales method

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Terminology Run of Press Preferred position Regular position

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Promotional Programs Fashion Shows  Formal productions  Runway parades  Informal modeling Special Campaigns Institutional Events Designer and Celebrity Appearance Holiday Parades In-house Video Demonstration Sampling

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Publicity The nonpaid mention of a retailer’s goods, services, or idea in the media. Can be influenced by formal public relation campaigns.

Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ All Rights Reserved Trends In Advertising and Promotion Increase in DM usage Fashion catalogs as an information source Decrease in storewide promotion Decrease in institutional advertising Cooperative advertising Decrease in major fashion show presentation Increases in demonstrations