1. Retail Communication Mix
Dr. Shilpa Sindhu

2. Objectives of Communication Program
Long-term
Build Brand (retailer’s name) Image
Create Customer Loyalty
Short-term
Increase Traffic
Increase Sales

3. Brands
Distinguishing name or symbol, such as a logo, that identifies the products or services offered by a seller and differentiates those products and services from those offered by competitors
The McGraw-Hill Companies, Inc./John Flournoy, photographer
The McGraw-Hill Companies, Inc./Bob Coyle, photographer

4. Brands Value of Brand Image Value to Retailers (Brand Equity)
Attract Customers
Build Loyalty
Higher Prices Leading to Higher Gross Margin
Reduced Promotional Expenses
Facilitates Entry into New Markets Gap  GapKids
Value to Customers
Promises Consistent Quality
Simplifies Buying Process
Reduces Time and Effort Searching for Information About Merchandise/Retailer

5. Building Brand Equity Create a High Level of Brand Awareness
Develop Favorable Associations - FabIndia
Brand Equity
Consistent Reinforcement
Create Emotional Connections

6. Apple

7. Benefits of High Brand Awareness
Stimulates Visits to Retailer
Aided Recall
Top of Mind Awareness

8. Creating Brand Awareness
Memorable Name
Repeated Exposure
Top-of-mind
Brand Awareness
Event Sponsorship
Symbols

9. Retailers Develop Associations with their Brand Name
Brand name is a set of associations that are usually organized around some meaningful themes
Brand associations: anything linked to or connected with the brand name in a consumer’s memory

10. McDonald’s Brand Associations
Golden Arches
Fast Food
Big Mac
McDonald’s
French Fries
Ronald McDonald
Clean

11. Consistent Reinforcement
The retailer’s brand image is developed and maintained through the retailer’s communication mix
Retail Communication Mix

12. Consistent Reinforcement through Integrated Marketing Communication Program
A program that integrates all of the communication elements to deliver a comprehensive, consistent message
Providing a consistent image can be challenging for multichannel retailers – Need to consider the needs of all channels early in the planning of its communication program

13. Integrated Marketing Communications
Present a Consistent Brand Image through all Communications with Customers
Store Design
Advertising
Web Site
The McGraw-Hill Companies, Inc./Andrew Resek, photographer

14. Brand Extensions Gap  GapKids and Old Navy
Luminous  Mobile batteries
Coca Cola  Diet Coke
Colgate  for kids, toothbrush
The McGraw-Hill Companies, Inc./Andrew Resek, photographer

15. Methods of communicating with customers
Communication Methods
Online – Direct Marketing (mobile marketing) Online Marketing (website, blogs, social media)
Offline – Personal Selling
Sales Promotions (contests, special
events, in store demonstrations)
Interactive
Online – Direct Marketing ( s)
Offline – Advertising
Sales promotion(coupons)
Direct marketing (mails, catalogs)
Public Relations
Passive

16. Steps in Developing a Retail Communication Program
Planning the Retail Communication Program
Steps in Developing a Retail Communication Program

17. Setting Objectives Communication objectives:
Specific goals related to the retail communication mix’s effect on the customer’s decision-making process
Long-term: ex) creating or altering a retailer’s brand image
Short-term: ex) increasing store traffic

18. Setting the Communication Budget
Marginal analysis
Objective and task
Rule of thumb
Affordable
Percentage of sales
Competitive parity
Advertising Sales
Sales Advertising

19. Setting the Communication Budget
Marginal Analysis Method
Based on the economic principle that firms should increase communication expenditures as long as each additional dollar spent generates more than a dollar of additional contribution
Very hard to use because managers don’t know the relationship between communication expenses and sales

20. Objective-and-Task Method
Determines the budget required to undertake specific tasks to accomplish communication objectives

21. Rule of Thumb Methods
Affordable Budgeting Method – sets communication budget by determining what money is available after operating costs and profits are budgeted.
Drawback: The affordable method assumes that the communication expenses don’t stimulate sales and profits.
Percentage of Sales Method – communication budget is set as a fixed percentage of forecasted sales.
Drawback: This method assumes the same percentage used in the past, or by competitors, is still appropriate for the retailer.

22. Rule of Thumb Methods
Competitive Parity Method – this communication budget is set so that the retailer’s share of communication expenses equals its share of the market.
Drawback: This method (like the others) does not allow the retailer to exploit the unique opportunities or problems they confront in a market.