Promotional strategy

Element of the promotional mix

Advertising
Public Relation
Personal Selling
Sales Promotion

Advertising

Paid,non personal communication transmitted through out of store mass media by an identified sponsor.

Adv objectives for retailer

-Life short term sales
-Increase customer traffic
-Develop and reinforce a retail image
-Inform customers about goods and services and company attributes
-Ease the job for sales personnel
-Develop demand for private brand

Advantages

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

Disadvantages 

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

Types of advertising .

Newspaper

Flyers

.

BillBoard

This is the example that the retailer use to advertise their product .

Public Relations

Communication that fosters a favorable image for the retailer 

-nonpersonal or personal 

-paid or unpaid

-sponsor-control or not

Publicity 

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.

PR objectives for retailer

Increase awareness of the retailer and its strategy mix

Maintain or improve the company image

Show the retailer as a contributor to the public’s quality of life

Demonstrate innovativeness

Present a favorable message in a highly believable manner

Minimize total promotion costs

Advantages

Image can be presented or enhanced

More credible source

No costs for message’s time or space

Mass audience addressed

Carryover effects possible

People pay more attention than to clearly identified ads

Disadvantages

Some retailers do not believe in spending on image-related communication

Little control over publicity message

More suitable for short run

Costs for PR staff, planning activities and events

Personal Selling

Oral communication with one or more prospective customers for the purpose of making of making a
sales.

Personal selling objectives for retailers

Persuade customers to buy
Stimulate sales of impulse items or products related to customers’ basic purchases
Complete customer transactions
Feed information back to company decision makers
Provide proper levels of customer service
Improve and maintain customer satisfaction
Create awareness of items also marketed through the Web, mail, and telemarketing

Advantages

Message can be adapted
Many ways to meet customer needs
High attention span
Less waste
Better response
Immediate feedback

Disadvantages

Limited number of customers at one time
High costs
Doesn’t get customer in store
Self-service discouraged
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

Types of Sales Promotion 

Display
Contest
Sweepstakes
Coupons
Frequent shopper program
Samples
Prizes
Demonstration

Sales promotion objectives for retailers

The objectives a increasing the short-term sales volume, maintaning customer loyalty, emphasizing
novelty .

Advantages

Eye-catching appeal
Distinctive themes
Added customer value
Draws customer traffic
Maintains loyalty
Increases impulse purchases
Fun for customers

Disadvantages

Difficult to terminate
Possible damage to retailer’s image
More stress on frivolous selling points
Short-term effects only
Used as a supplement