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Chapter 15 - Retail Communication Mix
15-14
or long- and short-term objectives.
• Retailers often can realize the same
objectives by reducing the size of the
communication budget, but allocating the
budget more effectively.
D. Planning, Implementing, and Evaluating
Communication Programs – Three
Illustrations
• The final two stages in developing a retail
communication program are implementation
and evaluation.
1. Advertising Campaign
• A specialty import home furnishing store
decided to concentrate its limited budget on
a specific segment and use highly distinctive
Review the communication program
developed by the furniture company in the
text and how the retailer evaluated the
effectiveness of the campaign.
2. Sales Promotion Opportunity
• Many sales promotion opportunities
undertaken by retailers are initiated by
vendors.
Discuss the factors a retailer needs to
consider when evaluating a promotion.
Discuss how each factor has either a positive
or negative effect on the retailer's profits.
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inventory carried due to buying more than
the normal amount, (3) the potential increase
3. Special Promotion Using a
CRM/Campaign Management Tool
• A national retailer used a CRM/Campaign
management system to plan, design,
evaluate, and implement a special
promotion.
• The action plan included all the required
steps in the campaign process, along with
costs, dependencies, and deadlines on the
marketing production schedule.
IV. Summary
• A communication program can be designed
to achieve a variety of objectives for the
retailer such as building brand image,
increasing sales and store traffic, providing
information about the retailer’s location and
offerings, and announcing special activities.
Chapter 15 - Retail Communication Mix
• These elements in the communication mix
must be coordinated so customers have a
clear, distinct image of the retailer and are
not confused by conflicting information.
ANSWERS TO “GET OUT AND DO ITS”
Report. Based on the report, list the top 20 global retail brands. In two or three paragraphs
describe what makes a strong retail brand. How were brand equity and financial performance
used to measure brand value for these retailers?
Here are the top 25 brands from the web page:
Chapter 15 - Retail Communication Mix
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3. Retailers and manufacturers deliver coupons through the Internet in addition to mail or in
distribution system compare with the other two distribution systems?
Students should consider push vs. pull communication; reaching a wide target audience;
and informing, reminding and persuading customers with a consistent message no matter
which media are used.
4. Trader Joe’s is a gourmet grocery store offering items such as health foods, organic produce,
and nutritional supplements. The company has about 400 stores in 37 states where they offer
Internet site to promote its retail stores and merchandise. Why does this retailer include recipes
and a seasonal guide on its web site? Does the information provided on the web page reinforce
the store’s upscale grocery image? Explain why or why not.
The web site serves as a newsletter to increase store awareness, describe new products
5. Go to the Social Media site for a retailer that you have shopped with during the last few
weeks. How was social media used as an element in the retailer’s communication program?
What audience is being reached with social media? Is the social media message consistent or
inconsistent with other communication elements? Is this a strong or weak strategy? Please
explain.
Students’ responses here will vary. The population using social medial is growing, but
A Social Media “How To” for Retailers from Nielsen Media is helpful for a full discussion.
Summary of this report: As social media continues its meteoric ascent, newly empowered
consumers wield more control than ever before. Although retail sales are dominated by
Chapter 15 - Retail Communication Mix
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How does this retailer use Public Relations to communicate with investors and customers? Is this
an effective communication tool for this retailer? Provide support for your response.
Target includes information about new stores, corporate information, merchandise,
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well as how to take advantage of mobile applications. What are some of the steps that Facebook
suggests a person consider when marketing using ads?
Facebook works with companies to help them build successful campaigns through its platform.
ANSWERS TO DISCUSSION QUESTIONS AND PROBLEMS
1. How do brands benefit consumers? Retailers?
In a competitive marketplace with numerous messages, brands are crucial for identifying,
differentiating, and recognizing individual offerings or retailers. For the consumers as well
as retailers, brands represent evaluations, experiences and meanings associated with a
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2. What are the positive and negative aspects of direct marketing from the customer’s
perspective?
Positives
- Can be delivered many ways
- Can identify and track consumers and their responses
3. What types of sales promotions have been successful with you as a consumer? Which
ones have not been successful? Explain your responses.
Students’ answers will vary. Most students will likely not respond to traditional ROP
4. What factors should be considered in dividing up the advertising budget among a
store's different merchandise areas? Which of the following should receive the highest
advertising budget: staple, fad, fashion or seasonal merchandise? Why?
The basic principle that should be considered in allocating the advertising budget across
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5. Outline some elements in a communication program to achieve the following objectives:
(a) Increase store loyalty by 20 percent.
(b) Build awareness of the store by 10 percent.
(c) Develop an image as a low-price retailer.
How would you determine whether the communication program met each of these
objectives?
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Objective
Approach for Achieving
Objective
Technique for Measuring
Objective
Increase store loyalty
by 20%.
Frequent shopper program
where customer earn points
for making more
Telephone or mail survey
taken before and after new
program asking customers
6. A retailer plans to open a new store near a university. It will specialize in collegiate
merchandise such as apparel, accessories, and school supplies. Consider the pros and
cons of each of the following media: TV, radio, city newspaper, university newspaper,
local magazine, web site, blog and sponsoring an event for this retailer to capture the
university market.
While student responses will vary, some possible ideas are: The new retailer may want to use
newspapers to reach this market. Student newspapers usually have a high student readership
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7. Why do some online retailers include editorial and customer reviews along with
product information on their websites? Explain how this may influence the consumer’s
buying behavior.
Many retailers offer websites to foster community building efforts. They offer an opportunity
for customers with similar interests to learn about products and services that support their
8. Assume you work for a large consumer-packaged goods firm that has learned its latest
line of snack foods is moving very slowly off store shelves. Recommend a strategy for
listening to what consumers are saying on blogs, review sites, and the firm’s website.
Describe how your strategy might provide insights into consumers’ sentiments about
the new product line.
Customers are more willing to offer reviews on a product online when the context is
seemingly anonymous. This is a great opportunity for firms to learn the “real” reason why
9. As an intern for Dunkin’ Donuts, you have been asked to develop a social media
campaign for a new glazed muffin. The objective of the campaign is to increase awareness
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and trail of the new line of muffins. How would you go about putting such a campaign
together?
Students’ answers will vary. There are several ways to increase awareness and trial of the new
