Retail Advertising and Promotion
By SUJITHA S 08MBM100
ADVERTISING
• Advertising Paid non personal communication delivered through various media and designed to inform, persuade, or remind members of a particular audience.
Advertising
Paid non-personal communication through various media Objective to inform reader listener or viewer about Retailer Offerings Prices Services
The way advertising works….
Knowledge state Or Awareness state
attitudes
potential purchaser
action
DAGMAR MODEL
Defining advertising goals for measured advertising results describes the sequence of stages through which the prospective customers has to move. • Unawareness • Awareness • Comprehension of the offer • Conviction • Action or inaction
Types of Advertising
• Product advertising • Markdown event advertising • Institutional advertising • Cause advertising
Product Advertising
Pioneering
• Stimulates primary demand for new product or category. • Used in the PLC introductory stage. • Influence demand for brand in the growth phase of the PLC. • Often uses emotional appeal. • Compares two or more competing brands’ product attributes. • Used if growth is sluggish, or if competition is strong.
Competitive
Comparative
Product advertising (samsung mp3 player)
Institutional advertising
Institutional advertising
Institutional (retail store) advertisement
Contd…..
cause advertising
Cause advertising
Cause advertising
Fun-cause advertising
Advertising and the Product Life Cycle
• Informative advertising Build initial demand for a product. • Persuasive advertising Improve the competitive status of a product.
• Reminder-oriented advertising Maintain awareness of the importance and usefulness of a product.
Major Types of Advertising Media
Newspapers Magazines Radio Television Outdoor Media
Internet
Alternative Media
Advertising Spending for 2009
Newspapers
Advantages
Disadvantages
● Limited demographic selectivity ● Little color ● May be expensive ● Low pass-along rate ● Clutter
● Geographic selectivity ● Immediacy ● High individual market coverage ● Short lead time
● Mass market medium
Magazines
Advantages
● Good reproduction ● Demographic selectivity ● Regional/local selectivity ● Long advertising life ● High pass-along rate
Disadvantages
● Higher cost per contact ● Long-term advertiser commitments ● Slow audience build-up ● Limited demonstration capabilities ● Lack of urgency ● Long lead time
Magazine advertising
Radio
Advantages
● Selectivity and ● audience segmentation ● ● Immediate and portable ● ● Geographic flexibility ● Entertainment carryover ● Short-term ad commitments
Disadvantages
No visual treatment Short advertising life High frequency to generate retention
● Commercial clutter ● Background distractions
Television
Advantages
● Wide, diverse audience ● Low cost per thousand ● Creative and demonstrative ● Immediacy of messages ● Entertainment carryover ● Demographic selectivity with cable
Disadvantages
● Short life of message ● Expensive with high campaign cost ● Little demographic selectivity with network ● Long-term advertiser commitments ● Long lead times ● Clutter
Outdoor Media
Advantages
● High exposure frequency ● Moderate cost ● Flexibility
Disadvantages
● Short message
● Lack of demographic selectivity
● High “noise” level
● Geographic selectivity
● Broad, diverse market
outdoor advertising
outdoor advertising
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Internet
Advantages
● Fast growing
Disadvantages
● Difficult to measure ad effectiveness and ROI
● Ability to reach narrow ● Ad exposure relies on target audience “click through” ● Short lead time ● Not all consumers ● Moderate cost have access to internet
Advertising Appeal
Reason for a person to buy a product.
Common Advertising Appeals
Profit Health Love or romance Fear Admiration Convenience Fun and pleasure Vanity and egotism Environmental Consciousness Product saves, makes, or protects money Appeals to body-conscious or health seekers Used in selling cosmetics and perfumes Social embarrassment, old age, losing health Reason for use of celebrity spokespeople Used for fast foods and microwave foods Key to advertising vacations, beer, parks Used for expensive or conspicuous items Centers around environmental protection
Steps in a Retail Advertising Campaign
Select Advertising Objectives Budget for the Campaign Design the Campaign Select the media to use Schedule the ads Evaluate the results
Advertising Objectives
• Must be based on:
Age of Store Store location Types of Goods Level of competition Market Area Size Supplier Support
Budgeting the Campaign
Main question is if it will be a retailer only campaign or a Co-op campaign If Retailer campaign methods of budgeting include
Affordable method Percentage-of sales method Task and objective method
Designing the Message
Goals
Attract and retain attention Meet advertising strategy Avoid errors (“guaranteed or free”
Approaches
Lifestyle Fantasy Humor Slice of Life Mood / image
Media Selection
Coverage Reach Frequency Cost per thousand (CPM)
Advertising Scheduling
On or just before big buying days Concentrated on pay dates Periods of highest demand Period of highest CPM Habit (same day each week)
Monitoring Advertising
• Effectiveness - did advertising produce the results desired (added sales, added customers, disposal of specific product, etc) • Efficiency - Was the result achieved with the minimum financial expenditure
Advertising Expenditures as a Percentage of Sales
Wal-Mart Corporation Sears, Roebuck & Co. Kmart Corp. Dayton Hudson Corp. 0.34% 3.78% 1.25% 2.15%
J.C. Penney Co. Federated Dept. Stores May Dept. Stores Co. Woolworth Corporation
3.42% 3.75% 3.43% 1.30%
Thank u
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