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 attitudes potential purchaser action

Or
Awareness state
 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

• Stimulates primary demand for

Pioneering
Pioneering new product or category.
• Used in the PLC introductory stage.

• Influence demand for brand in the

Competitive
Competitive growth phase of the PLC.
• Often uses emotional appeal.

• Compares two or more competing

Comparative
Comparative brands’ product attributes.
• Used if growth is sluggish, or if
competition is strong.
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
Newspapers
Magazines
Magazines
Radio
Radio
Television
Television
Outdoor
Outdoor Media
Media
Internet
Internet
Alternative
Alternative Media
Media
Advertising Spending for 2009
 Newspapers
Advantages
Advantages Disadvantages
Disadvantages

● Limited demographic
selectivity
● Geographic selectivity
● Little color
● Immediacy
● May be expensive
● High individual market
coverage ● Low pass-along rate
● Short lead time ● Clutter
● Mass market medium
 Magazines
Advantages
Advantages Disadvantages
Disadvantages
● Good reproduction ● Higher cost per contact

● Demographic ● Long-term advertiser

selectivity commitments

● Regional/local ● Slow audience build-up

selectivity ● Limited demonstration
● Long advertising life capabilities

● High pass-along rate ● Lack of urgency

● Long lead time
Magazine advertising
 Radio
Advantages
Advantages Disadvantages
Disadvantages
● Selectivity and ● No visual treatment
audience segmentation
● Short advertising life
● Immediate and portable
● High frequency to
● Geographic flexibility generate retention
● Entertainment ● Commercial clutter
carryover
● Background
● Short-term ad distractions
commitments
 Television

Advantages Disadvantages
Disadvantages
Advantages

● Wide, diverse audience ● Short life of message

● Low cost per thousand ● Expensive with high
campaign cost
● Creative and ● Little demographic
demonstrative selectivity with network
● Immediacy of messages ● Long-term advertiser
● Entertainment carryover commitments
● Demographic selectivity ● Long lead times
with cable ● Clutter
 Outdoor Media
Advantages
Advantages Disadvantages
Disadvantages

● High exposure ● Short message

frequency
● Lack of demographic
● Moderate cost selectivity
● Flexibility ● High “noise” level
● Geographic selectivity
● Broad, diverse market
outdoor
advertising
outdoor
advertising
???????
 Internet
Advantages
Advantages Disadvantages
Disadvantages

● Fast growing ● Difficult to measure ad

effectiveness and ROI
● Ability to reach narrow
target audience ● Ad exposure relies on
“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
Profit Product
Product saves,
saves, makes,
makes, or
or protects
protects money
money
Health
Health Appeals
Appeals to
to body-conscious
body-conscious or
or health
health seekers
seekers
Love
Love or
or romance
romance Used
Used in
in selling
selling cosmetics
cosmetics and
and perfumes
perfumes
Fear
Fear Social
Social embarrassment,
embarrassment, old
old age,
age, losing
losing health
health
Admiration
Admiration Reason
Reason for
for use
use of
of celebrity
celebrity spokespeople
spokespeople
Convenience
Convenience Used
Used for
for fast
fast foods
foods and
and microwave
microwave foods
foods
Fun
Fun and
and pleasure
pleasure Key
Key to
to advertising
advertising vacations,
vacations, beer,
beer, parks
parks
Vanity
Vanity and
and egotism
egotism Used
Used for
for expensive
expensive or
or conspicuous
conspicuous items
items
Environmental
Environmental Centers
Centers around
around environmental
environmental protection
protection
Consciousness
Consciousness
 Steps in a Retail Advertising
Campaign
① Select Advertising
Objectives
② Budget for the
Campaign
③ Design the
Campaign
④ Select the media to
use
⑤ Schedule the ads
⑥ 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
➀ Attract and retain attention
➁ Meet advertising strategy
➂ Avoid errors (“guaranteed
or free”
❙ Approaches
➀ Lifestyle
➁ Fantasy
➂ Humor
➃ Slice of Life
➄ 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
Advertising Expenditures
Expenditures as
as aa
Percentage
Percentage of
of Sales
Sales
Wal-Mart Corporation 0.34%

Sears, Roebuck & Co. 3.78%

Kmart Corp. 1.25%
Dayton Hudson Corp. 2.15%
J.C. Penney Co. 3.42%
Federated Dept. Stores 3.75%
May Dept. Stores Co. 3.43%
Woolworth Corporation 1.30%
 Thank u

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