Download Types of promotion Explanation Advertising

RETAIL BUSINESS
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Retail is the sale of goods and services from individuals or
businesses to the end-user.
Retailers are part of an integrated system called the supply
chain.
A retailer purchases goods or products in large quantities
from manufacturers directly or through a wholesale, and then
sells smaller quantities to the consumer for a profit. Retailing
can be done in either fixed locations like stores or
markets, door-to-door or by delivery.
The term "retailer" is also applied where a service provider
services the needs of a large number of individuals, such as
for the public.
Types of Retailers
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Retailers Use Different Retail Mixes
-merchandise: variety (breadth) /
assortment (depth)
-services
-store design, visual merchandising
-location
-pricing
Infinite Variations
Some combination of retail mixes satisfy
the needs of significant segments and
persist over time.
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TYPES OF RETAIL OUTLET
Retail Stores (Department stores , discount retail department stores and
specialty stores. )
Retailing Without a Store (sales through TV home shopping and
door-to door sellers such as Avon.)
Retailing Through Mail Order
Retailing Through the Internet
Retailing Through Vending Machines
Three Tiers of Department Stores
TIERS
First Tier: Upscale, high fashion chains with exclusive designer
merchandise and excellent customer service (Nordstrom,
Neiman Marcus, Saks)
Second Tier: Retailers sell more modestly priced merchandise
with less customer service (Macy’s)
Third Tier: Value oriented caters to more price conscious
customer JCPenney, Sears, Kohl’s
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Merchandise/Service Continuum
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Marketing strategies
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pricing and advertising
promoting
packaging
The goal of any ad is
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to persuade consumers that they need a particular
product or service.
the message of any form of advertising must appeal
to the product's key demographic,
an ad must speak directly to the person most likely
to need or want the product being sold.
advertising is heavily linked to consumer behavior,
since no ad will influence a person's behavior if it
seems irrelevant to his or her desires.
Consumer behavior and advertising are closely
related
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the main goal of advertising involves using the
behavior of potential buyers.
The art of advertising is to use visual images and
convincing copy to give consumers a sense wishing
for something of need for products or services.
Advertising refers to
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ways in which marketers, retailers, and other
professionals communicate with potential consumers
or prospects.
It usually involves the use of:
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printed media communications,
television
Advertising
Internet
radio
Marketers
Consumers
TYPES OF ADVERTISING
INFORMATIONAL
PUFFERY
DECEPTIVE
• Specific information,
understandable,
legitimate claims about
a product / service
• Help consumers make
decisions
• Few @ no information
• Announcing invalid /
incorrect
• The purpose of appeal
consumers purchase
goods/services
• Using the well-known
person as a model
• Ads are divided into
categories
• Testimonials
• Institutional
• Emotional
• Comparison
• Ad set correctly for
an unrighteousness
• Make false claims to
cheat consumers, but
rather difficult to
prove
• To confuse the user eg.
weight loss diet food
brand
• Free product is a tactic
used
TYPE OF TRUTH IN ADVERTISING
INFORMATION
Literal
truth
A real
picture
Supported by
the facts - the
truth is clear
& the
information is
easily proved
Literally true
but can bring
a false picture
of its
effectiveness
Information
Heralded
The false
impression
Goods /
services as
best
portrayed
Whether a
deliberate /
not a false
impression to
consumers
Packaging does influence customer behavior
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Marketers must adapt the packaging to their target
consumers:
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a child -- cartoon character on a cereal box
a mother -- clearly labeled as being nutritional
older people -- product that is packaged in small quantities
Practicality of use is also important:
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the mother of young children -- easy to open for her children's
lunch-box,
a bachelor won't mind if a jam-jar is difficult to open.
Types of
promotion
Explanation
Advertising:
Any non personal paid form of communication using any
form of mass media.
Public relations
Developing positive relationships with the organization
media public, to obtain favorable publicity within the media,
& being able to handle successfully negative attention.
Sales promotion:
Commonly used to obtain an increase in sales short term.
(money off coupons or special offers).
Personal selling:
Selling a product service one to one
Direct Mail
Is the sending of publicity material to a named person
(personalizing advertising), response rates increase thus
increasing the chance of improving sales.
Internet
Marketing
Promoting and selling services online using various forms
of online marketing techniques such as banner
advertisements, videos or social media.
Sponsorship
Pay an organisation to use your brand or logo. Most
common use of sponsorship is with sporting events.
Promotion
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These elements are personal selling, advertising, sales
promotion, direct marketing and publicity.
Fundamentally, however there are three basic objectives of
promotion. These are:
1. To present information to consumers as well as others.
2. To increase demand.
3. To differentiate a product.
There are different ways to promote a product:
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internet advertisement,
special events,
endorsements,
and newspapers
incentive like discounts, free items, or a contest.
"promotion" (marketing company) = "special offer" (public).