Download Retail Advertising

Chapter 17
Retail and Business-to-Business
Advertising
1
Chapter Learning Objectives
Discuss retail advertising fundamentals.
Summarize the media options for
retailers.
Explain business-to-business
advertising objectives.
Identify the various media used in
business advertising.
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Retail Advertising
Retail Advertising
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Used by merchants
to sell products and
service directly to
consumers.
Accounts for nearly
half of all the money
spent on advertising.
Retailers sell through
a physical facility.
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Local Retail Advertising
Retail Advertising is Often Called Local Advertising Because the
Target Market Often is Local.
Sell a Variety of Products
Retail Advertising
Should Perform
Several Functions:
Encourage Store Traffic
Deliver Sales Messages
Store Image
Establish a Brand
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Differences Between Local Retailing &
National Brand Advertising
Retail Advertising is Usually Targeted at People Living
In the Store’s Local Community.
Consumer Brand Advertising Supports Only the Sponsor’s
Brands; Retail Advertising May Support Several Brands.
Retail Advertising Directed at the Local Community Has
An Inherent Urgency.
Local Retail Advertising is Customized to Reflect
the Local Store.
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Differences Between Local Retailing &
National Brand Advertising
To Build and Maintain Store Traffic, a Retailer Must Meet
Four Objectives:
Build Store Awareness
Create Consumer Understanding
Convince Consumers That the
Store’s Items Satisfy Needs
Create Consumer Desire to Shop
At This Store
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Station Break
Go to the Benetton Web site at www.benetton.com.
Examine how the company deals with controversial
and culturally sensitive issues.
How does this help them sell clothing?
If you were a local distributor (retail store) that
carried Benetton products, how would the Benetton
ads or policies affect your sales?
Use this company as an illustration of how truly
different national product advertisers can be from
their local counterparts. Discuss.
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Cooperative Advertising
Cooperative
Advertising
Manufacturer Reimburses
Retailer for Ad Expenses
Based on a
% of Sales
To Retailer
Sometimes
Called
Ad
Allowances
Structure of
Co-op Funds
Suppliers of Co-op Can
Fund Activity in Two Ways
Varies From
Month to
Month
Accrual
Fund
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Nonstore Retailing
Nonstore Retailing Occurs When the Exchange Between the
Manufacturer or Retailer and the Consumer Takes Place
Outside the Traditional Retail Store. Reasons For Growth:
Consumers Are No Longer Inclined
to Spend Hours Shopping
Improvements in Quality and Selection
Improvements in Warranties
Improvements in Mailing Lists
That Target Consumers
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Online Retailing and
E-Commerce
E-Commerce is the Selling of Goods and Services
(Commerce) Through the Internet.
Rapidly Growing
Industry
Purchase:
Computer Products,
Travel,
Entertainment,
Apparel, Gifts, etc.
Attractive to Those
Who Value
Convenience and
Don’t Have Much
Time.
May
Use Other Media to
Advertise Their
Products or
Services.
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Institutional and Product Retail
Advertising
Institutional Retail

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Sells the retail store
as an enjoyable place
to shop.
Helps a store to
establish its image.
Loyalty programs fall
under this category.
Product Retail

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Presents specific
merchandise for sale
and urges customers
to come to the store
immediately to buy.
Creates a store’s
reputation through its
merchandise.
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Station Break
Go to the following Web sites: www.foleys.com,
www.may.com, www.macys.com,
www.dillards.com, and www.gap.com.
Which site seems to offer the most in the way of
information and incentives to purchase?
Are sales advertised? If so, on which sites?
Which sites seem to match the image of the retail
themselves? Discuss how your judgments were
made.
What improvements could be made to these sites
to make them more competitive and attractive?
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Trends Affecting Retail
Advertising
Consolidation
Increased Use of Free-Standing
Inserts
Demographic
Time Stress, Aging Population,
Geomarketing, Market Fragmentation
Heightened Competition
Markets Will Continue to Decrease in
Size as Competitors Segment Them.
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Creating the Retail Ad
Image or Price
Price is a Factor
In Image.
Some Products
Are Difficult to
Differentiate (gas).
Price Can Help
Consumers to
Comparison Shop.
Executing Retail
Ads
Who Works on
The Creative?
Main Objective is
To Attract
Customers.
In-house Staff
Mention Store
Location & Phone.
Ad Agencies
Media
Freelancers
May Save Money
By Using Stock
Artwork.
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Buying and Selling Local
Media
Most rapidly changing area in retail advertising is
the buying and selling of local media time and
space.
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Media competition has increased significantly.
Budgets are tighter.
All large markets have at least one local magazine that
offers high-quality, four-color ads.
New selling tactics are called for.
Local Retail Media Strategy
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Local retailers generally prefer reach over frequency.
Successful retailers use media that minimize waste, such
as direct mail.
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Media Alternatives
Specialty
Newspapers
Local Retailers Are
Interested Only in
Local Media and
Usually Select One
of the Following:
Online Media
Direct Response
Directories
Shoppers &
Preprints
Magazines
Broadcast Media
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Business-to-Business
Advertising & Marketing
Organizations
Buy Products or
Services in
Business
Markets.
Advertising
Directed at
People in
Business
Who Buy
or Specify
Products
for
Business
Use.
Organizations
Buy Goods or
Services to
Support (1)
Production
Requirements,
(2) Business
Needs.
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Types of Business Markets and
Products Purchased (Fig. 17.1)
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Business Versus Consumer
Marketing
Business-to-Business Advertising Differs
From the Creation of Consumer Advertising
Market
Concentration
Decision
Makers
Strategic
Orientation
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Purchasing Objectives
Purchasing
Objectives
Price
Service
Quality
Assurance of Supply
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Business-to-Business Advertising
Objectives
Creating
Company
Awareness
Supporting
Distributors and
Resellers
Increasing
Overall
Selling
Efficiency
Helps to Contact
Those That Can’t
Be Reached by
Salespeople
Also
Helps
to:
Helps to Answer
Common Questions
21
Creating Business-toBusiness Ads
Select the Strongest Benefit
Dramatize the Most Important Benefit
Visual Should be Relevant
Layout Should Have a Sense of Balance and Flow
Offer Should be Clear
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Business-to-Business
Advertising Media
Media
Choices
Available
for
Competitive
BusinessAdvantage
toBusiness
Advertisers
Business &
Trade
Publications
Directory
Advertising
Direct
Marketing
The Web
Consumer
Media
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Does Business Advertising Sell?
Many question the effectiveness of business-tobusiness advertising. Studies show that:
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This form of advertising does create sales.
Increased advertising results in increased sales.
Paid to advertise to both dealers and end users when
the product was sold through dealers.
Increased frequency leads to higher sales and profits.
It takes 4-6 months to see gains.
Use of color made a dramatic difference.
Ad campaign is often effective long after it ends.
Awareness and attitudes are affected favorably.
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Trends in Business-toBusiness Advertising
More
Accountability
Is Required
Ad Programs and
Staff Are Being
Pared Down
Becoming
More
People Oriented
Advertising
Must Support
Customer Sales
And Choices
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