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Study Guide for Exam - Promotional Strategy | MKT 174, Study notes of Marketing

Material Type: Notes; Professor: Cain; Class: Retail Merchandising; Subject: Marketing; University: Solano Community College; Term: Unknown 1989;

Typology: Study notes

Pre 2010

Uploaded on 08/19/2009

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MKT 174 STUDY GUIDE
CHAPTER 19 – “Promotional Strategy”
oRetail promotion, p. 568 – “…includes any communication by a retailer that
informs, persuades, and / or reminds the target market about any aspect of that firm.”
oElements of the retail promotional mix, p. 568: advertising, public relations (PR),
personal selling, and sales promotion.
oAdvertising, p. 568 – “…paid, non-personal communication transmitted through out-
of-store mass media (newspapers, radio, TV, the Web, outdoor billboards, and other
mass channels) by an identified sponsor.”
oObjectives of advertising, p. 571
1. Lift short-term sales;
2. Increase customer traffic;
3. Develop and / or reinforce a retail image;
4. Inform customers about goods and services and / or company attributes;
5. Ease the job for sales personnel; and,
6. Develop demand for private brands.
oCooperative advertising, p. 571 – “…the costs of retail advertising shared by
manufacturers or wholesalers and their retailers (vertical agreement)…two or
more retailers may also share costs of retail advertising (stores in the same mall –
horizontal agreement).”
Advantages, pp. 571 – 572: large audience (reach); low costs per viewer,
reader; variety of media allows matching to target market; control over
content.
Disadvantages, p. 572: cannot individualize messages; relatively large costs
for mass media; waste (reaching non-target market members; long lead-time;
high throwaway rate of some media forms (direct mail flyers, newspapers).
oAdvertising Media Comparison Chart – see Figure 19-2, p. 573 (medium,
market coverage, particular suitability) – TEST MATERIAL!
Most retailers advertise in the Yellow Pages – p. 572
The use of radio by retailers has gone up in recent years – p. 573
Because cable TV is more focused than conventional broadcast
stations, it appeals to local retailers (auto dealers, restaurants,
etc.) - p. 573
Many retailers advertise on their delivery trucks(transit advertising) – p. 574
Magazine usages are growing (for chains and non-stores) – p. 574
oPioneer ads, p. 574 – have awareness as a goal and offer information (usually on
new firms or locations)
oCompetitive ads, p. 574 – have persuasion as a goal.
oReminder ads, p. 574 – geared to local customers and stress the attributes that
have made the retailer successful
oInstitutional ads, p. 574 – strive to keep retailer names before the public without
emphasizing the sale of goods and services.
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MKT 174 STUDY GUIDE

CHAPTER 19 – “Promotional Strategy” o Retail promotion , p. 568 – “…includes any communication by a retailer that informs, persuades, and / or reminds the target market about any aspect of that firm.” o Elements of the retail promotional mix , p. 568: advertising, public relations (PR), personal selling, and sales promotion. o Advertising , p. 568 – “…paid, non-personal communication transmitted through out- of-store mass media (newspapers, radio, TV, the Web, outdoor billboards, and other mass channels) by an identified sponsor.” o Objectives of advertising, p. 571

  1. Lift short-term sales;
  2. Increase customer traffic;
  3. Develop and / or reinforce a retail image;
  4. Inform customers about goods and services and / or company attributes;
  5. Ease the job for sales personnel; and,
  6. Develop demand for private brands. o Cooperative advertising , p. 571 – “…the costs of retail advertising shared by manufacturers or wholesalers and their retailers ( vertical agreement )…two or more retailers may also share costs of retail advertising (stores in the same mall – horizontal agreement ).”  Advantages , pp. 571 – 572: large audience (reach); low costs per viewer, reader; variety of media allows matching to target market; control over content.  Disadvantages , p. 572: cannot individualize messages; relatively large costs for mass media; waste (reaching non-target market members; long lead-time; high throwaway rate of some media forms (direct mail flyers, newspapers). o Advertising Media Comparison Chart – see Figure 19-2 , p. 573 (medium, market coverage , particular suitability) – TEST MATERIAL!Most retailers advertise in the Yellow Pages – p. 572  The use of radio by retailers has gone up in recent years – p. 573 Because cable TV is more focused than conventional broadcast stations, it appeals to local retailers (auto dealers, restaurants, etc.) - p. 573  Many retailers advertise on their delivery trucks(transit advertising) – p. 574  Magazine usages are growing (for chains and non-stores) – p. 574 o Pioneer ads , p. 574 – have awareness as a goal and offer information (usually on new firms or locations) o Competitive ads, p. 574 – have persuasion as a goal. o Reminder ads, p. 574 – geared to local customers and stress the attributes that have made the retailer successful o Institutional ads, p. 574 – strive to keep retailer names before the public without emphasizing the sale of goods and services.

Pubic relations (PR) , p. 575 – “…entails any communication that fosters a favorable image for the retailer among its publics (consumers, investors, government, channel members, employees, and the general public).” o Objectives of PR, p. 576:

  1. Increase awareness of the retailer & its strategy mix;
  2. Maintain and / or improve the company image;
  3. Show the retailer as a contributor to the public’s quality of life;
  4. Demonstrate innovativeness;
  5. Present a favorable image in a highly believable manner; and,
  6. Minimize total promotional costs. o Advantages , p. 576: more credible source than advertising; no costs for message time or space; mass audience addressed o Disadvantages, p. 576: little retailer control over publicity message and / or timing, placement, and coverage by a particular medium; costs for staffing or agency work to create, place, and measure effect of messages.  Personal selling , p. 577 – “…involves oral communication with one or more prospective customers for the purpose of making a sale.” o Objectives of personal selling, pp. 577 – 578
  7. Persuade customers to buy;
  8. Stimulate sales of impulse items or cross-related products;
  9. Complete customer transactions;
  10. Feed back information to company decision makers;
  11. Provide proper levels of customer service;
  12. Improve and maintain customer satisfaction; and,
  13. Create awareness of items also marketed through the Web, mail, & telemarketing. o Advantages, p. 578: salesperson can adapt a message to the needs of an individual customer; attention span of customers is higher than with advertising; less waste; immediate feedback is provided o Disadvantages, p. 578: only a limited number of customers can be handled at a time; costs of interacting with customers is high; customers are not initially lured into stores through personal selling (unless via personal referrals) o Typical Personal Selling Functions, see Figure 19-7 , p. 579  Sales promotion , p. 580 – “…encompasses the paid communications activities other than advertising, public relations, and personal selling that stimulate consumer purchases and dealer effectiveness.” o Objectives of sales promotion, p. 580:
  14. Increase short-term sales volume;
  15. Maintain customer loyalty;
  16. Emphasize novelty; and,
  17. Compliment other promotional tools.

Rev. 11/15/07pfc