OVERVIEW OF

RETAIL PROMOTION
DPR6023 Retail Promotion

By Nur Aliyah Azizi Dec 2016

 LESSONChapter
LEARNING OUTCOME
1: Overview of Retail Promotion

Explain retail promotion mix

Describe the elements of retail promotional
mix

Explain retail promotion program

Define the role of retail promotion program

Explain methods of communication

with customers
Classify the method of communication with
customers
 Promotional Mix
Describes the blend of promotional methods used to communicate
effectively a retailers offerings to its target audience.
 Advertising
Paid, non personal communication transmitted through out-
of-store mass media by an identified sponsor.

Conventional media New age media Outdoor advertising

outlet outlet Billboards, Banners, Buntings,
Newspapers, Magazines, TVs and Blogs, Social Network Webpages, Posters, Flyers, and Ads on public
Radio Websites and Push-text transportations
messages
Creative Ads
Source: Youtube
 Sales Promotions
Special incentives to stimulate products or services trial and consumer
purchasing.

Excitement-building program Other promotional tools

Contests and sweepstakes, demonstrations,
sampling, window and in-store displays,
coupons, frequent-buyer programs, rebates,
premiums, free gifts, pop-up stores and
special events
Sales promotions are typically used in
conjunction with advertising and personal
selling.

Frequent-buyer programs and contests Sampling and window displays

Seek consumer repeat purchases and long- Used for predetermined, limited period of time.
term relationships with them.
Ikea Sales Promotion
Source: Youtube
 Publicity
Any non personal form of public relations whereby messages are transmitted
through mass media, the time or space provided by the media is not paid for, and
there is no identified commercial sponsor.

Public Relations
Any communication that fosters a favorable image for the retailer among its
publics.
Non personal or personal
Paid or nonpaid
Sponsor-controlled or not

1 Grand opening of a new mall 4 Company-sponsored

scholarship program

2 Presentation of award to the 5 Charitable event like a

company/employee walkathon

3 Company-sponsored sports 6 Interview with company

event official about new product
 Personal Selling
Oral communication with one or more prospective customers for the
purpose of making a sale and establishing a long-term customer
relationship.
 Store Atmosphere
The combination of the stores physical characteristics (architecture,
layout, signs and displays, colors, lighting, temperature, sounds, smells)
together create an image in the customers mind.

Visual Merchandising
An art of presentation which comprised of six components :
Image
Layout
Presentation
Signing
Display
Events
 Roles of Retail Promotion Program
Promotional program are the program
which been designed to inform,
persuade, or remind the market of
the firm and its products and
ultimately to influence consumers
feelings, beliefs and behavior.
REMIND customers about existing
products on the market
Maturity Stage of the product
life cycle
How good, how attractive,
how it satisfies customers
wants and needs
INFORM potential or current
customers of a new product or
service or of an improvement to an
existing product
Introduction Stage of the
Product Life Cycle
Benefits and characteristics
Changes and Improvements
PERSUADE - attempts to encourage
a customer to take a specific action,
such as purchasing a product
- Negative meaning to some
customers
- Growth Stage of the product life
cycle
- Advantages over the
competitors product
- Coupons, rebates, samples
Promotional Program Scopes & Objectives
Introducing new or revised products
Increasing distribution of new packages or sizes
Building retail inventories
Maintaining or increasing manufacturers share of
shelf space
Obtaining displays outside normal shelf locations
Reducing excess inventories and increasing
turnover
Achieving product features in retailers
advertisements
Countering competitive activity
Selling as much as possible to final consumers
COMMUNICATION METHODS
Paid, non personal
communication transmitted
through out-of-store mass
media by an identified sponsor.
 Offer extra value and incentives to customers
to visit a store or purchase merchandise
during a specific period of time.

Special events, demonstrations, coupons,

rebates, special sales, free gift, premium etc.
The combination of the stores physical
characteristics (architecture, layout,
signs and displays, colors, lighting,
temperature, sounds, smells)
together create an image in the
customers mind.
Web Sites

Blogs
 Operate Web sites devoted to community building.
Offer opportunities for customers with similar interests to learn about products and services that
support their hobbies and share information with others.
Visitors to these web sites can post questions seeking information and/or comments about issues,
products and services.
Web site visitors form a community of people with like interest.
i.e: www.theknot.com, www.communitysites.co.uk, Myvi Club, Kumpulan Ibu Mengandung
A communication process in which
salespeople help customers satisfy
their needs through
face-to-face exchanges of
information.
 Involves sending messages over the
internet.
Any brochure, catalog, It can be personalized to the specific
advertisement, or other printed consumer and thus is similar to

E-mail
Direct mail

marketing material delivered communications delivered by

directly to the consumer through
the mail or a private delivery
company.
salespeople.
To inform customers of new
merchandise and special promotions,
confirm the receipt of an order and
indicate when an order has been
shipped.
 Mobile marketing is marketing through wireless
handheld devices, such as cellular telephones, and
m-commerce or mobile commerce involves
completing a transaction via the cell phone.
E.g: prepaid top up
 A communication through significant, unpaid presentations about
the retailer, usually a news story, in impersonal media.

Done through internal emails, newsletter, magazines,

bulletin board notices, handbooks, and inserts into pay envelopes.

News about the retailer are published in newspaper, tv, radio and
etc.

E.g: Beras Faiza / Anlene sponsored Bersamamu program.

CIF-Central Market.
Communication between people about a retailer.

Social shopping is the new pathway.

Social shopping is a communication channel in which

consumers use the Internet to engage in the shopping process
by exchanging preferences, thoughts and opinions among
friends, family and others.

Customers review, communicate about, and aggregate

information about products, prices and deals.
STRENGTHS AND WEAKNESSES OF COMMUNICATION
METHODS