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What can retailers build brand equity for their stores and their
private-label merchandise?
How are retailers using new approaches to communicate with their
customers?
What are the strengths and weaknesses of the different methods for
communicating with customers?
Why do retailers need to have an integrated marketing
communication program?
What steps are involved in developing a communication program?
How do retailers establish a communication budget?
How can retailers use the different elements in a communication mix
to alter customers decision-making processes?
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Short-term
Increase Traffic
Increase Sales
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Brands
Distinguishing name or symbol, such as a logo, that
identifies the products or services offered by a seller and
differentiates those products and services from those
offered by competitors
The McGraw-Hill Companies, Inc./John Flournoy, photographer The McGraw-Hill Companies, Inc./Bob Coyle, photographer
16-3
Brands
Value to Retailers (Brand Equity)
Value to Customers
Attract Customers
Build Loyalty
Higher Prices Leading to
Higher Gross Margin
Reduced Promotional Expenses
Facilitates Entry into New Markets
Gap GapKids
Promises Consistent
Quality
Simplifies Buying Process
Reduces Time and Effort
Searching for Information
About Merchandise/Retailer
16-4
Develop
Favorable
Associations
Brand
Equity
Consistent
Reinforceme
nt
Create Emotional
Connections
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Tar-Zhay
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Apple
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Aided Recall
Top Mind Awareness
Stimulate
s Visits to
Retailer
16-9
Memorable
Name
Home Depot
Symbols
Best Buy
Top-of-mind
Brand Awareness
Macys
Repeated
Exposure
Starbucks
Event
Sponsorshi
p
16-10
Fast
Food
French
Fries
Golde
n
Arches
Big Mac
McDonald
s
Clea
n
Ronald
McDonal
d
16-12
L.L. Bean
16-13
Practic
al
New
Englan
d
Friendly
L.L. Bean
Expertis
e
Honest
Outdoor
s
16-14
Wal-Mart Associations
16-15
Target Associations
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Consistent Reinforcement
The retailers brand image is developed and maintained
through the retailers communication mix
Retail Communication Mix
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Store
Design
Advertising
Web Site
Magalog
The McGraw-Hill Companies, Inc./Andrew Resek, photographer
16-19
Brand Extensions
16-20
Pluses
Develop Awareness and
Image Quickly
Less Costs Needed to
Promote Extension
Minuses
Associations Might Not
Be Compatible with
Extension
Communication Methods
16-22
Advertising
Sales promotions Special events, In-store demonstrations
Games, sweepstakes and contests
Coupons
Boxes of KrustyOs cereal at a New York 7Store atmosphere
Eleven stores, temporarily converted into a
Website
Kwik-E Mart, to promote the Simpson Movie.
Community building
16-23
Store Atmosphere
16-24
Mediacart
A shopping cart that delivers
point-of-decision
advertising
Informs the customer
about special deals as the
customer passes them in
the aisle
Each video screen is
embedded with an RFID
chip that interacts with
chips installed on store
shelves
Records shopping habits,
dwell times, how shoppers
travel through the store
16-25
Community Building
Retailers Community Building
Websites
offer opportunities for
customers with similar
interests to learn about
products and services that
support their hobbies and
share information with
others
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PR
The Gap, Emporio Armani, and Apple are
among several retailers selling red
products, a portion of the proceeds go to
Product RED, a charity to wipe out AIDS in
Africa
16-29
Social Shopping
Social Shopping
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Comparison of
Communication Methods
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Setting Objectives
Communication objectives:
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Long-term
Retailer
objectives
Short-term
objectives
Product focused
Category focused
National
Local
Specific product
Assortment of
merchandise
16-36
Marginal analysis
Advertising
Sales
Rules of thumb
Affordable
Sales
Percent of sales
Advertising
Competitive parity
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Objective-and-Task Method
Determines the budget required to undertake
specific tasks to accomplish communication
objectives
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Financial Implications of
Increasing the Communication Budget
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