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Chapter 16 Retail Communication Mix

McGraw-Hill/Irwin Retailing Management, 6/e

Copyright 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

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Objectives of Communication Program


Long-term Build Brand Image Create Loyalty 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

Strong Brands Provide Value to Retailers and Their Customers

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Value to Retailers
Attract Customers Build Loyalty Higher Prices Leading to Higher Gross Margin Reduced Promotional Expenses Facilitates Entry into New Markets Gap GapKids

Value to Customers
Promises Consistent Quality Simplifies Buying Process Reduces Time and Effort Searching for Information About Merchandise/Retailer

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Building a Valuable Brand


Heighten Brand Awareness Brand Equity Develop Favorable Associations

Consistent Reinforcement

Create Emotional Connections

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Benefits of High Brand Awareness

Aided Recall
Top Mind Awareness

Stimulates Visits to Retailer

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Creating Brand Awareness


Memorable Name Repeated Exposure

Brand Awareness
Event Sponsorship

Symbols

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Retailers Develop Associations with their Brand Name

Merchandise Category Office Depot office supplies Price/quality Neiman Marcus , high fashion merchandise Specific attribute or benefit 7-Eleven convenience Lifestyle or activity Electronic Boutique computer games

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McDonalds Brand Associations


Golden Arches Big Mac

Fast Food

McDonalds
French Fries Clean

Ronald McDonald

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L.L. Beans Brand Associations


New England Practical Friendly

L.L. Bean
Expertise
Outdoors Honest

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Wal-Mart Associations

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Target Associations

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Wal-Mart Shopper: Staying Alive


Single mother Family with children Retired Lower income Husband has a blue collar job Wife may stay at home Living on fixed income Rural Poor but happy

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Wal-Mart Shopping List: Basic Necessities


Cleaning supplies Groceries Basic clothing
For baby For kids For adults

Diapers, formula, baby supplies Toys and games

Pharmaceuticals and medicines Health and beauty Paper products Household items Coke and beef jerky

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Target Shoppers: Material Girls


Women Married couples
With small children

Young
Students Recent graduates

Employed Professional May have home business Good Income

Single lady with roommate and a cat

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Target Shopping List: More Luxuries


Clothing
Basic clothes Higher end / designer

Shoes Housewares Decorator items Pet supplies Health and beauty

Greeting cards Toys for the grandchildren Music and electronics Small furniture Gardening supplies Supplies for babies Tools

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Brand Extensions
Gap GapKids and Old Navy

Sears Sears Auto Centers and the Great Indoors Pottery Barn Pottery Barn Kids