Beruflich Dokumente
Kultur Dokumente
MKTG 3346
Retail
Retail Promotions
Promotions
Professor Edward Fox
Cox School of Business/SMU
Source: Levy/Weitz
Retailer
Category/Store-Focused
National
Local
Specific product
Assortment of
merchandise
Retailer Promotions
Short-Term Incentives Offered by the Retailer that
Lead to Immediate Purchase
Retailer-Promotion
Objectives
Generate
GenerateStore
StoreTraffic
Traffic
Improve
Improvethe
theRetailers
RetailersPrice
Price
Image
Image
Generate
GenerateProfits
Profitsfrom
from
Consumers
and
Consumers and
Manufacturers
Manufacturers
Reinforce
Reinforcethe
theStores
Stores
Positioning
and
Positioning andImage
Image
Retailer-Promotion
Tools
Feature
Feature
Advertising
Advertising
Price-Cuts
Price-Cuts
Displays
Displays
Retailer
Patronage
Coupons
Rewards
Shopper
Patronage
Cards
Rewards
Retailer Promotions
OBJECTIVES
Promotions are used to:
Generate demand
Draw traffic into the store
Improve the price image of the retailer
Profitability
Sell incremental units of the promoted product, while reducing
the cost of goods
Strategy
Reinforce the retailers positioning in the market (e.g., price
leader, variety leader)
Retailer Promotions
OBJECTIVES
Relative importance of promotional objectives
Purpose of Promotions
Relative Importance
Store traffic
50%
Price image
20%
Profitability
20%
Strategy/Positioning
10%
8.
A caution, however...
If categories are overpromoted (too often) and over
discounted (too low)
AA
A
Large
Small
Improve
Category
Profits
Increase profits
Increase sales and profits
Improve price image
Expose customers to
sale prices
Displays influence customer behavior by exposing
shoppers to the product, and increasing the
probability of consideration
Adapted from Center for Retail Management, Northwestern University
But
Since coupons encourage larger purchases, may be stealing
sales from future
Coupons may annoy, alienate, and confuse customers