retail communication-mix

Retail Communication

Mix

Retail Communication Mix

B

Store Brand Building Strategies

• Merchandise category

• Price/quality

• Specific attribute of benefit

• Lifestyle or activity

B

Communication Methods

B

Steps in Developing a Retail Communication Program

Belu

Retail Promotion Program Objectives

• Long-term

­ Store Brand Building

• Short-term

• Communication Objectives

• Affecting stages in decision making process

Belu

Suggestions for Developing Ads

• Dominant headline

• Dominant element

• Simple layout

• Specific, complete presentation

• Distinct visuals

• Name and address of store

Pra

Considerations in Evaluating a Promotion

• Realized margin from the promotion

• Cost of the additional inventory

• Potential increase in sales from the promoted merchandise

• Potential loss from switching

• Additional sales from more customer visits

Pra

Types of Media

Newspapers

Magazines

Radio

TV

Direct mail

Outdoor

Shopping guide

Yellow pages

Internet

Khem

Factors in Selecting Media

• Coverage

• Reach

• Cost (CPM)

• Impact

Khem

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What is Customer Relationship Management (CRM)?

CRM is “the development and maintenance of mutually beneficial long-term relationships with strategically significant customers”

(Buttle, 2000)

CRM is “an IT enhanced value process, which identifies, develops,integrates and focuses the various competencies of the firm to the‘voice’ of the customer in order to deliver long-term superiorcustomer value, at a profit to well identified existing and potentialcustomers”.

(Plakoyiannaki and Tzokas, 2001)

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Determinants of CRM

In addition to trust and value, salespeople must:

Understand customer needs and problems;

Meet their commitments;

Provide superior after sales support;

Make sure that the customer is always told the truth (must be honest); and

Have a passionate interest in establishing and retaining a long-term relationship (e.g., have long-term perspective).

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Stages in the development of a Customer Relationship

The Pre-relationship StageThe event that triggers a buyer to seek a new

business partner.

The Early StageExperience is accumulated between the buyer

and seller although a great degree of uncertainty and distance exists.

The Development StageIncreased levels of transactions lead to a higher

degree of commitment andthe distance is reduced to a social exchange.

The Long-term StageCharacterised by the companies’ mutual

importance to each other.

The Final StageThe interaction between the companies

becomes institutionalized.

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The role of salespeople as relationship builders and promoters

Salespeople by:

identifying potential customers and their needs;approaching key decision makers in the buying firm;negotiating and advancing dialogue and mutual trust;coordinating the cooperation between the customers and

their company;encouraging the inter-organisational learning process; contributing to constructive resolution of existing conflicts; andleading the customer relationship development team

are the individuals in any organisation who act both as relationship builders and as relationship promoters.

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Managing Customer Relationships

The global salesperson must be involved in the following activities in order to initiate, develop and enhance the process that is aimed at building trust and commitment with the customer.

Initiating the relationship

Engage in strategic prospecting and qualifying;

Gather and study pre-call information;

Identify buying influences;

Plan the initial sales call;

Demonstrate an understanding of the customer’s needs;

Identify opportunities to build a relationship; and

Illustrate the value of a relationship with the customer

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Managing Customer Relationships

The global salesperson must be involved in the following activities in order to initiate, develop and enhance the process that is aimed at building trust and commitment with the customer.

Developing the relationship

Select an appropriate offering;

Customise the relationship;

Link the solutions with the customer’s needs;

Discuss customer concerns;

Summarize the solution to confirm benefits; and

Secure commitment.

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Managing Customer Relationships

The global salesperson must be involved in the following activities in order to initiate, develop and enhance the process that is aimed at building trust and commitment with the customer.

Enhancing the relationship

Assess customer satisfaction;

Take action to ensure satisfaction;

Maintain open, two-way communication; and

Work to add value and enhance mutual opportunities.

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