Retail Promotional Strategy

•  Any communication by a retailer that informs, persuades, and/or reminds the target market about any aspect of that firm

Elements of the Promotional Mix

Sales promotion
Store atmosphere
Web site
Personal selling
E-mail marketing
Word of mouth

Planning a Retail Promotional Strategy

Promotional Objectives

•          Increase sales
•          Stimulate impulse and reminder buying
•          Raise customer traffic
•          Get leads for sales personnel
•          Present and reinforce the retailer image
•          Inform customers about goods and services
•          Popularize new stores and Web sites
•          Capitalize on manufacturer support
•          Enhance customer relations
•          Maintain customer loyalty
•          Have consumers pass along positive information to friends and others

Public Relations

•          Public Relations – Any communication that fosters a favorable image for the retailer among its publics
–        Nonpersonal or personal
–        Paid or nonpaid
–        Sponsor-controlled or not
–        Publicity – Any nonpersonal 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


•          Image can be presented or enhanced
•          More credible source
•          No costs for message’s time or space
•          Mass audience addressed
•          Carryover effects possible
•          People pay more attention than to clearly identified ads


•          Some retailers do not believe in spending on image-related communication
•          Little control over publicity message
•          More suitable for short run
•          Costs for PR staff, planning activities, and events


•          Paid, nonpersonal communication transmitted through out-of-store mass media by an identified sponsor
•          Key aspects
–        Paid form
–        Nonpersonal presentation
–        Out-of-store mass media
–        Identified sponsor

•          Attracts a large audience
•          Gains pass along readership (for print)
•          Low cost per contact
•          Many alternatives available
•          Control over message content; message can be standardized
•          Message study possible
•          Editorial content surrounds ad
•          Self-service operations possible

•          Standardized messages lack flexibility
•          Some media require large investments
•          Geographic flexibility limited
•          Some media require long lead time
•          Some media have high throwaway rate
•          Some media limit the ability to provide detailed information

Personal Selling

Oral communication with one or more prospective customers for the purpose of making a sale

•          Message can be adapted
•          Many ways to meet customer needs
•          High attention span
•          Less waste
•          Better response
•          Immediate feedback
•          Limited number of customers handled at one time
•          High costs
•          Doesn’t get customer in store
•          Self-service discouraged
•          Negative attitudes toward salespeople (aggressive, unhelpful)

Sales Promotion

Encompasses the paid communication activities other than advertising, public relations, and personal selling that stimulate consumer purchases and dealer effectiveness

•          Eye-catching appeal
•          Distinctive themes and tools
•          Additional value for customer
•          Draws customer traffic
•          Maintains customer loyalty
•          Increases impulse purchases
Fun for customers

•          Difficult to terminate
•          Possible damage to retailer’s image
•          More stress on frivolous selling points
•          Short-term effects only
•          Used as a supplement