Deck 15: Retail Communication Mix

Question 1

What are the positive and negative aspects of direct marketing from the customer's perspective

Answer 1

Direct marketing refers to the type of marketing wherein the business products or services are directly sold to the customers or to the public. In this, the product or service manufacturer directly sell its offering through mail or telephone instead of using retailers to sell those offerings.
From the customer's perspective, the positive aspects of direct marketing can be described by stating that new customers can be attracted towards the firm's products with the use of direct marketing which builds better relationships with them. The viability of the product and its appeal for the customers gets tested when products are directly marketed to the customers. Direct marketing helps customers to get aware of the deep content and characteristics of products which increases the selling of the product and the firm's sales.
On the other hand, the negative aspects of direct marketing from the customer's perspectives can be described by stating that direct marketing is taken as a disturbance and intrusion by some customers which makes them annoyed towards the direct marketer. Sometimes, people do not find selling platforms of emails and telephone appropriate and it irritates them which creates a negative brand image of the direct marketer.

Question 2

Review Exhibit 15.2, "Kinds of Sales Promotion," and describe which of these consumer promotions have been successful with you as a consumer. Which ones have not been successful Explain your responses.

Answer 2

Sales promotions are special incentives or excitement-building programs that encourage consumers to purchase a particular product or service. There are several different ways of promotion sales such as coupons, rebates, or premiums. When you go to an electronic store and they usually ask if you want the premium on that so it can include a warranty and usually a free service on the product.
Rebates are effective when you actually submit them because it gives money back. They do take time to get all the information and mail it in and then it could take months to get back. I recently submitted a rebate for contacts, I use to copy each barcode on all 6 boxes, make a copy of my receipt and fill out the rebate form. It ended up being a 6-month process to get the $60.00 back. I think most people do not want to go through all the trouble of submitting all that information, so they don't do it. I felt like coupons are the best sales promotions because a retailer can link past purchases to their data and the customer can receive coupons for purchases, they usually buy. They are also effective in loyalty programs from a retailer and customer relationship.

Question 3

What factors should be considered in dividing up the advertising budget among a store's different merchandise areas Which of the following should receive the highest advertising budget: staple, fad, fashion or seasonal merchandise Why

Answer 3

Advertising refers to the type of marketing communication wherein a sponsored and non-personal message is described in order to sell a product, service or an idea. This way the sponsors of the advertisements aims to increase the sales of their products or services.
The factors that should be considered in dividing up the advertising budget among a store's different merchandise areas can be described by stating that the firm has to recognize the corporate objective behind launching the advertisement whether the seller wants to sell the product for the time being in the seasonable manner or it wish to create a lasting impression and attraction for the customers. The strategies of the competitors also determine the type of advertising budget the sponsorer will undertake. The seller has to pay more attention towards advertising of those merchandise that are highly profitable for the store as well as are ignored by the competitors in their advertising strategies.
Among staples, fashion, or seasonal merchandise, the highest advertising budget should be offered to fashion. This is because fashion is something that changes very frequently and there are several competing fashionable products that are launched everyday by the different firms. This is the reason the sellers should create major budget for advertising fashionable clothes and everything that is sold on the basis of fashion aspect. The customers should be made aware of the fashionable items offered by the seller so that the customers can be attracted to buy them.
However, when it comes to staples and seasonable merchandise, it is very obvious that customers are bound to buy staples and the products that are offered within every season. Like the customer cannot deny to buy groceries and healthcare products as these come under frequent buying and are needed by the customers. Same is with seasonable products like a customer has to buy umbrellas and gumboots in rainy season. So, even if the marketer does not advertise such products, they are bound to be bought by the customers which decreases the need for advertisement of such products when they are compared with the advertisement of fashion products.

Question 4

Outline some elements in a communication program that can be used to achieve the following objectives:(a) Increase store loyalty by 20 percent.(b) Build awareness of the store by 10 percent.(c) Develop an image as a low-price retailer. How would you determine whether the communication program met each of these objectives

Question 5

Retailers use television advertising to build a brand image. Television advertisers have identified many types of markets on the basis of the day, time, and type of show during which their ads may appear. During which days, times, and types of shows should retailers advertise the following categories of merchandise: grocery, paint, beer, cars, and health club memberships Why

Question 6

A retailer plans to open a new store near a university. It will specialize in collegiate merchandise such as apparel, accessories, and school supplies. Consider the pros and cons of each of the following media: TV, radio, city newspaper, university newspaper, local magazine, web site, blog and event sponsorship for this retailer to capture the university market.

Question 7

Why do some online retailers include editorial and customer reviews along with product in-formation on their Web sites Explain how this may influence the consumer's buying behavior.

Question 8

Where do you think pop-up stores would be most successful Why What type of merchandise would sell well from this format Explain.

Question 9

How do brands benefit consumers Retailers

Question 10

How can advertising, personal selling, public relations, direct marketing, and sales promotion complement one another in an integrated marketing communications pro-gram How can a retailer's customer relationship management program support these activities