MARKETING MANAGEMENT RETAILING, PROMOTION MIX & ADVERTISING

Retailing:
Retail consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities from manufacturers or importers, either directly or through a holesaler, and then sells smaller quantities to the end!user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. "anufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. #he term "retailer" is also applied here a service provider services the needs of a large number of individuals, such as a public utility, like electric po er. $hops may be on residential streets, shopping streets ith fe or no houses or in a shopping mall. $hopping streets may be for pedestrians only. $ometimes a shopping street has a partial or full roof to protect customers from precipitation. %nline retailing, a type of electronic commerce used for business!to!consumer &'()* transactions and mail order, are forms of non!shop retailing. $hopping generally refers to the act of buying products. $ometimes this is done to obtain necessities such as food and clothing+ sometimes it is done as a recreational activity. Recreational shopping often involves indo shopping &,ust looking, not buying* and bro sing and does not al ays result in a purchase. Types of etail o!tlets - marketplace is a location here goods and services are exchanged. #he traditional market square is a city square here traders set up stalls and buyers bro se the merchandise. #his kind of market is very old, and countless such markets are still in operation around the hole orld. In some parts of the orld, the retail business is still dominated by small family!run stores, but this market is increasingly being taken over by large retail chains. Retail is usually classified by type of products as follo s: .ood products $oft goods ! clothing, apparel, and other fabrics. /ard goods &"hardline retailers"* ! appliances, electronics, furniture, sporting goods, etc. "#$ RETAILING, PROMOTION MIX & ADVERTISING 5 S% &MS ' SEM III ' A(ADEMI( %EAR )*"*')*"" ' MMK (OLLEGE )ompiled by .aculty: 0. -. 12)osta 345 46547 8899: dcosta.l.a;gmail.com $ource of )ompilation: "arketing "anagement ! <. =. >ale ? ". -hmed ? @eb

MARKETING MANAGEMENT #here are the follo ing types of retailers by marketing strategy:

$upermarkets ! sell mostly food products+ 1epartment stores ! very large stores offering a huge assortment of "soft" and "hard goods"+ 1iscount stores ! tend to offer a ide array of products and services, but they compete mainly on price+ =eneral merchandise store ! a hybrid bet een a department store and discount store+ @arehouse store ! lo !cost, often high!quantity goods piled on pallets or steel shelves+ arehouse clubs charge a membership fee+ Aariety store or "dollar store" ! extremely lo !cost goods, ith limited selection+ 1emographic ! retailers that aim at one particular segment &e.g., high!end retailers focusing on ealthy individuals*.

$ome stores take a no frills approach, hile others are "mid!range" or "high end", depending on hat income level they target. %ther types of retail store include:

=eneral store ! a store hich sells most goods needed, typically in a rural area+ )onvenience store ! a small store often ith extended hours, stocking everyday or roadside items+ 'ig!box stores encompass larger department, discount, general merchandise, and arehouse stores.

Retail p i+ing #he pricing technique used by most retailers is cost!plus pricing. #his involves adding a markup amount &or percentage* to the retailerBs cost. -nother common technique is suggested retail pricing. #his simply involves charging the amount suggested by the manufacturer and usually printed on the product by the manufacturer. In @estern countries, retail prices are often called psychological prices or o,, p i+es. %ften prices are fixed and displayed on signs or labels. -lternatively, hen prices are not clearly displayed, there can be price discrimination, here the sale price is dependent upon ho the customer is. .or example, a customer may have to pay more if the seller determines that he or she is illing andCor able to. -nother example ould be the practice of discounting for youths, students, or senior citiDens.

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MARKETING MANAGEMENT

T ansfe -e+.anis#here are several ays in hich consumers can receive goods from a retailer:

)ounter service, here goods are out of reach of buyers and must be obtained from the seller. #his type of retail is common for small expensive items &e.g. ,e elry* and controlled items like medicine and liquor. It as common before the 54EEs in the Fnited $tates and is more common in certain countries. 1elivery &commerce*, here goods are shipped directly to consumerBs homes or orkplaces. "ail order from a printed catalog as invented in 58GG and as common in the late 54th and early (Eth centuries. %rdering by telephone is no common, either from a catalog, ne spaper, television advertisement or a local restaurant menu, for immediate service &especially for piDDa delivery*. 1irect marketing, including telemarketing and television shopping channels, are also used to generate telephone orders. %nline shopping started gaining significant market share in developed countries in the (EEEs. 1oor!to!door sales, here the salesperson sometimes travels ith the goods for sale. $elf!service, here goods may be handled and examined prior to purchase, has become more common since the 54(Es.

Se+on, .an, etail $ome shops sell second!hand goods. In the case of a nonprofit shop, the public donates goods to the shop to be sold. In give!a ay shops goods can be taken for free. -nother form is the pa nshop, in hich goods are sold that ere used as collateral for loans. #here are also "consignment" shops, hich are here a person can place an item in a store and if it sells, the person gives the shop o ner a percentage of the sale price. #he advantage of selling an item this ay is that the established shop gives the item exposure to more potential buyers. Sales te+.ni/!es 'ehind the scenes at retail, there is another factor at ork. )orporations and independent store o ners alike are al ays trying to get the edge on their competitors. %ne ay to do this is to hire a merchandising solutions company to design custom store displays that ill attract more customers in a certain demographic. #he nationBs largest retailers spend millions every year on in!store marketing programs that correspond to seasonal and "#$ RETAILING, PROMOTION MIX & ADVERTISING S% &MS ' SEM III ' A(ADEMI( %EAR )*"*')*"" ' MMK (OLLEGE )ompiled by .aculty: 0. -. 12)osta 345 46547 8899: dcosta.l.a;gmail.com $ource of )ompilation: "arketing "anagement ! <. =. >ale ? ". -hmed ? @eb 7

MARKETING MANAGEMENT promotional changes. -s products change, so ill a retail landscape. Retailers can also use facing techniques to create the look of a perfectly stocked store, even hen it is not.

- ,estination sto e is one that customers ill initiate a trip specifically to visit, sometimes over a large area. #hese stores are often used to "anchor" a shopping mall or plaDa, generating foot traffic, hich is capitaliDed upon by smaller retailers. (!sto-e se 0i+e -ccording to the book "1iscovery!'ased Retail" H7I customer service is the "sum of acts and elements that allo consumers to receive hat they need or desire from your retail establishment." It is important to greet the customer and make yourself available to help them find hatever they need. @hen a customer enters the store itBs important that the sales associate does everything in their po er to make the customer feel elcomed, important, and make sure they leave the store satisfied. 'y giving the customer your full undivided attention and helping them find hat they are looking for ill result in a satisfied customer.

PROMOTION MIX
#here are seven main aspects of a promotional mix. #hese are:

-dvertising ! -ny paid presentation and promotion of ideas, goods, or services by an identified sponsor. Jxamples: Print ads, radio, television, billboard, direct mail, brochures and catalogs, signs, in!store displays, posters, motion pictures, @eb pages, banner ads, and emails. Personal $elling ! - process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation. Jxamples: $ales presentations, sales meetings, sales training and incentive programs for intermediary salespeople, samples, and telemarketing. )an be face!to!face or via telephone. $ales promotion ! "edia and non!media marketing communication are employed for a pre!determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Jxamples: )oupons, s eepstakes, contests, product samples, rebates, tie!ins, self!liquidating premiums, trade sho s, trade!ins, and exhibitions. Public relations ! Paid intimate stimulation of supply for a product, service, or business unit by planting significant ne s about it or a favorable presentation of it in the media. Jxamples: <e spaper and magaDine articlesCreports, #As and radio presentations, charitable contributions, speeches, issue advertising, and seminars. )orporate image ! #he Image of an organiDation is a crucial point in marketing. If the reputation of a company is bad, consumers are less illing to buy a product from this company as they ould have been, if the company had a good image. G

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MARKETING MANAGEMENT 1irect "arketing is often listed as a the fifth part of the marketing mix Jxhibitions ! are try!outs. Kou make your product, and let potential buyers try the product, this ay, you kno directly hat people see in your product. #he do nside, your competitor can see exactly hat you are doing. $ponsorship is sometimes added as an eighth aspect.

Meaning, Definition & Ele-ents of P o-otion Mi1 Promotion is an important part of marketing mix of a business enterprise. %nce a product is developed, its price is determined the next problem comes to its sale i.e., creating demand for the product. It requires promotional activities. #he activities are technique hich bring the special characteristics of the product and of the producer to the kno ledge of prospective customers. Promotion is a process of communication involving information, persuasion, and influence. #he term BsellingB is often used synonymously ith promotion. 'ut promotion is ider that selling. $elling is concerned only ith the transfer of title in goods to the purchaser, hereas promotion includes techniques stimulating demand. #hese techniques include advertising, salesmanship or personal selling and other methods of stimulation demand. -dvertising and sales promotion techniques are indirect and non!personal hereas personal selling or salesmanship is a direct and personal technique. -ll these techniques, ho ever, should be integrated ith the marketing ob,ective of the enterprise. #he salesmen can report about the different advertising and other promotional appeals as they are in close touch ith the consumer public and market conditions. Promotion is essentially the sales efforts of a business enterprise and includes the function of informing, persuading and influencing the purchase decision of the existing the prospective consumers ith the ob,ect of increasing sales volume and profits. Promotion is the efforts of the seller to sell the product effectively. Promotion is the communication ith the customers to pursue them to buy the product. It is the duty of the marketing manager to choose the communication media and blend them into an effective promotion programme. #hese are more than one type of tools used to promote sales. #he combination of these tools ith a vie to maintain and create sales is kno n as promotion mix. Promotion mix is the name given to the combination of methods used in communicating ith customers. #here are four tools of promotion mix viD. advertisement, personal selling, publicity and sales promotion. #hese are called elements of promotion mix. Ele-ents of P o-otion Mi1 #here are four elements of promotion mix: A,0e tising "#$ RETAILING, PROMOTION MIX & ADVERTISING S% &MS ' SEM III ' A(ADEMI( %EAR )*"*')*"" ' MMK (OLLEGE )ompiled by .aculty: 0. -. 12)osta 345 46547 8899: dcosta.l.a;gmail.com $ource of )ompilation: "arketing "anagement ! <. =. >ale ? ". -hmed ? @eb 9

MARKETING MANAGEMENT -dvertising is a non!personal presentation of goods, services or idea. In advertising existing and prospective customers are communicated the message through impersonal media like radio, #.A., ne spapers and magaDine. It involves transmission of standard message simultaneously to a large number of people. #he message transmitted is kno n as advertising. Pe sonal Selling Personal selling is the process of assisting and persuading the existing and prospective buyer to buy the goods or services in person. It involves direct and personal contact of the seller or his representative ith the buyer. P!2li+ity Publicity is a non!personal non!paid stimulation of demand of the product or services or business unit by planning commercially significant ne s about the services or business unit by planning commercially significant ne s about in the print media or by obtaining a favorable presentation of it upon radio, television or stage. Sales p o-otion $ales promotion consists of all activities other than advertising, personal selling and publicity, hich help in promoting sales of the product. $uch activities are non!repetitive and one time offers. -ccording to -merican "arketing -ssociation, sales promotion include, "those marketing activities other than personal selling, advertising and publicity that stimulate consumer purchasing and dealer effectiveness, such as point of purchase displays, sho s and exhibitions, demonstrations and various non!recurring selling efforts not in the ordinary routine." #he main aim of sales promotion is to increase sales and profits of the firm but it is quite different from personal selling and advertising. In personal selling, customer is persuaded by a sales person face to face. -dvertising is a non!personal mass communication media. $ales promotion, on the other hand, is a non!recurring and non!routine method. Its main aim is to supplement and coordinate the personal selling and advertising. It is a supporting and facilitating element of promotional strategy. $ales promotion bridges the gap of advertising and personal selling.

ADVERTISING
A,0e tising is a form of communication intended to persuade an audience &vie ers, readers or listeners* to purchase or take some action upon products, ideals, or services. It includes the name of a product or service and ho that product or service could benefit "#$ RETAILING, PROMOTION MIX & ADVERTISING : S% &MS ' SEM III ' A(ADEMI( %EAR )*"*')*"" ' MMK (OLLEGE )ompiled by .aculty: 0. -. 12)osta 345 46547 8899: dcosta.l.a;gmail.com $ource of )ompilation: "arketing "anagement ! <. =. >ale ? ". -hmed ? @eb

MARKETING MANAGEMENT the consumer, to persuade a target market to purchase or to consume that particular brand. #hese brands are usually paid for or identified through sponsors and vie ed via various media. -dvertising can also serve to communicate an idea to a large number of people in an attempt to convince them to take a certain action. )ommercial advertisers often seek to generate increased consumption of their products or services through branding, hich involves the repetition of an image or product name in an effort to associate related qualities ith the brand in the minds of consumers. <on! commercial advertisers that spend money to advertise items other than a consumer product or service include political parties, interest groups, religious organiDations and governmental agencies. <onprofit organiDations may rely on free modes of persuasion, such as a public service announcement. "odern advertising developed ith the rise of mass production in the late 54th and early (Eth centuries. "ass media can be defined as any media meant to reach a mass amount of people. 1ifferent types of media can be used to deliver these messages, including traditional media such as ne spapers, magaDines, television, radio, outdoor or direct mail+ or ne media such as ebsites and text messages. -dvertising may be placed by an advertising agency on behalf of a company or other organiDation. In (EE8, spending on advertising as estimated at more than L59E billion in the Fnited $tates and L769 billion orld ide.

Public service advertising

#he same advertising techniques used to promote commercial goods and services can be used to inform, educate and motivate the public about non!commercial issues, such as /IAC-I1$, political ideology, energy conservation and deforestation. -dvertising, in its non!commercial guise, is a po erful educational tool capable of reaching and motivating large audiences. "-dvertising ,ustifies its existence hen used in the public interestMit is much too po erful a tool to use solely for commercial purposes."

Ma 3eting -i1
#he marketing mix has been the key concept to advertising. #he marketing mix as suggested by Neremy "c)arthy, professor at /arvard 'usiness $chool, in the 54:Es. #he marketing mix consists of four basic elements called the four P2s Product is the first P representing the actual product. Price represents the process of determining the value of a product. Place represents the variables of getting the product to the consumer like distribution channels, market coverage and movement organiDation. #he last P stands for Promotion hich is the process of reaching the target market and convincing them to go out and buy the product. "#$ RETAILING, PROMOTION MIX & ADVERTISING S% &MS ' SEM III ' A(ADEMI( %EAR )*"*')*"" ' MMK (OLLEGE )ompiled by .aculty: 0. -. 12)osta 345 46547 8899: dcosta.l.a;gmail.com $ource of )ompilation: "arketing "anagement ! <. =. >ale ? ". -hmed ? @eb 8

MARKETING MANAGEMENT

Types of a,0e tising

Digital advertising
Tele0ision a,0e tising 4 M!si+ in a,0e tising #he #A commercial is generally considered the most effective mass!market advertising format, as is reflected by the high prices #A net orks charge for commercial airtime during popular #A events. #he annual $uper 'o l football game in the Fnited $tates is kno n as the most prominent advertising event on television. #he average cost of a single thirty!second #A spot during this game has reached F$L7 million &as of (EE4*. Infomercials: -n infomercial is a long!format television commercial, typically five minutes or longer. #he ord "infomercial" combining the ords "information" ? "commercial". #he main ob,ective in an infomercial is to create an impulse purchase, so that the consumer sees the presentation and then immediately buys the product through the advertised toll!free telephone number or ebsite. Infomercials describe, display, and often demonstrate products and their features, and commonly have testimonials from consumers and industry professionals. Ra,io a,0e tising Radio advertising is a form of advertising via the medium of radio. Radio advertisements are broadcast as radio aves to the air from a transmitter to an antenna and a thus to a receiving device. -irtime is purchased from a station or net ork in exchange for airing the commercials. @hile radio has the obvious limitation of being restricted to sound, proponents of radio advertising often cite this as an advantage. Online a,0e tising %nline advertising is a form of promotion that uses the Internet and @orld @ide @eb for the expressed purpose of delivering marketing messages to attract customers. Jxamples of online advertising include contextual ads that appear on search engine results pages, banner ads, in text ads, Rich "edia -ds, $ocial net ork advertising, online classified advertising, advertising net orks and e! mail marketing, including e!mail spam. "#$ RETAILING, PROMOTION MIX & ADVERTISING S% &MS ' SEM III ' A(ADEMI( %EAR )*"*')*"" ' MMK (OLLEGE )ompiled by .aculty: 0. -. 12)osta 345 46547 8899: dcosta.l.a;gmail.com $ource of )ompilation: "arketing "anagement ! <. =. >ale ? ". -hmed ? @eb 6

MARKETING MANAGEMENT P o,!+t pla+e-ents )overt advertising, also kno n as guerrilla advertising, is hen a product or brand is embedded in entertainment and media. .or example, in a film, the main character can use an item or other of a definite brand.

Physical advertising
P ess a,0e tising Press advertising describes advertising in a printed medium such as a ne spaper, magaDine, or trade ,ournal. 'illboard advertising: 'illboards are large structures located in public places hich display advertisements to passing pedestrians and motorists. Mo2ile 2ill2oa , a,0e tising "obile billboards are generally vehicle mounted billboards or digital screens. #hese can be on dedicated vehicles built solely for carrying advertisements along routes preselected by clients, they can also be specially equipped cargo trucks or, in some cases, large banners stre n from planes. In'sto e a,0e tising In!store advertising is any advertisement placed in a retail store. It includes placement of a product in visible locations in a store, such as at eye level, at the ends of aisles and near checkout counters, eye!catching displays promoting a specific product, and advertisements in such places as shopping carts and in!store video displays. (ele2 ity 2 an,ing #his type of advertising focuses upon using celebrity po er, fame, money, popularity to gain recognition for their products and promote specific stores or products. -dvertisers often advertise their products, for example, hen celebrities share their favorite products or ear clothes by specific brands or designers.

Sales p o-otions
$ales promotions are another ay to advertise. $ales promotions are double purposed because they are used to gather information about hat type of customers you dra in and here they are, and to ,umpstart sales. $ales promotions include things like contests and games, s eepstakes, product givea ays, samples coupons, loyalty programs, and discounts. #he ultimate goal of sales promotions is to stimulate potential customers to action.

Me,ia an, a,0e tising app oa+.es

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MARKETING MANAGEMENT Increasingly, other media are overtaking many of the "traditional" media such as television, radio and ne spaper because of a shift to ard consumerBs usage of the Internet for ne s and music as ell as devices like digital video recorders &1ARs*. -dvertising on the @orld @ide @eb is a recent phenomenon. Prices of @eb!based advertising space are dependent on the "relevance" of the surrounding eb content and the traffic that the ebsite receives. 1igital signage is poised to become a ma,or mass media because of its ability to reach larger audiences for less money. 1igital signages also offer the unique ability to see the target audience here they are reached by the medium. J!mail advertising is another recent phenomenon. Fnsolicited bulk J!mail advertising is kno n as "e!mail spam". $pam has been a problem for email users for many years. Fnpaid advertising &also called "publicity advertising"*, can provide good exposure at minimal cost. Personal recommendations &"bring a friend", "sell it"*, spreading buDD, or achieving the feat of equating a brand ith a common noun &in the Fnited $tates, "Oerox" P "photocopier", ">leenex" P tissue, "Aaseline" P petroleum ,elly, "/oover" P vacuum cleaner, "<intendo" &often used by those exposed to many video games* P video games, and "'and!-id" P adhesive bandage* M these can be seen as the pinnacle of any advertising campaign. /o ever, some companies oppose the use of their brand name to label an ob,ect. Jquating a brand ith a common noun also risks turning that brand into a genericiDed trademark ! turning it into a generic term hich means that its legal protection as a trademark is lost. -s the mobile phone became a ne mass media in 5446 hen the first paid do nloadable content appeared on mobile phones in .inland, it as only a matter of time until mobile advertising follo ed, also first launched in .inland in (EEE. - ne form of advertising that is gro ing rapidly is social net ork advertising. It is online advertising ith a focus on social net orking sites. #his is a relatively immature market, but it has sho n a lot of promises as advertisers are able to take advantage of the demographic information the user has provided to the social net orking site. .riendertising is a more precise advertising term in hich people are able to direct advertisements to ard others directly using social net ork service. Recently, there appeared a ne -ugmented Reality technology. promotion concept, "-Rvertising", advertising on

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