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McGraw-Hill/IrwinRetailing Management, 6/e Copyright 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 16

Retail Communication Mix

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Objectives of Communication Program

Short-termIncrease Traffic

Increase Sales

Long-termBuild Brand Image

Create Loyalty

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Brands

Distinguishing name or symbol,

such as a logo, that identifies the

products or services offered by a

seller and differentiates thoseproducts and services from those

offered by competitors

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Strong Brands Provide Value to

Retailers and Their Customers

Value to Retailers

Attract Customers

Build Loyalty

Higher Prices Leading to

Higher Gross Margin

Reduced Promotional Expenses

Facilitates Entry into New Markets

Gap GapKids

Value to Customers

Promises Consistent Quality

Simplifies Buying Process

Reduces Time and Effort

Searching for InformationAbout Merchandise/Retailer

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Building a Valuable Brand

Brand

Equity

Heighten

Brand

Awareness

Create Emotional

Connections

Consistent

Reinforcement

Develop

Favorable

Associations

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Benefits of High Brand Awareness

Aided Recall

Top Mind Awareness

Stimulates

Visits to

Retailer

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Creating Brand Awareness

Brand

Awareness

Memorable

NameRepeated

Exposure

SymbolsEvent

Sponsorship

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Retailers Develop Associations

with their Brand Name

Merchandise Category Office Depot office supplies

Price/quality Neiman Marcus, high fashion merchandise

Specific attribute or benefit 7-Eleven convenience

Lifestyle or activity Electronic Boutique computer games

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McDonalds Brand Associations

McDonalds

Big Mac

Golden

ArchesFast

Food

FrenchFries

Clean

Ronald

McDonald

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L.L. Beans Brand Associations

L.L. Bean

Friendly

New

England

Practical

Expertise

Outdoors

Honest

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Wal-Mart Associations

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Target Associations

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Wal-Mart Shopper: Staying Alive

Single mother

Family with children

Retired

Lower income Husband has a

blue collar job

Wife may stay athome

Living on fixed

income

Rural

Poor but happy

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Wal-Mart Shopping List: Basic Necessities

Cleaning supplies Groceries

Basic clothing

For baby For kids

For adults

Diapers, formula,

baby supplies

Toys and games

Pharmaceuticals andmedicines

Health and beauty

Paper products

Household items

Coke and beef jerky

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Target Shoppers: Material Girls

Employed Professional

May have home

business Good Income

Women Married couples

With small children

Young Students

Recent graduates

Single lady with

roommate and a cat

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Target Shopping List: More Luxuries

Clothing

Basic clothes

Higher end / designer

Shoes Housewares

Decorator items

Pet supplies Health and beauty

Greeting cards

Toys for the

grandchildren

Music and electronics

Small furniture

Gardening supplies

Supplies for babies Tools

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Brand Extensions

Gap GapKidsand Old Navy

Sears Sears AutoCenters and

the Great Indoors

Pottery BarnPottery Barn Kids