The Basics Of Advertising, Marketing & Promotion · The Basics Of Advertising, Marketing & Promotion . 2 ... The In-Store Experience ... SWOT Analysis . 27

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© Bill Napier 2010 All Rights Reserved

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Advertising, Marketing & Promotion

Made Easy

The Basics Of Advertising, Marketing & Promotion

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About The Presenter 30 Years in Consumer Product Marketing

Promotion Agency Owner

Numerous awards for best strategy, creative and tactics. Engineered many package centered promotions including Patent #5,571,358

Partner – Napier Marketing Group, Inc.

More information on LinkedIn

12 years in the Home Furnishing’s Industry

CMO Ashley Furniture, LeatherTrend & Napier Marketing Group.

Winner Gold Reggie - Best Promotion in North America from the Promotional Marketing Association while at Ashley Furniture – implemented the largest promotion ever in the HF Industry.

Published many articles in NHFA Retailer, HFB and more

Bill Napier

[email protected] 612-217-1297

Join My Discussion on

mailto:[email protected]

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The Basics Of Retail Planning

For Advertising, Marketing &

Promotion

General Information

&

Reference Materials

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Table of Contents I. The Planning Process

II. Marketing Definitions & Terminology Marketing

Integrated Marketing

Branding

Advertising

Promotion

Public Relations

III. The Seven Steps to Developing an Integrated Retail Marketing Communications Campaign Step I: Develop a Situation Analysis

Step II: Identify Key Issues to Address

Step III: Identify Objectives Marketing & Communications Needs

Step IV: Identify Select Media to Use

Step V: Develop the Creative Message

Step VI: Develop the Media Plan

Step VII: Develop the Promotional Plan

Promotion

Role of Promotion

The In-Store Experience

Planning Elements

IV. The Internet I. 125 pages of relevant information

II. Complete Market Research

III. How To Build a great website

IV. The key to social marketing

V. Appendix

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To Identify The Core Competencies And

Associated Elements That Are Necessary In

Developing An Integrated Sales/Consumer Retail

Marketing Plan.

Objective

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Why is it..

Why is it a man wakes up in the morning, after sleeping on his advertised bed, on his advertised mattress in his advertised pajamas. He will bathe in his advertised tub,

shave with his advertised razor and shaving cream, have breakfast with his advertised juice, cereal and toast….toasted in his advertised toaster, put on advertised branded clothes and quickly glance at his advertised watch. He will catch the news on his new advertised flat screen that he purchased at a heavily advertised store. He will ride to work in his advertised car, sit at his advertised desk and write with his advertised pen

or utilize his advertised computer.

Yet it’s ironic that when he’s approached to advertise his business, he says advertising doesn’t pay…..until his business fails and then he’ll gladly advertise the sale and liquidation of his business……why, so people will come and liquidate his assets.

Why is it

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Planning The Process

It’s All About Velocity

I

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Marketing

Advertising

Public Relations

Promotion

In-Store Experience

CRM & Retention

PROACTIVE … NOT REACTIVE

Integrated Elements

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LEARN

THINK

ACT

REFLECT

PROACTIVE … NOT REACTIVE

THE PROCESS

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Information Gathering

Situation Analysis

Objectives

Planning Considerations

Approval Process

LEARN

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Objective

Secondary

Supporting

Points

Values Benefits

Primary

Communication

Platform

Copy

Positioning

Statement

THINK

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THINK Strategy Session

Information Gathering

Strategy Session

Strategic Screening Process

Operations

Financial

Image

Integration

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Tactics

Strategy Considerations

Short and Long Term

Tactics

Legal

Creative

Implementation

Tactics

Print

Trade

Promotion

Public Relations

Collateral

Ad Books/Trade

Broadcast

Television

Radio

Cable

Electronic

Website

Events/Sponsorship

Merchandising

ACT

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Measurement Plan

Oncoming Research

Measurement of Objectives

Strategies Initiated

Evaluation

Re-Process

LEARN

THINK

ACT

REFLECT

REFLECT

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II

Marketing Definitions & Terminology

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Marketing Is The Process Of Planning And

Executing All Of The Elements That Bring

A Product To Market Including Packaging,

Pricing, Advertising, Promotion, Public

Relations; In A Manner That Satisfies The

Perceived Needs, Wants And Objectives

Of The Target Audience.

Marketing

Definitions & Terminology

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Today’s Consumer “Consume” Marketing (Brand) Messages From A Wide Variety Of Channels

(E.G. TV, Cable/Satellite TV, Radio, Newspaper, Outdoor, Internet, Magazines, Direct Mail,

Telemarketing, Special Events, Etc). It Is In The Best Interest Of The Retail Community To Make

Use Of Multiple Marketing Communications Vehicles And It Is Equally As Important To

Insure The Messages Conveyed On The Various Channels Are Coordinated (Integrated) In Order

For The Marketing Message To Be Communicated Clearly And With Adequate

Frequency.


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What’s Missing ???

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Branding The Goal Of Getting Consumers To Recognize Your Store Name And It’s

Attributes In A Positive Way. For Example, ‘Fun Place To Shop,’ ‘Courteous Staff,’ And ‘Quality

Products.’

The Brand Image Can Be Communicated Via Various Forms Of

Marketing Communications Vehicles.


C.

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To Communicate A Positive Message To The

Consumer About Products And Services

The Paid For Communication Of A Product

Or Service That Communicates The Desired

Marketing Message Thereby Providing

Reasons For And Motivating The Consumer

To Respond In The Desired Manner.

FUNCTION

Advertising


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Promotion Promotion Is The Act Of Providing A

Specific Reason For A Targeted Consumer To Make An Immediate/Short

Term Decision By The Retailer:

Desired Action Promotion Store Visit: Come in and register to win XXX

Buy Now: Buy X and get Y free

Provide Name/Address: Sign up to win X

Make a Return Visit: Get a coupon good on next purchase

Promotional Messages Can Be Communicated Via A

Variety Of Mediums.


E.

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The Non-Paid-for Communication Of Positive

Information About The Company Or

Products. PR Messages Or Content Cannot

Be Controlled, But At Best Managed. Honest,

Proactive Reputation Management.

FUNCTION

To Communicate Information At No Media

Cost To The Company.

Public Relations


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III

The 7 Steps to Developing An Integrated

Retail Marketing Communication

Campaign

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Step 1 –

Develop a Situation

Analysis

Share of Market Current

Desired

Market Trends Population

Income

Movement

Lifestyle trends Aging

Recreational habit

Competitive efforts Advertising strategy

Store locations

Product mix

Pricing

Sales History/Trends Internal Data

Product Mix And Pricing

Identification Of Target Audience And Their Media Consumption Habits

Traffic Pattern/Location

Budget And Operation Limitations

Review All Data That May Impact The Marketing Of The Product Or Service.

Examples

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The P’s Product

Purpose

Positioning

Potential

Place

Price

Promotion

Performance

Profit

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PEST Analysis

SWOT Analysis

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PEST Analysis

Political

Economic

Social

Technology

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Political Ecological/Environmental Issues

Current Legislation Home Market

Future Legislation

European/International Legislation

Regulatory Bodies And Processes

Government Policies

Government Term And Change

Trading Policies

Funding, Grants And Initiatives

Home Market Lobbying/Pressure Groups

International Pressure Groups

Wars And Conflict

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Economic Home Economy Situation

Home Economy Trends

Overseas Economies And Trends

General Taxation Issues

Taxation Specific To Product/Services

Seasonality/Weather Issues

Market And Trade Cycles

Specific Industry Factors

Market Routes And Distribution Trends

Customer/End-user Drivers

Interest And Exchange Rates

International Trade/Monetary Issues

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Social Lifestyle Trends

Demographics

Consumer Attitudes And Opinions

Media Views

Law Changes Affecting Social Factors

Brand, Company, Technology Image

Consumer Buying Patterns

Fashion And Role Models

Major Events And Influences

Buying Access And Trends

Ethnic/Religious Factors

Advertising And Publicity

Ethical Issues

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Technological Competing Technology Development

Research Funding

Associated/Dependent Technologies

Replacement Technology/Solutions

Maturity Of Technology

Manufacturing Maturity And Capacity

Information And Communications

Consumer Buying Mechanisms/Technology

Technology Legislation

Innovation Potential

Technology Access, Licensing, Patents

Intellectual Property Issues

Global Communications

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SWOT Analysis

Strengths,

Weaknesses,

Opportunities

Threats

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Strengths Advantages Of Proposition?

Capabilities?

Competitive Advantages?

USP's - (Unique Selling Points)?

Resources, Assets, People?

Experience, Knowledge, Data?

Financial Reserves, Likely Returns?

Marketing - Reach, Distribution, Awareness?

Innovative Aspects?

Location And Geographical?

Price, Value, Quality?

Accreditations, Qualifications, Certifications?

Processes, Systems, It, Communications?

Cultural, Attitudinal, Behavioral?

Management Cover, Succession?

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Weaknesses Disadvantages Of Proposition?

Gaps In Capabilities?

Lack Of Competitive Strength?

Reputation, Presence And Reach?

Financials?

Own Known Vulnerabilities?

Timescales, Deadlines And Pressures?

Cash flow, Start-up Cash-drain?

Continuity, Supply Chain Robustness?

Effects On Core Activities, Distraction?

Reliability Of Data, Plan Predictability?

Morale, Commitment, Leadership?

Accreditations, Etc?

Processes And Systems, Etc?

Management Cover, Succession?

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Opportunities Market Developments?

Competitors' Vulnerabilities?

Industry Or Lifestyle Trends?

Technology Development And Innovation?

Global Influences?

New Markets, Vertical, Horizontal?

Niche Target Markets?

Geographical, Export, Import?

New USP's?

Tactics - Surprise, Major Contracts, Etc?

Business And Product Development?

Information And Research?

Partnerships, Agencies, Distribution?

Volumes, Production, Economies?

Seasonal, Weather, Fashion Influences?

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Threats Political Effects

Legislative Effects

Environmental Effects

IT Developments

Competitor Intentions - Various

Market Demand

New Technologies, Services, Ideas

Vital Contracts And Partners

Sustaining Internal Capabilities

Obstacles Faced

Insurmountable Weaknesses

Loss Of Key Staff

Sustainable Financial Backing

Economy - Home, Abroad

Seasonality, Weather Effects

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54% of consumers are brand loyal once they find

a brand that “satisfies me”

46% are “national” brand loyalists -

The Ultimate Consumer

51% are willing to pay more for products and

services that “make life easier” for them and

their families

53% buy “only what they need”

50+% spend a great deal of time researching

brands before making a purchase

Brand Loyalty 7

The Brand Elements

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Building The Brand

KEY ELEMENTS 7

PRICE AND VALUE

Value

Quality

Desirable Product Improvements

Product Innovations

Appealing Image

Effective Advertising

More Americans See a “Great Deal Of Difference”

Between Well-known Brands of Products

Consumers Perceive Quality Claims As Having

Reached Parity

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KEY ELEMENTS OF A POWER BRAND 6

Brands that work continuously and

creatively to prove their value to

consumers are crossing over more

quickly to Power Brand Status than

those that don’t

Consumers perceive these brands as being

“different or better and worth paying more

for.”

ROPER STARCH WORLDWIDE

The Brand Elements

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Consumers are looking for convenience

WE AS CONSUMERS ARE…

Turning away from Mega-Center Supermarkets and shopping

more at drug stores and convenience stores for purchases of

food and beverage

Parents continue to seek out discount stores when buying school

clothes and supplies

They seek out specialty stores when they need more

information and knowledge

Over half of small businesses are home-based today,

up from 38% just two years ago Dun & Bradstreet

Home-based and women-owned companies are changing the face of

small business today, with flexibility a key consideration for workers,

either home - or office-based.

Planning Information

Lifestyles

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SOCIETY IS QUICKLY BECOMING TWO TIERED The HAVES

The HAVE-NOTS

LifeStyles For LifeStages

MAJOR LIFESTYLE SHIFTS ARE AHEAD AS THE POPULATION AGES

Market fragmentation

WE ARE IN THE AGE OF AUTONOMY - SELF

RELIANCE

Consumers are “tuning in” when they need us.

Consumers are doing their own research.

We will need to be “on call”, when the consumer decides they want us.


Lifestyles

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ENTERTAINMENT Average household spends $1,841

Books,TV, Movies, Theatre, Toys

We spend nearly 50% of food budget “eating out” in restaurants.

Increasing demand for more prepared or “easy” to prepare foods.

CREDIT IS KING 50%+ of consumers pay for major durable expenses, travel and

mail order with plastic.

Spending Habits

Baby Boomers, entering lower echelons of the “mature market” 65+, their spending from

1990-2008 has risen “significantly”.

Grandparents spend $30 billion/year and purchase 20% of all children’s products sold

We will sacrifice any number of things in the interest of “Saving Time”.

A Furniture “buying” decisions is now made in 1.2 visits per store (2011) from 2.6

visits per store (1996)


Lifestyles

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Women Influence over 82% of All Household “Buy”

Decisions And Are….

Earning Over 50% of Bachelor/Masters Degrees

Most Likely to be “Very Stressed”

Single Mothers 9.8 Million + 36% From 1980’s

Unmarried Co-habitating Mothers Who Eventually Marry -

44%. Down From 57% in 1990

Account for the Overwhelming Majority of Increases on Savings, Investing,

Financial Decisions. A New Dimension of POWER.

As a Group, More Suspicious of Advertising

70% Are More Willing to Purchase a Brand Based on Experience

20% Are Motivated by Advertising or Brand Popularity

Women Are More Likely Than Men to Try to Buy Things on Sale

MEN ARE...

Single Fathers…2.9 Million From 1.7 Million From 1995 to 2010


Lifestyles

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KIDS ARE... Directly influencing more than 20% of ALL PURCHASE

DECISIONS

40% To 80% In many categories

380 billion dollars in purchases

Parents influence them more than anyone else

At 8 years old, many kids are required to take on adult responsibilities

Have high confidence in themselves and very high standards for their leaders

Growing Up Faster Than Ever Before

Kids under 12 have over $15 billion dollars of discretionary income and influence in

excess of $765 billion dollars in purchases

Are Tuned In

Are more visual in their learning and understanding - media savvy

Girls seek out more information than boys

Adult comedy shows on television dominate teen viewing habits

72% think commercials are annoying and interrupt their shows

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PLANNING INFORMATION

LIFESTYLES

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Ethnic Diversity

4 in 5 African Americans are more likely to patronize businesses with a long

history of supporting their communities

Hispanic Americans are the most Brand Loyal. They “cling” to brands

80% of population clustered in 16 states

Population growth outpaces Anglo Americans 2 to 1 between 1995 - 2050

Anglo Americans will be minority

$500,000,000+ Purchasing Power

African Americans have a disproportionate representation in 11 of the top 12 markets for consumers.

90% of Hispanics live in 10 states

Large immigration factor Less educated Hispanic Population continues to get older and more prosperous


Demographics

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Ethnic Marketing - The Market

General

African

American

Hispanic

Other

General

African

American

Hispanic

Other

General

African

American

Hispanic

Other

2000 2010

2050

80% of population clustered in 16 states

Population growth outpaces Anglo

Americans 2 to 1 between 1995 - 2050

Anglo Americans will be minority

$500,000,000+ Purchasing Power

African Americans have a

disproportionate representation in 11 of

the top 12 markets for consumers.

90% of Hispanics live in 10 states

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Situation Analysis

Demographics

Population continues to get older

51% of future retirees plan to live in the “same place”

down 16 percentage points from 1974.

33% of future retirees will most likely move… up from

24%

18% are unsure, up from 9%

Housing Market driven by repeat buyers moving up to more expensive

homes

Married buyers up 16.4%

Widowed, divorced, separated buyers up13.6%

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FEMALES Population, all ages 141,080

MALES Population, all ages 134,979

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Step 1

Develop a Situation Analysis

(cont’d)

Brand Platform

Who We Are

Why Consumers Should Shop With Us

What Is Our Competitive Advantage

Media Options

Beneficial Relationships

Trend Setters

Celebrities

“Experts”

Etc.

Review All Data That May Impact The Marketing Of The Product Or Services.

Examples

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Step 2 Identify Key Issues to Address

Location

Price

Hours Of Operation

Product Mix/

Quality/Availability

Reputation/History

Added Value

(Promotion)

Personality Of

Ownership/Management

Parking

Proximity To Other

Primary Shopping Areas

Ambiance

Guarantee/Warranty

Based On The Situation Analysis Identify The Issues That Can Be

Addressed Via Marketing Communication Elements In Rank

Order Of Importance To The Target Consumer:

Examples

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Step 3 Identify the Objectives Marketing

Communications Needs to Achieve

Need increased store traffic

Overall

Days

Time periods

Need increased sales of specific products

Need increased marketplace awareness of the “brand”

Need to increase awareness of special offers – promotions

Need to promote grand opening

Etc.

Based On The Situation Analysis Identify Primary

Marketing Needs That Can Be Addressed Via Marketing

Communications Elements. Examples

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Step 4

Identify/Select Media to Use in

Communicating the Marketing

Message

Television

Cable

Broadcast

Radio

Newspaper

Daily Metro

Daily Suburban

Weekly

Run Of Press

Inserts

Special Sections

Outdoor

Billboard

Transit

Magazines

Direct Response

Television

Direct Mail (Solo, Co-op)

Telemarketing

Inbound

Outbound

Public Relations

Point of Sale

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Objectives

Secondary

Supporting

Points

Values Benefits

Primary

Communication

Platform

Copy

Positioning

Statement

Step 5

Develop the Creative Message

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Step 6

Develop The Appropriate Media Plan

Select the most appropriate media to use is part art – part science. The number of variables are staggering and almost every media can make a good case to be considered.

The following section will provide you with the basis when it comes to selecting media.

In selecting media, the most important fact is to have a good handle on the demographics of the target audience since most media is either targeted at a specific demographic segment or it is measured based on its ability to reach specific demographic audiences.

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DEMOGRAPHICS

Demographics are attributes—like age, income, and

family composition—that help to define individuals and

groups. When demographic data is collected and

analyzed, shopper profiles can be used to predict how

different types of people will spend money.

For example, 60-year-old “empty nesters” and 30-year-

old couples with small children have different buying

habits. Advertising is most effective when messages are

directed to the most likely buyers. This can be

accomplished by adjusting the creative message and/or

the media in which the message appears.

III. Advertising A. Targeting

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Psychographics

III. Advertising A. Targeting

Psychographics groups people according to

psychological features. With information like values,

attitudes, personality, and lifestyles, marketers can

classify people according to what they feel, believe, and

the way they live. This information helps indicate what

products, services and media they use.

The VALS (Values and Lifestyles) System assigns

consumers to eight (sometimes overlapping) groups

exhibiting distinctive behavior, decision-making, and

product or media usage. Groups range from abundant

resources to minimal resources, as well as principle

oriented, status oriented or action oriented.

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Two Variables — Reach And Frequency — will

Determine The Overall Success Of Your

Media Strategy. Be CONSISTANT

1. REACH is the number of people who see or hear your

advertising. (e.g. a 50 reach means 50% of the desired target will

be exposed to one or more message).

2. FREQUENCY is the number of times your message is received.

The importance of the first variable is obvious—the more people

you REACH with an advertising message, the more people you

see walking through the store. Unfortunately, a single advertising

impression is not likely to generate sufficient awareness. People

need a certain amount of repetition and reinforcement before

name recognition is fully achieved, and that’s why you need

FREQUENCY.

III. Advertising A. Measuring

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3. RATING is the % of a given population group consuming a medium at a particular time. Generally used for broadcast media.

Ex: A TV program with a 10 rating with adults 18-49, means 10% of the adult population between the ages of 18-49 viewed an average minute of programming.

4. GROSS RATING POINT (GRP) is the sum of all ratings delivered by a given list of media vehicles.

Ex: Rating of 10 x 3 announcements = 30 GRP

III. Advertising B. Measurement (cont’d) 3

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III. Advertising B. Measurement (cont’d)

5. Cost per Thousand (CPM): universal means of

measuring cost-efficiency

Medium cost divided by medium audience

delivery=CPM

Ex: Ad costs $350, reaches 12,000 women 18-49:

CPM= $29.17 (350/12000)

6. Cost per rating point (CPP): cost to reach one

percent of homes or individuals in specified area

Medium cost divided by GRP= CPP

Ex: Ad costs $350, GRP is 30: CPP= $11.67

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TV Is The Most Powerful Of All Marketing Communication Mediums Given Its Ability To Deliver Both Visual And Audio Messages. In Addition, TV Has The Ability To Reach The

Greatest Number Of People At Lower Cost With The Exception Of The Internet

TV Can Be Bought Two Ways – Either Broadcast (Traditional Over-the-air Local TV Stations) Or

Cable.

III. Media Television

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Buy advertising in programming that

reaches your target audience.

In small markets, prime time and highly

rated shows may be affordable.

If specific programming is too expensive

(e.g. you cannot get the frequency

desired) then consider buying “Day

Parts”.

III. Media A. Television - – Over-the-Air Broadcast

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Day Parts:

- Morning News: 5A-9A - Early News: 5P-7P

- Morning: 9A-Noon - Access: 7P-8P

- Daytime: Noon-3P - Prime: 8P-11P

- Early Fringe: 3P-5P - Late News: 11P-11:30P

- Late Friday: 11:30P-1A

Some stations will offer better rates to

a new advertiser.

III. Media Television - Broadcast

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All Things Are Negotiable:

Bonus spots in other programming/day parts

Rate

Level of pre-emtability

Participation in promotions

Product exposure on “soft” news shows

Merchandise for traffic building promotions

Listing in stations TV ads: “ABC” Show brought to

you by XYZ

Term of commitment

III. Media A. Television - Broadcast 3

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At certain investment levels the local TV station can

justify producing spots as part of the buy (some cable

systems also have studios and can offer the same

advantages).

Commercial length is an important factor to consider;

:30 second units are the most effective in delivering a

brand and “buy now” message. :10’s can be effective

as part of a TV campaign that utilizes :30’s since the :10

becomes a “reminder” message.

III. Media A. Television - Broadcast

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Cable offers excellent geographic targeting – in larger markets because of the “zones” they offer. In smaller markets with fewer “zones” the benefits of cable is absolute cost (low).

Cable TV presents an excellent opportunity, especially in larger markets with many cable zones for the retailer with smaller budgets.

Cable networks are primarily focused on offering one type of programming so they can reach people with a high degree of interest in their programs:

ESPN – Sports

HGTV, Food Channel & More

III. Media B. Television - Cable 3

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Cable networks are sold by the sales-reps from the local system.

Cable systems will sell a “rotator” or a spot they schedule. These are usually very low cost/unit, but should never make up more than 10-15% of a cable buy because of the uncertainty of when the “rotator” spot will air….Late – late night filler spots, etc.


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Like broadcast, cable can also offer

added value elements:

Extra spots

Billboards

Cable can also offer retailers a chance to be involved in the systems promotions to attract or upgrade customers. This is an excellent opportunity to gain exposure in the cable systems advertising and promotion materials.

III. Media Television - Cable

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Understand cable ratings are not the same as regular TV ratings. They are based on the % of homes in a market that have cable TV. For example:

A 3 rating in a market with 200,000 overall

TV HH’s is 6,000 HH’s (HH=House Holds)

A 3 cable rating in a market with 200,000

HH’s of which 100,000 have cable equates

to 3,000 HH.


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Advertising on Television - FAQ’s

As a Dealer We Now Have a Choice of Over-the-air or Cable

Television. What Are the Differences?

Both Are Mediums That Can Provide Tremendous Marketing

Muscle. Over-the-air Television Covers a Very Wide Market

Area With Broad Based Programming While Cable Television Is

Designed to Cover Smaller Market Areas With More Targeted

Programming Material.

Is Television Advertising Affordable?

Television Advertising, Both Cable and Over-the-air, in Most

Markets Costs Less Than Many of the Other Major Mediums

Like Newspaper and Radio. However, the Coverage Area Is So

Much Larger That the Individual Commercial Costs May Seem

Larger. Broken Down Into a Cost-per-thousand (What It Would

Cost to Reach 1000 Customers) Television Is Generally One of

the Most Cost Effective Mediums Available.

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How Big a Budget Do I Need to Use Television?

More Than Budget, the Primary Consideration Should Be Length of Your

Television Advertising Campaign.

For Events Like a Holiday Sale, Weekend Sale, Etc., You Need to Concentrate As

Much As Possible Into a Few Days, and Make Sure the Audience Sees Your

Message the Proper Amount of Times. A Good Guide Is to Reach the Audience

With Your Message a Minimum of 3-5 Times. On an Extended Campaign, Like a

Summer Sale, Where Your Message Will Be on Television for Multiple Weeks in a

Row, You Can Stretch a Bit More an Have the Cumulative Effect Help Reach This

3 Time Benchmark.

When You Add the Number of Times You Have Reached Your Audience, With the

Overall Number of People Your Message Reached, You Get What Media

Professionals Call Total Rating Points or TRP’s In Any Campaign You Should

Expect to Run No Less Than 50 TRP’s a Week, With the More Concentrated

Event Campaigns Requiring a Minimum Investment of 100 TRP’s.

How Do I Know What a Rating Point Costs in My Market?

Cable companies have a Cost Per Rating Point Breakdown for Every Market in

the United States. Your Regional Rep Can Share These Estimated Costs With

You So You Can Determine If Your Budget Can Support the Power of Television

Advertising.


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I’ve Never Used Television Before. How Do I Choose

Between Cable and Over-the-air?

Used Properly, a Mix of Both Works Best. As a Rule of Thumb, If

You’re Looking to Concentrate You Efforts on a Tight Radius Around

Your Location, Then Cable Will Be Your Choice. If You Are Looking to

Send Your Message to the Largest Geographic Footprint Available,

Then Over-the-air Is Your Choice. Again, the Combination of Both

Works Best, and for Most B, C, and D Sized Markets Is Realistic.

In A Markets (New York, Chicago, Philadelphia, Atlanta As Examples)

You Will Need to Consider Number of Locations and Trade Radius,

Along With Cost Per Points of the Market. These Are the Most

Expensive Media Markets, and You Should Consider Proposals From

Both Before Making Any Decision.

How Do I Get Information for My Market?

Local representatives in your market for the various media outlets


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Cable Pre-Buy Analysis

Dealer Demographic Data

Dealer Trade Area Mapped

Dealer Budget Analyses

Dealer Customized Proposal From

Local cable Affiliate


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III. Media Television: Buying

What To Do When Buying Television Time

Ask which programs are available? At what cost?

Analyze efficiency of available programs

Negotiate on price of advertising

Figure the reach and frequency of considered programs

Read and sign the necessary contracts

Track performance

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III. Media Television: Buying 7

Be Prepared

• Demographics/Target

• Geographics

• Reach & Frequency Goal

• Getting the Proper Information

• Comparing Costs

• Buying enough to be EFFECTIVE

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Demographics

- Define who your Target Customer is:

• How old are they?

• Are they male or female?

• What is their income?

• Are they homeowners? Do they have

children?


Be Prepared

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Be Prepared

Geographics

Define where your Target Customer lives:

• DMA

• Metro

• County

• Specific Zip Code

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Be Prepared Reach & Frequency

1. Define how many of your Target Customers

you want to reach

2. Define how many times you want to reach

them.

3. Average delivery is a 60% Reach with a 3

Frequency equaling 180 GRP’s

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Be Prepared

Customer Profile

Women 25-49

Owns their home

50k+ Household Income

2 or more children living at home

Harrisburg Metro Area

Reach 60% with a 3 Frequency

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Be Prepared

Numbers Don’t Lie - Getting The Proper Information

Request ratings and rankers from your media

representative

Ask for information based on your customer profile

Get specific rates by specific dayparts (ex: M-F 6a-7p)

Build your own schedules or ask a media rep to build

the schedules the way you want them

Keep the information consistant and you will be able to

compare costs

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Be Prepared

Rules of Thumb Buy Enough to be Effective

A media schedule with a 60% Reach and a Frequency of 3 or more will be

EFFECTIVE

When using more than one medium you will most likely achieve sufficient

Reach.

A Frequency of 3 is the minimum barrier to recall - A 5-7 Frequency is

preferred

Base your media schedules on Reach and Frequency Goals, not GRP Goals.

100 GRP’s can deliver: 30% Reach with a 3.3 Frequency

Or 50% Reach with a 2 Frequency

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Get Something for Nothing!

Bonus Spots

News/Weather/Traffic Sponsorships

Web Links

On air Give-a-ways

Trade

Promotional tie-ins


Be Prepared

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TV is a “shotgun” medium—it hits large numbers. 81% of the U.S.

population 18+ listen to radio daily. Radio is a “rifle” medium —it hits

smaller numbers of listeners with more specific demographic profiles.

Though radio suffers from the same limitations as cable TV—too many

channels—there are other downsides.

First, radio is not a visual medium—the customer cannot see your

product.

Second—radio spots may actually cost more than TV spots—and

evening audiences are very low. Many stations program for young age

groups. Look for formats that target older households with average or

higher disposable income.

Some Retailers have gotten good results with live in-store broadcasts

tied to special events. Since federal deregulation of station ownership,

radio conglomerates have appeared. In some markets, multi-station

packages offer broader demographic reach

III. Media Radio

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III. Media Radio

Radio stations “Demographics Breaks” provide

you with a guide on who the station has for an

audience.

Men or Women

12-17

18-24

25-34

35-44

45-54

55-64

65 and older

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III. Media Radio

Try to buy as narrow a target as possible and do not look at very broad categories (e.g. adults 18+).

Ratings are published each quarter – the key piece of information is how a station ranks against all other in the market reaching your target audience (i.e. the cumulative number of listeners in your target group).

Because of the relative inexactitude of radio, ratings always try to evaluate stations based on an average of at least two rating periods.

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III. Media Radio

Since you will use radio to build message frequency, the TSP (Time Spent Listening) is as important to look at as is average quarter hour (AQH) ratings.

Stations also sell “day parts” (e.g. Morning drive 6A-10A) but the best schedule includes spots in almost all day parts. So identify specific day parts and also ask for a few “rotators.”

Radio requires frequency to be effective (minimum of 4 x’s).

The first quarter is the best time to get deals on radio rate.

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III. Media C. Radio 3

Radio stations are very promotion driven and almost all of them are experts at staging events. When buying a station, ask to be part of their events or share in the visibility at they have at someone else’s event. Some stations will even use your retail location as a site for one of their events.

Stations get a computer generated report – the ranker – which shows the demographic audience for each station in the market. These are based on CUME; ratings, AQH, Average Quarter-Hour Persons…the number of persons listening to a particular station for at least five minutes during a 15-minute period. share, etc. and by listeners purchase habits. Use this data to help find your customers/prospects.

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Radio Stations Added Benefits That Can Be Negotiated:

Free spot production (even writing!)

Free spots

Better positions in day parts

Better positions in a commercial

Tickets to local events

Remote at your location

Merchandise to use as traffic builders for your promotions

ID on their web site and hot link

Billboards

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Preparing A Radio Schedule

Find stations with the greatest concentration of your target audience

Determine which stations have a format which offers the highest concentration of potential buyers

Find which part of the day would offer most potential buyers

Design your scheduling with a strong mix of day-parts

Determine the reach and frequency

Figure cost per 1,000 of target persons reached

Negotiate a price, buy the time

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Most consumers who buy furniture also read

newspapers, but display ads can be expensive. Pre-

printed inserts—also known as “circulars” or “Sunday

supplements”—may be more cost effective. Ask your

newspaper rep about geographic “breakouts”—portions

of the home-delivery circulation that can be selected by

postal zip code. High-income neighborhoods buy more

new furniture.

Newsprint periodicals — those with nothing but

advertising—cater to people who buy things. That may

be good, but the demographic profile is low—most

readers are looking for second-hand items.

BUT….Who reads newspapers anymore ???

III. Media Newspaper/Shoppers

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Sample Ads

Design Questions

Which Products?

How Large?

Color or B&W?

Offers & Descriptions

Proofs

III. Media Newspaper - Circulars/Shoppers Checklist

File Transfer

Tips on Buying Print Ads

Compare Actual Sizes

Contracts and Insertion Orders

Placement

Small Ads are OK

Sample Ad Sizing

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Fixed Cost

Quantity Prices

Shipping Cost

Grand Opening Format

Special Runs

IV. Media Newspaper - Circular/Shoppers -Checklist

Circular Size

In-Home Date

Print Date

Order Cut-Off Date

Comp Date

Imprint Space

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Terms:

• Standard-size newspaper: 22” deep, 13” wide, six columns

• Tabloid-size newspaper: 14” deep, 11” wide

• Standard Advertising Unit (SAU), or column inch:

1” deep, 2 1/16” wide

• Run of Press (ROP) ads: an on-page newspaper ad

• Circulars/ Free Standing Inserts (FSI): pre-printed ads inserted into a newspaper

Size and readership:

24% of readers notice a fractional page ad

40% of readers notice a one page ad

55% of readers notice two page spreads

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How To Read A Demographic Profile

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Delivery Options for Circulars

Newspaper

Shared Mail


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III. Media Newspaper/Shoppers Shared Mail (Red Plum)

Largest Private Customer of the US Post Office Distribute to ~65 million households weekly Distribute to another ~35 million households monthly via their ANNE network Have established distribution agreements w/newspapers in select markets.

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17 Items To Consider In Your Print Advertising

1. Prominently show your 800 number

and stress the call is toll free.

2. Put a phone bug next to the toll-

free number. It will boost calls.

3. Use a street return address. It’s

more reassuring than a P.O. Box.

4. Consider a free catalog/sample

offer. Use a picture of the “freebie.”

5. If you have space, include

testimonials from satisfied

customers.

6. State your guarantee. This is

essential.

7. Use a coupon with clip marks.

Ovation has tested this extensively

and the coupon pulls best.

8. Mention quick delivery in your ad.

8. If express delivery is available,

mention that too.

9. Provide some history of the

company—boosts your credibility.

10. Use a benefit headline.

11. Follow your headline with as

many features as possible.

12. Bigger is better. Start with smaller

ads, and then “test up.”

13. Code your ad for tracking

purposes.

14. Use 9 pt. type (at least) for

readability.

15. Use logos and pictures when

possible.

16. State your credit terms.

17. Be sure to ask for the order

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A billboard on a heavily traveled route

could be a good investment, but keep the

message simple. The average billboard can

be seen for no more than seven seconds,

so four words and one visual image is all

you can count on getting across. If you can

find billboard placements close to your

store, messages like “turn at the next

corner” are good traffic builders.

III. Media Billboards

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III. Media Billboards

Three Standard Sizes:

8-sheet Junior Poster: 11’ x 5’

Visibility: 30%

Readership: 29%

Re-examination: 1.3

30-sheet Poster: 21’7” x 9’7”

Visibility: 37%

Readership: 29%

Re-examination: 1.5

Bulletin: 48’ x 14’

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Shoppers no longer rely heavily on listing in their telephone

directories. They may have seen or heard your ads, but where

exactly is your store located, and when is it open? The

Internet is where you NEED TO BE

Yellow pages used to be referred to at that critical moment

when shoppers are finally ready to get in the car and shop for

what they want. So don’t skimp on the listing your store on all

the internet Yellow Page sites. A huge display is not

necessary, but your ad should stand up well against others in

the category.

Yellow Pages are losing ground each year to on-line yellow

pages and the GOGGLE Search

Don’t waste your money

III. Media Yellow Pages

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Magazines that cater to local urban dwellers

can be effective, and readership demographics

are excellent. Most cities have “relocation”

magazines that target newcomers. Use these

publications to highlight your newest designs

and most expensive items. Beware of hotel-

distributed “entertainment guides”—the

readers are just passing through.

III. Media

G. Local Magazines/Print

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Direct-mail companies can offer you a

variety of customized lists, but

postage and printing costs are

relatively high. Former customers are

your best future customers, so use

your own lists first. Mail is good for

clearance sales and seasonal

promotions.

Women LOVE Direct mail !!!!

III. Media

H. Direct Mail

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Direct Mail

Mailing Lists

Labels

Print Formats

Self Mailers

Printing

Postage

Local Production

III. Media

Direct Mail

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For the purpose of bringing people into retail stores,

telemarketing has limited value, if any with the Do Not

Call Lists. Like direct mail, phone solicitation works

best when the prospects you target are prior

customers, especially if you know something about

their buying habits. Begin by building a database of

customers and credit applicants. With each entry, list

the types of products the customer already has. If

customers purchased single items, you may be able

to interest them in matching pieces or related groups.

That strategy is known as “cross marketing.”

III. Media

I. Telemarketing

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III. PROMOTION

Promotion can reinforces the positioning enhances image but cannot lead the establishment of a position or image

Promotion can be an important tool in building customer retention and purchase provides continuity

Promotion is often the center piece of an integrated effort

Promotion helps establish a positive point of difference with competition

Promotion can add value to offset competition

Promotion can help obtain trail of new products

Promotion can stimulate a sales force

Promotion can stimulate a customer to take direct action

Role

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III. Promotion

Most marketing communications efforts of retailers is promotional in nature since the communication more often than not includes some “additional enticement” to attract traffic/build sales other than just listing products and price.

There are a wide variety of promotional concepts that can be used to drive traffic/encourage purchase at retail.

Selling add-on items can be the difference between a store succeeding or barely getting by.

Role

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III. Promotion

The most effective promotional activities to drive retail traffic are:

Free gifts On-site entertainment Instant win games (everyone wins)

The most effective promotional tool to build a database is a sweepstakes

The most effective promotional tool to encourage purchase are;

- Sales - Extended warranty - Gift w/purchase - Payment options - Purchase w/purchase - Free delivery or

service

The most effective way to enhance brand image is via sponsorships or charitable tie-ins

Tools

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III. Promotion

Special Events at stores:

Select a topic that fits with your products and bring in experts in the field to attract attention (e.g.)

Furniture – decorators, free advice

Kitchen table – chefs, cooking lessons

Sporting goods – coaches, free clinics

Families- child-centered activities

Can easily be tied in with a prize drawing or contest as well

Special Events

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Store Display - 71%

Radio Advertising -

29%

Internet - 26%

Store Circulars -

58%

Magazine -

Newspaper - 74%

Word

of

Mouth -59%

TV -51%

Product Packaging -

68%

Direct Mail - 66%

What Form of “Advertising” is Used to Communicate Promotions to Consumers? 1

Newspaper

Insert - 71%

III. Promotion

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Free Stuff - 30.%

Charity - 19.0%

Coupons - 71.4%

Points Program -

17.2%

Gift W/Purchase 12%

Buy One/Get One -

64.7%

Rebates - 29.3%

Sweepstakes - 14.4%

Most Popular Promotions 1 III. Promotion

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III The In-Store Experience

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Planograms

Adjacencies

Space allocations

Promotional Programs

Special fixturing

Merchandise quantities

Required productivity, i.e. stock turns

III. The In-Store Experience

Planning Elements

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Floor plan, traffic flow, space allocation, adjacencies

Fixturing placement

Store Design

Interior furnishings, components and layout

Decor

Colors

Lighting

Flooring treatments

Wall treatments

Ceiling treatments

Fixture selection

Display techniques

Graphics & Signage - Incorporate marketing concept

Exterior - Logo / Identity

Interior Informational Graphics & Signage - i.e. departmental

Interior Promotional Display Graphics & Signage

Planning Elements

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III. The In-Store Experience The Experience of Shopping 8

A store has three distinct aspects:

Design, or premises

Merchandising, or product

Operations, or what employees do

Buying is based on trial and touch today more than ever

Operations, or what employees do

A store can offer shoppers:

Touch, trial, sensory stimuli

Immediate gratification

Social interaction * Source: Why we Buy: the Science of Shopping, Paco Underhill,

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Entering the Store

Windows

Small-scaled signs or merchandise cannot be seen while rushing in from a parking lot

Message must be big, bold, short, simple

Store Entry

Customers need a transition zone of about 10 feet

Americans automatically move toward the right

Store Viewing

Merchandise should be displayed to greet shoppers face on, not sideways

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III. The In-Store Experience Women

Women influence 80+% of purchasing decisions

Take pride in providing good value to their family through their shopping skills

Shopping is a process of searching, examining, questioning, acquiring, absorbing

Shopping can be a transforming experience method of becoming a newer, perhaps slightly improved person. Products turn you into the other, idealized version of yourself

Women are more likely than men to ask another person for product information or store directions

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Men

A woman’s comfort level plunges with an anxious or bored man by her side

If he can be occupied, she’ll spend more time & money

Be careful of where you place relaxation areas:

Practicality, aesthetics, intimidation of other shoppers

Men more likely to consult product packaging, signs, and brochures for product information or store directions

Male shoppers require more and more child considerations

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Children

Children are an economic force: now and in the future

If a store is unwelcoming to children, parents will stay away

Leave width for baby strollers and passerby if you don’t

want to shut out 50% of all women and men age 20-30

Children are enthusiastic consumers if needs are considered

Place items within eye level and reach of a child walking or

riding in a cart

Place items in an aisle where parents likely to be

If Mom won’t buy it, Dad will

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The Internet

III

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Old Dog New Tricks

Me Me

Again

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If a retailer does not recognize the changing dynamics of the consumer; how they will shop and connect with brands in the

future, they will not just be punished; they will be punished

with impunity.

2005

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The ability to learn faster than your competitor

may be the only sustainable competitive

advantage

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In The 60’s It Was All About

PLASTICS

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Today & Beyond It’s All About

Being Connected

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June 24, 2010

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2000

46% Of Adults Use Internet

5% With Broadband At Home

50% Own A Cell Phone

0% Connect Wirelessly

10% Use “Cloud”

0% = Tech Social Networkers

THEN: Slow, Stationary

Connections Built Around My

Computer

The Internet Is The Change Agent

Then And Now

2010

79% Of Adults Use Internet

64% Have Broadband At Home

82% Own A Cell Phone

59% Connect Wirelessly

66% Use The “Cloud”

48% = Tech Social Networkers

NOW: Faster, Mobile Connections

Built Around Outside Servers And

Storage

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To Reach 50,000,000 Users… It Took:

Telephone - 38 years

Television - 13 years

Internet - 4 years

iPod - 3 years

Facebook - 2 years

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How We Are Connected

The number of internet devices in 1984 was 1,000

The number of internet devices in 1992 was 1,000,000

The number of internet devices in 2008 was 1,000,000,000

The number of internet devices in 2015 will be 15,000,000,000

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Today The Internet Has Changed

Everything

In a recent survey, 72+% Of

women surveyed said they were

doing online research before

buying shampoo.

The Breck Girl is being replaced by a “shopping bot”.

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Traditional Ways to Get “DEALS”

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The New Way

Click & Print - FREE

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How We Market 12 Items Of Home Furnishings In 30

Seconds AND….

The Consumer is Supposed to Retain This Message ???

OR How We Can WIN The Race To The

Bottom With 99% Off Retail

Let’s Get Visual

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Average Time Consumers Spend “PER DAY” With Major Media

Source: e-Marketer December 2011

“US adults now spend more time on mobile

devices each day than they do with print

media.”

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For First Time In History, TV Ownership Declines

A.C. Nielsen

November 2011

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Video – Sharing Site Usage Over Time

2006-2011

Are You Streaming Video on Your Website?

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Visits To Online Video-Sharing Sites By Regions

A Great Way To show off your store, share your brand platform and more….without trying to cram it into a 30

second spot

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Meanwhile More Than 1,000,000,000,000

(One Trillion) Playbacks On YouTube

This Year (Yep, Count ‘Em, 12 Zeroes).

That’s About 140 Views For Every Person On The Earth. More Than Twice As Many Stars As In The Milky Way.

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78% Of The U.S. Is Connected To The Internet

272,100,000 Individuals

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1 In 2 Smart Phone Users Have Searched On Their Phones For Nearby Stores

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How Are You Marketing Your Store And To Whom ?

Integrated Marketing?

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Everything Has Changed

BUT….

The Most Profound Change Relates To The Demographic

Shift in the Past 7 Years

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Older BOOMERS

58 – 63 Years of Age

PAST - Primary Target Market for Home Furnishings

Total BOOMER Population 76,985,270

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Young BOOMERS




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155

Middle BOOMERS




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156

Gen “X”


NEW Primary Target Market for Home

Furnishings

Total “X” Population 49,660,301

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15– 32 Years of Age

NEW Upcoming & Secondary Target Market for Home

Furnishings

Total GEN “Y” Population 76,370,030

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Total Gen “X” + Gen “Y” Population

126,030,331

Are You Prepared For This Consumer?

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The Vast Majority Of Gen X Is Already Online (88%) And,

By 2015, That Figure Will Have Topped 90%.

In Fact, The Report Found That Gen X's Digital Media

Consumption Is Strikingly Similar To That Of Gen “Y” - Millennials.

They Use Social Networks, Watch Video On Their Computers And Mobile Devices, And Enjoy Shopping Online. They Methodically

Research And Evaluate Products Prior To Purchase And Place Great Value On The Opinions Of Their Friends And Family.

E-Marketer

December 2011

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Little Dog

Big Dog When It Comes To Your Business Model, Who Would You Rather Be?

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Everyone is doing it…..Is Your Store or Brand There to Participate IF They want To Find

You?

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3 Fundamentals Of a Great Internet Marketing Strategy

Attract - Getting found

Engage – engaging them with lots of content and information so they can make an “informed” decision

Connect – consumers with your sales people/store with sales, marketing and communication tools

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Internet Marketing The Basics….

Get Found

There are 3 fundamental ways

Consumers

search for Home Furnishings

General Searches

Category Searches

Branded Searches 42% Of Organic Searches In The Last Year Are 4+ Words

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Search Attracting Consumers

General Searches

General searches are the most common search phrases among non dealer-specific furniture searches. These phrases use terms such as "furniture" or "furniture store" combined with a geographic term such as "Minneapolis" or "Twin Cities."

Category searches

Category searches are the next most common type of furniture search. Category or "room" searches are comprised of furniture specific keywords such as "bedroom furniture" or "reclining sofa" combined with geographic terms.

Branded searches

Manufacturer branded searches are made up of a manufacturer's brand name, collection name or specific item/SKU name combined with a geographic term.

You MUST Have Content That Addresses All 3 To Be Successful !!!

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Over the past few years, Google has attracted 65-70% of all

internet searches.

97% of American internet users use the internet to shop of which 57% characterize their behavior as shop online, purchase offline (NPD Group)

90% of online commercial searches result in offline purchases (comScore)

82% of local searchers follow up offline via an in-store visit, phone call or purchase (TMP/comScore)

74% of Internet users perform local searches (Kelsey Group)

61% of local searches result in purchases (TMP/comScore)

54% of Internet users would rather use the Internet and local search then phone books (comScore)

35% of all searches are local (DM News)

March 11, 2011

Around three quarters of all internet users perform local searches while an astonishing 82% of these searches result in an offline phone call, in-store visit or

purchase.

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Once They Find You… Now What?

Engage Them

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Lance Hanish • Taking it a step further, part of the success of the mobile sales is due to the interactivity QR Codes bring. 57% of consumers who have scanned a QR code say they shared the information with someone and 18% who made a purchase, according to a survey released in January 2012 by Chadwick Martin Bailey (CMB). Those who have scanned a QR code, 41% said that they found the information they received useful. 70% of these consumers found QR codes easy to scan, compared to just 7% who found them difficult. Overall, just 21% of the survey respondents said they had heard of QR codes, although 81% recalled seeing one when presented with an image. According to an October 2011 survey from strategic marketing firm Russell Herder, 72% of consumers said they had seen a QR code, but nearly 30% did not know what it was. Home furnishings has to get on top of this issue in order to create new sales.

http://www.linkedin.com/groups?viewMemberFeed=&gid=4233005&memberID=17905518

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Once They Find What They Want……

Contact us form

Contact us form on every page

Call the store

Call the store on every page

Sign up for email

Sign up for email on every page

Visit the store

Turn by turn directions to your store

3.) Connect With Them Offering The Consumer a “Variety” of Tools For Communication, Your Promotions, Specials and More….

Add to wish-list - Add to favorites

Request information with product info

Print this page

Forward to friend

Send to social media

View current ad page

Current ad-promotion on every page

Apply for financing

Product tagging for clearance, special, hot buy

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Now What?

Choosing a Home Furnishing Web Site Development Team

&

How To Create a RFP

© FurnitureDealer.net 2012 All Rights Reserved

Excerpts From Andy Bernstein’s Furniture Today Conference 2011

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What’s In This Presentation…. FOR YOU

You think you've clearly explained the type of Web site you want for your company, yet the quotes you get back from Web developers range from a few thousand dollars to tens of

thousands of dollars.

How could the price be so different? What other criteria are critical when selecting a Web development firm to work for your

company?

What questions must you ask to be sure your Web project is delivered on time, in budget and works the way you intended?

In this document, you'll get the straight answers and tools you need to feel confident when selecting a vendor for your next

Web-based project.

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Every Retailer NEEDS a Successful

Website - BUT It’s Not Easy or Inexpensive

More than 3 out of 4 furniture purchases are influenced by online research

81% of home furnishings shoppers cite the internet as their #1 source of information

An online shopper can visit 10 websites in 15 minutes and consumers have NO patience for bad websites.

Very few furniture companies have implemented successful internet strategies.

Approximately 92.3% of local brick and mortar furniture retailers have poor websites that disappoint consumers.

Making a good internet strategy and website decision is very

difficult to do.

BUT…..

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Why Have So Many Retailers Failed With Their Website?

Good websites are expensive – they require a lot of time, money and skill.

But, money alone cannot buy a good website.

Most home furnishings executives (people above the age of 35) simply are

not expert about the internet. They do not understand it well.

It's tough to tell the difference between great, average and bad website providers

yet, this decision will have a major impact on your company’s business.

To make matters worse, it is very easy to build a website (any kid can do

it) and it is easy to throw around internet buzz words (like social

networking, blog, e-commerce, search engine optimization, pay per click,

analytics, etc.) that can make some salesman seem expert to someone

who is not experienced or confident.

The fact of the matter is that big talk is much easier than big success

when it comes to furniture websites.

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What makes a retail website bad?

SEO – Search Engine Optimization

Does the site get found on Google, Yahoo, MSN and Bing by local

consumers who are searching for the products and services that the

retailer sells. If not, it doesn’t matter how good everything else is on

the site. You don’t get a chance at that business.

Product Shopping Environment

The vast majority of local retailer websites hardly show any product.

If you don’t show it, the consumer will assume that you don’t offer it.

It sounds obvious, but it is crazy how many retailer websites don’t

even show their entire inventoried offering, let alone the extended

special order options available from their key suppliers. If you take a

look at which sites are influencing the most business, you will see

extensive and well done product catalogs.

There are a lot of things that make great websites great. However, there are really two things that are hands down the

most important at separating good (or successful) websites from bad (unsuccessful) ones.

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What should your top priorities be?

• Product Content

• Search Engine Optimization

• Software/Site Features

• Service and Maintenance

• Your Contract is Key

Your Internet Marketing Plan

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What Should Your Top Priorities Be? Hands Down…..Product Content

Perhaps the single most important driver of a successful website is the

product content.

Furniture products are complex and information rich.

You make your money by selling products. The primary purpose

consumers visit retail websites is because they are considering

purchasing products.

Search engines read words…. NOT PICTURES or Flash Videos!!! Selection is key for attracting more visitors.

Your site navigation will be based on good data structure and disciplined

data entry.

Suppliers introduce and discontinue products all the time but they are

not good at providing dealers with that product information for websites.

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What Should Your Top Priorities Be? Product Content

Breadth and Depth of Selection From Your Key Brands Does your web provider have content for the products and brands you

carry?

If not, what is your strategy for creating or obtaining it? It is a lot of work.

If you do NOT show it, consumers will assume you do NOT offer it.

You need to show your inventory plus your extended offering from key

suppliers?

Commitment to Updating and Maintaining Merchandise

Content

How good is your web provider at updating and maintaining the product

information? It changes often. Are they on top of it, or will you need to

be? How much will that cost?

If your web provider does not have a content library, are you prepared?

Additional cost: Time & Resources

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Quality of Product Presentations How good are their product presentations? Home Furnishings products are

complicated and there is a lot to show, tell, explain and demonstrate about

them. Are they “Content/Attribute” Rich or are they like a simple catalog

page with bare minimum content?

Do they provide good descriptive information, dimensions, features and

construction to help your people show, tell & sell so consumers have enough

information to decide?

Does your web provider have multiple images to show alternate views,

configuration options, style options, room settings, details, quality.

Do they incorporate video and PDF rich media?

Original Descriptive Copy is Extremely Important

Are the descriptions original and keyword rich to come up when

consumers search on Google, or are they scraped and copied from

manufacturer sites?

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Prove It – Do your homework. You’ll be glad you did.

How To Check The Content Library? Ask to see the current unfiltered content library. Seeing a list of

brands can be misleading. Many brands are incomplete

and not kept current.

If the web developer is unable to give you access to the content

library, provide them with a confidential list of your lineup and

ask them to provide you with an inventory of what they have in it

and what they don’t.

Make sure new collections are published. Look at the

collections and see if they are well done. Original romance copy

is important too.

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What Should Your Top Priorities Be? SEO

• If your website does not get found when local consumers are searching online for

what you sell, your store probably will not be considered by them.

• Sometimes consumers search for your company by name. Most of the time, they

get specific and ask Google to find what it is that they are looking for.

• On our network of sites, more than 70% of the site traffic comes from unpaid

search and just about 50% of the visits come from non-branded search – meaning

a search phrase that does not include the retailer’s company name.

• There are two types of search engine optimization – static and dynamic. Static

means the information pages are created by hand. Dynamic means that they are

generated through powerful database tools.

• A typical SEO specialist who produces static content will talk about being able to get you

first page listings for a small number of keyword search phrases (Maybe 10, 20 or 100).

They sometimes offer guarantees.

• Dynamic sites that are well designed to be search engine friendly that utilize original rich

product descriptions will achieve thousands of keyword phrase visits through thousands

of landing pages. The difference is dramatic, but the descriptions and marketing sound

similar.

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Prove It – Do Your Homework. You’ll Be Glad You Did.

How To Inspect SEO? Try to see analytics for a couple clients of theirs who are similar sized to

your company and who operate in a similar sized market. Those are the

two main variables that have a big impact on traffic volume.

Reports to look at:

Non-Branded/Unpaid Search - Percentage of traffic that comes through unpaid

search that excludes the retailer’s own name.

Number of Keywords – VERY IMPORTANT

Number of Landing Pages

Before and After Comparison - Ideally, you could see analytics before and after

developer launched.

Check Google – do searches in nearby towns for brands and items

Ask a competitor to evaluate the SEO of those sites

Use online tools like our FREE 93 Point Assessment

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Data Structure Allows for Site Navigation

and Usefulness

Data structure allows for site navigation,

categorization, narrow your search, compare,

coordinating items, alternate finish.

Modular components and packages may be

necessary for your pricing and selling needs.

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What Should Your Top Priorities Be? Software Features

It Is Important That Your Software Have The Features That You Want And

Need To Tell Your Story And Sell Your Products. Important Features To

Consider Include:

• Site design and page layouts

• Product Coordinating Items to show the related items in a collection – i.e. if a bed has

matching case pieces or if a sofa has matching chair, ottoman, loveseat and sectional

• Multiple Image Viewer and Rich Media to better show and demonstrate products

• Site Navigation – it should be logical, easy to use and simple to understand

• Merchandise Tagging and Sort Order

• Inventory Data Integration – ability to show what’s on the floor and/or availability

• Administrative tools to make changes and updates on your site

• Integrated Marketing to Communicate Promotions and Marketing Messages on Every Page of

the Site – Do You Have an Internet Presence/Policy or Strategy?

• Wish List/Save Projects – tools that enable consumers to save their favorites and

salespeople to save client projects

• Store location and information page with interactive maps

• Financing tools like online special financing applications are important for retailers that offer

this

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What Should Your Top Priorities Be? Service and Maintenance

What are my full service, self service and

integration/automation maintenance

options?

What is NOT included, and how much does it

cost?

How are requests submitted? Will I be able

to speak to a person? How long does it take

to get a response and a completion?

What sorts of training and support are

included or available?

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Merchandising

• Tell me about my merchandising controls? Do I have control of

adding and removing products? How long do updates take to get

published on the site?

• Can I tag inventory, enter prices, tag clearance, tag specials, identify

special order only, private label, package products, append

materials in content library?

• What is the process, cost and timing for adding new products to the

site? Self publish, You publish?

• Do you offer inventory data integration/automation service? How

much does it cost and what is involved?

Marketing

• Self service, full service options for ad posting and ad scheduling?

• Email signup offer and list. How do those work?

• Access to Analytics?

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Other or Static Pages (Additional Pages In The Site)

• What’s included? How much do they cost? How do we create and manage

them? Full service or self service?

Customization and Personalization

• How much can we customize the templates – about us, merchandising,

advertising, page layouts, site design…

Software Improvements

• What software improvements and enhancements are you working on and

planning on? Will they be included in my package, or how much will they

cost?

• What improvements or enhancements were created over the past 9 months,

and how much were existing clients charged for them?

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Hosting/Site Uptime

• How reliable is your network? What kind of outages and

slowness have you have experienced in the past 6 months?

• What happens if the network becomes unavailable or slow?

Do you notify clients? How do you respond? How long does it

take to fix?

• What steps have you taken to ensure reliable service and

prevent problems?

How much training, strategic advice and idea sharing

can I expect? Do I have a “Support Team” that are

experts in their field to make my site ROCK?

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Prove It – Do Your Homework. You’ll Be Glad You Did.

Advice About Checking References?

Do NOT take anyone’s word on it. Check references.

Do NOT accept the hand picked references or recorded testimonials that a web developer

provides to you. Everyone has a few happy customers.

Require seeing their entire client list and you choose who to talk with. That’s the only

way to get a sense of their true track record. Get between 5 and 10 references.

Ask how many clients have terminated or switched in the past year? Why?

Questions to ask?

Is the site having an impact on your business?

How responsive is their service? Is their product content up to date?

What are the two most frustrating things about your site?

If you could change anything, what would it be?

Are there a lot of hidden fees?

Talk to Salespeople

Call the stores and talk with salespeople.

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Questions to Ask the Developer

• How many clients has the company lost in the past 18 months? Who

and why. Ask for contact information and contact them.

• What sorts of problems and complaints have they had from clients in

the past six months? Why?

• What do they see as the biggest weaknesses, deficiencies with their

product or service?

• What are the three reasons that I am most likely to be frustrated with

your service – if I sign with you?

• How likely is it that I will NOT incur any costs other than the monthly fee

and setup that I’m signing up for? What additional expense items might

come up? Please list all. I don’t like surprises. Think about all your

clients. What kinds of additional costs have come up? How much do

they cost?

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What Should Your Top Priorities Be? Your Contract Is Key

• What is the cost?

• Up-front setup fees

• Ongoing licensing and subscription

• When do you start paying?

• How long is the term?

• What’s NOT included “hidden fees” that you may

want or need (like site redesigns, product content

maintenance, ad posting, training and support)?

What will it cost?

• Require clearly defined responsibilities and

services. Are there guarantees?

• What sorts of maintenance and upgrades are

included.

• How quickly you can expect response time? What

is the update schedule?

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Stay Focused On Your Top Priorities

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What Should Your SECONDARY Priorities Be?

The Following Are Secondary Priorities – Don’t Make The Mistake

Of Making These Top Priorities. • Branding / Look and Feel -- (your web developer should be able to work with you)

• Shopping cart

• Blogs

• Facebook

• Room planner

• Financing

• Reporting and analytics

• Project management and wish list

• Fabric draping?

• E-mail marketing

• Marketing networks

• Private labeling

• Label printing

• Admin Tools

• Innovation - technology, training, content, ideas

• Open publishing

Be careful not to make these higher priorities than the top priorities.

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Want a winning website?

Choose the right partner.

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Area of Expertise Wish List For Your Web Developer

Web Developer

Who Has

The Ideal Skills

Retail Furnishings Know How Technology,

Software & Hosting

Search Engine

Optimization

Furnishings Product Content

Graphic Design & Branding

Passionate about

Learning, Innovating &

Sharing

Retail Call Center Selling

Expertise

Great Customer Service –good with

Non-Technical Clients

Online Marketing,

Social Media, e-Mail

Marketing


Multi-Channel Retailing & Customer

Experience

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The 6 Most Common

Mistakes Made On Retailer Websites

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1 - The Sizzle vs. Steak Mistake

The most common mistake is designing a website to

look great at the expense of it being search engine

friendly.

It can also mean spending too much budget on

visual branding versus other more important things

like product presentation and navigation.

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2 - Who Put the IT Guy In Charge Mistake

Another common mistake is placing too much emphasis

on computer integration with the inventory / POS system

and having e-Commerce - instead of product content

(navigation, selection and explanation).

The internet is much more about marketing and selling

than it is about creating operational efficiencies.

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3 - We Need to Control and Own Everything

Mistake

Another common mistake is under estimating how much time,

money and effort it is going to be to create and maintain your digital

product presentations and software.

People often don’t realize how much maintenance and ongoing

improvements are required for success. This is often a function of

wanting to own and control the site.

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4 - Get Caught Up In The Hype Mistake

Buzzwords can act like an intoxicant and drive emotional

decisions that get decision makers focused on the wrong

things.

There is limited time and money. Don’t be fooled by the

hype.

The only people making money on some of this stuff are

the guys selling it.

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5. I Hate Paying Salespeople’s Mistakes

Cost reductions and a lack of consumer loyalty have eroded

the sales profession. Commissions are costly. Bad

salespeople are a problem

Business today is being won before consumers ever step in

the store. Expert salespeople are your key to winning.

Websites with shopping carts are better order takers

than people are.

Furniture is NOT a self service product category. The vast majority of customers

want and need assistance buying big ticket home furnishings.

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5 - I Hate Paying Salespeople's Mistakes

Furniture is NOT a self service product category. The vast majority of customers

want and need assistance buying big ticket home furnishings.

Is your goal to build a SELF SERVICE

Vending Machine?

Do you really think many consumers will visit

your site, select a living room set, enter their

credit card, and purchase it unassisted?

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6 - Let’s Go National Mistake

Everybody’s doing it. You’ve heard about some guy who is selling

a bunch of stuff all across the country.

Most local retailers do NOT have the core competencies to

compete and win over the long run as a national shipper.

National shippers do so well largely because local retailers do

internet so poorly.

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What Can Manufacturers Do To Help?

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What Should Manufacturers Do?

•Invest heavily to help prevent their retailers

from getting this so wrong,

•Create and provide better content (portable

digital assets) and make it easier for retailers

to show, tell and sell your products.

•Make it easy for web developers and people

maintaining the retail websites to know when

products are introduced and discontinued.

• Don’t favor the national shippers.

• MAP (Minimum Advertised Price)

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It’s Much Easier To SPEND A Lot Of

Money On A Furniture Website Than It Is To

MAKE Money With One.

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Thank You

Bill Napier

612-217-1297

Join My Discussion on

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The Supporting Data H. Internet

Nielsen has published new statistics on the overall online shopping trends – Over 875 Million Consumers Have Shopped Online – the Number of Internet Shoppers Up 40% in Two Years.

Among Internet users with Internet access using it shop, the highest percentage shopping online is found in: South Korea (99%)

UK (97%)

Germany (97%)

Japan (97%)

US (94%)

Online retailers are acquiring new customers at a 15% annual rate versus 2% for brick and mortar stores. --Deloitte & Touche USA, November 2006

54% of consumers referred a friend to a vendor found online. --Nielsen/Net Ratings

21% of consumers visited a retail website within 30 days of receiving direct mail; up from 14% in 2003.

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Social networking use among internet users ages 50 and older nearly doubled—from 22% in April 2009 to 42% in May 2010.

Jul 7, 2010Aaron Smith

Six in ten Americans go online wirelessly using a laptop or cell phone; African-Americans and 18-29 year olds lead the way in the use of cell phone data applications, but older adults are gaining ground.

One of the most important things to understand about statistics associated with the internet, internet use and internet marketing is the speed with which things change. Some simple facts will explain this progression.

The number of internet devices in 1984 was 1,000

The number of internet devices in 1992 was 1,000,000

The number of internet devices in 2008 was 1,000,000,000 -


http://www.pewinternet.org/Experts/Aaron-Smith.aspx

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How fast is information growing, it is estimated that a week's worth of reading the New York Times contains more information than a person was likely to come across in a lifetime in the 1800's.

The amount of new technical information is said to be doubling every two years - for students starting a 4yr technical program and college or university, this means that half of what they learn in their first year will be outdated by 3rd year!!!!


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Consumer insights: How furniture shoppers use the Internet

Implications for your business

Furniture shoppers have embraced the Internet

Furniture shoppers use multiple channels at different stages of their

decision process.

72% of furniture shoppers use the Internet at some point.

Furniture is the 8th most searched product on search engines.

They use the Internet primarily as a research tool

They prefer the convenience of researching multiple brands in one

place

They overwhelmingly prefer to purchase furniture from local retailers

Furniture doesn’t play to the strengths of e-commerce

IV. Media

H. Internet

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Previous research has estimated that between 70% and 80% of U.S. adults have purchased something online. And according to Furniture/Today and HGTV's 2009 Consumer Views Survey, 44% of adult U.S. consumers have purchased home furnishings online. Occasional tables, entertainment furniture and youth furniture are the leading furniture categories purchased online, followed by desks and master bedroom. Home accents, such as wall décor and area rugs, have higher purchase rates through the Web.

The exclusive consumer data shows that Generation X - currently between the ages of 34 and 44, numbering 44.5 million or 16% of the U.S. population - is the No. 1 generation purchasing furniture online. And higher-income households, those with incomes of $100,000 or more, are more likely than lower-income groups to purchase furniture through the Internet.


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Winning Internet Strategy for Furniture Retailers

Don’t limit your brand story to

your web site.

Think of the Internet as a cost-efficient way to showcase

your products and tell your brand story in real-time—

without space constraints—to an audience actively

searching for it.

Distribute your store’s product catalog wherever

consumers are researching home furnishings.

Don’t allow your channel to

control your brand story

Control your brand story through your channel by

helping consumers by expanding your showrooms

online.

The big winners will be retailers who invest in creating digital assets and

aggressively distribute them wherever consumers are looking for them.

Don’t settle for getting your web

site listed first in search engine

results

Dominate the first page of search engine results

Two objectives 1. Help shoppers researchers and find where to buy it

2. Help retailers convert Internet leads into store sales

Strategies Tactics

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IV. Media Internet

There are always a wide variety of benefits in using the internet to promote your retail location. Virtually everyone today is Wired! You can offer products on-line

You can advertise for very little money

The information stays “on” and available 24/7/365

Creative can be changed quickly and relatively inexpensively

But there are drawbacks: Only a small % of people who see your logo or

message will click to your site.

YOU MUST HAVE A WEBSITE !!!!

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IV. Media J. Internet 3

How to Pay for Internet Exposure:

CPM: Cost per thousand times an ad is displayed

CPC: Cost per each time some click your ad

CPT: Cost per transaction or sale

Email:

If you can obtain the email addresses of a prospect or customer and they “opt in” or given permission you can effectively e-market to them over the internet.

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IV. Media J. Internet 3

Email: Some keys to successful e-marketing:

Keep records of the “permission granted” material

Keep lists secure

Be informative and provide valuable and useful

information in addition to asking for business

Respond to email inquiries rapidly

Always offer consumers a chance to opt of out of

getting information

State your privacy policy

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IV. Media Internet

Finding the most effective message/creative is not easy. Traditional “ads” are not as effective as they are in the traditional media where the consumer cannot easily “click them off.” Internet advertising needs to be enrobed in “content” (e.g. advertorial vs. advertising – as most web visitors are searching out information on which to base their buying decision).

Banner ads can work …sometimes…but they should be interactive.

The most trafficked web sites in a market are those tied to traditional media (radio, TV, newspapers) hence the best web buy is one made in concert with a traditional media buy.

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IV. Media Internet

Internet Measurement:

Impressions: # of times ad appears on web page

Conversion Rate*: rate at which visitors take a specific action

Hit: every component of a web page a visitor sees

Click Through: # of times people select/click on your banner

Click Through Rate (CTR): # of times the ad is clicked on divided by the total # of times an ad is seen on screen

* Most important

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Measurement Plan

Oncoming Research

Measurement of Objectives

Strategies Initiated

Evaluation

Re-Process

LEARN

THINK

ACT

REFLECT

REFLECT

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Thank You

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V. Appendix

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References 1. “Annual Survey of Promotion Practices.” Promo Magazine Stamford: Primedia.

2. Arens, William F. “Contemporary Advertising.” Chicago: Irwin.

3. Dahl, Gary “Advertising for Dummies.” New York: Hungry Minds.

4. Hiam, Alexander “Marketing for Dummies.” New York: Hungry Minds.

5. Leprine, Janet, et. al. “The Official PMA Glossary of Promotion Terms.”

New York.

6. “Power Brands on the Rise.” Roper on Retail- Roper Starch International

(Oct.2000).

7. Roper Starch Worldwide. “Research Alert Yearbook 2000: The Year in Review.”

8. Underhill, Paco “Why We Buy: The Science of Shopping.” New York: Simon & Schuster.

9. U.S. Census, National Database

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GLOSSARY

Above-the-line: Refers tot he cost of paid advertising in mass media versus "below the line" expenses for promotion,

PR events, etc.

AC Nielsen: An auditing service that tracks product movement in stores to establish share of market and measures

audiences in measured media.

Acceptable price range: The range of prices that buyers are willing to pay for goods or services.

Account specific programs: A marketing support campaign designed by a marketer to accomplish previously-

established objectives for a specific retailer.

Advertising media: The various media that can be used to carry advertising messages to potential audiences or

target markets for products, services, organizations, or ideas. These media include newspapers, magazines, direct-

mail, Yellow Pages, radio, broadcast television, cable television, outdoor, transit, online and specialty.

Advertising weight: A measurement of media support for a brand, normally expressed in Gross Rating Points (GRP).

Alternative media: Those vehicles considered secondary to traditional media. Ex: in-store point-of-sale advertising.

Audit Bureau of Circulation (ABC): An organization sponsored by advertisers, advertising agencies, and print media

publishers that verifies the audience circulation figures claimed by newspapers and magazines.

Awareness: A consumer's recall of information about a brand, ad, or promotion. Normally there are two types:

"unaided awareness," and "aided awareness," in which the consumer is prompted.

Bait and switch: A deceptive sales practice in which a low-priced product is advertised to lure customers into a store,

where they are then induced to buy higher-priced models when the less-expensive product is disparaged or there is an

insufficient supply of the low-priced product.

Best Food Day (BFD): The day on which a newspaper runs editorial material on food. Retailers should consider this

day when planning advertising if it fits with their target audience.

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Bleed: The areas of printing plates that extend beyond the edges of the final trimmed sheet, thus eliminating a

white margin around the edges.

Body copy: The words in an ad or promotional piece that describe the headline offer. Normally much smaller in

type size than headline and subhead copy.

Boilerplate: Standard legal copy normally required to explain and define an offer or product claims.

Borrowed-interest promotion: A promotion that uses the recognition and/or impact of a well-known event or

personality to capture the attention and interest of the target audience via the implied endorsement.

Brand: A name, term, design, symbol, or any other feature that distinguishes one seller's good or service from

those of other sellers. The legal term for brand is trademark. A brand may identify one item, a family of items, or all

items from that seller. If used for a line of products or for the firm as a whole, the preferred term is trade name.

Brand Development Index (BDI): A measure of the concentration of a brand's consumption; typically, the units or

dollars of a product sold to a consumer per thousand population in a designated geographic area each year.

Brand equity: The value of a brand. From a consumer perspective, brand equity is based on consumer attitudes

about positive brand attributes, awareness, and favorable consequences of brand use. The brand equity of the

most famous brands in the world is measured in billions of dollars.

Brand image: The perception of a brand in the minds of consumers- its image or personality. It is what people

believe about a brand- their thoughts, feelings, and expectations.

Brand loyalty: The inclination of a consumer to buy the same brand of product or service repeatedly over time

rather than buying from multiple manufacturers within the category.

Brand name: Words, letters or numbers that can be spoken to identify an item. Trademark is synonymous but is

derived from the legal rights on how to sue those words, letters, or numbers as your exclusive identity description.

Brand personality: The image or psychological profile that the manufacturer intends to convey to the public as

opposed to the brand image, which refers to the consumer's perception and the image the consumer has of a

brand.

Brand switching: The tendency of consumers to switch from one brand of product to another.

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Bulk mail: A large mailing of identical pieces that is delivered to the post office in bulk to quality for reduced-rate postage.

Burst: A printed graphic device that is used to draw attention, used either in and/or on a package or in point of sale. Example: "New"

Buy One Get One Free (BOGO): An offer to a consumer or retailer of a free unit with the purchase of one unit of the same product.

Buying power: A term found in economic psychology that refers to the income available for discretionary spending among segments of the

population. It is a measure of the ability and willingness to buy goods or services.

Captive market: The potential clientele of retail or service businesses in a locale where consumers do not have reasonable alternative sources of

supply. Example: Posters in a subway car

Card-base marketing: A term used by retailers for their database marketing efforts drawn from their frequent-shopper card database.

Carrier-route presort: Sorting mail into nine-digit ZIP code sequence so it is ready to be distributed to individual U.S. Postal Service carriers. Saves

additional postage over five-digit code sequencing.

Category Development Index (CDI): The sales-volume ratio of the sales of an entire category versus a specific set population, either in a given area

or nationally.

Cause-related marketing: The use of a tie-in with a charity or not-for-profit organization to support a promotion.

Channel marketing/management: The method of developing different marketing efforts by trade class to fit its particular needs. Examples: drug,

mass merchandise, food, etc.

Co-branding: A tactic that merges two or more brands into a joint promotional/advertising campaign. Also called partnership marketing.

Column inch: A unit of space used by magazines and newspapers that is one column wide by 1 inch deep (14 agate lines).

Co-marketing: Promotional events where manufacturers join with key retailers to accomplish joint objectives.

Controlled circulation: The distribution of a newspaper or magazine, usually free, to selected individuals who are members of an audience that's of

special interest to advertisers.

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Copyright: A copyright offers the owner of original work that can be printed, recorded, or "fixed" in any manner the sole

right to reproduce and distribute the work, to display or perform it, and to authorize others to do so during the author's lifetime

and for fifty years thereafter.

Cost in the Mail (CIM, ITM): The total cost associated with any individual unit mailing. This normally includes the costs of

postage, printing, the item mailed, handling, etc.

Cost per Thousand (CPM): The cost of advertising needed to reach one thousand persons, homes, or other audience units.

With periodicals, the advertising rate or actual advertisement cost is divided by the circulation, interpreted as the estimated

number of readers or ad notaries. With television, radio, and online ads, the rate charged for commercial placement is divided

by the average number of persons or homes tuned in, expressed in thousands.

Courtesy days: The days on which stores extend to credit customers the privilege of making purchases at sale prices in

advance of public advertising of the sale. Popular with department stores.

Demographics: The study of total size, gender, territorial distribution, age, composition, and other characteristics of human

populations; the analysis of changes in the makeup of a population.

Designated Marketing Area (DMA): A geographical definition of a shopping area within a metropolitan statistical area

(MSA). Each MSA contains a population of 50,000.

Direct-mail advertising: The use of mail delivered by the United States Postal Service or other delivery service, such as e-

mail or fax, as an advertising media vehicle.

Direct marketing: A form of retailing in which customers are exposed to merchandise through an impersonal medium and

then purchase the merchandise by telephone, computer, or mail.

80/20 rule: A fairly accurate business theorem that states 20 percent of your consumers account for 80 percent of your sales.

Economic indicator: Data collected by government and private organizations on a regular basis that are used to analyze and

measure current economic activity and general business conditions.

Effective frequency: An advertiser's determination of the optimum number of exposure opportunities required to effectively

convey the advertising message to the desired audience or target market.

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Event marketing: Brand marketing or promotion that takes place at an event. Example: sporting event, country fair.

Federal Communications Commission (FCC): A federal regulatory agency that determines the rules and requirements

for many promotional and advertising tactics, such as those used on sweepstakes, games, new product copy, etc.

Free Standing Insert (FSI): A four-color insert containing multiple pages of advertising that's inserted into Sunday

newspapers.

Frequent-shopper programs: Card-based incentive systems that reward loyal and frequent shoppers, usually through

price cuts granted automatically at checkout time.

Frequency: The number of times a person, household, or member of a target market is exposed to a media vehicle or an

advertiser's media schedule within a given period of time. This number usually is expressed as an average frequency

(average number of exposures during the time period) or as a frequency distribution (the number of people exposed once,

twice, three times, etc.)

Gatefold: A brochure or an ad that folds upon itself toward the gutter. When opened, it creates a large billboard effect.

Gross Rating Point (GRP): A unit of measure of audience size for television, radio, or outdoor advertising that is equal to

one percent of the total potential audience universe. Used to measure the exposure of one or more programs or

commercials, without regard to multiple exposure of the same advertising to individuals. Also, the product of media reach

times exposure frequency.

Image-related: Refers to promotions that work to enhance a brand's name, use, or perceived quality.

Impulse purchase: A purchase typically made in-store with little or no decision-making effort. An unplanned consumer

purchase.

In-ad coupon: A coupon placed in a store's or chain's own retail advertisement, redeemable on the specified product only

at the particular store or chain.

Integrated marketing communications: A communication process designed to assure that all brand contacts received

by a customer or prospect for a product, service, or organization are consistent and unified.

Linage: A measurement of newspaper advertising space. A full-page ad equals 2,400 lines.

Loyalty: A measurement of consumer commitment to a brand.

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Loyalty programs: Promotional programs designed to develop and maintain loyalty to a brand.

Market penetration: A measure of the percentage of a market reached by a particular product. An often-sought goal is to

increase a product's market penetration.

Market potential: An estimate of the maximum possible sales of a commodity, a group of commodities, or a service for an

entire industry in a market during a stated period.

Market profile: A breakdown of a facility's market area according to income, demographic, and life cycle.

Market share: The proportion of total sales in a market obtained by a given facility or chain.

Marketing: The process of planning and executing the conception, pricing, promotion, and distribution of goods and services.

Marketing mix: The mix of controllable marketing variables that the firm uses to achieve the desired level of sales in the target

market. The most common classifications are the "four Ps"- price, product, promotion, and place.

Marketing plan: An annual document that sets the objectives, strategy, and tactics for the year. Within this plan, budgets are

detailed for each of the elements.

Metropolitan Statistical Area (MSA): An area that contains a city of 50,000 population, or an urban area that contains 50,000

persons within a metropolitan area of at least 100,000 persons.

National brand: A brand that is marketed nationwide, as opposed to regionally or locally. Usually advertised and owned by a

manufacturer.

Niche strategy: A marketing plan employed by a firm that specializes in serving particular market segments in order to avoid

clashing with the major competitors in the market.

Overlay: Any sheet, image, printed matter, etc. superimposed on an existing design or piece of artwork.

Overrun: A number of additional copies of a printed piece in excess of those required for general circulation.

Perceived-value pricing: A method of pricing in which the seller attempts to set the price at the level at which the intended buyers value the product.

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Point-of-purchase (POP): Promotional materials placed at the point of sale to attract consumer interest by calling

attention to a special offer other attention-getting device.

Point-of-purchase advertising: Advertising, usually in the form of window and/or interior displays, in establishments

where a product is sold to the ultimate consumer.

Point of sale (POS): Material, usually in printed form, that is displayed at retail to attract consumer attention.

Position: In marketing strategy, the consumer perception of a product's or service's benefit or benefits, in comparison to its

competition, which the manufacturer attempts to create and encourage via advertising, packaging, and/or promotion.

Promotion: Marketing that stimulates the purchaser to buy the product or service being promoted.

Promotion Marketing Association (PMA): The trade association for the promotion industry.

Psychographics: The study of the lifestyle and behavioral traits of a target audience for potential use in a marketing

campaign.

Publicity: A marketing tool that attempts to gain editorial coverage in the media for increased public awareness.

Qualitative: A research term used to describe a non-projectable quality or performance.

Quantitative: A research term that refers to data or testing that is projectable.

Rate card: A printed listing of the charges associated with different amounts of time or space, different placements in the

vehicle, and other conditions of sale.

Rating: The percentage of the total potential audience that is exposed to a particular media vehicle.

Reach: The number of people or households exposed to a particular advertising media vehicle or media schedule during a

specified period of time.

Relationship Marketing: Marketing with the conscious aim of developing and managing long-term and/or trusting

relationships with consumers, distributors, suppliers, etc.

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Relationship Marketing: Marketing with the conscious aim of developing and managing long-term and/or trusting relationships with

consumers, distributors, suppliers, etc.

Repositioning: Altering the message or formulation of a product or device to broaden consumer appeal, energize the brand, or counter

competitive claims.

Return on Investment (ROI): The difference between the gross revenue generated by a program and the total of all costs associated with

it.

Run of Press (ROP): Refers to daily newspapers that carry advertising along with editorial and news reporting.

Sales Aids: Devices produced to help a salesperson sell a product or program. Example: brochures, videos.

Sales Demonstration: An in-person showing of a product to one or more consumers to demonstrate how the product works and the

benefits it offers to the customer.

Share: The percentage of total retail purchase, in terms of dollars or units, for a given category of product that is enjoyed by any one brand

in that category.

Share Point: Once percent of the total market or audience.

Specialty Advertising: The placement of advertising messages on a variety of items of interest to the target market. Example: calendars,

pens.

Standard Advertising Unit (SAU): A formula applied to newspaper space advertising that standardizes ad space, thus compensating for

different production formats.

Target-Market Identification: The process of using the income, demographic, and lifestyle characteristics of a market together with

census information for small areas to identify the most favorable locations.

Trademark: A legal term that's synonymous with brand. A trademark identifies a seller's product and differentiates it from the products of

other sellers.

Traffic: The number of shoppers who visit a retailer's store.

Traffic Builder: A promotional activity that generates increased store visits by shoppers.

Value-added: Refers to a promotional technique perceived by the consumer to add value to the product purchase

Documents

The Basics Of Advertising, Marketing & Promotion · The Basics Of Advertising, Marketing & Promotion . 2 ... The In-Store Experience ... SWOT Analysis . 27