Retailers communicate to their customers on a
continuous basis through the store atmosphere, the
products and services, promotional literature,
advertising and other promotional means
Retail promotion is the descriptive term for the
mix of communication activities which retail
companies carry out in order to influence those
publics on whom their sales depend.
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Retailing promotion will have the main objective
of influencing consumer perceptions, attitudes and
behaviour in order to increase store loyalty, store
visits and product purchase.
There is a need to influence trade contacts such as
agents and suppliers as well as opinion formers
such as journalists and writers.
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Objectives of Retail Promotion
The marketing objectives need to be clearly
defined so that the most effective types of
promotion can be utilized.
The mix strategies could specify a need to
achieve awareness; to inform; to educate;
create purchase action; improve loyalty;
change the perception of the customer, etc.
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Objectives of Retail Promotion
The promotional objectives should have some
precise terms for the purposes of carrying out the
promotion and then monitoring the results
– so-called SMARRTT objectives
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Specific : Objectives have to be precise and clear
enough to offer direction as to the expected
Measurable: Objectives need a quantifiable
outcome measurement statement against which an
evaluation can take place.
Achievable: Objectives should be achieved and
therefore budgets/resources need to be adequate.
Staffing or supply problems may restrict
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Realistic : The expectations of what the promotion can
achieve have to be realistic. Promotion can only achieve so
much and therefore expected changes in attitude to a
brand, or demand for a retail offer, may not be realistic.
Relevant: Objectives have to be appropriate to the task set.
Targeted: All objectives need to be tied in with statements
related to achieving results in the target audience(s).
Different target audiences may need separate objectives.
Timed: Objectives have to be written with consideration of
effect or change within a time frame of achievement.
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Promotional Budget Approaches
Objectives and task method
Percentage of sales method
Competitive parity method
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The term advertising includes any paid form of
non-personal communication through the media
about a product that has an identified sponsor.
Advertising is used to achieve a whole range of
objectives that may include changing attitudes or
building image as well as achieving sales.
Advertising is often described as above-the-line
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Defining Advertising Goals for Measured
comprehension of the offer;
action or inaction
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Types of Advertising
Markdown event advertising
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Sales promotion involves any paid non-personal
marketing communication activity, other than
advertising, which offers an incentive to induce a
desired result from potential customers, trade
intermediaries, or the sales force.
This is sometimes referred to by the term sales
It is usual for a sales promotion campaign to be
used as a temporary offer to the customer in order
to stimulate an immediate response.
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frequent user (loyalty) programmes,
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Relationship Marketing and
Retailers are adopting relationship marketing
(RM) schemes which aim to:
build greater customer loyalty and retention;
develop methods of creating longer-term
lead ultimately to increased sales and profits.
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Personal selling is the personal communication of
information to persuade somebody to buy
Personal selling is face to face interaction with one
or more perspective purchasers for the purpose of
making presentations, answering questions and
procuring orders. (Kotler)
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Importance of Personal Selling
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Personal Selling Process (Indoor Selling)
Closing the sale
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Public relations involve a variety of programs
designed to promote and or protect a company’s
image or its individual products. (Kotler)
Public relations is a management tool designed to
favorably influence attitudes towards an
organization, its products and its policies.
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Objectives of Public Relations
Announce new products
Build interest in established products
Announce policies and performance
Announce technological development
Maintain good relations with community
Counter negative publicity
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Nature of Public Relations
• Personal communication
• News releases
• Feature articles
Public service activities
Sponsorship of events
Exhibits and displays
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Public Relations Activities
Media information releases / contact / speeches
Production of PR materials (video, CDs, Web information,
press kits, corporate identity materials, etc.)
PR events, media conferences and newsworthy ‘stunts’
Advertorials (which require PR copy along with an
In-house and customer magazines
Facility visits to store etc.
Sponsorship and donations
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