After a budget is set, the promotional mix is determined: the retailer’s combination of advertising, public relations, personal selling, and sales promotion. A firm with a limited budget may rely on store displays, Web site traffic, flyers, targeted direct mail, and publicity to generate customer traffic. One with a large budget may rely more on newspaper and TV ads. Retailers often use an assortment of forms to reinforce each other. A melding of media ads and point-of-purchase displays may be more effective than either form alone. See the following Figure.
An integrated promotional approach
In today’s vast multimedia communication environment, two things are quite clear for retailers. First, the message, look, image, and other communication factors must be consistent and integrated across all the media platforms that a given retailer chooses. There cannot be a disconnect; otherwise, shoppers will become confused. Second, the effects of different media need to be carefully monitored. In particular, a retailer cannot ignore social media; it needs to embrace them and regularly post there.
The promotional mix is affected by the type of retailer involved. In supermarkets, sampling, frequent shopper promotions, theme sales, and bonus coupons are among the techniques used most. At upscale stores, there is more attention to personal selling and less to advertising and sales promotion as compared with discounters. The following Table shows a few small-retailer promotional mixes.
The promotional mixes of selected small retailers.
|
Type of Retailer |
Favourite media |
Personal selling emphasis |
Special considerations |
Promotional opportunities |
|
Apparel store |
Weekly papers; direct mail; radio; Web; exterior signs |
High |
Cooperative ads available from manufacturers |
Fashion shows for community groups and charities; social media |
|
Auto supply store |
Local papers; Yellow Pages; POP displays; Web; exterior signs |
Moderate |
Cooperative ads available from manufacturers |
Direct mail |
|
Bookstore |
Local papers; Yellow Pages; radio; Web; exterior signs |
Moderate |
Cooperative ads available from publishers |
Author-signing events; retailer blog |
|
Coin-operated laundry |
Yellow Pages; flyers in the area; local direct mail; exterior signs |
None |
None |
Coupons in newspaper ads |
|
Gift store |
Weekly papers; Yellow Pages; direct mail; Web; exterior signs |
Moderate |
None |
Special events; web ads |
|
Hair grooming or beauty salon |
Yellow Pages; mentions in feature articles; exterior signs |
Moderate |
Word-of-mouth communication key |
Participation in fashion shows; free beauty clinics |
|
Health food stores |
Local papers; shoppers; POP displays; web; exterior signs |
Moderate |
None |
Display windows |
|
Restaurant |
Newspapers; radio; Web; Yellow Pages; entertainment guides; exterior signs |
Moderate |
Word-of-mouth communication key |
Write-ups in critic’s columns; special events |
In reacting to a retailer’s communication efforts, consumers often go through a sequence of steps, known as the hierarchy of effects, which takes them from awareness to knowledge, to liking, to preference, to conviction, to purchase. Different promotional mixes are needed in each step. Ads and public relations are best to develop awareness; personal selling and sales promotion are best for changing attitudes and stimulating desires. This is especially true for expensive, complex goods and services. See the following Figure.
Promotion and hierarchy of effects