RETAIL ADVERTISING
Retail advertising used by merchants to sell products and services directly to consumers accounts for nearly half of all the money spent on advertising.
Retail advertising should perform several functions:
1. Sell a variety of products
2. Encourage store traffic
3. Deliver a sales promotion messages
4. Create or communicate a store image or personality
5. Establish a brand that resonates with the local audience
Difference between local retail ads and national brand ads
1. Targeted at people living in the stores local community
2. May promote several different brands or competing brands
3. Ads include price, colors, sales, phone numbers, maps, etc to push consumers to the store
4. Customized to reflect local store, location, business hours, phone
5. Usually less sophisticated in design
6. Most ads only run for a few days
7. Most of the ads are produced by the media they will be run in and not by the retailer or ad agency.
Large specialty retailers are the exception to this, Toys R Us, Home Depot, Circuit City ads usually have fewer products and look more like brand ads.
Co-op or Cooperative Advertising
Co-op advertising - the manufacturer reimburses the retailer for all or part of the ad expenses. Ad allowances - varies from month to month depending on product sales figures.
Non store retailing
Catalogs
Direct Response
e-commerce
Institutional Retail Advertising
Advertising that sells the retail store as an enjoyable place to shop. Loyalty programs are a form of Institutional Retail
Product Retail Advertising
Presents specific merchandise for sale and urges customers to come to the store immediately to buy it. Non promotional advertising is for merchandise that is new, exclusive and of superior quality. Sales or promotional advertising is when the price dominates the ad.
Local Media Strategy
Most retailers prefer reach over frequency.
Direct Mail is the second largest advertising medium used by retailers - targeting
Pick media that eliminates waste
Media
Newspapers - make up the bulk of retailer’s ad budget.
Shoppers - free distribution newspapers dropped off at millions of suburban homes
Preprints are freestanding inserts in newspapers
Magazines - regional or metropolitan editions. Used mainly for institutional or image ads
Broadcast - advertise on tv and radio, but are usually a supplement to newspaper
Directories - yellow pages
Direct Response
Online Media
Specialty - Hard Rock Café and Planet Hollywood
BUSINESS TO BUSINESS
Advertising directed at people in business who buy or specify products for business use is called business -to-business
Business marketing differs from consumer marketing in two ways:
1. Who buys. Buying groups, organizations as opposed to the individual
2. Buying motives. Organizations buy to support production needs or business needs therefore purchase decisions are more rational or pragmatic.
Types of B-to-B
1. Industrial - original equipment manufacturers (OEM’s)
2. Government - think Boeing, Fluor, etc
3. Trade - is used to persuade resellers, wholesalers and retailers in the consumer market to stock the products of the manufacturer.
4. Professional Advertising - lawyers, accountants, doctors, advertising agencies
5. Agricultural - animal health, seeds, equipment
Business to Business advertising objectives
Advertising is used to:
Assist and support the sales functions
Influence demand
Create company awareness
Increase selling efficiency
Support distributors and resellers
Business to Business Media
Trade Publications
Horizontal publications - directed to people who hold similar jobs in different companies across different industries, for example Advertising Age
Vertical publications - are targeted toward people who hold different positions in the same industry, for example Snowboarding Business.
Directories
There are all kinds of business and industrial directories.
Direct Response
Businesses use direct mail, catalogs, web sites, e-mail to reach other businesses.
Consumer Media
Sometimes Business to Business will use consumer media to reach a business customer