RETAILER'S PROMOTION PLANNING

1. 2-BUDGETING THE CAMPAIGN

1.1. 1-Affordable Method

1.1.1. A retailers puts aside as much as he can afford for promotion. This may be insufficient or may not relate to what is actually required. A small retailer generally uses this method.

1.2. 2-Percentage-of-sales method

1.2.1. A specific percentage of the estimated sales are allocated to advertising. This method is controlled and provides affordable amount for ad spend

1.3. 3-Task-and objective Method

1.3.1. Advertising chases sales. In this method, advertising leads to sales or some other pre-determined objective. First, the advertising objectives are decided. Then the tasks to be performed are spelled out. These tasks are necessary to achieve the objectives. Each task has an associated cost. All these costs are summated to get the advertising budget

1.4. 4-Competitive Parity Method

1.4.1. Retailer brings his budget in line with the competitor's budget. If a leading retailer increases his budget by 12 per cent, all other retailers in the area fall also do the same. This method is suitable for bigger as well as smaller firms. However, this method is not pro-active but reactive.

1.5. 5-Co-op CAMPAIGNS

1.5.1. Sometimes, other retailers or a manufacturer join hands with the retailer in the promotional effort. Vertical co-operative

1.6. 6-Advertising

1.6.1. Allows retailers to share his ad expenditure with another channel members. Horizontal co-operative advertising is a system where some manufacturers come together to share the cost of advertising. As it is a joint effort, it gives greater bargaining power to an individual retailer. A mega mall can conduct a joint campaign increasing traffic for all the participants.. Mostly such campaigns are event -related

2. 1-PROMOTIONAL OBJECTIVES

2.1. Short-term performance

2.1.1. can be improved by attracting new customers from the existing markets and new markets. Short-term performance can also be improved byconcentrating on the existing customers and practice what is called relationship marketing

2.2. long-term performance

2.2.1. 1-store image 2- public service

3. 3-SELECTING THE PROMOTIONAL MIX

3.1. A retailer has to choose from the promotional tools of advertising, personal selling, sales promotion and publicity. A smaller firm with no marketing muscle may rely on in-store displays, mailers, banners and flyers and publicity to generate the traffic. A large-scale mass retailer may use TV and Press for Promotion.