INSTITUTE: University School of

Business
DEPARTMENT: BBA
Retail Management

Retail Management DISCOVER . LEARN . EMPOWER

Retail
Management
Course Outcome
CO Number Title Level

CO1 To understand Remember

marketing in  
Retail world
CO2 To understand Understand
the concept of  
retail
management
and global
trends in retail
management
CO3 To understand Understand
the various
formats of retail.

CO4 To understand Understand https://www.google.com/search?q=retail+management&source=ln

the retail layout   ms&tbm=isch&sa=X&ved=2ahUKEwjN6_nCn5HmAhXmyDgGHUl8A
and design
strategies EUQ_AUoAnoECBAQBA&biw=1536&bih=706&dpr=1.25#imgrc=iq_J
B8B7dVz3jM:
2
PROMOTION
MIX
AND
COMMUNICATIO
N
IN
RETAIL PROMOTION
Retail promotion is broadly defined as all communication that
informs, persuades and reminds the target market or the
perspective customers.

Sales
Advertisi
Promotio Publicity
ng
n
Store
Personal
Atmosph
Selling
ere
IMPERSONAL PERSONAL

Advertising, Personal
PAID

Sales Promotion Selling

UNPAI

Publicity Word of Mouth

D
Selection of Promotion Mix

Degre
e of
Contr
ol
Flexibil
ity

Credibil
Cost
ity
1. Degree of Control
 Retailers can exercise greater control when using paid versus
unpaid methods of promotions.
 Communication methods like advertising, sales promotion and store
atmosphere provide control on message content and time of delivery.
2. Flexibility
Personal selling depends largely on individuals like the sales personal for its
content and delivery. Hence this method of promotion is most flexible since
every sales person has his own personality, way of talking, dealing with
customers, making presentations.
3. Credibility
Publicity and word of mouth are delivered through independent sources,
which makes them more credible and paid information sources. There is
greater likelihood of the receiver believing in that information.
4. Cost
Publicity and Word of Mouth are classified as unpaid
communication methods.
WHAT IS COMMUNICATION?
• The term Communication is derived from the Latin word
“Communis” which means to “make common”.
• Communication, therefore, is the exchange of thoughts, messages,
information etc. by way of speech, signals or writing.
Objectives Of Communicating
• Inform customers about the store
• Inform customer about the merchandise and services it offers.
• Attract customers to stores
• Encourage them to buy merchandise
• Develop a band of loyal customers.
Types of Communication
1. Formal - ( Advertising, Sales Promotion and
Store Atmosphere)

2. Informal - (Personal Selling)

1. FORMAL Communication Techniques
Formal communication techniques are those, which are designed
formally with the certain specific objective to effect target customers
using mass media and store image.
Formal Communication Techniques are :
A. Advertising
B. Sales Promotion
C. Store Atmosphere
A. Advertising -
Advertising is a form of paid communication with customer using non –
personal mass media such as newspapers, TV, radio, direct mail and e-mails.
B. Sales Promotion -
Sales Promotions are those promotional techniques that offer benefit
and incentives to the customers who visit store and/or purchase
merchandise during a specific period.
The most common sales promotions involves: Discounts, Coupons,
Contests, Premiums, Samples, Demonstrations, etc.
C. Store Atmosphere -
Store atmosphere is the combination of the store’s physical
characteristics, such as architecture, layout, signs and displays,
colors, lighting, temperature, sounds and smells.
Together these elements create an image in the customer’s mind.
The atmosphere communicates information about the store’s
service and pricing as well as the fashion ability of it’s
merchandise.
2. INFORMAL Communication Techniques
Retail salespeople are the primary source for informal communication to
customers. It is widely used by retailers.
Personal Selling is a communication process in which sales people assist
customers in assessing and meeting their needs through personal assistance.
ADVERTISING
Advertising is any paid form of non-
personal presentation of Ideas, goods
and services by an identified sponsor.
Objectives of Advertising
1. Promote a new product
2. Support the personal selling programme
3. Reach out of people not accessible to salesman
4. Enter a new market for attracting customers
5. Manage competition in the market by stimulating sales.
6. Improve dealer retention
Benefits of Advertisement For Customers
1. It helps in creating awareness among the customers about the
existence, prices and availability of products at different locations.
2. It educates customers about new products and their diverse uses.
3. It increases the utility of existing products.
4. It encourages manufacturers to improve the quality of products
through research and development.
Types of Advertisement
1. Persuasive Advertisement

2. Informative Advertisement

3. Corporate Advertisement

4. Financial Advertisement

5. Classified Advertisement
1. Persuasive Advertisement
The major objective of consumer oriented advertising are as follows:
1. Information to customers about new product.
2. Holding consumer patronage against intensified campaign by rivals.
3. Teaching customers about usage of the product.
4. Promoting a contest or a premium offer.
5. Establishing a new trade character.
2. Informative Advertisement
• Purchases of durable products are generally erratic and often too
expensive to buy, so the buyer requires to elaborate information about
them. Hence the retailer and the manufacturer spend a huge amount
on information advertisement.
• Example of such ads can be found in washing machine promos etc.
3. Corporate Advertisement
The main motive of this kind of advertising is to build a corporate image.
Institutional advertising campaigns have the following objectives:
• Creating the corporate image
• Building up retailer prestige
• Emphasizing the services and facilities provided by the outlet
• Increasing consumer friendliness and goodwill towards the retail
organisation
4. Financial Advertising
It refers to advertising by various Financial Institutions like
Standard Chartered Bank, ICICI etc.
5. Classified Advertising
• It refers to messages, which are placed under specific headings and columns in
various magazines and newspapers.
• e.g. furniture for sale etc
Where to Advertise?
Newspapers
Magazines
Direct Mail
Radio
Television
Shopping
Guides
Yellow Pages
1. Newspapers
Retailing and Newspaper advertising
grew up together over the past century.
But the growth in retail newspaper
advertising has slowed recently as retailer
has begun using other media. Because
newspapers are distributed in well defined
local market areas, they are effective at
targeting specific retail markets.
Newspaper also offers a quick response.
2. Magazines
× Retailers tend to use this medium for image
advertising.
× This medium provides high reproduction and
rich quality of printing.
× This is a very costly medium of
advertisement.
× Magazines focus a specific class of customers
× Due to lead time, a major disadvantage is that
the timing of a magazine ad is difficult to
coordinate with special events and sales.
3. Direct Mail
 It facilitates the retailer to target its
advertising to specific customers. Retailers
maintain wish lists and feedback on service
and product quality.
It may include any brochure, catalog,
advertisement or printed marketing material
delivered directly to consumer through mail
or private delivery.
 While it can be very effective because it can
personalize the message, it is also costly.
4. Radio
It can be targeted to a specific segment of
the market. Some radio station’s audience
are highly loyal to their announcers.
When these announcers promote a
retailer, listeners are impressed.
5. Television
Television commercial can be placed on
a national network or local station.
o A local television commercial is called
spot.
o Retailers typically uses TV for image
advertising, to take advantage of:
1. The high production quality
2. The opportunity to communicate
through both visual images and sound.
o Its production cost is high, broadcast time
for national TV advertising is expensive.
6. Shopping Guides
 Shopping guides and pamphlets are
free papers delivered to all residents
in a specific area either independently
or as a newspaper inserts.
 This medium is particularly useful
for a retailer who is providing
something different than its
competitors and wants to saturate a
specific trading area.
These are very cost effective and
guarantee the local retailer of
hundred percent coverage in an area.
7. Yellow Pages
 The yellow pages are useful to retailers because they have a long life.
 Customers who are definitely interested in making a purchase and seeking
information use the Yellow pages as a reference.
SALES PROMOTION
• Sales promotions are special incentives or
excitement building programs that
encourage consumers to purchase a
particular product or service.
• Many sales promotions like free samples or
point of purchase(POP) displays, attempts
to build short term sales, whereas others,
like loyalty programs, contest, etc, have
become integral components of retailers
long term customer relationship
management programs, which they use to
build customer loyalty.
Objectives of Sales Promotion

Stop
and
Shop
Shop
and
Buy
Buy Repeat
Bigge Purcha
r se
Types of Sales Promotions
Point of
Coupons Purchase Free Samples Special Events
Display(POP)

Premiums Contests Discounts Loyalty Cards

Celebrity
Bonus Packs
Branding
1. Coupons
 Coupons offer a discount on the price of a specific items when they are
purchased. Coupons are issued in newspaper, on product, on the shelf, at cash
register, over the internet or through mail.
 Retailers use coupons to induce customer to try products for first time to
regular user, encourage large purchases, increase usage and protect market share
against competition.
 E.g. Dominos coupons .
2. Point of Purchase display(POP)
POP are merchandise displays located at the point of purchase, such as
at the checkout counter in a supermarket.
3. Free Samples
Free Samples offer potential
customers the opportunity to try
a product or service before they
make a buying decision.
Distributing samples is the
most costly sales promotion tool
but also the one of the most
effective.
4. Special Events
Special Events is a sales promotion program comprising a number of sales
promotion techniques build around a seasonal, sporting, musical or other
events. Car dealerships can have rallies or display their products. Even if the
sales registered during the event aren’t significant, the long term effect can be
quite beneficial.
5. Premiums
Premium refers to goods offered either free or at low cost as an
incentive to buy a product. A premium may be inside the package
or outside it.
6. Contests
Contests are the promotion events that give consumers the chance
to win something such as cash, trips or goods.
7. Discounts
Goods are sold at reduced prices. Reduction in prices stimulates
sales of goods.
8. Loyalty Cards
Where customers earn points
for buying certain goods or
shopping at certain retailers,
that can later be exchanged for
money, goods or other offers.
9. Celebrity Branding
Celebrity Branding is a form of advertising campaign or marketing used by
brands, companies, or a non-profit organization which involves celebrities or a
well-known person using their social status or their fame to help promote a
product, service or even raise awareness on environmental or social matters.
10. Bonus Packs
In case of a bonus pack, an
additional quantity of the same
product is offered free when the
standard pack size of the
product is purchased at the
regular price.
Limitations of Promotional Events
2. Although special sales with outstanding
1. If special sales are used too frequently, they
bargains may produce tremendous business,
tend to lose their importance. Customers
unless regular priced goods are also
become indifferent to them or perceive them
prominently displayed, their sales may be
not to be special .
adversely affected.

3. Preparations of these events take lot of time

and resources. Thus business get distracted in
those preparations days.
PERSONAL SELLING
o Personal selling is also known as face-to-face selling.
o One person who is the salesman tries to convince the customer in buying a product or
service.
o The salesperson uses his or her skills and abilities in an attempt to make a sale. 
Process of Personal Selling

Attention Interest Desire Action

1. Gaining Attention
An advertisement has already aroused sufficient attention and interest
to bring the customer to the store. Now, the customer’s attention must be
gained either by display or by satisfying the customers requirements .
The salesperson may gain attention by pleasantly greeting the customer
and perhaps making a comment about the merchandise the customer
has stopped to examine. The time is ripe to take the most important next
step creating interest.
2. Creating Interest
It involves determining the customer’s wants and then presenting
merchandise to meet those wants.
The Indian customers are typically cost conscious so the sales person may
present the range customer is looking for.
Observation is the key to success in developing a keen desire in the
customer to buy a product.
3. Building Desire
The desire stage should move smoothly from this point on. With the
customer’s interest aroused, the salesperson can point out outstanding features,
how the product is used, what makes it distinctive and many other features
that might be of interest to the customer. Where possible, the product should
be demonstrated and the customer invited to handle the goods. At this point,
objections may need to be dealt with, such as those involving price, delivery
time, certain product features, or fit.
4. Action
As objections are clarified, the salesperson should move into the action stage
and attempt to conclude the sale. He or she may need to ask for the order
directly. Or a more subtle approach may be used, such as:
 Let me have our tailor check the fit.
 Will this be cash or charge?
 Would you like it delivered, or will you take it with you?

With the sale made, the sales person should express appreciation and assure
the customer that a wise decision are made. Suitable additional merchandise
can often be effectively suggested at this point.
Retail Marketing mix

• Place: Channels, Coverage, Assortments, Locations, Inventory

Transport
• Promotion: Sales promotion, Advertising, Sales force, Public relations,
Direct marketing
• Price: List price, Discounts, Allowances, Payment period, Credit terms
• Product: Product variety, Quality, Design Features, Brand name,
Packaging Sizes, Services, Warranties and Returns

56
Retail Marketing Mix
• People
• People reflects, in part, internal marketing and the fact that employees are critical to marketing success.
• Marketing will only be as good as the people inside the organization.
• It also reflects the fact that marketers must view consumers as people to understand their lives more broadly, and not just as they
shop for and consume products and services.

• Processes
• Processes reflects all the creativity, discipline, and structure brought to marketing management.
• Marketers must avoid ad hoc planning and decision making and ensure that state-of-the-art marketing ideas and concepts play an
appropriate role in all they do.
• Only by instituting the right set of processes to guide activities and programs can a firm engage in mutually beneficial long-term
relationships.
• Another important set of processes guides the firm in imaginatively generating insights and breakthrough products, services, and
marketing activities.

57
Retail Marketing Mix
• Programs
• Programs reflects all the firm’s consumer-directed activities.
• It encompasses the old four Ps as well as a range of other marketing activities that might not fit as neatly into the old
view of marketing.
• Regardless of whether they are online or offline, traditional or nontraditional, these activities must be integrated such
that their whole is greater than the sum of their parts and they accomplish multiple objectives for the firm.

• Performance
• We define performance as in holistic marketing,to capture the range of possible outcome measures that have financial
and nonfinancial implications (profitability as well as brand and customer equity), and implications beyond the company
itself(social responsibility,legal,ethical,and community related).
• Finally, these new four Ps actually apply to all disciplines within the company, and by thinking this way,managers grow
more closely aligned with the rest of the company.

58
Various stages of marketing campaign
• Define the Goals
• The first step of a campaign is to outline a set of goals. Determine if this a campaign to reach new customers, increase brand loyalty and
repeat patronage, increase average ticket sale, or introduce something new for your business. Try to determine what you can do to move
your business forward and create specific goals based on what you find. The more specific you can be (as opposed to, for instance, setting
a goal to increase profit), the better you will be able to create messaging and measure the success of the campaign.
• Set a Budget
• Now that you know the goals of your campaign, you’re ready to determine a budget. If you are advertising a product or service, it will be
helpful to know the purchasing power of your audience so you can estimate a return for your marketing investment. This will help you
determine how much you can spend on the campaign while still making a profit.
• It is important to set a realistic budget that is both big enough to effectively communicate your message to your audience and small
enough to maintain your profit margins. You should also ensure that you are able to cover the cost of the campaign being planned.
• Determine the Target Audience
• The target audience for a campaign will depend on two questions: who uses your product or service already, and do you want to expand
your reach. If your goal is to increase brand loyalty and incentivize repeat customers, you will want to have an in-depth understanding of
who your current customer is. If you want to expand the reach of your business and target a new audience, it is still important to know
what type of person currently uses your business the most.
• You should know the average income of your customer and what their interests and needs are. If you can pinpoint why your current
customers choose your business, you can understand what needs your business fulfills for them and what the strengths of your business
are. This will help you find new customers with a similar need.

59
Various stages of marketing campaign
• Select Your Medias
• To decide which medias are best for this campaign, think about the medias your target audience uses most and
how the different medias align with the goals and budget of your campaign. Trying to increase online sales? PPC
ads and social media might work best. Want to increase foot traffic for a seasonal promotion? Think about using
television and newspaper.
• The best campaigns usually utilize a mix of different medias to target and re-target customers. With a huge
selection of print, digital, cable and in-person medias at your disposal, it might be worth trying a new media in
addition to trusted ones and seeing how it impacts your campaign.
• Develop Your Messaging
• Now you are ready to start brainstorming about the messaging of your campaign! You want the message to
resonate with your target audience, so you will want to create a message that speaks to their needs, interests and
experiences. Remember, messaging should be focused on the consumer and how your business will benefit them.
• Once you decide what you want to say, determine how you want to say it. Choose a few words or sentences (and
remember, less is more) that encapsulates your message and provides a clear call-to-action. This is also a good
time to choose or create images that highlight the messaging. Keep in mind that you have approximately three
seconds to capture your audience’s attention, so your message needs to be both interesting and succinct.

60
Various stages of marketing campaign
• Measure the Results
• Instead of waiting until the campaign is over, you want to try to monitor the results of your
different medias throughout the campaign. This might mean counting how many people used a
coupon from the newspaper or clicked on an online advertisement. If one aspect of your
campaign is thriving while another is not, consider making changes to improve the results.
• At the end of the campaign, study the results to determine whether you succeeded in meeting the
goals outlined in step one. If yes, how can you capitalize on that success and turn it into more
success? If not, what prevented you from reaching your goals and how can you do better next
time? Were there any unexpected outcomes that might help you improve your business and
future marketing?
• If Necessary: Compare with the Competition
• If your campaign did not have as much success as you hoped or expected, start looking at the
marketing strategies of your competitors. These are the companies who share your target
audience and offer similar and products and services.

61
ASSESSMENT PATTERN

• Understanding of the subject will be assessed through question and answer technique in the class
• 2 Mid semester tests will be conducted
• Students will appear for online quiz at the end of the semester
• Surprise test to be taken during the semester
• Regular assignments and case study discussion will be done to bring more clarity on the subject

62
APPLICATIONS
• Concept of Retail Management

• Concept and importance of retail layouts and retail design

• Importance and scope of retailing

• Understanding of various formats of retail management

63
References
• Retail Management by Suja R. Nair.
• The Shopping Revolution: How Successful Retailers Win Customers in an Era of Endless Disruption by Barbara E. Kah

64
THANK YOU