The Basics Of Retail Planning

1

1

© Bill Napier 2010 All Rights Reserved

Advertising, Marketing & PromotionMade Easy

The Basics Of Advertising, Marketing & Promotion

2

2


About The Presenter 30 Years in Consumer Product Marketing

Promotion Agency OwnerNumerous awards for best strategy, creative and

tactics. Engineered many package centered promotions including Patent #5,571,358

Partner – Napier Marketing Group, Inc.More information on LinkedIn

12 years in the Home Furnishing’s Industry CMO Ashley Furniture, LeatherTrend & Napier

Marketing Group.Winner Gold Reggie - Best Promotion in North

America from the Promotional Marketing Association while at Ashley Furniture – implemented the largest promotion ever in the HF Industry.

Published many articles in NHFA Retailer, HFB and more

Bill [email protected]

612-217-1297

Join My Discussion on

3

3


The Basics Of Retail The Basics Of Retail Planning For Advertising, Planning For Advertising, Marketing & PromotionMarketing & Promotion

General Information

&

Reference Materials

4

4


Table of ContentsI. The Planning ProcessII. Marketing Definitions & Terminology

Marketing Integrated Marketing Branding Advertising Promotion Public Relations

III. The Seven Steps to Developing an Integrated Retail Marketing Communications Campaign

Step I: Develop a Situation Analysis Step II: Identify Key Issues to Address Step III: Identify Objectives Marketing & Communications Needs Step IV: Identify Select Media to Use Step V: Develop the Creative Message Step VI: Develop the Media Plan Step VII: Develop the Promotional Plan

Promotion Role of Promotion The In-Store Experience Planning Elements

IV. The InternetI. 125 pages of relevant informationII. Complete Market ResearchIII. How To Build a great websiteIV. The key to social marketing

V. Appendix

5

5


To Identify The Core Competencies And

Associated Elements That Are Necessary In

Developing An Integrated

Sales/Consumer Retail Marketing Plan.

Objective

6

6


Why is it..

Why is it a man wakes up in the morning, after sleeping on his advertised bed, on his advertised mattress in his advertised pajamas. He will bathe in his advertised tub,

shave with his advertised razor and shaving cream, have breakfast with his advertised juice, cereal and toast….toasted in his advertised toaster, put on advertised branded clothes and quickly glance at his advertised watch. He will catch the news on his new advertised flat screen that he purchased at a heavily advertised store. He will ride to work in his advertised car, sit at his advertised desk and write with his advertised pen

or utilize his advertised computer.

Yet it’s ironic that when he’s approached to advertise his business, he says advertising doesn’t pay…..until his business fails and then he’ll gladly advertise the sale and liquidation of his business……why, so people will come and liquidate his assets.

Why is it

7

7


Planning The Process

It’s All About Velocity

I

8

8


Marketing Advertising

Public Relations Promotion

In-Store Experience CRM & Retention

PROACTIVE … NOT REACTIVE

Integrated Elements

9

9


LEARN

THINK

ACT

REFLECT

PROACTIVE … NOT REACTIVE

THE PROCESS

10

10


Information Gathering

Situation Analysis

Objectives

Planning Considerations

Approval Process

LEARN

11

11


Objective

Secondary

SupportingPoints

Values Benefits

Primary

CommunicationPlatform

Copy

PositioningStatement

THINK

12

12


THINK Strategy Session

Information Gathering

Strategy Session

Strategic Screening Process

Operations

Financial

Image

Integration

13

13


Tactics

Strategy Considerations

Short and Long Term Tactics

Legal

Creative

Implementation

Tactics

PrintTrade

PromotionPublic

Relations

Collateral

Ad Books/Trade

BroadcastTelevision

RadioCable

ElectronicWebsite

Events/SponsorshipMerchandising

ACT

14

14


Measurement Plan

Oncoming Research

Measurement of Objectives

Strategies Initiated

Evaluation

Re-Process

LEARN

THINK

ACT

REFLECT

REFLECT

15

15


IIMarketing

Definitions & Terminology

16

16


Marketing Is The Process Of Planning And Executing All Of The Elements

That Bring A Product To Market Including Packaging, Pricing,

Advertising, Promotion, Public Relations; In A Manner That Satisfies

The Perceived Needs, Wants And Objectives Of The Target Audience.

Marketing


17

17


Integrated Marketing

Today’s Consumer “Consume” Marketing (Brand) Messages From A Wide Variety Of

Channels (E.G. TV, Cable/Satellite TV, Radio, Newspaper, Outdoor, Internet,

Magazines, Direct Mail, Telemarketing, Special Events, Etc). It Is In The Best

Interest Of The Retail Community To Make Use Of Multiple Marketing

Communications Vehicles And It Is Equally As Important To Insure The Messages

Conveyed On The Various Channels Are Coordinated (Integrated) In Order For The Marketing Message To Be Communicated

Clearly And With Adequate Frequency.


18

18


Integrated Marketing

What’s Missing ???

19

19


BrandingThe Goal Of Getting Consumers To Recognize Your Store Name And It’s

Attributes In A Positive Way. For Example, ‘Fun Place To Shop,’ ‘Courteous Staff,’ And ‘Quality

Products.’ The Brand Image Can Be

Communicated Via Various Forms Of Marketing Communications Vehicles.


C.

20

20


To Communicate A Positive Message To The Consumer About Products And

Services

The Paid For Communication Of A Product Or Service That

Communicates The Desired Marketing Message Thereby Providing Reasons For And Motivating The Consumer To

Respond In The Desired Manner.

FUNCTION

Advertising


21

21


PromotionPromotion Is The Act Of Providing A

Specific Reason For A Targeted Consumer To Make An

Immediate/Short Term Decision By The Retailer:

Desired Action PromotionStore Visit: Come in and register to win

XXXBuy Now: Buy X and get Y freeProvide Name/Address: Sign up to win XMake a Return Visit: Get a coupon good on next

purchasePromotional Messages Can Be Communicated Via A

Variety Of Mediums.Definitions & Terminology

E.

22

22


The Non-Paid-for Communication Of Positive Information About The

Company Or Products. PR Messages Or Content Cannot Be Controlled, But At Best Managed. Honest, Proactive

Reputation Management.

FUNCTION

To Communicate Information At No Media Cost To The Company.

Public Relations


23

23


IIIThe 7 Steps to Developing An

Integrated Retail Marketing

Communication Campaign

24

24


Step 1 – Develop a Situation

Analysis

Share of Market Current Desired

Market Trends Population Income Movement

Lifestyle trends Aging Recreational habit

Competitive efforts Advertising strategy Store locations Product mix Pricing

Sales History/Trends Internal Data

Product Mix And Pricing

Identification Of Target Audience And Their Media Consumption Habits

Traffic Pattern/Location

Budget And Operation Limitations

Review All Data That May Impact The Marketing Of The Product Or Service.

Examples

25

25


The P’sProduct

Purpose

Positioning

Potential

Place

Price

Promotion

Performance

Profit

26

26


PEST Analysis

SWOT Analysis

27

27


PEST Analysis

Political Economic Social

Technology

28

28


Political Ecological/Environmental Issues Current Legislation Home Market Future Legislation European/International Legislation Regulatory Bodies And Processes Government Policies Government Term And Change Trading Policies Funding, Grants And Initiatives Home Market Lobbying/Pressure Groups International Pressure Groups Wars And Conflict

29

29


Economic Home Economy Situation Home Economy Trends Overseas Economies And Trends General Taxation Issues Taxation Specific To Product/Services Seasonality/Weather Issues Market And Trade Cycles Specific Industry Factors Market Routes And Distribution Trends Customer/End-user Drivers Interest And Exchange Rates International Trade/Monetary Issues

30

30


Social Lifestyle Trends Demographics Consumer Attitudes And Opinions Media Views Law Changes Affecting Social Factors Brand, Company, Technology Image Consumer Buying Patterns Fashion And Role Models Major Events And Influences Buying Access And Trends Ethnic/Religious Factors Advertising And Publicity Ethical Issues

31

31


Technological Competing Technology Development Research Funding Associated/Dependent Technologies Replacement Technology/Solutions Maturity Of Technology Manufacturing Maturity And Capacity Information And Communications Consumer Buying Mechanisms/Technology Technology Legislation Innovation Potential Technology Access, Licensing, Patents Intellectual Property Issues Global Communications

32

32


SWOT AnalysisStrengths,

Weaknesses, Opportunities

Threats

33

33


Strengths Advantages Of Proposition? Capabilities? Competitive Advantages? USP's - (Unique Selling Points)? Resources, Assets, People? Experience, Knowledge, Data? Financial Reserves, Likely Returns? Marketing - Reach, Distribution, Awareness? Innovative Aspects? Location And Geographical? Price, Value, Quality? Accreditations, Qualifications, Certifications? Processes, Systems, It, Communications? Cultural, Attitudinal, Behavioral? Management Cover, Succession?

34

34


Weaknesses Disadvantages Of Proposition? Gaps In Capabilities? Lack Of Competitive Strength? Reputation, Presence And Reach? Financials? Own Known Vulnerabilities? Timescales, Deadlines And Pressures? Cash flow, Start-up Cash-drain? Continuity, Supply Chain Robustness? Effects On Core Activities, Distraction? Reliability Of Data, Plan Predictability? Morale, Commitment, Leadership? Accreditations, Etc? Processes And Systems, Etc? Management Cover, Succession?

35

35


Opportunities Market Developments? Competitors' Vulnerabilities? Industry Or Lifestyle Trends? Technology Development And Innovation? Global Influences? New Markets, Vertical, Horizontal? Niche Target Markets? Geographical, Export, Import? New USP's? Tactics - Surprise, Major Contracts, Etc? Business And Product Development? Information And Research? Partnerships, Agencies, Distribution? Volumes, Production, Economies? Seasonal, Weather, Fashion Influences?

36

36


Threats Political Effects Legislative Effects Environmental Effects IT Developments Competitor Intentions - Various Market Demand New Technologies, Services, Ideas Vital Contracts And Partners Sustaining Internal Capabilities Obstacles Faced Insurmountable Weaknesses Loss Of Key Staff Sustainable Financial Backing Economy - Home, Abroad Seasonality, Weather Effects

37

37


54% of consumers are brand loyal once they find a brand that “satisfies me”

46% are “national” brand loyalists -

The Ultimate Consumer

51% are willing to pay more for products and services that “make life easier” for them and their families

53% buy “only what they need”

50+% spend a great deal of time researching brands before making a purchase

Brand Loyalty 7

The Brand Elements

38

38


Building The Brand

KEY ELEMENTS 7

PRICE AND VALUE Value Quality Desirable Product Improvements Product Innovations Appealing Image Effective Advertising

More Americans See a “Great Deal Of Difference” Between Well-known Brands of

Products

Consumers Perceive Quality Claims As Having Reached Parity

39

39


KEY ELEMENTS OF A POWER BRAND 6

Brands that work continuously and creatively to prove their

value to consumers are crossing over more quickly to Power Brand

Status than those that don’t

Consumers perceive these brands as being

“different or better and worth paying more

for.” ROPER STARCH WORLDWIDE

The Brand Elements

40

40


Consumers are looking for convenience WE AS CONSUMERS ARE… Turning away from Mega-Center Supermarkets and

shopping more at drug stores and convenience stores for purchases of food and beverage

Parents continue to seek out discount stores when buying school clothes and suppliesThey seek out specialty stores when they need more

information and knowledgeOver half of small businesses are home-based

today, up from 38% just two years ago Dun & Bradstreet

Home-based and women-owned companies are changing the face of small business today, with flexibility a key consideration for workers, either home - or office-based.

Planning InformationLifestyles

41

41


SOCIETY IS QUICKLY BECOMING TWO TIERED The HAVES The HAVE-NOTS

LifeStyles For LifeStages

MAJOR LIFESTYLE SHIFTS ARE AHEAD AS THE POPULATION AGES Market fragmentation

WE ARE IN THE AGE OF AUTONOMY - SELF RELIANCE

Consumers are “tuning in” when they need us. Consumers are doing their own research.

We will need to be “on call”, when the consumer decides they want us.


42

42


ENTERTAINMENT Average household spends $1,841

Books,TV, Movies, Theatre, ToysWe spend nearly 50% of food budget “eating out” in restaurants.Increasing demand for more prepared or “easy” to prepare foods.

CREDIT IS KING 50%+ of consumers pay for major durable expenses, travel and mail order with plastic.

Spending Habits

Baby Boomers, entering lower echelons of the “mature market” 65+, their spending from 1990-2008 has risen “significantly”.

Grandparents spend $30 billion/year and purchase 20% of all children’s products sold

We will sacrifice any number of things in the interest of “Saving Time”.”.

A Furniture “buying” decisions is now made in 1.2 visits per store (2011) from 2.6 visits per store (1996)


43

43


Women Influence over 82% of All Household “Buy” Decisions And Are….

Earning Over 50% of Bachelor/Masters Degrees Most Likely to be “Very Stressed” Single Mothers 9.8 Million + 36% From 1980’s Unmarried Co-habitating Mothers Who Eventually Marry -

44%. Down From 57% in 1990 Account for the Overwhelming Majority of Increases on Savings, Investing, Financial Decisions. A New Dimension of POWER. As a Group, More Suspicious of Advertising

70% Are More Willing to Purchase a Brand Based on Experience

20% Are Motivated by Advertising or Brand Popularity

Women Are More Likely Than Men to Try to Buy Things on Sale

MEN ARE... Single Fathers…2.9 Million From 1.7 Million From 1995 to 2010


44

44


KIDS ARE... Directly influencing more than 20% of ALL PURCHASE DECISIONS 40% To 80% In many categories 380 billion dollars in purchases Parents influence them more than anyone else

At 8 years old, many kids are required to take on adult responsibilities

Have high confidence in themselves and very high standards for their leaders

Growing Up Faster Than Ever Before

Kids under 12 have over $15 billion dollars of discretionary income and influence in excess of $765 billion dollars in purchases

Are Tuned In Are more visual in their learning and understanding - media savvy

Girls seek out more information than boys

Adult comedy shows on television dominate teen viewing habits

72% think commercials are annoying and interrupt their shows

•

•

• •

PLANNING INFORMATION LIFESTYLES

45

45


Ethnic Diversity 4 in 5 African Americans are more likely to patronize businesses with a long history of supporting their communities

Hispanic Americans are the most Brand Loyal. They “cling” to brands

80% of population clustered in 16 states

Population growth outpaces Anglo Americans 2 to 1 between 1995 - 2050

Anglo Americans will be minority

$500,000,000+ Purchasing Power

African Americans have a disproportionate representation in 11 of the top 12 markets for consumers.

90% of Hispanics live in 10 states

Large immigration factor Less educated Hispanic Population continues to get older and more prosperous

Planning InformationDemographics

46

46


Ethnic Marketing - The Market

General

AfricanAmerican

Hispanic

Other

General

AfricanAmerican

Hispanic

Other

General

AfricanAmerican

Hispanic

Other

20002000 20102010

20502050

80% of population clustered in 16 states

Population growth outpaces Anglo Americans 2 to 1 between 1995 -

2050

Anglo Americans will be minority

$500,000,000+ Purchasing Power

African Americans have a disproportionate representation in 11 of the top 12 markets for consumers.

90% of Hispanics live in 10 states

47

47


Situation AnalysisDemographics

Population continues to get older 51% of future retirees plan to live in the “same place” down 16 percentage points from 1974. 33% of future retirees will most likely move… up from 24% 18% are unsure, up from 9%

Housing Market driven by repeat buyers moving up to more

expensive homes Married buyers up 16.4% Widowed, divorced, separated buyers up13.6%

48

48


FEMALES Population, all ages 141,080

MALES Population, all ages 134,979

49

49


50

50


51

51


Step 1 Develop a Situation Analysis

(cont’d)

Brand Platform Who We Are Why Consumers Should

Shop With Us What Is Our Competitive

Advantage Media Options Beneficial Relationships

Trend Setters Celebrities “Experts”

Etc.

Review All Data That May Impact The Marketing Of The Product Or Services.

Examples

52

52


Step 2 Identify Key Issues to

Address

Location Price Hours Of Operation Product Mix/

Quality/Availability Reputation/History Added Value

(Promotion)

Personality Of Ownership/Management

Parking Proximity To Other

Primary Shopping Areas Ambiance Guarantee/Warranty

Based On The Situation Analysis Identify The Issues That Can Be Addressed Via Marketing Communication Elements In Rank Order Of Importance To The Target

Consumer:Example

s

53

53


Step 3 Identify the Objectives

Marketing Communications Needs to Achieve

Need increased store traffic Overall Days Time periods

Need increased sales of specific products Need increased marketplace awareness of the “brand” Need to increase awareness of special offers – promotions Need to promote grand opening Etc.

Based On The Situation Analysis Identify Primary Marketing Needs That Can Be

Addressed Via Marketing Communications Elements.Example

s

54

54


Step 4 Identify/Select Media to Use in Communicating the Marketing

MessageTelevision Cable BroadcastRadioNewspaper Daily Metro Daily Suburban Weekly Run Of Press Inserts Special Sections

Outdoor Billboard TransitMagazinesDirect Response Television Direct Mail (Solo, Co-op) Telemarketing

Inbound Outbound

Public RelationsPoint of Sale

55

55


Objectives

Secondary

SupportingPoints

Values Benefits

Primary

CommunicationPlatform

Copy

PositioningStatement

Step 5 Develop the Creative Message

56

56


Step 6 Develop The Appropriate Media Plan

Select the most appropriate media to use is part art – part science. The number of variables are staggering and almost every media can make a good case to be considered.

The following section will provide you with the basis when it comes to selecting media.

In selecting media, the most important fact is to have a good handle on the demographics of the target audience since most media is either targeted at a specific demographic segment or it is measured based on its ability to reach specific demographic audiences.

57

57


DEMOGRAPHICS

Demographics are attributes—like age, income, and family composition—that help to define individuals and groups. When demographic data is collected and analyzed, shopper profiles can be used to predict how different types of people will spend money.

For example, 60-year-old “empty nesters” and 30-year-old couples with small children have different buying habits. Advertising is most effective when messages are directed to the most likely buyers. This can be accomplished by adjusting the creative message and/or the media in which the message appears.

III. Advertising A. Targeting

58

58


Psychographics

III. Advertising A. Targeting

Psychographics groups people according to psychological features. With information like values, attitudes, personality, and lifestyles, marketers can classify people according to what they feel, believe, and the way they live. This information helps indicate what products, services and media they use.

The VALS (Values and Lifestyles) System assigns consumers to eight (sometimes overlapping) groups exhibiting distinctive behavior, decision-making, and product or media usage. Groups range from abundant resources to minimal resources, as well as principle oriented, status oriented or action oriented.

59

59


Two Variables — Reach And Frequency — will Determine The Overall

Success Of Your Media Strategy. Be CONSISTANT

1. REACH is the number of people who see or hear your advertising. (e.g. a 50 reach means 50% of the desired target will be exposed to one or more message).

2. FREQUENCY is the number of times your message is received.

The importance of the first variable is obvious—the more people you REACH with an advertising message, the more people you see walking through the store. Unfortunately, a single advertising impression is not likely to generate sufficient awareness. People need a certain amount of repetition and reinforcement before name recognition is fully achieved, and that’s why you need FREQUENCY.

III. Advertising A. Measuring

60

60


3. RATING is the % of a given population group consuming a medium at a particular time. Generally used for broadcast media.

Ex: A TV program with a 10 rating with adults 18-49, means 10% of the adult population between the ages of 18-49 viewed an average minute of programming.

4. GROSS RATING POINT (GRP) is the sum of all ratings delivered by a given list of media vehicles.

Ex: Rating of 10 x 3 announcements = 30 GRP

III. AdvertisingB. Measurement (cont’d) 3

61

61


III. AdvertisingB. Measurement (cont’d)

5. Cost per Thousand (CPM): universal means of measuring cost-efficiency

Medium cost divided by medium audience

delivery=CPM

Ex: Ad costs $350, reaches 12,000 women 18-49:

CPM= $29.17 (350/12000)

6. Cost per rating point (CPP): cost to reach one percent of homes or individuals in specified area

Medium cost divided by GRP= CPP

Ex: Ad costs $350, GRP is 30: CPP= $11.67

62

62


TV Is The Most Powerful Of All Marketing Communication Mediums Given Its Ability

To Deliver Both Visual And Audio Messages. In Addition, TV Has The Ability To Reach The Greatest Number Of People At Lower Cost With The Exception Of The Internet

TV Can Be Bought Two Ways – Either Broadcast (Traditional Over-the-air Local TV

Stations) Or Cable.

III. MediaTelevision

63

63


Buy advertising in programming that reaches your target audience.

In small markets, prime time and highly rated shows may be affordable.

If specific programming is too expensive (e.g. you cannot get the frequency desired) then consider buying “Day Parts”.

III. MediaA. Television - – Over-the-Air

Broadcast

64

64


Day Parts: - Morning News: 5A-9A - Early News: 5P-7P

- Morning: 9A-Noon - Access: 7P-8P

- Daytime: Noon-3P - Prime: 8P-11P

- Early Fringe: 3P-5P - Late News: 11P-11:30P

- Late Friday: 11:30P-1A

Some stations will offer better rates to a new advertiser.

III. MediaTelevision - Broadcast

65

65


All Things Are Negotiable: Bonus spots in other programming/day parts

Rate

Level of pre-emtability

Participation in promotions

Product exposure on “soft” news shows

Merchandise for traffic building promotions

Listing in stations TV ads: “ABC” Show brought to you by XYZ

Term of commitment

III. MediaA. Television - Broadcast 3

66

66


At certain investment levels the local TV station can justify producing spots as part of the buy (some cable systems also have studios and can offer the same advantages).

Commercial length is an important factor to consider; :30 second units are the most effective in delivering a brand and “buy now” message. :10’s can be effective as part of a TV campaign that utilizes :30’s since the :10 becomes a “reminder” message.

III. MediaA. Television - Broadcast

67

67


Cable offers excellent geographic targeting – in larger markets because of the “zones” they offer. In smaller markets with fewer “zones” the benefits of cable is absolute cost (low).

Cable TV presents an excellent opportunity, especially in larger markets with many cable zones for the retailer with smaller budgets.

Cable networks are primarily focused on offering one type of programming so they can reach people with a high degree of interest in their programs:

ESPN – Sports

HGTV, Food Channel & More

III. MediaB. Television - Cable 3

68

68


Cable networks are sold by the sales-reps from the local system.

Cable systems will sell a “rotator” or a spot they schedule. These are usually very low cost/unit, but should never make up more than 10-15% of a cable buy because of the uncertainty of when the “rotator” spot will air….Late – late night filler spots, etc.


69

69


Like broadcast, cable can also offer added value elements:

Extra spots

Billboards

Cable can also offer retailers a chance to be involved in the systems promotions to attract or upgrade customers. This is an excellent opportunity to gain exposure in the cable systems advertising and promotion materials.

III. MediaTelevision - Cable

70

70


Understand cable ratings are not the same as regular TV ratings. They are based on the % of homes in a market that have cable TV. For example:

A 3 rating in a market with 200,000 overall TV HH’s is 6,000 HH’s (HH=House Holds)

A 3 cable rating in a market with 200,000 HH’s of which 100,000 have cable equates to 3,000 HH.


71

71


Advertising on Television - FAQ’s

As a Dealer We Now Have a Choice of Over-the-air or Cable Television. What Are the Differences?

Both Are Mediums That Can Provide Tremendous Marketing Muscle. Over-the-air Television Covers a

Very Wide Market Area With Broad Based Programming While Cable Television Is Designed to

Cover Smaller Market Areas With More Targeted Programming Material.

Is Television Advertising Affordable?

Television Advertising, Both Cable and Over-the-air, in Most Markets Costs Less Than Many of the Other

Major Mediums Like Newspaper and Radio. However, the Coverage Area Is So Much Larger That the Individual Commercial Costs May Seem Larger.

Broken Down Into a Cost-per-thousand (What It Would Cost to Reach 1000 Customers) Television Is Generally One of the Most Cost Effective Mediums

Available.

72

72


How Big a Budget Do I Need to Use Television?

More Than Budget, the Primary Consideration Should Be Length of Your Television Advertising Campaign.

For Events Like a Holiday Sale, Weekend Sale, Etc., You Need to Concentrate As Much As Possible Into a Few Days, and Make Sure the Audience Sees Your Message the Proper Amount of Times. A

Good Guide Is to Reach the Audience With Your Message a Minimum of 3-5 Times. On an Extended Campaign, Like a Summer Sale, Where Your Message Will Be on Television for Multiple Weeks in a Row, You Can Stretch a Bit More an Have the Cumulative Effect

Help Reach This 3 Time Benchmark.

When You Add the Number of Times You Have Reached Your Audience, With the Overall Number of People Your Message

Reached, You Get What Media Professionals Call Total Rating Points or TRP’s In Any Campaign You Should Expect to Run No Less

Than 50 TRP’s a Week, With the More Concentrated Event Campaigns Requiring a Minimum Investment of 100 TRP’s.

How Do I Know What a Rating Point Costs in My Market?

Cable companies have a Cost Per Rating Point Breakdown for Every Market in the United States. Your Regional Rep Can Share These

Estimated Costs With You So You Can Determine If Your Budget Can Support the Power of Television Advertising.


73

73


I’ve Never Used Television Before. How Do I Choose Between Cable and Over-the-air? Used Properly, a Mix of Both Works Best. As a Rule of

Thumb, If You’re Looking to Concentrate You Efforts on a Tight Radius Around Your Location, Then Cable Will Be Your

Choice. If You Are Looking to Send Your Message to the Largest Geographic Footprint Available, Then Over-the-air

Is Your Choice. Again, the Combination of Both Works Best, and for Most B, C, and D Sized Markets Is Realistic.

In A Markets (New York, Chicago, Philadelphia, Atlanta As Examples) You Will Need to Consider Number of Locations

and Trade Radius, Along With Cost Per Points of the Market. These Are the Most Expensive Media Markets, and You Should Consider Proposals From Both Before Making

Any Decision.

How Do I Get Information for My Market?Local representatives in your market for the various media

outlets


74

74


Cable Pre-Buy Analysis Dealer Demographic Data Dealer Trade Area Mapped Dealer Budget Analyses Dealer Customized Proposal

From Local cable Affiliate


75

75


III. MediaTelevision: Buying

What To Do When Buying Television Time

Ask which programs are available? At what cost?

Analyze efficiency of available programs

Negotiate on price of advertising

Figure the reach and frequency of considered programs

Read and sign the necessary contracts

Track performance

76

76


III. MediaTelevision: Buying 7

Be Prepared

• Demographics/Target

• Geographics

• Reach & Frequency Goal

• Getting the Proper Information

• Comparing Costs

• Buying enough to be EFFECTIVE

77

77


Demographics

- Define who your Target Customer is:

• How old are they?

• Are they male or female?

• What is their income?

• Are they homeowners? Do they have children?


Be Prepared

78

78



Be PreparedGeographics

Define where your Target Customer lives:

• DMA

• Metro

• County

• Specific Zip Code

79

79



Be PreparedReach & Frequency

1. Define how many of your Target Customers you want to reach

2. Define how many times you want to reach them.

3. Average delivery is a 60% Reach with a 3 Frequency equaling 180 GRP’s

80

80



Be Prepared

Customer Profile

Women 25-49

Owns their home

50k+ Household Income

2 or more children living at home

Harrisburg Metro Area

Reach 60% with a 3 Frequency

81

81



Be PreparedNumbers Don’t Lie - Getting The Proper

Information

Request ratings and rankers from your media representative

Ask for information based on your customer profile

Get specific rates by specific dayparts (ex: M-F 6a-7p)

Build your own schedules or ask a media rep to build the schedules the way you want them

Keep the information consistant and you will be able to compare costs

82

82



Be Prepared

Rules of Thumb Buy Enough to be Effective A media schedule with a 60% Reach and a Frequency of 3 or more

will be EFFECTIVE

When using more than one medium you will most likely achieve sufficient Reach.

A Frequency of 3 is the minimum barrier to recall - A 5-7 Frequency is preferred

Base your media schedules on Reach andFrequency Goals, not GRP Goals.

100 GRP’s can deliver:30% Reach with a 3.3 Frequency

Or50% Reach with a 2 Frequency

83

83


Get Something for Nothing!

Bonus Spots

News/Weather/Traffic Sponsorships

Web Links

On air Give-a-ways

Trade

Promotional tie-ins


Be Prepared

84

84


TV is a “shotgun” medium—it hits large numbers. 81% of the U.S. population 18+ listen to radio daily. Radio is a “rifle” medium —it hits smaller numbers of listeners with more specific demographic profiles. Though radio suffers from the same limitations as cable TV—too many channels—there are other downsides.

First, radio is not a visual medium—the customer cannot see your product.

Second—radio spots may actually cost more than TV spots—and evening audiences are very low. Many stations program for young age groups. Look for formats that target older households with average or higher disposable income.

Some Retailers have gotten good results with live in-store broadcasts tied to special events. Since federal deregulation of station ownership, radio conglomerates have appeared. In some markets, multi-station packages offer broader demographic reach

III. MediaRadio

85

85


III. MediaRadio

Radio stations “Demographics Breaks” provide you with a guide on who the station has for an

audience.

Men or Women12-1718-2425-3435-4445-5455-64

65 and older

86

86


III. MediaRadio

Try to buy as narrow a target as possible and do not look at very broad categories (e.g. adults 18+).

Ratings are published each quarter – the key piece of information is how a station ranks against all other in the market reaching your target audience (i.e. the cumulative number of listeners in your target group).

Because of the relative inexactitude of radio, ratings always try to evaluate stations based on an average of at least two rating periods.

87

87


III. MediaRadio

Since you will use radio to build message frequency, the TSP (Time Spent Listening) is as important to look at as is average quarter hour (AQH) ratings.

Stations also sell “day parts” (e.g. Morning drive 6A-10A) but the best schedule includes spots in almost all day parts. So identify specific day parts and also ask for a few “rotators.”

Radio requires frequency to be effective (minimum of 4 x’s).

The first quarter is the best time to get deals on radio rate.

88

88


III. MediaC. Radio 3

Radio stations are very promotion driven and almost all of them are experts at staging events. When buying a station, ask to be part of their events or share in the visibility at they have at someone else’s event. Some stations will even use your retail location as a site for one of their events.

Stations get a computer generated report – the ranker – which shows the demographic audience for each station in the market. These are based on CUME; ratings, AQH, Average Quarter-Hour Persons…the number of persons listening to a particular station for at least five minutes during a 15-minute period. share, etc. and by listeners purchase habits. Use this data to help find your customers/prospects.

89

89



Radio Stations Added Benefits That Can Be Negotiated:

Free spot production (even writing!)Free spotsBetter positions in day partsBetter positions in a commercialTickets to local eventsRemote at your locationMerchandise to use as traffic builders for

your promotionsID on their web site and hot linkBillboards

90

90



Preparing A Radio Schedule

Find stations with the greatest concentration of your target audience

Determine which stations have a format which offers the highest concentration of potential buyers

Find which part of the day would offer most potential buyers

Design your scheduling with a strong mix of day-parts

Determine the reach and frequency Figure cost per 1,000 of target

persons reached Negotiate a price, buy the time

91

91


Most consumers who buy furniture also read newspapers, but display ads can be expensive. Pre-printed inserts—also known as “circulars” or “Sunday supplements”—may be more cost effective. Ask your newspaper rep about geographic “breakouts”—portions of the home-delivery circulation that can be selected by postal zip code. High-income neighborhoods buy more new furniture.

Newsprint periodicals — those with nothing but advertising—cater to people who buy things. That may be good, but the demographic profile is low—most readers are looking for second-hand items.

BUT….Who reads newspapers anymore ???

III. MediaNewspaper/Shoppers

92

92


Sample Ads

Design Questions

Which Products?

How Large?

Color or B&W?

Offers & Descriptions

Proofs

III. MediaNewspaper - Circulars/Shoppers Checklist

File Transfer

Tips on Buying Print Ads

Compare Actual Sizes

Contracts and Insertion Orders

Placement

Small Ads are OK

Sample Ad Sizing

93

93


Fixed Cost

Quantity Prices

Shipping Cost

Grand Opening Format

Special Runs

IV. MediaNewspaper - Circular/Shoppers -Checklist

Circular Size

In-Home Date

Print Date

Order Cut-Off Date

Comp Date

Imprint Space

94

94



Terms:• Standard-size newspaper: 22” deep, 13” wide, six columns• Tabloid-size newspaper: 14” deep, 11” wide• Standard Advertising Unit (SAU), or column inch:

1” deep, 2 1/16” wide

• Run of Press (ROP) ads: an on-page newspaper ad

• Circulars/ Free Standing Inserts (FSI): pre-printed ads inserted into a newspaper

Size and readership:

24% of readers notice a fractional page ad40% of readers notice a one page ad

55% of readers notice two page spreads

95

95


96

96


How To Read A Demographic Profile

97

97


Delivery Options for Circulars

Newspaper

Shared Mail


98

98



Shared Mail (Red Plum)

Largest Private Customer of the US Post Office

Distribute to ~65 million households weekly

Distribute to another ~35 million households monthly via their ANNE network

Have established distribution agreements w/newspapers in select markets.

99

99


17 Items To Consider In Your Print Advertising

1. Prominently show your 800 number and stress the call is toll free.

2. Put a phone bug next to the toll-free number. It will boost calls.

3. Use a street return address. It’s more reassuring than a P.O. Box.

4. Consider a free catalog/sample offer. Use a picture of the “freebie.”

5. If you have space, include testimonials from satisfied customers.

6. State your guarantee. This is essential.

7. Use a coupon with clip marks. Ovation has tested this extensively and the coupon pulls best.

8. Mention quick delivery in your ad.

8. If express delivery is available, mention that too.

9. Provide some history of the company—boosts your credibility.

10. Use a benefit headline.11. Follow your headline with as

many features as possible.12. Bigger is better. Start with

smaller ads, and then “test up.”

13. Code your ad for tracking purposes.

14. Use 9 pt. type (at least) for readability.

15. Use logos and pictures when possible.

16. State your credit terms.17. Be sure to ask for the order

100

100


A billboard on a heavily traveled route could be a good investment, but keep the message simple. The average billboard can be seen for no more than seven seconds, so four words and one visual image is all you can count on getting across. If you can find billboard placements close to your store, messages like “turn at the next corner” are good traffic builders.

III. MediaBillboards

101

101


III. MediaBillboards

Three Standard Sizes: 8-sheet Junior Poster: 11’ x 5’

Visibility: 30%

Readership: 29%

Re-examination: 1.3

30-sheet Poster: 21’7” x 9’7”

Visibility: 37%

Readership: 29%

Re-examination: 1.5

Bulletin: 48’ x 14’

102

102


Shoppers no longer rely heavily on listing in their telephone directories. They may have seen or heard your ads, but where exactly is your store located, and when is it open? The Internet is where you NEED TO BE

Yellow pages used to be referred to at that critical moment when shoppers are finally ready to get in the car and shop for what they want. So don’t skimp on the listing your store on all the internet Yellow Page sites. A huge display is not necessary, but your ad should stand up well against others in the category.

Yellow Pages are losing ground each year to on-line yellow pages and the GOGGLE Search

Don’t waste your money

III. MediaYellow Pages

103

103


Magazines that cater to local urban dwellers can be effective, and

readership demographics are excellent. Most cities have “relocation”

magazines that target newcomers. Use these publications to highlight your newest designs and most expensive items. Beware of hotel-distributed

“entertainment guides”—the readers are just passing through.

III. Media G. Local Magazines/Print

104

104


Direct-mail companies can offer you a variety of customized

lists, but postage and printing costs are relatively high.

Former customers are your best future customers, so use your own lists first. Mail is good for clearance sales and seasonal

promotions.

Women LOVE Direct mail !!!!

III. MediaH. Direct Mail

105

105


Direct Mail

Mailing Lists

Labels

Print Formats

Self Mailers

Printing

Postage

Local Production

III. Media Direct Mail

106

106


For the purpose of bringing people into retail stores, telemarketing has limited value, if any with the Do Not Call Lists. Like direct mail, phone solicitation works best when the prospects you target are prior customers, especially if you know something about their buying habits. Begin by building a database of customers and credit applicants. With each entry, list the types of products the customer already has. If customers purchased single items, you may be able to interest them in matching pieces or related groups. That strategy is known as “cross marketing.”

III. MediaI. Telemarketing

107

107


III. PROMOTION

Promotion can reinforces the positioning enhances image but cannot lead the establishment of a position or image

Promotion can be an important tool in building customer retention and purchase provides continuity

Promotion is often the center piece of an integrated effort

Promotion helps establish a positive point of difference with competition

Promotion can add value to offset competition

Promotion can help obtain trail of new products

Promotion can stimulate a sales force

Promotion can stimulate a customer to take direct action

Role

108

108


III. Promotion

Most marketing communications efforts of retailers is promotional in nature since

the communication more often than not includes some “additional enticement” to attract traffic/build sales other than just listing products and price.

There are a wide variety of promotional concepts that can be used to drive traffic/encourage purchase at retail.

Selling add-on items can be the difference between a store succeeding or barely

getting by.

Role

109

109


III. Promotion The most effective promotional activities to

drive retail traffic are:Free giftsOn-site entertainmentInstant win games (everyone wins)

The most effective promotional tool to build a database is a sweepstakes

The most effective promotional tool to encourage purchase are;

- Sales - Extended warranty

- Gift w/purchase - Payment options- Purchase w/purchase - Free delivery

or service

The most effective way to enhance brand image is via sponsorships or charitable tie-ins

Tools

110

110


III. Promotion

Special Events at stores:

Select a topic that fits with your products and bring in experts in the field to attract attention (e.g.)

Furniture – decorators, free adviceKitchen table – chefs, cooking lessonsSporting goods – coaches, free clinicsFamilies- child-centered activities

Can easily be tied in with a prize drawing or contest as well

Special Events

111

111


Store Display - 71%

Radio Advertising - 29%

Internet - 26%

Store Circulars - 58%

Magazine - Newspaper - 74%

Word of

Mouth -59%

TV -51%

Product Packaging - 68%

Direct Mail - 66%

What Form of “Advertising” is Used to Communicate Promotions to Consumers? 1

Newspaper

Insert - 71%

III. Promotion

112

112


Free Stuff - 30.%

Charity - 19.0%

Coupons - 71.4%

Points Program - 17.2%

Gift W/Purchase 12%

Buy One/Get One - 64.7%

Rebates - 29.3%

Sweepstakes - 14.4%

Most Popular Promotions 1

III. Promotion

113

113


IIIThe In-Store Experience

114

114


Planograms Adjacencies Space allocations Promotional Programs Special fixturing Merchandise quantities Required productivity, i.e. stock turns

III. The In-Store Experience

Planning Elements

115

115



Floor plan, traffic flow, space allocation, adjacencies

Fixturing placement Store Design Interior furnishings,

components and layout Decor Colors Lighting Flooring treatments Wall treatments Ceiling treatments

Fixture selection Display techniques Graphics & Signage -

Incorporate marketing concept

Exterior - Logo / Identity Interior Informational

Graphics & Signage - i.e. departmental

Interior Promotional Display Graphics &

Signage

Planning Elements

116

116



The Experience of Shopping 8

A store has three distinct aspects: Design, or premises Merchandising, or product Operations, or what employees do

Buying is based on trial and touch today more than ever

Operations, or what employees do A store can offer shoppers:

Touch, trial, sensory stimuli Immediate gratification Social interaction

* Source: Why we Buy: the Science of Shopping, Paco Underhill,

117

117


III. The In-Store ExperienceEntering the Store

Windows Small-scaled signs or merchandise cannot be seen while rushing in from a parking lot Message must be big, bold, short, simple

Store Entry Customers need a transition zone of about 10 feet Americans automatically move toward the right

Store Viewing

Merchandise should be displayed to greet shoppers face on, not sideways

118

118



Women

Women influence 80+% of purchasing decisions Take pride in providing good value to their family through their shopping skills Shopping is a process of searching, examining, questioning, acquiring, absorbing Shopping can be a transforming experience method of becoming a newer, perhaps slightly improved person. Products turn you into the other, idealized version of yourself Women are more likely than men to ask another person for product information or store directions

119

119



Men

A woman’s comfort level plunges with an anxious or bored man by her side

If he can be occupied, she’ll spend more time & money Be careful of where you place relaxation areas: Practicality, aesthetics, intimidation of other shoppers

Men more likely to consult product packaging, signs, and brochures for product information or store directions Male shoppers require more and more child considerations

120

120



Children

Children are an economic force: now and in the future If a store is unwelcoming to children, parents will stay away

Leave width for baby strollers and passerby if you don’t want to shut out 50% of all women and men age 20-30

Children are enthusiastic consumers if needs are considered

Place items within eye level and reach of a child walking or riding in a cart Place items in an aisle where parents likely to be

If Mom won’t buy it, Dad will

121

121


The Internet

III

122

122


Old Dog New Tricks

MeMeMe

Again

123

123


If a retailer does not recognize the changing

dynamics of the consumer; how they will shop and

connect with brands in the future, they will not just be

punished; they will be punished with impunity.

2005

124

124


125

125


The ability to learn faster than your

competitor may be the only sustainable

competitive advantage

126

126


In The 60’s It Was All About

PLASTICS

127

127


Today & Beyond It’s All About

Being Connected

128

128


129

129


June 24, 2010

129

200046% Of Adults Use Internet

5% With Broadband At Home

50% Own A Cell Phone

0% Connect Wirelessly

10% Use “Cloud”

0% = Tech Social Networkers

THEN: Slow, Stationary Connections Built Around My

Computer

The Internet Is The Change Agent Then And Now

201079% Of Adults Use Internet

64% Have Broadband At Home

82% Own A Cell Phone

59% Connect Wirelessly

66% Use The “Cloud”

48% = Tech Social Networkers

NOW: Faster, Mobile Connections Built Around Outside Servers And

Storage

130

130


To Reach 50,000,000 Users…It Took:

Telephone - 38 years Television - 13 years Internet - 4 years iPod - 3 years Facebook - 2 years

131

131


How We Are Connected

The number of internet devices in 1984 was 1,000

The number of internet devices in 1992 was 1,000,000

The number of internet devices in 2008 was 1,000,000,000

The number of internet devices in 2015 will be 15,000,000,000

132

132


133

133


134

134


135

135


TodayThe Internet Has Changed

Everything

In a recent survey, 72+% Of women surveyed said they were

doing online research before buying shampoo.

The Breck Girl is being replaced by a “shopping bot”.

136

136


Traditional Ways to Get “DEALS”

137

137


The New Way

Click & Print - FREE

138

138


How We Market 12 Items Of Home Furnishings In 30

Seconds AND….The Consumer is Supposed to

Retain This Message ???

ORHow We Can WIN The Race To The

Bottom With 99% Off Retail

Let’s Get Visual

139

139


Average Time Consumers Spend “PER DAY” With Major Media

Source: e-Marketer December 2011

“US adults now spend more time on mobile

devices each day than they do with print

media.”

140

140


141

141


142

142


143

143


For First Time In History, TV Ownership Declines

A.C. Nielsen

November 2011

144

144


Video – Sharing Site Usage Over Time

2006-2011

Are You Streaming Video on Your Website?

145

145


Visits To Online Video-Sharing Sites By Regions

A Great Way To show off your store, share your brand platform and more….without trying to cram it into a 30

second spot

146

146


MeanwhileMore Than 1,000,000,000,000

(One Trillion) Playbacks On YouTube

This Year (Yep, Count ‘Em, 12 Zeroes).

That’s About 140 Views For Every Person On The Earth. More Than Twice As Many Stars As In The Milky Way.

147

147


78% Of The U.S. Is Connected To The Internet

272,100,000 Individuals

148

148


1 In 2 Smart Phone Users Have Searched On Their Phones For Nearby Stores

149

149


150

150


151

151


How Are You Marketing Your Store And To Whom ?

Integrated Marketing?

%

152

152


Everything Has Changed

BUT….

The Most Profound Change Relates To The Demographic

Shift in the Past 7 Years

153

153


Older BOOMERS

58 – 63 Years of Age

PAST - Primary Target Market for Home Furnishings

Total BOOMER Population 76,985,270

154

154


Young BOOMERS




155

155


Middle BOOMERS




156

156


Gen “X”


NEW Primary Target Market for Home

Furnishings

Total “X” Population 49,660,301

157

157


15– 32 Years of Age

NEW Upcoming & Secondary Target Market for Home

Furnishings

Total GEN “Y” Population 76,370,030

158

158


Total Gen “X” + Gen “Y” Population

126,030,331

Are You Prepared For This Consumer?

159

159


The Vast Majority Of Gen X Is Already Online (88%) And,

By 2015, That Figure Will Have Topped 90%.

In Fact, The Report Found That Gen X's Digital Media Consumption Is Strikingly Similar To That

Of Gen “Y” - Millennials. They Use Social Networks, Watch Video On Their

Computers And Mobile Devices, And Enjoy Shopping Online. They Methodically Research And Evaluate

Products Prior To Purchase And Place Great Value On The Opinions Of Their Friends And Family.

E-Marketer

December 2011

160

160


Little Dog

Big DogWhen It Comes To Your Business Model, Who Would You Rather Be?

161

161


162

162


163

163


164

164


165

165


Everyone is doing it…..Is Your Store or Brand There to Participate IF They want To Find

You?

166

166


167

167


168

168


169

169


3 Fundamentals Of a Great Internet Marketing

Strategy Attract - Getting found Engage – engaging them with lots of

content and information so they can make an “informed” decision

Connect – consumers with your sales people/store with sales, marketing

and communication tools

170

170


Internet MarketingThe Basics….

Get Found

There are 3 fundamental waysConsumers

search for Home Furnishings

General Searches

Category Searches

Branded Searches42% Of Organic Searches In The Last Year Are 4+ Words

171

171


SearchAttracting Consumers

General SearchesGeneral searches are the most common search phrases among non dealer-specific furniture searches. These phrases use terms such as "furniture" or "furniture store" combined with a geographic term such as "Minneapolis" or "Twin Cities."

Category searches

Category searches are the next most common type of furniture search. Category or "room" searches are comprised of furniture specific keywords such as "bedroom furniture" or "reclining sofa" combined with geographic terms.

Branded searches Manufacturer branded searches are made up of a manufacturer's brand name, collection name or specific item/SKU name combined with a geographic term.

You MUST Have Content That Addresses All 3 To Be Successful !!!

172

172


Over the past few years, Google has attracted 65-

70% of all internet searches.

97% of American internet users use the internet to shop of which 57% characterize their behavior as shop online, purchase offline (NPD Group)

90% of online commercial searches result in offline purchases (comScore)

82% of local searchers follow up offline via an in-store visit, phone call or purchase (TMP/comScore)

74% of Internet users perform local searches (Kelsey Group) 61% of local searches result in purchases (TMP/comScore) 54% of Internet users would rather use the Internet and

local search then phone books (comScore) 35% of all searches are local (DM News)

March 11, 2011

Around three quarters of all internet users perform local searches while an astonishing 82% of these searches result in an offline phone call, in-store visit or

purchase.

173

173


Once They Find You…Now What?

Engage Them

174

174


175

175


Lance Hanish • Taking it a step further, part of the success of the mobile sales is due to the interactivity QR Codes bring.

57% of consumers who have scanned a QR code say they shared the information with someone and 18% who made a purchase, according to a survey released in January 2012 by Chadwick Martin Bailey (CMB).

Those who have scanned a QR code, 41% said that they found the information they received useful.

70% of these consumers found QR codes easy to scan, compared to just 7% who found them difficult.

Overall, just 21% of the survey respondents said they had heard of QR codes, although 81% recalled seeing one when presented with an image. According to an October 2011 survey from strategic marketing firm Russell Herder, 72% of consumers said they had seen a QR code, but nearly 30% did not know what it was.

Home furnishings has to get on top of this issue in order to create new sales.

176

176


177

177


Once They Find What They Want……

Contact us form

Contact us form on every page

Call the store

Call the store on every page

Sign up for email

Sign up for email on every page

Visit the store

Turn by turn directions to your store

3.) Connect With Them Offering The Consumer a “Variety” of Tools For Communication, Your Promotions, Specials and More….

Add to wish-list - Add to favorites

Request information with product info

Print this page

Forward to friend

Send to social media

View current ad page

Current ad-promotion on every page

Apply for financing

Product tagging for clearance, special, hot buy

178

178


Now What?

Choosing a Home Furnishing Web Site Development Team

&

How To Create a RFP

© FurnitureDealer.net 2012 All Rights Reserved

Excerpts From Andy Bernstein’s Furniture Today Conference 2011

179

179


What’s In This Presentation….

FOR YOUYou think you've clearly explained the type of Web site you want

for your company, yet the quotes you get back from Web developers range from a few thousand dollars to tens of

thousands of dollars. How could the price be so different? What other criteria are

critical when selecting a Web development firm to work for your company?

What questions must you ask to be sure your Web project is delivered on time, in budget and works the way you intended? In this document, you'll get the straight answers and tools you need to feel confident when selecting a vendor for your next

Web-based project.

180

180


Every Retailer NEEDS a Successful Website - BUT It’s

Not Easy or InexpensiveMore than 3 out of 4 furniture purchases are

influenced by online research81% of home furnishings shoppers cite the internet as

their #1 source of informationAn online shopper can visit 10 websites in 15 minutes

and consumers have NO patience for bad websites.Very few furniture companies have implemented

successful internet strategies. Approximately 92.3% of local brick and mortar

furniture retailers have poor websites that disappoint consumers.

Making a good internet strategy and website decision is very difficult to do.

BUT…..

181

181


Why Have So Many Retailers Failed With Their Website?

Good websites are expensive – they require a lot of time, money and skill.

But, money alone cannot buy a good website.

Most home furnishings executives (people above the age of 35) simply are not expert about the internet. They do not understand it well.

It's tough to tell the difference between great, average and bad website providers yet, this decision will have a major impact on your company’s business.

To make matters worse, it is very easy to build a website (any kid can do it) and it is easy to throw around internet buzz words (like social networking, blog, e-commerce, search engine optimization, pay per click, analytics, etc.) that can make some salesman seem expert to someone who is not experienced or confident.

The fact of the matter is that big talk is much easier than big success when it comes to furniture websites.

182

182


What makes a retail website bad?

SEO – Search Engine OptimizationDoes the site get found on Google, Yahoo, MSN and Bing by local consumers who are searching for the products and services that the retailer sells. If not, it doesn’t matter how good everything else is on the site. You don’t get a chance at that business.

Product Shopping EnvironmentThe vast majority of local retailer websites hardly show any product. If you don’t show it, the consumer will assume that you don’t offer it. It sounds obvious, but it is crazy how many retailer websites don’t even show their entire inventoried offering, let alone the extended special order options available from their key suppliers. If you take a look at which sites are influencing the most business, you will see extensive and well done product catalogs.

There are a lot of things that make great websites great. However, there are really two things that are hands down the

most important at separating good (or successful) websites from bad (unsuccessful) ones.

183

183


What should your top priorities be?

• Product Content• Search Engine Optimization• Software/Site Features• Service and Maintenance• Your Contract is Key

Your Internet Marketing Plan

184

184


What Should Your Top Priorities Be?

Hands Down…..Product ContentPerhaps the single most important driver of a successful website is the

product content.

Furniture products are complex and information rich.

You make your money by selling products. The primary purpose consumers visit retail websites is because they are considering purchasing products.

Search engines read words…. NOT PICTURES or Flash Videos!!! Selection is key for attracting more visitors.

Your site navigation will be based on good data structure and disciplined data entry.

Suppliers introduce and discontinue products all the time but they are not good at providing dealers with that product information for websites.

185

185


What Should Your Top Priorities Be? Product Content

Breadth and Depth of Selection From Your Key Brands Does your web provider have content for the products and brands you carry? If not, what is your strategy for creating or obtaining it? It is a lot of work. If you do NOT show it, consumers will assume you do NOT offer it.

You need to show your inventory plus your extended offering from key suppliers?

Commitment to Updating and Maintaining Merchandise Content

How good is your web provider at updating and maintaining the product information? It changes often. Are they on top of it, or will you need to be? How much will that cost?

If your web provider does not have a content library, are you prepared? Additional cost: Time & Resources

186

186


What Should Your Top Priorities Be? Product

ContentQuality of Product Presentations How good are their product presentations? Home Furnishings

products are complicated and there is a lot to show, tell, explain and demonstrate about them. Are they “Content/Attribute” Rich or are they like a simple catalog page with bare minimum content? Do they provide good descriptive information, dimensions, features and

construction to help your people show, tell & sell so consumers have enough information to decide?

Does your web provider have multiple images to show alternate views, configuration options, style options, room settings, details, quality.

Do they incorporate video and PDF rich media?

Original Descriptive Copy is Extremely Important Are the descriptions original and keyword rich to come up

when consumers search on Google, or are they scraped and copied from manufacturer sites?

187

187


Prove It – Do your homework. You’ll be glad you did.

How To Check The Content Library? Ask to see the current unfiltered content library. Seeing a list

of brands can be misleading. Many brands are incomplete and not kept current.

If the web developer is unable to give you access to the content library, provide them with a confidential list of your lineup and ask them to provide you with an inventory of what they have in it and what they don’t.

Make sure new collections are published. Look at the collections and see if they are well done. Original romance copy is important too.

188

188


What Should Your Top Priorities Be? SEO

• If your website does not get found when local consumers are searching online for what you sell, your store probably will not be considered by them.

•Sometimes consumers search for your company by name. Most of the time, they get specific and ask Google to find what it is that they are looking for.

•On our network of sites, more than 70% of the site traffic comes from unpaid search and just about 50% of the visits come from non-branded search – meaning a search phrase that does not include the retailer’s company name.

•There are two types of search engine optimization – static and dynamic. Static means the information pages are created by hand. Dynamic means that they are generated through powerful database tools. •A typical SEO specialist who produces static content will talk about being able to get you first page listings for a small number of keyword search phrases

(Maybe 10, 20 or 100). They sometimes offer guarantees.

•Dynamic sites that are well designed to be search engine friendly that utilize original rich product descriptions will achieve thousands of keyword phrase visits through thousands of landing pages. The difference is dramatic, but the descriptions and marketing sound similar.

189

189


Prove It – Do Your Homework. You’ll Be Glad You Did.

How To Inspect SEO? Try to see analytics for a couple clients of theirs who are

similar sized to your company and who operate in a similar sized market. Those are the two main variables that have a big impact on traffic volume.

Reports to look at:Non-Branded/Unpaid Search - Percentage of traffic that comes

through unpaid search that excludes the retailer’s own name.Number of Keywords – VERY IMPORTANTNumber of Landing PagesBefore and After Comparison - Ideally, you could see analytics

before and after developer launched.Check Google – do searches in nearby towns for brands and itemsAsk a competitor to evaluate the SEO of those sitesUse online tools like our FREE 93 Point Assessment

190

190


What Should Your Top Priorities Be? Product

Content

Data Structure Allows for Site Navigation and Usefulness

Data structure allows for site navigation, categorization, narrow your search, compare, coordinating items, alternate finish.

Modular components and packages may be necessary for your pricing and selling needs.

191

191


What Should Your Top Priorities Be? Software

FeaturesIt Is Important That Your Software Have The Features That You Want And

Need To Tell Your Story And Sell Your Products. Important Features ToConsider Include:

• Site design and page layouts

• Product Coordinating Items to show the related items in a collection – i.e. if a bed has matching case pieces or if a sofa has matching chair, ottoman, loveseat and sectional

• Multiple Image Viewer and Rich Media to better show and demonstrate products

• Site Navigation – it should be logical, easy to use and simple to understand

• Merchandise Tagging and Sort Order

• Inventory Data Integration – ability to show what’s on the floor and/or availability

• Administrative tools to make changes and updates on your site

• Integrated Marketing to Communicate Promotions and Marketing Messages on Every Page of the Site – Do You Have an Internet Presence/Policy or Strategy?

• Wish List/Save Projects – tools that enable consumers to save their favorites and salespeople to save client projects

• Store location and information page with interactive maps

• Financing tools like online special financing applications are important for retailers that offer this

192

192


What Should Your Top Priorities Be? Service and Maintenance

What are my full service, self service and integration/automation maintenance options?

What is NOT included, and how much does it cost?

How are requests submitted? Will I be able to speak to a person? How long does it take to get a response and a completion?

What sorts of training and support are included or available?

193

193


What Should Your Top Priorities Be? Service and

MaintenanceMerchandising •Tell me about my merchandising controls? Do I have

control of adding and removing products? How long do updates take to get published on the site?

•Can I tag inventory, enter prices, tag clearance, tag specials, identify special order only, private label, package products, append materials in content library?

•What is the process, cost and timing for adding new products to the site? Self publish, You publish?

•Do you offer inventory data integration/automation service? How much does it cost and what is involved?

Marketing•Self service, full service options for ad posting and ad

scheduling?•Email signup offer and list. How do those work?•Access to Analytics?

194

194


What Should Your Top Priorities Be? Service and

Maintenance

Other or Static Pages (Additional Pages In The Site)• What’s included? How much do they cost? How do we create and

manage them? Full service or self service?

Customization and Personalization• How much can we customize the templates – about us,

merchandising, advertising, page layouts, site design…

Software Improvements• What software improvements and enhancements are you working

on and planning on? Will they be included in my package, or how much will they cost?

• What improvements or enhancements were created over the past 9 months, and how much were existing clients charged for them?

195

195


What Should Your Top Priorities Be? Service and Maintenance

Hosting/Site Uptime• How reliable is your network? What kind of outages

and slowness have you have experienced in the past 6 months?

• What happens if the network becomes unavailable or slow? Do you notify clients? How do you respond? How long does it take to fix?

• What steps have you taken to ensure reliable service and prevent problems?

How much training, strategic advice and idea sharing can I expect? Do I have a “Support Team” that are experts in their field to make my site ROCK?

196

196


Prove It – Do Your Homework. You’ll Be Glad

You Did.Advice About Checking References?

Do NOT take anyone’s word on it. Check references. Do NOT accept the hand picked references or recorded testimonials that a

web developer provides to you. Everyone has a few happy customers. Require seeing their entire client list and you choose who to talk with.

That’s the only way to get a sense of their true track record. Get between 5 and 10 references.

Ask how many clients have terminated or switched in the past year? Why?

Questions to ask? Is the site having an impact on your business? How responsive is their service? Is their product content up to date? What are the two most frustrating things about your site? If you could change anything, what would it be? Are there a lot of hidden fees?

Talk to Salespeople

Call the stores and talk with salespeople.

197

197


Questions to Ask the Developer

•How many clients has the company lost in the past 18 months? Who and why. Ask for contact information and contact them.

•What sorts of problems and complaints have they had from clients in the past six months? Why?

•What do they see as the biggest weaknesses, deficiencies with their product or service?

•What are the three reasons that I am most likely to be frustrated with your service – if I sign with you?

•How likely is it that I will NOT incur any costs other than the monthly fee and setup that I’m signing up for? What additional expense items might come up? Please list all. I don’t like surprises. Think about all your clients. What kinds of additional costs have come up? How much do they cost?

198

198


What Should Your Top Priorities Be? Your

Contract Is Key•What is the cost?

• Up-front setup fees

• Ongoing licensing and subscription

• When do you start paying?

• How long is the term?

•What’s NOT included “hidden fees” that you may want or need (like site redesigns, product content maintenance, ad posting, training and support)? What will it cost?

• Require clearly defined responsibilities and services. Are there guarantees?

• What sorts of maintenance and upgrades are included.

• How quickly you can expect response time? What is the update schedule?

199

199


Stay Focused On Your Top Priorities

200

200


What Should Your SECONDARY Priorities

Be?The Following Are Secondary Priorities – Don’t Make The

MistakeOf Making These Top Priorities.

• Branding / Look and Feel -- (your web developer should be able to work with you)

• Shopping cart

• Blogs

• Facebook

• Room planner

• Financing

• Reporting and analytics

• Project management and wish list

• Fabric draping?

• E-mail marketing

• Marketing networks

• Private labeling

• Label printing

• Admin Tools

• Innovation - technology, training, content, ideas

• Open publishing

Be careful not to make these higher priorities than the top priorities.

201

201


Want a winning website?

Choose the right

partner.

202

202


Area of Expertise Wish List For Your Web

Developer

203

203


The 6 Most Common Mistakes Made On Retailer

Websites

204

204


1 - The Sizzle vs. Steak Mistake

The most common mistake is designing a website to look great at the expense of it being search engine friendly.

It can also mean spending too much budget on visual branding versus other more important things like product presentation and navigation.

205

205


2 - Who Put the IT Guy In Charge Mistake

Another common mistake is placing too much emphasis on computer integration with the inventory / POS system and having e-Commerce - instead of product content (navigation, selection and explanation).

The internet is much more about marketing and selling than it is about creating operational efficiencies.

206

206


3 - We Need to Control and Own

Everything Mistake

Another common mistake is under estimating how much time, money and effort it is going to be to create and maintain your digital product presentations and software.

People often don’t realize how much maintenance and ongoing improvements are required for success. This is often a function of wanting to own and control the site.

207

207


4 - Get Caught Up In The Hype

MistakeBuzzwords can act like an intoxicant and drive emotional decisions that get decision makers focused on the wrong things.

There is limited time and money. Don’t be fooled by the hype.

The only people making money on some of this stuff are the guys selling it.

208

208


5. I Hate Paying Salespeople’s Mistakes

Cost reductions and a lack of consumer loyalty have eroded the sales profession. Commissions are costly. Bad salespeople are a problem

Business today is being won before consumers ever step in the store. Expert salespeople are your key to winning.

Websites with shopping carts are better order takers than people are.

Furniture is NOT a self service product category. The vast majority of customers want and need assistance buying big ticket home furnishings.

Furniture is NOT a self service product category. The vast majority of customers want and need assistance buying big ticket home furnishings.

209

209


5 - I Hate Paying Salespeople's Mistakes

Furniture is NOT a self service product category. The vast majority of customers want and need assistance buying big ticket home furnishings.Furniture is NOT a self service product category. The vast majority of customers want and need assistance buying big ticket home furnishings.

Is your goal to build a SELF SERVICE Vending Machine?

Do you really think many consumers will visit your site, select a living room set, enter their

credit card, and purchase it unassisted?

210

210


6 - Let’s Go National Mistake

Everybody’s doing it. You’ve heard about some guy who is selling a bunch of stuff all across the country.

Most local retailers do NOT have the core competencies to compete and win over the long run as a national shipper.

National shippers do so well largely because local retailers do internet so poorly.

211

211


What Can Manufacture

rs Do To Help?

212

212


What Should Manufacturers Do?

•Invest heavily to help prevent their retailers from getting this so wrong,

•Create and provide better content (portable digital assets) and make it easier for retailers to show, tell and sell your products.

•Make it easy for web developers and people maintaining the retail websites to know when products are introduced and discontinued.• Don’t favor the national shippers.

• MAP (Minimum Advertised Price)

213

213


It’s Much Easier To SPEND A Lot Of

Money On A Furniture Website Than It Is To MAKE Money With One.

214

214


Thank You

Bill Napier

612-217-1297

Join My Discussion on

215

215


The Supporting Data H. Internet

Nielsen has published new statistics on the overall online shopping trends – Over 875 Million Consumers Have Shopped Online – the Number of Internet Shoppers Up 40% in Two Years.

Among Internet users with Internet access using it shop, the highest percentage shopping online is found in: South Korea (99%) UK (97%) Germany (97%) Japan (97%) US (94%)

Online retailers are acquiring new customers at a 15% annual rate versus 2% for brick and mortar stores.

--Deloitte & Touche USA, November 2006

54% of consumers referred a friend to a vendor found online. --Nielsen/Net Ratings

21% of consumers visited a retail website within 30 days of receiving direct mail; up from 14% in 2003.

216

216


Social networking use among internet users ages 50 and older nearly doubled—from 22% in April 2009 to 42% in May 2010.

Jul 7, 2010Aaron Smith

Six in ten Americans go online wirelessly using a laptop or cell phone; African-Americans and 18-29 year olds lead the way in the use of cell phone data applications, but older adults are gaining ground.

One of the most important things to understand about statistics associated with the internet, internet use and internet marketing is the speed with which things change. Some simple facts will explain this progression.

The number of internet devices in 1984 was 1,000 The number of internet devices in 1992 was

1,000,000 The number of internet devices in 2008 was

1,000,000,000 -


217

217


How fast is information growing, it is estimated that a week's worth of reading the New York Times contains more information than a person was likely to come across in a lifetime in the 1800's.

The amount of new technical information is said to be doubling every two years - for students starting a 4yr technical program and college or university, this means that half of what they learn in their first year will be outdated by 3rd year!!!!


218

218


Consumer insights: How furniture shoppers use the Internet

Implications for your business Furniture shoppers have embraced the Internet

Furniture shoppers use multiple channels at different stages of their decision process.

72% of furniture shoppers use the Internet at some point. Furniture is the 8th most searched product on search engines.

They use the Internet primarily as a research tool They prefer the convenience of researching multiple brands in one

place They overwhelmingly prefer to purchase furniture from local retailers Furniture doesn’t play to the strengths of e-commerce

IV. Media H. Internet

219

219


Previous research has estimated that between 70% and 80% of U.S. adults have purchased something online. And according to Furniture/Today and HGTV's 2009 Consumer Views Survey, 44% of adult U.S. consumers have purchased home furnishings online. Occasional tables, entertainment furniture and youth furniture are the leading furniture categories purchased online, followed by desks and master bedroom. Home accents, such as wall décor and area rugs, have higher purchase rates through the Web.

The exclusive consumer data shows that Generation X - currently between the ages of 34 and 44, numbering 44.5 million or 16% of the U.S. population - is the No. 1 generation purchasing furniture online. And higher-income households, those with incomes of $100,000 or more, are more likely than lower-income groups to purchase furniture through the Internet.


220

220


Winning Internet Strategy for Furniture Retailers

Don’t limit your brand story to

your web site.

Think of the Internet as a cost-efficient way to showcase your products and tell your brand story in real-time—without space constraints—to an audience actively searching for it.

Distribute your store’s product catalog wherever consumers are researching home furnishings.

Don’t allow your channel to control your brand story

Control your brand story through your channel by helping consumers by expanding your showrooms online.

The big winners will be retailers who invest in creating digital assets and aggressively distribute them wherever consumers are looking for them.

Don’t settle for getting your web

site listed first in search engine results

Dominate the first page of search engine results

Two objectives 1. Help shoppers researchers and find where to buy it

2. Help retailers convert Internet leads into store sales

Strategies Tactics

221

221


IV. Media Internet

There are always a wide variety of benefits in using the internet to promote your retail location. Virtually everyone today is Wired!You can offer products on-lineYou can advertise for very little moneyThe information stays “on” and available

24/7/365Creative can be changed quickly and

relatively inexpensivelyBut there are drawbacks:

Only a small % of people who see your logo or message will click to your site.YOU MUST HAVE A WEBSITE !!!!

222

222


IV. Media J. Internet 3

How to Pay for Internet Exposure:

CPM: Cost per thousand times an ad is displayed

CPC: Cost per each time some click your ad CPT: Cost per transaction or sale

Email:

If you can obtain the email addresses of a prospect or customer and they “opt in” or given permission you can effectively e-market to them over the internet.

223

223


IV. Media J. Internet 3

Email: Some keys to successful e-marketing:

Keep records of the “permission granted” material

Keep lists secure Be informative and provide valuable and

useful information in addition to asking for business

Respond to email inquiries rapidly Always offer consumers a chance to opt of

out of getting information State your privacy policy

224

224


IV. Media Internet

Finding the most effective message/creative is not easy. Traditional “ads” are not as effective as they are in the traditional media where the consumer cannot easily “click them off.” Internet advertising needs to be enrobed in “content” (e.g. advertorial vs. advertising – as most web visitors are searching out information on which to base their buying decision).

Banner ads can work …sometimes…but they should be interactive.

The most trafficked web sites in a market are those tied to traditional media (radio, TV, newspapers) hence the best web buy is one made in concert with a traditional media buy.

225

225


IV. Media Internet

Internet Measurement:Impressions: # of times ad appears on

web pageConversion Rate*: rate at which

visitors take a specific actionHit: every component of a web page a

visitor seesClick Through: # of times people

select/click on your bannerClick Through Rate (CTR): # of times

the ad is clicked on divided by the total # of times an ad is seen on screen

* Most important

226

226


Measurement Plan

Oncoming Research

Measurement of Objectives

Strategies Initiated

Evaluation

Re-Process

LEARN

THINK

ACT

REFLECT

REFLECT

227

227


Thank You

228

228


V. Appendix

229

229


References

1. “Annual Survey of Promotion Practices.” Promo Magazine Stamford: Primedia.

2. Arens, William F. “Contemporary Advertising.” Chicago: Irwin.

3. Dahl, Gary “Advertising for Dummies.” New York: Hungry Minds.

4. Hiam, Alexander “Marketing for Dummies.” New York: Hungry Minds.

5. Leprine, Janet, et. al. “The Official PMA Glossary of Promotion Terms.”

New York.

6. “Power Brands on the Rise.” Roper on Retail- Roper Starch

International (Oct.2000).

7. Roper Starch Worldwide. “Research Alert Yearbook 2000: The Year in

Review.”

8. Underhill, Paco “Why We Buy: The Science of Shopping.” New York: Simon & Schuster.

9. U.S. Census, National Database

230

230


GLOSSARYAbove-the-line: Refers tot he cost of paid advertising in mass media versus "below the line" expenses for promotion, PR events, etc.

AC Nielsen: An auditing service that tracks product movement in stores to establish share of market and measures audiences in measured media.

Acceptable price range: The range of prices that buyers are willing to pay for goods or services.

Account specific programs: A marketing support campaign designed by a marketer to accomplish previously-established objectives for a specific retailer.

Advertising media: The various media that can be used to carry advertising messages to potential audiences or target markets for products, services, organizations, or ideas. These media include newspapers, magazines, direct-mail, Yellow Pages, radio, broadcast television, cable television, outdoor, transit, online and specialty.

Advertising weight: A measurement of media support for a brand, normally expressed in Gross Rating Points (GRP).

Alternative media: Those vehicles considered secondary to traditional media. Ex: in-store point-of-sale advertising.

Audit Bureau of Circulation (ABC): An organization sponsored by advertisers, advertising agencies, and print media publishers that verifies the audience circulation figures claimed by newspapers and magazines.

Awareness: A consumer's recall of information about a brand, ad, or promotion. Normally there are two types: "unaided awareness," and "aided awareness," in which the consumer is prompted.

Bait and switch: A deceptive sales practice in which a low-priced product is advertised to lure customers into a store, where they are then induced to buy higher-priced models when the less-expensive product is disparaged or there is an insufficient supply of the low-priced product.

Best Food Day (BFD): The day on which a newspaper runs editorial material on food. Retailers should consider this day when planning advertising if it fits with their target audience.

231

231


Bleed: The areas of printing plates that extend beyond the edges of the final trimmed sheet, thus eliminating a white margin around the edges.

Body copy: The words in an ad or promotional piece that describe the headline offer. Normally much smaller in type size than headline and subhead copy.

Boilerplate: Standard legal copy normally required to explain and define an offer or product claims.

Borrowed-interest promotion: A promotion that uses the recognition and/or impact of a well-known event or personality to capture the attention and interest of the target audience via the implied endorsement.

Brand: A name, term, design, symbol, or any other feature that distinguishes one seller's good or service from those of other sellers. The legal term for brand is trademark. A brand may identify one item, a family of items, or all items from that seller. If used for a line of products or for the firm as a whole, the preferred term is trade name.

Brand Development Index (BDI): A measure of the concentration of a brand's consumption; typically, the units or dollars of a product sold to a consumer per thousand population in a designated geographic area each year.

Brand equity: The value of a brand. From a consumer perspective, brand equity is based on consumer attitudes about positive brand attributes, awareness, and favorable consequences of brand use. The brand equity of the most famous brands in the world is measured in billions of dollars.

Brand image: The perception of a brand in the minds of consumers- its image or personality. It is what people believe about a brand- their thoughts, feelings, and expectations.

Brand loyalty: The inclination of a consumer to buy the same brand of product or service repeatedly over time rather than buying from multiple manufacturers within the category.

Brand name: Words, letters or numbers that can be spoken to identify an item. Trademark is synonymous but is derived from the legal rights on how to sue those words, letters, or numbers as your exclusive identity description.

Brand personality: The image or psychological profile that the manufacturer intends to convey to the public as opposed to the brand image, which refers to the consumer's perception and the image the consumer has of a brand.

Brand switching: The tendency of consumers to switch from one brand of product to another.

232

232


Bulk mail: A large mailing of identical pieces that is delivered to the post office in bulk to quality for reduced-rate postage.

Burst: A printed graphic device that is used to draw attention, used either in and/or on a package or in point of sale. Example: "New"

Buy One Get One Free (BOGO): An offer to a consumer or retailer of a free unit with the purchase of one unit of the same product.

Buying power: A term found in economic psychology that refers to the income available for discretionary spending among segments of the population. It is a measure of the ability and willingness to buy goods or services.

Captive market: The potential clientele of retail or service businesses in a locale where consumers do not have reasonable alternative sources of supply. Example: Posters in a subway car

Card-base marketing: A term used by retailers for their database marketing efforts drawn from their frequent-shopper card database.

Carrier-route presort: Sorting mail into nine-digit ZIP code sequence so it is ready to be distributed to individual U.S. Postal Service carriers. Saves additional postage over five-digit code sequencing.

Category Development Index (CDI): The sales-volume ratio of the sales of an entire category versus a specific set population, either in a given area or nationally.

Cause-related marketing: The use of a tie-in with a charity or not-for-profit organization to support a promotion.

Channel marketing/management: The method of developing different marketing efforts by trade class to fit its particular needs. Examples: drug, mass merchandise, food, etc.

Co-branding: A tactic that merges two or more brands into a joint promotional/advertising campaign. Also called partnership marketing.

Column inch: A unit of space used by magazines and newspapers that is one column wide by 1 inch deep (14 agate lines).

Co-marketing: Promotional events where manufacturers join with key retailers to accomplish joint objectives.

Controlled circulation: The distribution of a newspaper or magazine, usually free, to selected individuals who are members of an audience that's of special interest to advertisers.

233

233


Copyright: A copyright offers the owner of original work that can be printed, recorded, or "fixed" in any manner the sole right to reproduce and distribute the work, to display or perform it, and to authorize others to do so during the author's lifetime and for fifty years thereafter.

Cost in the Mail (CIM, ITM): The total cost associated with any individual unit mailing. This normally includes the costs of postage, printing, the item mailed, handling, etc.

Cost per Thousand (CPM): The cost of advertising needed to reach one thousand persons, homes, or other audience units. With periodicals, the advertising rate or actual advertisement cost is divided by the circulation, interpreted as the estimated number of readers or ad notaries. With television, radio, and online ads, the rate charged for commercial placement is divided by the average number of persons or homes tuned in, expressed in thousands.

Courtesy days: The days on which stores extend to credit customers the privilege of making purchases at sale prices in advance of public advertising of the sale. Popular with department stores.

Demographics: The study of total size, gender, territorial distribution, age, composition, and other characteristics of human populations; the analysis of changes in the makeup of a population.

Designated Marketing Area (DMA): A geographical definition of a shopping area within a metropolitan statistical area (MSA). Each MSA contains a population of 50,000.

Direct-mail advertising: The use of mail delivered by the United States Postal Service or other delivery service, such as e-mail or fax, as an advertising media vehicle.

Direct marketing: A form of retailing in which customers are exposed to merchandise through an impersonal medium and then purchase the merchandise by telephone, computer, or mail.

80/20 rule: A fairly accurate business theorem that states 20 percent of your consumers account for 80 percent of your sales.

Economic indicator: Data collected by government and private organizations on a regular basis that are used to analyze and measure current economic activity and general business conditions.

Effective frequency: An advertiser's determination of the optimum number of exposure opportunities required to effectively convey the advertising message to the desired audience or target market.

234

234


Event marketing: Brand marketing or promotion that takes place at an event. Example: sporting event, country fair.

Federal Communications Commission (FCC): A federal regulatory agency that determines the rules and requirements for many promotional and advertising tactics, such as those used on sweepstakes, games, new product copy, etc.

Free Standing Insert (FSI): A four-color insert containing multiple pages of advertising that's inserted into Sunday newspapers.

Frequent-shopper programs: Card-based incentive systems that reward loyal and frequent shoppers, usually through price cuts granted automatically at checkout time.

Frequency: The number of times a person, household, or member of a target market is exposed to a media vehicle or an advertiser's media schedule within a given period of time. This number usually is expressed as an average frequency (average number of exposures during the time period) or as a frequency distribution (the number of people exposed once, twice, three times, etc.)

Gatefold: A brochure or an ad that folds upon itself toward the gutter. When opened, it creates a large billboard effect.

Gross Rating Point (GRP): A unit of measure of audience size for television, radio, or outdoor advertising that is equal to one percent of the total potential audience universe. Used to measure the exposure of one or more programs or commercials, without regard to multiple exposure of the same advertising to individuals. Also, the product of media reach times exposure frequency.

Image-related: Refers to promotions that work to enhance a brand's name, use, or perceived quality.

Impulse purchase: A purchase typically made in-store with little or no decision-making effort. An unplanned consumer purchase.

In-ad coupon: A coupon placed in a store's or chain's own retail advertisement, redeemable on the specified product only at the particular store or chain.

Integrated marketing communications: A communication process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are consistent and unified.

Linage: A measurement of newspaper advertising space. A full-page ad equals 2,400 lines.

Loyalty: A measurement of consumer commitment to a brand.

235

235


Loyalty programs: Promotional programs designed to develop and maintain loyalty to a brand.

Market penetration: A measure of the percentage of a market reached by a particular product. An often-sought goal is to increase a product's market penetration.

Market potential: An estimate of the maximum possible sales of a commodity, a group of commodities, or a service for an entire industry in a market during a stated period.

Market profile: A breakdown of a facility's market area according to income, demographic, and life cycle.

Market share: The proportion of total sales in a market obtained by a given facility or chain.

Marketing: The process of planning and executing the conception, pricing, promotion, and distribution of goods and services.

Marketing mix: The mix of controllable marketing variables that the firm uses to achieve the desired level of sales in the target market. The most common classifications are the "four Ps"- price, product, promotion, and place.

Marketing plan: An annual document that sets the objectives, strategy, and tactics for the year. Within this plan, budgets are detailed for each of the elements.

Metropolitan Statistical Area (MSA): An area that contains a city of 50,000 population, or an urban area that contains 50,000 persons within a metropolitan area of at least 100,000 persons.

National brand: A brand that is marketed nationwide, as opposed to regionally or locally. Usually advertised and owned by a manufacturer.

Niche strategy: A marketing plan employed by a firm that specializes in serving particular market segments in order to avoid clashing with the major competitors in the market.

Overlay: Any sheet, image, printed matter, etc. superimposed on an existing design or piece of artwork.

Overrun: A number of additional copies of a printed piece in excess of those required for general circulation.

Perceived-value pricing: A method of pricing in which the seller attempts to set the price at the level at which the intended buyers value the product.

236

236


Point-of-purchase (POP): Promotional materials placed at the point of sale to attract consumer interest by calling attention to a special offer other attention-getting device.

Point-of-purchase advertising: Advertising, usually in the form of window and/or interior displays, in establishments where a product is sold to the ultimate consumer.

Point of sale (POS): Material, usually in printed form, that is displayed at retail to attract consumer attention.Position: In marketing strategy, the consumer perception of a product's or service's benefit or benefits, in comparison to its competition, which the manufacturer attempts to create and encourage via advertising, packaging, and/or promotion.

Promotion: Marketing that stimulates the purchaser to buy the product or service being promoted.

Promotion Marketing Association (PMA): The trade association for the promotion industry.

Psychographics: The study of the lifestyle and behavioral traits of a target audience for potential use in a marketing campaign.

Publicity: A marketing tool that attempts to gain editorial coverage in the media for increased public awareness.

Qualitative: A research term used to describe a non-projectable quality or performance.

Quantitative: A research term that refers to data or testing that is projectable.

Rate card: A printed listing of the charges associated with different amounts of time or space, different placements in the vehicle, and other conditions of sale.

Rating: The percentage of the total potential audience that is exposed to a particular media vehicle.

Reach: The number of people or households exposed to a particular advertising media vehicle or media schedule during a specified period of time.

Relationship Marketing: Marketing with the conscious aim of developing and managing long-term and/or trusting relationships with consumers, distributors, suppliers, etc.

237

237


Relationship Marketing: Marketing with the conscious aim of developing and managing long-term and/or trusting relationships with consumers, distributors, suppliers, etc.

Repositioning: Altering the message or formulation of a product or device to broaden consumer appeal, energize the brand, or counter competitive claims.

Return on Investment (ROI): The difference between the gross revenue generated by a program and the total of all costs associated with it.

Run of Press (ROP): Refers to daily newspapers that carry advertising along with editorial and news reporting.

Sales Aids: Devices produced to help a salesperson sell a product or program. Example: brochures, videos.

Sales Demonstration: An in-person showing of a product to one or more consumers to demonstrate how the product works and the benefits it offers to the customer.

Share: The percentage of total retail purchase, in terms of dollars or units, for a given category of product that is enjoyed by any one brand in that category.

Share Point: Once percent of the total market or audience.

Specialty Advertising: The placement of advertising messages on a variety of items of interest to the target market. Example: calendars, pens.

Standard Advertising Unit (SAU): A formula applied to newspaper space advertising that standardizes ad space, thus compensating for different production formats.

Target-Market Identification: The process of using the income, demographic, and lifestyle characteristics of a market together with census information for small areas to identify the most favorable locations.

Trademark: A legal term that's synonymous with brand. A trademark identifies a seller's product and differentiates it from the products of other sellers.

Traffic: The number of shoppers who visit a retailer's store.

Traffic Builder: A promotional activity that generates increased store visits by shoppers.

Value-added: Refers to a promotional technique perceived by the consumer to add value to the product purchase

Documents

The Basics Of Retail Planning