Chapter 8: Retail and Businessto-Business Advertising

Retail Advertising Cooperative Advertising Institutional and Product Retail Advertising Buying and Selling Local Media Business- to-Business Advertising Business- to-Business Advertising Media

Retail Advertising
- used by merchants to sell products and services directly to consumers - accounts for nearly half of the money spent on advertising. - the advertising space or time is placed by a local retail store but is partly or fully paid for by a national manufacturer whose product is featured in the advertising.

Local Retail Advertising

targeted at customers who live within close proximity to a retail store. Functions: sell variety of products encourage store traffic deliver sales promotion messages create and communicate a store image or personality establish a brand that reminds local audience

Local, National Ad
Local advertising - any advertising placed by a company, organization, or individual operating in a limited geographical area such as a city or within a state. National advertising - advertising for companies that have a nationwide market. - refers to the fact that a company has a national target market and does not imply that the advertisement per se is nationwide.
Per se - used meaning by itself to show that you are referring to sth on its own, rather than in connection with other things

Difference Between Local and National Brand Ad

Local Advertising * Targeted to people living in the stores community. * Promotes several brands * Pushes the consumer to visit the store * Customized includes basic info such as the stores name, address, telephone number, and business hours. National Brand Advertising * Deliver a standard, general message to a large audience. * Supports only the sponsors brand * Concerned with the image and attitude change * Not customized

Objectives to Maintain Store Traffic

Build store and brand awareness Create consumer understanding of items and services offered. Convince consumers that the stores items and services satisfy needs. Create consumer desire to shop at this particular store

Cooperative Advertising
- also known as Co-op Advertising - the manufacturer reimburses the retailer for part or all of the advertising expenses. - provides retailers with advertising support in the form of money and advertising materials.

Large Specialty Retailers

- advertising is more like manufacturer advertising - fewer products are highlighted - emphasize on image rather than a quick sale

Non-store Retailing
- a type of direct marketing which ccurs when the exchange between the manufacturer or retailer and the consumer takes place outside the traditional retail store.

Online Retailing and Ecommerce

E-tailing (electronic retailing) E-commerce is the selling of goods and services through electronic means, mostly the internet.

Institutional and Product Retail Advertising

- An advertising that sells the retail shop as an enjoyable place to shop. - Loyalty Programs - Product Retail Advertising - Promotional Advertising

Loyalty Programs
Are a form of institutional retail advertising to strengthen the relationship between the store and its regular customers.

Product Retail Advertising

Presents specific merchandise for sale and urges customers to come to the store to buy it. Helps create and maintain store reputation through its merchandise

Promotional Advertising
- The main form of product retail advertising. Subdivided into: 1. Above the line promotion 2. Below the line promotion

Above the Line Promotion

in the media (broadcast/print) in which advertisers pays an advertising agency to place the ad.

Below the Line Promotion

all other promotion much of this is intended to be subtle enough that the consumer is unaware that the promotion is taking place

Factors Affecting Retail Advertising

Consolidation Demographics Intensive competition

Creating the Retail Ad

1. Image or price 2. Executing retail ads 3. The creators

Image or Price
Distinctive image is a valuable asset for retailers who sell little product differentiation. They convey message through ads, other marketing communication, pricing, location, and security. Price can help the consumer compare shops without visiting them.

Executing Retail Ads

Location is essential in retail advertising. *Infrequently purchased merchandise should include a map or mention a geographic point or landmark.

Creators of Retail Ads

In-house staff Media Ad agencies Freelancers charge a lower hourly rate than do ad agencies because they have less regular and essential expenses such as salaries. - selling services to several organizations

Buying and Selling Local Media

Local retailers are well-informed because they are: Forced to work with tighter budgets Getting more advertising help and advice from suppliers Exposed to more media ideas (workshops and seminars) Educated by media salespeople

Local Retail Media Strategy

Local retailers prefer reach over frequency. National advertisers image campaign to remind customers.

Media Alternatives
1. Newspapers is a medium that people read in part of the advertising. - fits the retailers desire for geographic coverage, prestige, and immediacy. 2. Free Copy and Preprints Free Copy given free for the people Preprints advertising circulars furnished by a retailer for distribution as a free-standing insert in newspapers or magazines.

3. Magazines used mainly for institutional or image ads. 4. Broadcast media (tv, radio) used usually to supplement newspaper advertising. 5. Directories (yellow pages) widely used by customers and the ads have a long life (1 year or more). 6. Direct response (circulars, letters, handbills, samples, etc.) used to communicate product offerings to a selected group of consumers.

7. Online media (web-based) * retailers can set-up their own website * buy an ad on someone elses 8. Specialty media includes pens and pencils, hats, calendars, rulers, balloons, jackets, t-shirts, and clocks. - inexpensive

Business-to-business Advertising

directed at people in business who buy or specify products for business use.

Types of Business-tobusiness Advertising

Industrial Advertising Trade Advertising Professional Advertising Agricultural Advertising

Industrial Advertising
directed at original equipment manufacturers.

Trade Advertising
used to persuade resellers,

wholesalers and retailers in the consumer market to stock the manufacturers products.

Professional Advertising
directed at a group of mostly whitecollar workers (lawyers, accountants, doctors, teachers, etc)

Agricultural Advertising
promotes a variety of products and services such as health products, farm machinery and equipment, fertilizer.

Business-to-business Advertising Media

General Business and Trade Publications * Horizontal Advertising * Vertical Advertising Directory Advertising - Yellow page Direct Marketing personalize message to specific customers Consumer Media The Web and B-to-B Advertisers becoming a fast medium for b-to-b ads.

General Business and Trade Publications

Horizontal Advertising directed at people who hold similar jobs in different companies across different industries.
Vertical Advertising targeted toward people who hold different positions in the same industries.

Does Business Advertising Sell?

created more sales than would have occurred without advertising increased advertising often resulted in increased product sales paid to advertise to both dealers and consumers increased ad frequency increased sales = profits

 results takes 4-6 months color usage makes a dramatic difference ad campaign is effective long after it ends affects purchasers awareness of and attitudes toward industrial products

End of Chapter 8