Retail promotion:

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Is broadly defined as any communication by a retailer that informs, persuades, and/or reminds the target market about any aspect of that firm. Advertising, P.R., personal selling and sales promotion are the 4 elements of promotion.

 

Steps in planning a promotion strategy:

 

  • Goals are stated in specific and measurable terms. Positive word of mouth (WOM) is an important long-term goal.
  • An overall promotion budget is set on the basis of one of these techniques: all you can afford incremental, competitive parity, etc.
  • The promotional mix is outlined, based on the firm’s budget, the type of retailing involved, the coverage of the media, and the hierarchy of effects.
  • The promotional mix is enacted. Included are decisions involving specific media, promotional timing, message content, sales force composition, particular sales-promotion tools, and the responsibility for co-ordination.
  • The retailer systematically reviews and adjusts the promotional plan, consistent with its preset goals.
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