The Basics of Retail Planning Rev 2012 PDF

The Basics Of Advertising,
Marketing & Promotion 1
Advertising, Marketing & Promotion

Made Easy
1
© Bill Napier 2010 All Rights Reserved

About The Presenter
 30 Years in Consumer Product Marketing
 Promotion Agency Owner
 Numerous 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,
2 HFB and more
Bill Napier Join My Discussion on

billnapier@napiermkt.com
612-217-1297
2

The Basics Of Retail Planning
For Advertising, Marketing &
Promotion
General Information
&
3
Reference Materials

Table of Contents
I. The Planning Process
II. 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 4
 Planning Elements
IV. The Internet
I. 125 pages of relevant information
II. Complete Market Research
III. How To Build a great website
IV. The key to social marketing 4
V. Appendix
Objective
To Identify The Core
Competencies And
Associated Elements That
Are Necessary In
Developing An Integrated
Sales/Consumer Retail 5
Marketing Plan.
5

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 advertised6computer.
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 6

I
Planning The
Process
It’s All About Velocity
7

Integrated Elements
Marketing
Advertising
Public Relations
Promotion
In-Store Experience
CRM & Retention
8
PROACTIVE … NOT REACTIVE

8

THE PROCESS
LEARN
THINK
ACT
REFLECT 9
PROACTIVE … NOT REACTIVE

9

LEARN
 Information Gathering
 Situation Analysis
 Objectives
 Planning Considerations
 Approval Process
10
10

THINK
Objective
Values Benefits
Secondary Primary
Supporting Communication Positioning

Points Platform Statement
11
Copy
11

THINK
 Strategy Session
 Information Gathering
 Strategy Session
 Strategic Screening Process
 Operations
 Financial
12
 Image
 Integration
12

 Tactics
 Strategy Considerations
ACT 

Legal
Creative
 Short and Long Term
 Implementation
Tactics
Tactics
Print Broadcast Electronic

Trade Television Website
Promotion Radio Events/Sponsorship
Public Relations Cable Merchandising
13
Collateral
Ad Books/Trade 13

REFLECT
 Measurement Plan
LEARN
 Oncoming Research
 Measurement of Objectives THINK
 Strategies Initiated
ACT
 Evaluation
REFLECT
 Re-Process
14
14

II
Marketing Definitions &
Terminology
15
15

Marketing
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
16
Of The Target Audience.
16
Definitions & Terminology

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
17
For The Marketing Message To Be

Communicated Clearly And With Adequate
Frequency.
17
Definitions &Reserved
© Bill Napier 2010 All Rights Terminology
Integrated Marketing
18
What’s Missing ???

18

C.
Branding
The 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 19
Communicated Via Various Forms Of

Marketing Communications
Definitions & Terminology
Vehicles. 19

Advertising
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
20
To Communicate A Positive Message To The

Consumer About Products And Services
Definitions & Terminology 20

E.
Promotion
Promotion Is The Act Of Providing A
Specific Reason For A Targeted
Consumer To Make An Immediate/Short
Term Decision By The Retailer:
Desired Action Promotion

Store Visit: Come in and register to win XXX
Buy Now: Buy X and get Y free
Provide Name/Address: Sign up to win X
Make a Return Visit: Get a coupon good on next
21
purchase
Promotional Messages Can Be Communicated Via A
Variety Of Mediums.

Public Relations
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
22
To Communicate Information At No Media

Cost To The Company.

III
The 7 Steps to
Developing An Integrated
Retail Marketing
Communication
Campaign 23
23

Step 1 –
Develop a Situation
Analysis
Review All Data That May Impact The Marketing Of The
Product Or Service.
 Share of Market Examples
 Current  Sales History/Trends
 Desired  Internal Data
 Market Trends
 Population  Product Mix And Pricing
 Income  Identification Of Target Audience
 Movement And Their Media Consumption
 Lifestyle trends Habits
 Aging
 Recreational habit
24
 Traffic Pattern/Location
 Competitive efforts  Budget And Operation
 Advertising strategy Limitations
 Store locations
 Product mix
 Pricing 24

The P’s
Product
Purpose
Positioning
Potential
Place
Price
Promotion 25
Performance
Profit
25

PEST Analysis
SWOT Analysis
26
26

PEST Analysis
Political
Economic
Social
27
Technology
27

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
28
 International Pressure Groups

 Wars And Conflict
28

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
29
 Interest And Exchange Rates

 International Trade/Monetary Issues
29

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 30
 Ethnic/Religious Factors
 Advertising And Publicity
 Ethical Issues
30

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 31
 Technology Access, Licensing, Patents

 Intellectual Property Issues
 Global Communications
31

SWOT Analysis
Strengths,
Weaknesses,
Opportunities
32
Threats
32

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? 33
 Accreditations, Qualifications, Certifications?

 Processes, Systems, It, Communications?
 Cultural, Attitudinal, Behavioral?
 Management Cover, Succession? 33

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?
34
 Morale, Commitment, Leadership?

 Accreditations, Etc?
 Processes And Systems, Etc?
 Management Cover, Succession? 34

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? 35
 Partnerships, Agencies, Distribution?

 Volumes, Production, Economies?
 Seasonal, Weather, Fashion Influences?
35

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
36
 Loss Of Key Staff

 Sustainable Financial Backing
 Economy - Home, Abroad
 Seasonality, Weather Effects 36

The Brand Elements
Brand Loyalty 7
 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”
37

 50+% spend a great deal of time researching

brands before making a purchase
37

Building The Brand
KEY ELEMENTS 7
More Americans See a “Great Deal Of Difference”
Between Well-known Brands of Products
Consumers Perceive Quality Claims As Having
Reached Parity
PRICE AND VALUE

 Value
 Quality 38
 Desirable Product Improvements

 Product Innovations
 Appealing Image
 Effective Advertising
38

The Brand Elements
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
39
for.”
ROPER STARCH WORLDWIDE
39

Planning Information
Lifestyles
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 supplies
 They seek out specialty stores when they need more
information and knowledge
Over half of small businesses are home-based today,
40
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.
40

Lifestyles
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 41they need us.
Consumers are doing their own research.
We will need to be “on call”, when the consumer decides they want us.
41

Lifestyles
ENTERTAINMENT Average household spends $1,841
Books,TV, Movies, Theatre, Toys

We 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%

42 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)
42

Lifestyles
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
43
 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 43

PLANNING INFORMATION
LIFESTYLES
•
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 44
 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
44

Demographics
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.
45
 90% of Hispanics live in 10 states

 Large immigration factor
 Less educated
 Hispanic Population continues to get older and more prosperous45
Ethnic Marketing - The Market
General
General
African
African American
American Hispanic
Hispanic
2000 2010 Other
Other
 80% of population clustered in 16 states

 Population growth outpaces Anglo
Americans 2 to 1 between 1995 - 2050
 Anglo Americans will be minority
General
 $500,000,000+
46
Purchasing Power
2050 African  African Americans have a
American disproportionate representation in 11 of
Hispanic the top 12 markets for consumers.
Other  90% of Hispanics live in 10 states
46

Situation Analysis
Demographics
 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
47
homes
 Married buyers up 16.4%
 Widowed, divorced, separated buyers up13.6%
47

FEMALES Population, all ages 141,080
MALES Population, all ages 134,979
48
48

49
49

50
50

Step 1
Develop a Situation Analysis
(cont’d)
Review All Data That May Impact The Marketing
Of The Product Or Services.
Examples
 Brand Platform
 Who We Are
 Why Consumers Should
Shop With Us
 What Is Our Competitive
Advantage
 Media Options 51
 Beneficial Relationships
 Trend Setters
 Celebrities
 “Experts”
 Etc. 51

Step 2
Identify Key Issues to Address
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:
Examples
 Location  Personality Of
 Price Ownership/Management
 Hours Of Operation  Parking
 Product Mix/  Proximity To Other
Quality/Availability Primary Shopping Areas
52
 Reputation/History  Ambiance
 Added Value  Guarantee/Warranty
(Promotion)
52

Step 3
Identify the Objectives Marketing
Communications Needs to Achieve
Based On The Situation Analysis Identify Primary
Marketing Needs That Can Be Addressed Via Marketing
Communications Elements.
Examples
 Need increased store traffic
 Overall
 Days
 Time periods
 Need increased sales of specific products
 Need increased marketplace awareness
53
of the “brand”
 Need to increase awareness of special offers – promotions
 Need to promote grand opening
 Etc.
53

Step 4
Identify/Select Media to Use in
Communicating the Marketing
Message
Television Outdoor
 Cable  Billboard
 Broadcast  Transit
Radio Magazines
Newspaper Direct Response
 Daily Metro  Television
 Daily Suburban  Direct Mail (Solo, Co-op)
 Weekly  Telemarketing
54
 Run Of Press  Inbound

 Outbound
 Inserts
Public Relations
 Special Sections
Point of Sale
54

Step 5
Develop the Creative Message
Objectives
Values Benefits
Secondary Primary
Supporting Communication Positioning

Points Platform
55 Statement
Copy
55

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
56
specific demographic segment or it is measured

based on its ability to reach specific demographic
audiences.
56

III. Advertising
A. Targeting
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
57
directed to the most likely buyers. This can be

accomplished by adjusting the creative message and/or
the media in which the message appears.
57

III. Advertising
A. Targeting
Psychographics
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
58
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. 58

III. Advertising
A. Measuring
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,
59 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. 59

III. Advertising
B. Measurement (cont’d) 3
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
60
vehicles.
Ex: Rating of 10 x 3 announcements = 30 GRP
60

III. Advertising
B. 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
61
Medium cost divided by GRP= CPP

Ex: Ad costs $350, GRP is 30: CPP= $11.67
61

III. Media
Television
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
62
Cable.
62

III. Media
A. Television - – Over-the-Air Broadcast
 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
63
desired) then consider buying “Day

Parts”.
63

III. Media
Television - Broadcast
 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

64
a new advertiser.
64

III. Media
A. Television - Broadcast 3
 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”
65
Show brought to
you by XYZ
 Term of commitment
65

III. Media
A. Television - Broadcast
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
66
becomes a “reminder” message.
66

III. Media
B. Television - Cable 3
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:67
 ESPN – Sports
 HGTV, Food Channel & More
67

III. Media
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.
68
68

III. Media
Television - Cable
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
69
the cable systems advertising and

promotion materials.
69

III. Media
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
70
HH’s of which 100,000 have cable equates

to 3,000 HH.
70

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, 71
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.
71

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 Minimum72 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. 72

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
73
Both Before Making Any Decision.
How Do I Get Information for My Market?

Local representatives in your market for the various media outlets
73

III. Media
Cable Pre-Buy Analysis
 Dealer Demographic Data
 Dealer Trade Area Mapped
 Dealer Budget Analyses
 Dealer Customized Proposal From
Local cable Affiliate 74
74

III. Media
Television: 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
75
 Track performance
75

III. Media
Television: Buying 7
Be Prepared
• Demographics/Target
• Geographics
• Reach & Frequency Goal
• Getting the Proper Information

76
• Comparing Costs
• Buying enough to be EFFECTIVE

76

III. Media
Television: Buying
Be Prepared
Demographics
- Define who your Target Customer is:
• How old are they?
• Are they male or female?
• What is their income?

77
• Are they homeowners? Do they have

children?
77

III. Media
Television: Buying
Be Prepared
Geographics
 Define where your Target Customer lives:
• DMA
• Metro
78
• County
• Specific Zip Code
78

III. Media
Television: Buying
Be Prepared
Reach & Frequency
1. Define how many of your Target Customers

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

them.
79
3. Average delivery is a 60% Reach with a 3

Frequency equaling 180 GRP’s
79

III. Media
Television: Buying
Be Prepared
Customer Profile
 Women 25-49
 Owns their home
 50k+ Household Income
 2 or more children living at home
80
 Harrisburg Metro Area

 Reach 60% with a 3 Frequency
80

III. Media
Television: Buying
Be Prepared
Numbers 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
81
the schedules the way you want them

 Keep the information consistant and you will be able to
compare costs
81

III. Media
Television: Buying
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 and

Frequency Goals, not82GRP Goals.
100 GRP’s can deliver:
30% Reach with a 3.3 Frequency
Or
50% Reach with a 2 Frequency
82

III. Media
Television: Buying
Be Prepared
Get Something for Nothing!
 Bonus Spots
 News/Weather/Traffic Sponsorships
 Web Links
 On air Give-a-ways 83
 Trade
 Promotional tie-ins
83

III. Media
Radio
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 84with 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
84

III. Media
Radio
Radio stations “Demographics Breaks” provide
you with a guide on who the station has for an
audience.
Men or Women
12-17
18-24
25-34
35-44 85
45-54
55-64
65 and older 85

III. Media
Radio
 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 86
radio, ratings always try to evaluate

stations based on an average of at least
two rating periods.
86

III. Media
Radio
 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
87
(minimum of 4 x’s).
 The first quarter is the best time to get deals
on radio rate.
87

III. Media
C. 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
88
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.
88

III. Media
C. Radio 3
Radio Stations Added Benefits That Can Be
Negotiated:
 Free spot production (even writing!)

 Free spots
 Better positions in day parts
 Better positions in a commercial
 Tickets to local events
 Remote at your location
 Merchandise to use as traffic builders for your
89
promotions
 ID on their web site and hot link
 Billboards
89

III. Media
C. Radio 7
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 90
 Determine the reach and frequency

 Figure cost per 1,000 of target persons
reached
 Negotiate a price, buy the time 90

III. Media
Newspaper/Shoppers
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
91
be good, but the demographic profile is low—most

readers are looking for second-hand items.
BUT….Who reads newspapers anymore ??? 91

III. Media
Newspaper - Circulars/Shoppers Checklist
 Sample Ads  File Transfer

 Design Questions  Tips on Buying Print Ads
 Which Products?  Compare Actual Sizes
 How Large?  Contracts and Insertion
Orders
 Color or B&W?
 Placement
 Offers & Descriptions
92
 Small Ads are OK

 Proofs
 Sample Ad Sizing
92

IV. Media
Newspaper - Circular/Shoppers -Checklist
 Circular Size  Fixed Cost

 In-Home Date  Quantity Prices
 Print Date  Shipping Cost
 Order Cut-Off  Grand Opening
Date Format
 Comp Date  Special Runs
93
 Imprint Space
93

III. Media
Newspaper/Shoppers
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 94fractional page ad
40% of readers notice a one page ad
55% of readers notice two page spreads
94

95
95

How To Read A Demographic Profile
96
96

III. Media
Newspaper/Shoppers
Delivery Options for Circulars
 Newspaper
 Shared Mail 97
97

III. Media
Newspaper/Shoppers
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 98
Have established distribution agreements

w/newspapers in select markets.
98

17 Items To Consider In Your Print
Advertising
1. Prominently show your 800 number 8. If express delivery is available,
and stress the call is toll free. mention that too.
2. Put a phone bug next to the toll- 9. Provide some history of the
free number. It will boost calls. company—boosts your credibility.
3. Use a street return address. It’s 10. Use a benefit headline.
more reassuring than a P.O. Box. 11. Follow your headline with as
4. Consider a free catalog/sample many features as possible.
offer. Use a picture of the “freebie.” 12. Bigger is better. Start with smaller
5. If you have space, include ads, and then “test up.”
testimonials from satisfied 13. Code your ad for tracking
customers. purposes.
6. State your guarantee. This is 14. Use 9 pt. type (at least) for
essential. readability.
7. Use a coupon with clip marks. 15.
99 Use logos and pictures when
Ovation has tested this extensively possible.
and the coupon pulls best. 16. State your credit terms.
8. Mention quick delivery in your ad. 17. Be sure to ask for the order
99

III. Media
Billboards
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
100
corner” are good traffic builders.
100

III. Media
Billboards
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% 101
 Readership: 29%
 Re-examination: 1.5
 Bulletin: 48’ x 14’ 101

III. Media
Yellow Pages
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.
102
Yellow Pages are losing ground each year to on-line yellow
pages and the GOGGLE Search
Don’t waste your money
102

III. Media
G. Local Magazines/Print
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 103
readers are just passing through.
103

III. Media
H. Direct Mail
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
104
promotions.
Women LOVE Direct mail !!!!
104

III. Media
Direct Mail
 Direct Mail
 Mailing Lists
 Labels
 Print Formats
 Self Mailers
 Printing
 Postage
105
 Local Production
105

III. Media
I. Telemarketing
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
106
to interest them in matching pieces or related groups.

That strategy is known as “cross marketing.”
106

III. PROMOTION
Role
 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
107
 Promotion can stimulate a sales force

 Promotion can stimulate a customer to take direct action
107

III. Promotion
Role
 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 difference108
between a store succeeding or barely getting by.
108

III. Promotion
Tools
 The most effective promotional activities to drive
retail traffic are:
Free gifts
On-site entertainment
Instant 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 109 - Payment options
- Purchase w/purchase - Free delivery or
service
 The most effective way to enhance brand image is via
sponsorships or charitable tie-ins
109

III. Promotion
Special Events
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 advice
Kitchen table – chefs, cooking lessons
Sporting goods – coaches, free clinics
110
Families- child-centered activities
 Can easily be tied in with a prize

drawing or contest as well 110

III. Promotion
What Form of “Advertising” is Used to Communicate
Promotions to Consumers? 1
Radio Advertising -
29%
TV -51%
Internet - 26% Magazine -

Newspaper - 74%
Store Circulars -
58%
Newspaper
Word Insert - 71%
of
Mouth -59%
111
Direct Mail - 66%
Product Packaging - Store Display - 71%

68%
111

III. Promotion
Most Popular Promotions 1
Gift W/Purchase 12%

Coupons - 71.4%
Charity - 19.0%
Points Program -
17.2%
Buy One/Get One -
64.7%
Sweepstakes - 14.4%
112
Free Stuff - 30.%

Rebates - 29.3%
112

III
The In-Store Experience
113
113

III. The In-Store Experience
Planning Elements
 Planograms
 Adjacencies
 Space allocations
 Promotional Programs
 Special fixturing
 Merchandise quantities
114
 Required productivity, i.e. stock turns

114

Planning Elements
 Floor plan, traffic flow,  Fixture selection
space allocation,
 Display techniques
adjacencies
 Graphics & Signage -
 Fixturing placement
Incorporate
 Store Design marketing
 Interior furnishings, concept
components and layout  Exterior - Logo / Identity
 Decor  Interior Informational
 Colors Graphics & Signage - i.e.
 Lighting departmental
 Flooring treatments  Interior
115
Promotional
 Wall treatments Display Graphics &
Signage
 Ceiling treatments
115

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 116
 Immediate gratification
 Social interaction
* Source: Why we Buy: the Science of Shopping, Paco Underhill,
116

Entering 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 117
 Merchandise should be displayed to greet shoppers face

on, not sideways
117

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 118
 Women are more likely than men to ask another

person for product information or store directions
118

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 119or store directions
 Male shoppers require more and more child considerations
119

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
120
likely to be
 If Mom won’t buy it, Dad will
120

III
The Internet
121
121

Old Dog New Tricks
Me
Me
Again
122
122

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.
123
2005
123

124
124

The ability to learn faster
than your competitor
may be the only
sustainable competitive
advantage 125
125

In The 60’s It Was All About
126

PLASTICS 126
Today & Beyond It’s All
About
Being
Connected
127
127

128
128

The Internet Is The Change Agent
Then And Now
2000 2010
79% Of Adults Use Internet
46% Of Adults Use Internet
64% Have Broadband At Home
5% With Broadband At Home
82% Own A Cell Phone
50% Own A Cell Phone
59% Connect Wirelessly
0% Connect Wirelessly
66% Use The “Cloud”
10% Use “Cloud”
48% = Tech Social Networkers
0% = Tech Social Networkers
NOW: Faster, Mobile Connections
THEN: Slow, Stationary 129
Built Around Outside Servers And

Connections Built Around My
Storage
Computer
June 24, 2010
129
129
To Reach 50,000,000
Users…
It Took:
 Telephone - 38 years
 Television - 13 years
 Internet - 4 years
 iPod - 3 years
130
 Facebook - 2 years
130

How We Are Connected
 The number of internet devices in 1984

was 1,000
was 1,000,000
was 1,000,000,000 131

will be 15,000,000,000
131

132
132

133
133

134
134

Today
The 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”.
135
135

Traditional Ways to Get “DEALS”
136
136

The New Way
Click & Print -
FREE
137
137

Let’s Get Visual
How
HowWe Market
We Can 12 Items
WINOf
Home Furnishings In 30
The Race To The
OR
Seconds AND….
Bottom With 99% Off
The Consumer is Supposed to
Retail
Retain This Message ???
138
138

Average Time “US adults now spend
Consumers Spend “PER more time on mobile
devices each day than
DAY” With Major Media they do with print
media.”
139
139
Source: e-Marketer December 2011
140
140

141
141

142
142

For First Time In History, TV
Ownership Declines
143
A.C. Nielsen
November 2011
143

Video – Sharing Site Usage Over Time
2006-2011
144
Are You Streaming Video on Your Website?

144

Visits To Online Video-Sharing Sites By Regions
145
A Great Way To show off your store, share your brand

platform and more….without trying to cram it into a 145
30
© Bill Napier 2010 All Rights Reserved second spot
Meanwhile
More 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
146
Than Twice As Many Stars As In The Milky Way.
146

78% Of The U.S. Is Connected
To The Internet
272,100,000 Individuals
147
147

1 In 2 Smart Phone Users Have Searched On
Their Phones For Nearby Stores
148
148

149
149

150
150

How Are You Marketing Your Store
And To Whom ?
151
Integrated Marketing?
151

Everything Has
Changed
BUT….
The Most Profound Change
Relates To The Demographic
Shift in the Past 7 Years
152
152

Older BOOMERS
58 – 63 Years of Age
PAST - Primary
153
Target Market for
Home Furnishings
Total BOOMER Population 76,985,270

153

Young BOOMERS
PAST - Primary
154
Target Market for
Home Furnishings

154

Middle BOOMERS
PAST - Primary
155
Target Market for
Home Furnishings

155

Gen “X”
NEW Primary Target
Market for Home
156
Furnishings
Total “X” Population 49,660,301

156

15– 32 Years of Age
NEW Upcoming &
Secondary Target
Market for Home
157
Furnishings
Total GEN “Y” Population 76,370,030

157

Total Gen “X” + Gen “Y”
Population
126,030,331
158
Are You Prepared For This

158

Consumer?
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
159
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 159

When It Comes To Your Big Dog
Business Model, Who
Would You Rather Be?
Little Dog
160
160

161
161

162
162

163
163

164
164

Everyone is doing it…..Is Your Store or Brand
There to Participate IF They want To Find
You?
165
165

166
166

167
167

168
168

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 169
169

Internet Marketing
The Basics….
Get Found
There are 3 fundamental ways
Consumers
search for Home Furnishings
General Searches 170
Category Searches
Branded Searches
42% Of Organic Searches In The Last Year Are 4+ Words
170

Search
Attracting Consumers
General Searches
General 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 171
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 !!! 171
Over the past few years, Google
has attracted 65-70% of all
internet searches.
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.
 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
172
(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
172

Once They Find You…
Now What?
Engage Them
173
173

174
174

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
175
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. 175

176
176

Once They Find What They
Want……
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

Contact us form
Request information with product info
Contact us form on every page
Print this page
Call the store
Forward to friend
Call the store on every page
Send to social media
Sign up for email
View current
177
ad page
Sign up for email on every page
Current ad-promotion on every page
Visit the store
Apply for financing
Turn by turn directions to your store
Product tagging for clearance, special, hot buy
177

Now What?
Choosing a Home Furnishing

Web Site Development Team
&
How To Create a RFP 178
© FurnitureDealer.net 2012 All Rights Reserved 178
© Bill Napier 2010 All Rights Reserved Excerpts From Andy Bernstein’s Furniture Today Conference 2011
What’s In This Presentation….
FOR YOU
You 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
179
need to feel confident when selecting a vendor for your next
Web-based project.
179

Every Retailer NEEDS a Successful
Website - BUT It’s Not Easy or
Inexpensive
More than 3 out of 4 furniture purchases are influenced by online
research
81% of home furnishings shoppers cite the internet as their #1
source of information
An 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 and180 website decision is very
difficult to do.

BUT….. 180
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 181
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.
181

What makes a retail website
bad?
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.
 SEO – Search Engine Optimization

Does 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 Environment

The vast majority of local retailer websites hardly
182 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. 182

Your Internet Marketing Plan
What should your top priorities

be?
• Product Content
• Search Engine Optimization
• Software/Site Features
• Service and Maintenance183
• Your Contract is Key
183

What Should Your Top Priorities Be?
Hands Down…..Product Content
Perhaps 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
184
data entry.
Suppliers introduce and discontinue products all the time but they are
not good at providing dealers with that product information for websites.
184

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 185
 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 185

What Should Your Top Priorities
Be? Product Content
Quality 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

186
 Are the descriptions original and keyword rich to come up when

consumers search on Google, or are they scraped and copied from
manufacturer sites?
186

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
187
collections and see if they are well done. Original romance copy
is important too.
187

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. 188
• 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.
188

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 IMPORTANT
 Number of Landing Pages
 Before and After Comparison - Ideally, you could see analytics before and after
developer launched.
 Check Google – do searches in nearby towns
189
for brands and items
 Ask a competitor to evaluate the SEO of those sites
 Use online tools like our FREE 93 Point Assessment
189

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
190
necessary for your pricing and selling needs.
190

Software Features
It Is Important That Your Software Have The Features That You Want And
Need To Tell Your Story And Sell Your Products. Important Features To
Consider 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
191
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
191

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?
192
 What sorts of training and support are

included or available?
192

Merchandising
• 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 193
• Self service, full service options for ad posting and ad scheduling?

• Email signup offer and list. How do those work?
• Access to Analytics?
193

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
194
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?
194

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
195
experts in their field to make my site ROCK?
195

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? 196
Talk to Salespeople
Call the stores and talk with salespeople.
196

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
197
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?
197

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? 198
• What sorts of maintenance and upgrades are

included.
• How quickly you can expect response time? What

is the update schedule? 198

Stay Focused On
Your Top Priorities
199
199

What Should Your
SECONDARY Priorities Be?
The Following Are Secondary Priorities – Don’t Make The Mistake
Of 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 200
• Label printing
• Admin Tools
• Innovation - technology, training, content, ideas
• Open publishing
Be careful not to make these higher priorities than the top

200
© Bill Napier 2010 All Rights Reserved priorities.

Want a winning
website?
Choose the
right partner. 201
201

Area of Expertise Wish List
For Your Web Developer
Retail
Furnishings
Multi-Channel Know How Technology,
Retailing &
Software &
Customer
Hosting
Experience
Search
Integrated
Engine
Marketing
Optimization
Web Developer
Online Who Has
Marketing, Furnishings
Social Media, The Ideal Skills Product
e-Mail Content
Marketing
202
Great
Customer
Graphic
Service –
Design &
good with
Branding
Non-Technical Passionate
Clients Retail Call about
Center Selling Learning,
Expertise Innovating &
Sharing 202

The 6 Most
Common
Mistakes Made
On Retailer
Websites 203
203

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.
204
204

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.
205
205

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

206
and ongoing
improvements are required for success. This is often a function of
wanting to own and control the site.
206

4 - Get Caught Up In
The Hype Mistake
Buzzwords 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

207
some of this stuff are
the guys selling it.
207

5. I Hate Paying Salespeople’s
Mistakes
Websites with shopping carts are better order takers
than people are.
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.
208
Furniture is NOT a self service product category. The vast majority of customers
want and need assistance buying big ticket home furnishings.
208

5 - I Hate Paying
Salespeople's Mistakes
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?
209
Furniture is NOT a self service product category. The vast majority of customers
want and need assistance buying big ticket home furnishings.
209

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.
210
210

What Can
Manufacturers
Do To Help?
211
211

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. 212
• Don’t favor the national shippers.

• MAP (Minimum Advertised Price)
212

It’s Much Easier To
SPEND A Lot Of
Money On A Furniture
Website Than It Is To
MAKE Money With
One. 213
213

Thank You
Join My Discussion on
214
Bill Napier
612-217-1297 214

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 and215
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. 215

The Supporting Data
H. Internet
 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. 216
 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 -
216

The Supporting Data
H. Internet
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
217
half of what they learn in their first year will

be outdated by 3rd year!!!!
217

IV. Media
H. Internet
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
218
place
 They overwhelmingly prefer to purchase furniture from local retailers
 Furniture doesn’t play to the strengths of e-commerce
218

The Supporting Data
H. Internet
 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
219 to
purchase furniture through the Internet.
219

Winning Internet Strategy for Furniture Retailers
The big winners will be retailers who invest in creating digital assets and
aggressively distribute them wherever consumers are looking for them.
Two objectives 1. Help shoppers researchers and find where to buy it
2. Help retailers convert Internet leads into store sales
Strategies Tactics
Don’t settle for getting your web  Dominate the first page of search engine results
site listed first in search engine
results
Don’t limit your brand story to  Think of the Internet as a cost-efficient way to showcase
your web site. your products and tell your brand story in real-time—
without space constraints—to an audience actively
searching for it.
Don’t allow your channel to  Distribute your store’s product catalog wherever
control your brand story consumers are 220researching home furnishings.
 Control your brand story through your channel by

helping consumers by expanding your showrooms
online.
220

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-line
 You can advertise for very little money
 The information stays “on” and available
24/7/365
 Creative can be changed quickly and relatively
inexpensively
But there are drawbacks: 221
 Only a small % of people who see your logo or

message will click to your site.
YOU MUST HAVE A WEBSITE !!!!
221

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

222
prospect or customer and they “opt in” or given

permission you can effectively e-market to them
over the internet.
222

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
223
 State your privacy policy
223

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
224
those tied to traditional media (radio, TV,

newspapers) hence the best web buy is one made
in concert with a traditional media buy.
224

IV. Media
Internet
 Internet Measurement:
 Impressions: # of times ad appears on web
page
 Conversion Rate*: rate at which visitors take a
specific action
 Hit: every component of a web page a visitor
sees
 Click Through: # of times people select/click
on your banner 225
 Click Through Rate (CTR): # of times the ad is

clicked on divided by the total # of times an ad
is seen on screen
* Most important 225

REFLECT
 Measurement Plan
LEARN
 Oncoming Research
 Measurement of Objectives THINK
 Strategies Initiated ACT
 Evaluation REFLECT
 Re-Process
226
226

Thank You
227
227

V. Appendix
228
228

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

229 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
229

GLOSSARY
Above-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.
230
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 230
day when planning advertising if it fits with their target audience.
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

231 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. 231

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).
232
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.
232

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 233

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
233
convey the advertising message to the desired audience or target market.
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.
234
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. 234

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. 235
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.
235
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.
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. 236
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. 236

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.
237
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. 237

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

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Advertising, Marketing & Promotion

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 Step IV: Identify Select Media to Use

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PROACTIVE … NOT REACTIVE

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PROACTIVE … NOT REACTIVE

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Supporting Communication Positioning

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Of The Target Audience.

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What’s Missing ???

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Communicated Via Various Forms Of

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To Communicate A Positive Message To The

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Desired Action Promotion

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 50+% spend a great deal of time researching

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PRICE AND VALUE

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