What is Retail Advertising?

The manufacturer has little concern where its product is purchased. The goal of the retail advertiser differs from that of national advertiser. The retailer advertises to encourage patronage by consumers and build store loyalty among them. The retailer is not particularly concerned with any specific brand. In case the retailer shows some concern (the retailer wants to clear stocks of a particular brand), then the message in effect is “buy brand ‘B’ at our store.” General approach in retail advertising is “buy at our store.” The sale of any specific brand is not the concern of retailer unlike the national advertiser.

The retailer must compete in one of the most competitive arenas of business and move large volumes of products. Besides, the retail advertising must convey the image of the type of store to particularly attract certain types of consumers. To achieve these objectives, retailers often communicate price information, service and return policies and the range of merchandise available. Some retailer ads are specifically aimed at building the store traffic.

The main purposes of retail advertising is outlined below;

  1. Selling the Establishment: To sell the establishment, attract customers to the premises and, in the case of a shop, increase what is known as ‘store traffic’, i.e, trying to increase the number of people passing through the shop.  If they can be encouraged to step inside – they may possibly buy something which they would not bought otherwise.
  2. Selling exclusive or own labeled goods: Some retail distributors are appointed as dealers for certain make. Example is some supermarkets sell their ‘own labelled goods’ which manufacturers pack in the name of the supermarket. Some large departmental stores have a special brand name for all their products, invariably they will be cheaper and they complete with national brands. Competition between national and own-label brands is intense, and there is always a risk that the national brands will be de-listed in favour of a store’s own labeled products. Own label products are usually made to the retailer’s own specifications or recipes, and are not simply replicas of existing national brands.  All the retail outlets are likely to use advertising to promote sale of their stock.
  3. Clearance Sale: To clear the stock of the shop, such as promoting products which are seasonal, special offers could be made.  Examples are sale of certain products during winter or summer.  Sale of air conditioners during winter and water heaters during summer.

Generally, the retailer works in a narrowly limited geographic market. This allows him to focus his advertising messages to the likes, preferences and buying habits of targeted audience. The retailer advertises to precipitate relatively quicker response to most of this local advertising, while the national advertiser’s prime interest is in establishing long run favorable attitudes and building brand equity.

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