Customer Relationship

Management
Orla O’Connor
Université de Rouen Normandie
Push and pull marketing
communications
Tuesday 15 November 2022
Agenda
• Marketing communications
• Push v pull marketing communications
• In-store promotion
• Point-of-sale/point-of-purchase
• Product placement and store layout
• Summary
Learning outcomes
At the end of the course students should be able to:

1. Demonstrate understanding of how to manage in-store promotions

through cooperative relationships with external brand managers
2. Draw on range of product placement techniques in order to boost
sales
3. Optimise point-of-sale opportunities
4. Convey the importance of customer loyalty and select appropriate
customer loyalty strategies to extend customer longevity
5. Negotiate commercial contracts with central purchasing managers
6. Set sales objectives and understand ways to organise the sales force
to achieve objectives
Marketing communications
• One element of the marketing mix (7Ps)
• Used to communicate with customers (key for CRM)
• ‘Promotion’
Marketing communications
Marketing mix
Range of marketing decisions or tools that work together to:
• Influence the target market and satisfy customer needs
• Position an organisation in the minds of the customer
• Solve customers’ problems
 Product

Physical
Price
evidence

Marketing
mix
- solutions to
customers’ problems
Process Place

People Promotion
Marketing mix decisions
• Produce the right product or service
• Sell it at a price customers are willing to pay
• Have it available in an accessible place
• Tell customers about its benefits
• Make it easy to order/buy
• Have customer-focused staff
• Create a welcoming and appropriate environment
 Sequential
buying
processes

Shaping Change
relationships attitudes
Role of
marketing
communications

Cognitive
Create value
processing

Fill (2013)
Why communicate with customers?
• Launch a new (or modified) product
• Change misunderstanding
• Build credibility
• Change performance beliefs
• Change perceptions or attitudes (of own brand or competitors)
• Strengthen brand associations
 Marketing communications models
DRIP
Differentiate – stand out
Remind (or reassure) – reinforce
Inform – educate/make aware
Persuade – action required
Fill (2002)
AIDA
Attention - awareness
Interest – stimulating curiosity
Desire – creating a want
Action – calls to action
 • Attention
• Interest

• Desire
• Action
Push v pull marketing
communications
 Marketing communications planning framework

Fill (2002)
Marketing communications strategies
• Push (via intermediaries e.g. wholesalers)
• Pull (aimed at end consumer)
• Profile (of the brand or organisation)
Push strategy
 Push marketing communications

https://www.musgravemarketplace.ie/latest-offers /
Pull strategy
Pull marketing communications
Profile strategy
Profile marketing communications
Marketing communications tools (mix)
Digital marketing communications

• Public relations • Events & exhibitions

• Personal selling
• Direct marketing
• Sponsorship
• Word of Mouth
• Merchandising & point of sale (POS)
• Packaging
• Advertising
• Sales promotion
Pull marketing communications

Digital marketing communications

In-store promotion
 In-store promotions
• Competitions • Displays or point-of-sale
• Price reductions • Events – flash mobs
• Free gifts • Advertising
• Coupons • Sales promotion
• Samples
• Tastings/demonstrations
 Point-of-Sale (POS) Point-of-Purchase (POP)
• Targets last-minute purchases
• Usually at check-out wait
• Sometimes used to sell-off stock
- free newspaper with bottle of water (Stansted Airport)
- proposition of related products e.g. stamps, batteries
Free standing product placement
- end aisle displays
- display bins
Types of retail advertising
• Product: new, exclusive, superior merchandise or
service
• Markdown event: create excitement about ‘sale’
event
• Retailer brand: sell the store, core values,
commitment to customers, experiences
• Co-operative: manufacturer funded mail
drops/leaflets promoting offers and discounts
• Windows: capture focal attention, distinctive
image, promote seasonal activity
Sales promotions
• Offers and incentives aimed at boosting
sales
• Usually short term
• Most effective when integrated with
other marketing communications tools
Types of sales promotions
POINT OF SALE Window, floor, counter display to induce impulse buy

CONTESTS Competitions for prizes to promote retailer brand

SWEEPSTAKES Random prize draws

COUPONS Money off voucher for in-store purchase

REPEAT SHOPPER Points/stamps/rewards for frequent purchase

LINKED PURCHASE Threshold level spending leads to money off other goods

DEMONSTRATIONS In-store demonstration of benefits or product testing

REFERRAL GIFTS Gifts to introduce new users

BOGOF Money saving but can stimulate demand for other items

BRANDED GIFTS Pens, bags other branded giveaways

SAMPLES Sachets, samples instore or in print media

PREMIUM Include free gift to encourage repeat purchase

SPECIAL EVENT Fashion shows, autograph sessions, store opening events

Activity: what type of promotional activity would
you recommend to achieve the following
objectives?
WHAT HOW
Achieve more frequent or multiple
purchases
Counter competitor activity
Build trial among non-users
Launch a new or improved product
Stimulate repeat use
Encourage impulse buying
Prompt switching to own brand
Tempt purchasing of larger size
3 categories of sales promotion

• Customer promotion
• Trade promotions
• Salesforce promotions (incentives)
Reason for sales promotions

• Reach new customers

• Reduce distributor risk
• Reward behaviour
• Retain customers
• Add value
• Induce action
• Segmentation – identify price-sensitive customers
• Cash flow
• Stock control
Sales promotions objectives

• Increase sales
• Generate leads
• Satisfy trade expectations
• Shift stock
• Keep up with competition
• Create a database
• Generate publicity
Strategic approach best

• Can build on previous offers and establish continuity of

communication
• Possible to communicate image and functional values so promotions
work harder
• Can produce considerable savings in time and money
• Integrate offers into other activities in the marketing programme
• Facilitates a better approach to joint promotions
• Makes the tactical planning easier and more productive
Developing a strategic approach

1. What do customers (and prospects) really want?

2. Consider long-term strategic marketing and communications objectives
3. Create guidelines for each product or service – show style of sales
promotion
4. Determine budget - sales promotions
5. Ensure senior management commitment
6. Develop a method of evaluation
7. File all ideas & costs
8. Plan and forecast results
Social media-driven sales
promotions

• Spreads word fast

• People like connecting
& sharing
• Sharing free stuff adds
value
Sales promotions checklist

1. Check the promotion exploits key strengths and USPs

2. Does the promotion enhance your brand and corporate values?
3. Contingency planning, crisis management and insurance in place?
4. Has the promotion got legal clearance?
5. Will the promotion only generate a temporary sales increase?
6. Does the promotion need advertising and PR support?
Sales promotions checklist

7. What other communications tools are required?

8. Can we manage the admin – new order forms, coupons, judging,
despatch?
9. Time: (a) cut-off date (b) sell-off time (c) lead time
10. Does it fit the budget available? Is it cost effective? Can it be
measured?
Evaluating sales promotions

• Responses
• Redemptions
• Sales levels
BUT..
• Right kind of customers?
• Existing customers ‘stocking up’?
Reminder: CRM = long-term customers
Advantages

• Close the sale or push the customer through the last stage of the
buying process
• Keep a relationship alive with existing customers by rewarding their
loyalty
• Support the brand and customer relations
• Develop strategically to strengthen relationships over time
• Cost effective on a CPO (cost per order) basis, i.e. good for closing
sales
Disadvantages

• Require other tools/resources to promote them

• What can go wrong will go wrong (disasters damage brands) –
*Insurance*
• Promotions can be expensive
• Not good for creating awareness
• Create a temporary boost in sales
(followed by fall in sales)
When things go wrong…
• Hoover mess…
https://www.youtube.com/watch?v=dUwhH6jdWbA
Product placement &
Store layout
Power of observation
• In-store observation important for design store layout and placing
products effectively
• Especially the routes customers take when they walk through a store
• Routes taken depend on the layout of the store
- Stansted Airport design based on supermarket circulation
observations
Walking patterns in a bookstore
identifying potential reading areas
study by Ebster and Marion (2015)
Customer traffic in-store rules
• Transition zone – just after entrance, customers need time to adjust to
store environment. All customers pass here, but pay very little attention
• Customers move anti-clockwise - often guided by store layout
• Customers avoid narrow aisles – perception of personal space invasion
• Customers avoid upper and lower floors – core merchandise situated on
ground floor
 Store layout types
• Counter store – not for self-service, reduces impulse buying, lends to
suggestive selling
• Forced-path layout – controls buying behaviour, encourages unplanned
purchases, negative impact on customer experience
• Forced-path layout with short-cuts – selective perception (IKEA)
• Grid layout – shop and stock quickly, standardise merchandise display
• Free-form layout – encourages browsing, in fact customers more likely to
impulse buy!
- boutique layout (designer stores)
- arena layout (book, fashion stores)
- star layout (jewellery, perfume stores)
Ebster and Marion (2015)
Guiding shoppers through the store
• Floor signage, colours
• Different floor covering
• Ceiling lighting
• Focal points
Product placement
• Eye level = buy level
• Stretch level – least valuable products
• Touch level – high-profit products
• Stoop level – low value, heavy products
 Zara store front, London
« Walking through our Soho store.. »

https://www.tiktok.com/@zara/video/699180
2707866651909?lang=fr&is_copy_url=1&is_fr
om_webapp=v1

https://www.glossy.co/fashion/fashion-briefin
g-the-museumification-of-retail/amp/
Summary
• Push sales promotions target the trade (intermediaries)
• Pull sales promotions target the consumer directly
• Channel members need to work together to execute both
• Sight must not be lost of the goal of CRM – long term, loyal customers
• Customer experience must remain key focus
Reading activity
• Future retail solutions and shopper experiences
- Read document
- Identify 2 – 3 ways in which our experience as retail shoppers might
change in the future because of technology