book

Retail Marketing and Branding: A Definitive Guide to Maximizing ROI, 2nd Edition

Name: Retail Marketing and Branding: A Definitive Guide to Maximizing ROI, 2nd Edition
ISBN: 9781118489529

by Jesko Perrey, Dennis Spillecke

January 2013

Intermediate to advanced

398 pages

8h 58m

English

Wiley

Read now

Unlock full access

Cover Page
Title Page
Copyright
CONTENTS
FOREWORD
INTRODUCTION TO THE SECOND EDITION
SECOND EDITION ACKNOWLEDGMENTS
INTRODUCTION TO THE FIRST EDITION
Why you should read this bookWho this book is forHow this book was createdHow you should read this book
FIRST EDITION ACKNOWLEDGMENTS
COMMONLY USED ACRONYMS

Part I: Building Superior Retail Brands
CHAPTER 1: PRINCIPLES OF SUCCESSFUL BRAND MANAGEMENT: ART, SCIENCE, CRAFT
It takes three elements to build and sustain a strong brand in retail: art, science, and craftThe art is about balancing creativity with consistency to endow a brand with an emotional appeal that builds on its heritageThere is more to strong brands than awareness: the science is in measuring a brand's strengths and weaknesses across the entire purchase funnelThe craft is about bringing the essence of the brand to life at all touch points
CHAPTER 2: SEGMENTATION
Segmentation is just as important to retailers as it is to consumer goods companies – but for different reasons and in different waysSegmentation is a strategic topic and deserves top management attention: if the CEO doesn't care, nobody willConsumer needs are at the root of shopper behavior and should be the basis of a strategic retail segmentationThere should be a central strategic segmentation: any secondary segmentation should be aligned with itTo get the most out of a segmentation: keep it simple, bring it to life, and spread the word
CHAPTER 3: A GUIDE TO EXCELLENCE IN RETAIL BRAND MANAGEMENT
The brand diamond helps retailers map the attributes of their brand in a structured and comprehensive wayThe brand purchase funnel helps retailers benchmark the performance of their brand across the consumer decision journeyBrandMatics is a comprehensive brand management approach for assessing and improving brand performance across all stages of the brand funnelThe brand promise captures the essence of a brand completely, yet concisely, synthesizing it in plain and simple termsBranding is more than advertising: the brand promise needs to be delivered consistently at all customer touch points, from ATL advertising to after-sales service
CHAPTER 4: DEVELOPING AND REFINING RETAIL FORMATS
There are two basic types of retail format development: optimization of existing formats, or launch of a new formatThe key to successful format development is a systematic, four-step process: investigate, incubate, iterate, igniteThe format development process needs to be supported by systematic project, HR, and communication management
CHAPTER 5: STORE BRAND PORTFOLIO MANAGEMENT
Increasingly, retailers are operating multiple formats and brands under one roof to address a wide range of consumer needs and purchasing occasionsBrandMatics Advanced allows retailers to assess the real economic impact of brand portfolio management decisionsUse the brand space map to derive different portfolio scenarios, then evaluate them with the help of customer conversion value modelingTo assess the full impact of a portfolio move, estimate the one-time rebranding cost, changes in continuous marketing cost, and potential risks and synergies
CHAPTER 6: PRIVATE LABEL BRANDING
Private labels are here to stay: their share is growing across countries, sales channels and product categoriesPL has evolved beyond its origins in generic products and value segments. The most recent PL generation is even venturing into the premium segmentAs the foundation of sustainable PL success, retailers need to define their PL strategy, particularly an appropriate price and brand architectureTo select the most promising SKUs for a given PL effort, it is imperative to design the category structure with a profitable growth mindsetTo capture the full benefit of PL, retailers need to match the sourcing, manufacturing, and marketing capabilities of brand manufacturers
Part II: Optimizing Marketing ROI
CHAPTER 7: HOW TO SPEND IT: FACT-BASED MEDIA MIX OPTIMIZATION
The media landscape is in rapid transformation, and the media mix used for advertising differs substantially across industries and between countriesEngage on an equal footing with your media agencies to ensure the media mix is tailored to your needsThere are three distinctly different approaches to media mix optimization: testing and learning, comparative heuristics, and econometric modeling
CHAPTER 8: BUDGET SIZING: THE MILLION-DOLLAR QUESTION
Marketing budget sizing is the million-dollar question: it calls for a systematic and comprehensive, yet pragmatic, approachCreate full budget transparency: conduct a comprehensive budget stock-take to capture the current budget, its components and its organizational ownersUse outside-in competitive benchmarking to determine the share of voice required to cut through the clutter in your competitive arenaEmploy inside-out budgeting based on marketing objectives to estimate the investment needed to advance customers on their purchase journeyEngage in saturation analysis, correlating marketing spend with impact to conduct a sanity check on the efficiency of the overall budget levelCombine benchmarking, objective-based budgeting, and saturation analysis to derive a realistic budget level estimate. Refine as needed
CHAPTER 9: BUDGET PRIORITIZATION
Find the right decision mode: deciding centrally or convincing locallyDefine the right investment units: go granular and find the pockets of growthCreate full transparency: understand where the money goesDefine the prioritization criteria and weights based on what really matters in your budgeting decisionsAvoid automatic decisions: prioritize your marketing investment in the light of the full facts
CHAPTER 10: REACH–COST–QUALITY
Optimizing individual vehicles one by one is challenging enough, but cross-media optimization is next to impossible without a universal metricCompare apples and apples: use “cost per actual reach in target group” as the common currency for evaluating and selecting different mediaRCQ scores can be used to increase efficiency as well as effectiveness, both within and across communication channels
CHAPTER 11: MARKETING MIX MODELING
What it is: Marketing mix modeling tells you how to spend itHow it works: MMM compares the relative impact of a wide range of growth leversWhat it does: MMM has strategic as well as tactical applicationsWhat it yields: MMM creates transparency across multiple marketing leversWhat to watch out for: The devil is in the details of the analysis; cross-functional teams help to ensure the integrity of the data, the calibration of the model, and the correct interpretation of its output
CHAPTER 12: THE DIGITAL RETAIL (R)EVOLUTION
End-to-end digitalization affects multiple retail business functionsConverging sales channels are transforming the consumer decision journeyDigital localization and individualization gain momentumSocial media impact is revolutionizing retail reputation buildingContent emerges as a future retail success factorDon't forget that multi-channel retailing includes brick-and-mortar
CHAPTER 13: POS MARKETING
For retailers, the POS is the most powerful marketing vehicleDespite its importance, many retailers don't leverage the store effectivelySystematic POS management can advance both long-term brand building and short-term business successThe tangible and intangible elements of POS marketing have to work in tandemThe human factor is “make or break” for the consumer's POS experience; front-line employees are a retailer's foremost ambassadors
CHAPTER 14: LEAFLETS AND LOCAL PRINT ADVERTISING: HOW TO ACHIEVE LOCAL MEDIA EXCELLENCE
Local media is the true point of sale: consumers' love for leaflets drives sales and profitsLocal marketing is a complex challenge: to succeed, retailers need to cover all bases from consumers to media ownersFine-tuning pays: optimizing local marketing can increase its efficiency by 30 percentWhat to promote: what's on it determines what's in it for you! Highlight products with high expandability and low substitutability.Where to promote: use granular geo-marketing to reach your most valuable customers
CHAPTER 15: FACT-BASED PROMOTION MANAGEMENT
Econometric modeling helps to strike the right investment balance between regular pricing and promotionsComprehensive, clearly defined KPIs are crucial to optimize item selection and promotional tacticsRetailers should leverage insights about promotional impact in negotiations with suppliersExcellence in forecasting, logistics management, and in-store execution can improve margins significantly
CHAPTER 16: EXCELLENCE IN CLASSICAL MEDIA
For many retailers, classical advertising remains a key element in their marketing mix, despite the importance of local media and digital vehiclesCreativity matters, but it's not enough: content fit is equally important, especially in campaigns advertising low-involvement, fast-moving productsTest and learn prior to, during, and after activation to make sure you get your money's worth in terms of target group impactOnce the message is clear, optimize it across and within media to ensure that it is delivered effectively to its target audiencePick your creative partners carefully. Tailor the cooperation model to the needs of your brand and company. Don't be afraid to change horses
CHAPTER 17: DIGITAL MARKETING EXCELLENCE
Digital technology affects the entire retail value chain. Pick your battles wisely to differentiate your value propositionDigital marketing excellence starts with the consumer. Develop your digital strategy based on your target group's decision journeySearch engine marketing drives online visibility. Manage paid and unpaid listings activelyDisplay advertising is a retailer's online shop window. Fine-tune ad formats and user targeting to minimize scattering lossesSocial media is more than meets the eye. Integrate social media marketing with business strategy and listen activelyDigital marketing is the new way of doing marketing. Coordinate centrally, build key capabilities in house, but keep the setup flexible
CHAPTER 18: MAXIMIZING CUSTOMER VALUE WITH DATA-DRIVEN CLM
CLM helps drive effectiveness and efficiency in targeted marketing, enabling retailers to extract the full value from their customer baseSuccessful CLM requires a deep understanding of your customer base: identify relevant data and aggregate the information in meaningful waysUp-front impact estimates allow for more targeted CLM activities: use predictive modeling to assess probable customer reactions before pilotingOptimization starts with knowing what works and what doesn't work: test different campaigns and keep track of their parameters as well as impact metricsBuild sustainable CLM capabilities: secure top talent, set up clear interfaces and processes, and take precautions regarding data availability and qualityCLM need not be limited to direct marketing but can be applied to areas such as category management and format development
CHAPTER 19: SMART SOURCING
Increasing marketing efficiency might be hard work, but it is well worth it: smart sourcing yields sizeable savings without compromising qualityEfficiency levers include rigorous supplier management, streamlined demand management, and procurement process optimizationEfficiency optimization is a five-step process: gather facts, create a long list of improvement ideas, select ideas for execution, negotiate, and implementFollow best practice in preparation, negotiation, and implementation to capture the full value of smart sourcing effortsOptimizing commercial print sourcing, an important cost position in retail marketing, can yield cost savings of 10–30 percent
Part III: Ten Perspectives on Retail Marketing
CHAPTER 20: TEN PERSPECTIVES ON RETAIL MARKETING
CONTRIBUTORS
INDEX

Content preview from Retail Marketing and Branding: A Definitive Guide to Maximizing ROI, 2nd Edition

CHAPTER 11 MARKETING MIX MODELING

Francesco Banfi, Rishi Bhandari, Jonathan Gordon, Andris Umblijs

Retailers have privileged and powerful access to consumers – especially through promotional activities and loyalty programs. These instruments are direct purchase decision drivers, but they are also highly targeted communication channels, since both the message and execution can be tailored to the needs of individual regions, clusters, outlets, or even consumer segments. Their effectiveness makes them key elements in any retailer's marketing mix.

In Chapter 10 we discussed the Reach–Cost–Quality (RCQ) approach as an established and pragmatic way to evaluate and balance the role of a wide range of traditional touch points, comparing them on an “apples-and-apples” basis. By comparison, marketing mix modeling, or MMM, is a more analytically sophisticated and more powerful tool. It helps retailers create a comprehensive fact base for advanced marketing allocation and activity decisions. Based on econometrical modeling, MMM enables retailers to measure the performance of their current marketing mix and optimize it across advertising vehicles and other touch points, including unique retail levers such as pricing and promotions.

What it is: Marketing mix modeling tells you how to spend it

It's all about the look. You want your ads to look good on the TV screen, your products to look good on the shelf, your brands to look good in the consumer's mind – and the bottom line to look good on ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.

Read now

Unlock full access

More than 5,000 organizations count on O’Reilly

O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.

Julian F.

Head of Cybersecurity

I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.

Addison B.

Field Engineer

I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.

Amir M.

Data Platform Tech Lead

I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.

Mark W.

Embedded Software Engineer

Shopper Intimacy: A Practical Guide to Leveraging Marketing Intelligence to Drive Retail Success

Publisher Resources

ISBN: 9781118489529Purchase book

Cloud Computing

Data Engineering

Data Science

AI & ML

Programming Languages

Software Architecture

IT/Ops

Security

Design

Business

Soft Skills

Retail Marketing and Branding: A Definitive Guide to Maximizing ROI, 2nd Edition

by Jesko Perrey, Dennis Spillecke

CHAPTER 11

MARKETING MIX MODELING

What it is: Marketing mix modeling tells you how to spend it

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.