This chapter deals with the contribution of research, both in the planning and evaluation, of âbelow the lineâ activity. Any definition of âbelow the lineâ assumes a false dichotomy since many promotions are dependent on media advertising. This would be so, for example, when reduced offers are backed by national press advertising. In the current context âbelow the lineâ expenditure is defined to include the following, whether or not they are supported by media advertising: (a) any in-store promotional activity to the consumer such as premium offers, reduced price offers, stamps and coupons, competitions and banded packs; (b) any trade incentives or discounts to the retailer; (c) all display material whether in support of specific promotions or not; (d) any point-of-scale aids such as leaflets, brochures, store demonstrations; (e) any direct promotion to the consumer such as couponing or free samples. Expenditure on items such as sales force incentive schemes and sponsorships is excluded for the purpose of this chapter.
This paper describes how the growing concentration of retail power has made it increasingly important for manufacturers to optimise their relations with their key customers in order to secure a more favourable position there. This need has stimulated the development of trade marketing covering customer service in the broadest sense from sales and administration to marketing support. Consequently manufacturers, who have previously relied solely on internal sources for a playback of what is happening in the trade, are now commissioning trade research as an aid to the formulation and appraisal of their trade marketing policies. The practical uses of this research into the manufacturer/trade relationship are illustrated by case histories on: - The communication and promotion of relative strengths compared with the competition; - Remedial action, where practical, on relative weaknesses, so as to improve standing with the trade.
These trends have led retailers to assume more of the marketing functions previously undertaken by manufacturers. Retailers are encouraging store rather than brand loyalty through promotional and media expenditure, through own label brands and through shopper incentives such as trading stamps. Above all retailers are beginning to market themselves to promote a corporate identity to distinguish themselves from the competition, so as to persuade shoppers to use their stores rather than any other. Management decisions historically based on the business flair, expertise and judgment which have been so prevalent in European retailing are gradually being supplemented by a recognised marketing function in many firms. This function can be defined as 'reconciling what shoppers want with what the retailer can sell at a profitâ.
There is no doubt that the main information required for the management of a retail business is fast and accurate internal statistics on sales, costs and profits. I have tried to demonstrate why this should be supplemented by information which can only be obtained from market research, basically: Who buys what? From whom? and why? And why not?. I have mentioned various resistances to retailer research. Market research is diagnostic and can help retailers to go a stage further towards understanding customers' needs and satisfying them at a profit.
This paper defines the corporate marketing objectives of retail organisations; and suggests ways in which market research can evaluate their achievement.
The results of modern psychology on various aspects of memory - recognition, retention and recall - are all of interest but of varied practical use to market researchers. The problem of respondent memory in market research is illustrated from behaviour studies on readership and purchasing habits. Three alternatives are available to the researcher in handling memory. He can devise techniques which eliminate any reliance on memory. He can attempt to ensure its accuracy by reducing reliance on memory. Alternatively, by the use of aids and questionnaire techniques, he can stimulate memory to the limit which still returns accurate results. The clear advantage is that as much information as possible is extracted at the interview. This paper illustrates the use of each approach - elimination, reduction and stimulation. The advantages and drawbacks of each are examined. Some new ideas and developments are raised for discussion. Conclusions are drawn for the future about the need for more attention to methods, and about the correct handling of memory.