Retailer Advertising Strategies

Abstract

Retailer advertising has grown in volume, hut there is disagreement about its strategic role. Some successful retailers do not use media advertising, some less successful retailers have spent considerable sums on advertising. Correlations are presented in four retail sectors, DIY, electrical, furniture and department stores. In the first three, positive correlations were found between the number of paying shoppers and media expenditure. In the fourth sector no such correlation existed. It is argued that media advertising can be effective for retailers employing a price-led strategy, but that retailers relying on non-price, so-called image, factors might be better advised to consider other forms of promotion.