Shopping center marketing programs are complex. They begin with the development of
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1 CREATING A SUCCESSFUL MARKETING PROGRAM Shopping center marketing programs are complex. They begin with the development of an annual marketing plan that is based on anticipated funding. Media advertising and promotional events comprise most of the budgeted items, and they are important components of a successful program. For a new shopping center, a grand opening event is funded separately; it is planned while the shopping center is under construction. Advertising The purpose of advertising is to appeal to a specific audience in this instance, so they will visit the shopping center and shop there. Many large shopping centers hire ad agencies to assist in planning ad campaigns, recommend media and negotiate contracts, create and produce the ads, place the ads with the media, and handle the accounting and record keeping. Smaller shopping centers may rely on services provided by the media (their sales representatives or production departments). Advertising for strip shopping centers is often scheduled on a regular basis (e.g., a monthly or quarterly joint advertising section in the local newspaper and a monthly coupon promotion). The marketing director is responsible for determining the right media mix for the advertising program. The media mix depends on the location of the shopping center, the size of its trade area, the specific audience each medium reaches, and the advertising budget. Though numerous advertising media are available, the ones used most often for shopping centers are newspapers, direct mail, the Internet, radio, television, transit signs, and billboards. Direct Mail. Flexibility is one of the main advantages of direct mail advertising. Direct mail has no broadcast schedules or publication deadlines. For the best results, direct mailings should be planned, periodical mailings so the recipients are reminded of
2 the shopping center and its tenants on a consistent basis. In recent years, the marketing director can choose between traditional (hard copy) direct mail and direct . Traditional Direct Mail. With traditional direct mail, the marketing pieces can vary in size, shape, color, and texture. They can be inserted in newspapers or mailed separately or with other direct mail advertisements. Direct mailings can be targeted to specific segments of the market based on postal zip codes, occupations, membership in specific organizations, etc. Mailing lists can be purchased from organizations, created from directories, or compiled from customer information taken at the time of purchase. Stores that issue their own credit cards have ready-made mailing lists. Names and addresses can be collected during contests or at promotional drawings held at the shopping center. The marketing director must take some special considerations into account when he or she creates direct mail advertising campaigns. Postal regulations define dimensions, weights, and degrees of presorting required to qualify for the most economical bulk mailing postage rates. These rules should be studied beforehand. Delivery of third-class mail is often not expedited, so extra time must be allowed. Also, while printing costs on a per-piece basis decrease as the number of printed pieces increases, such items as specialty papers, specified ink color matches, die cutting, and special folds add to the costs. Direct . As a lower-cost option, broadcast s can be sent to attract prospects to the shopping center. The marketing director and the shopping center manager should be aware that legislation restricts some direct mail campaigns via . In December 2003, legislation was passed to control unsolicited commercial s. The legislation responded to marketers, retailers, and Internet account providers who sought a single
3 set of rules that would apply nationwide. The bill does not ban unsolicited commercial e- mails, but it does establish requirements that senders of commercial s must follow: Include a legitimate return and physical postal address. Include a functioning opt-out mechanism and a clear and conspicuous notice of the opportunity to opt out. Honor any opt-out request. Include a clear and conspicuous notice that the message is an advertisement or solicitation. Clearly identify messages that contain pornographic or sexual content. In addition, the legislation prohibits senders from falsifying or disguising their true identities and from using incorrect, misleading, or fraudulent subject lines. 1 Coupons. As a mailing either through or regular mail a collection of coupons from a variety of stores within the shopping center provides an array of savings opportunities for the consumer. This can lead to multiple purchases, cross-shopping, and repeated shopping trips all traceable to the one promotional mailing. As with traditional direct marketing pieces, campaigns from individual retailers may include a redeemable coupon to be used by providing the promotion code at the retailer s online store or by printing it out and redeeming it in the store. The Internet. It has become essential that every shopping center, and even each tenant within the shopping center, create an Internet presence with a Web site. At the 1 Adapted from IREM education course, Marketing and Leasing: Retail Properties, 2004.
4 very least, a shopping center can develop a Web site that has a directory of tenants, including their phone numbers and addresses as well as the shopping center s hours. The Web site should also include a directory by merchandise types and should be updated regularly for new tenants and to communicate about upcoming events. (See chapter 8, Leasing the Shopping Center, for details on setting up a Web site and using the Internet to assist in leasing efforts.) An indirect but potentially very successful way for retailers to draw in traffic is through the retailer s own Web site. The frenzy of dot-com businesses in the late 1990s attempted to persuade consumers to change their shopping habits and buy online. Savvy retailers have since learned that rather than drawing the consumers to their Web sites to purchase something, they can use the site to offer a variety of services to their potential customers, e.g., discount coupons, information about special promotions, customer care contact information. Each merchant may wish to have a link from the individual store s Web site to the shopping center s Web site. A common method retailers use to build their online customer bases is to have the salesperson or cashier ask the customer at checkout if they would like to be on the retailer s list. Successful retailers use the customer s addresses strictly for store information and do not disclose or share the addresses with any other businesses. Transit Advertising. Advertising on mass transit (buses, elevated and subway trains, streetcars, or trolleys) allows the shopping center's message to be seen over a wide area. Advertising space is available on the exteriors and interiors of most such vehicles, including taxis. Some rapid transit districts can ensure that an ad will be on a specific route. The cost is relatively low, and such programs offer flexibility in ad design, use of color, and frequency of message changes.
5 Billboards. Billboards can be used to direct people to a shopping center or to promote a major event such as a grand opening. They mainly provide repeated exposure to the message, and the cost per view is measurably lower than for any other medium. However, billboards are seldom used for shopping center advertising because of their limited effectiveness. Though the message can be changed frequently, the changes themselves can be expensive. Billboard ads are typically prepared as painted or printed panels, and their showing locations are rented for a minimum of three to six months. The time frame makes them less useful for advertising a specific short-term event. In the early 2000s though, some large shopping centers began using electronic billboards or reader boards on the site adjacent to the main street on which they front. [NOTE: Further discussion is included in the full text of this book. Purchase the book today to learn more techniques for creating a successful marketing program for your shopping center!]
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