Improving your sales presentations to retailers

Steve Wishnow is a seasoned marketing and sales promotion executive with an extensive background in advertising planning and implementation. From 1980 to 1999, he held the position of senior vice president, director of marketing and sales promotion for Hecht's/Strawbridge's, the largest division of The May Department Stores Company. Hecht's/Strawbridge's is a premier mid-Atlantic department store chain operating with 75 stores in 24 markets and annual sales in excess of $2.6 billion. The following is an excerpt from a question-and-answer session that took place during API's Advertising Executives (Metro Markets) seminar:

Q. How do I get the retailer's attention? What if I'm having trouble getting an appointment?
A: Retailers will respond when they perceive you have information that will impact their business. Your objective should always be to help them increase sales. Tell them about significant market changes. Tell them what's happening with their competition or how they are not competing effectively in the market. And remember, you'll have their attention for about 20 minutes.

Q: What do we do about retailers who bounce to broadcast saying they are trying to reach a specific demographic and their newspapers ads "don't work"?
A: Retailers don't view newspapers as reaching all age groups, but this perception is wrong, according to NAA research. For example, teenagers and young people are heavy consumers, they are brand loyal but not necessarily store loyal. Teens do read papers for sports, comics, entertainment, etc. Retailers need to be educated about readership.

Q: How do you convince a retailer to increase investment by paying attention to local market information?
A: Get to the right decision-maker. Store managers don't typically have influence, but regional managers do. You want to foster the local relationship but sell to the regional manager. Don't just mail in the information, get the appointment.

Q: What are the most critical issues retailers face when buying?
A: Circulation around their stores; penetration of households; cost per thousand; positioning. Advertising co-op allowances are now being spent on other promotions and to support in-store activities.

Q: Who is the next generation of retailers?
A: This is the most-educated consumer of all time. They are not necessarily store loyal, want fast service, value and quality. Think of Kohl's: They address consumer needs by being fast, convenient and fostering the perception of featuring off-price yet quality merchandise.

Q: When do you see a retailer?
A: To talk about big programs, there are two windows. In January, retailers tend to reflect on what worked and what didn't work the year before - pitch it to them that way as a critique process. Also, in January, retailers are working on fall budgets. In September, they are setting next year's spring budget and revisiting fourth-quarter holiday plans. One suggestion, pitch it to them by saying "We have something to talk to you about that will impact your fourth-quarter business."

Q: What if you do have to pass along a rate increase?
A: The percent they might be willing to accept is 3 percent to 3,5 percent. You're in trouble if you're at 4 percent to 5 percent or above.

Q: How do you lessen the impact?
A: You need to make sure they understand you want to work with them to get through it. Retailers are "the ultimate negotiators." They need to feel they've won something.