Chapter 1919Promotional Strategy

Administrative Items CNTAE Moodle Correction

Chapter 19 today Chapter 18 p. 461-471 for Wednesday

Grades Retail Institutions Assignments available for pick-up

tomorrow beginning at noon Moodle assignment submission – Wednesday optional Participation grades will be posted by Thursday, Nov. 28 Newswatch Assignment Grades available Mon. Dec 2

Planning a Retail

Promotional Strategy

Promotion and the Hierarchy of Effects

Procedures for Setting a Promotional Budget Affordability method Incremental method Percentage-of-sales method Competitive parity method Objective-and-task method

Which is best? Why?

Advertising Advertising is paid, nonpersonal communication

transmitted through out-of-store mass media by an identified sponsor.

Retailers can use advertising to accomplish a number of objectives including: Providing information about goods and services and/or

company attributes Reinforcing their image Lifting short term sales Easing the job of sales personnel

Of all advertising media, papers (weeklies, dailies, and shoppers) are the most preferred by retailers*

AdvertisingAdvantages

Attracts a large audience Low cost per contact Control over message

content; message can be standardized

Many media alternatives available

Gains pass along readership (for print)

Advantages Attracts a large audience Low cost per contact Control over message

content; message can be standardized

Many media alternatives available

Gains pass along readership (for print)

Disadvantages Standardized messages

lack flexibility Geographic flexibility

limited Some media require large

investments Some media require long

lead time Some media have high

throwaway rate Some media limit the

ability to provide detailed information

Disadvantages Standardized messages

lack flexibility Geographic flexibility

limited Some media require large

investments Some media require long

lead time Some media have high

throwaway rate Some media limit the

ability to provide detailed information

See also Table 19.2

Advertising Media Comparison Chart

See also Table 19.2

Advertising Media Comparison Chart

Types of Advertising

Harveys Joe Fresh

Familiprix 1 Reno-Depot 1 IKEA

Familiprix Reno-Depot 2 http://cassies.ca/Home/Case_Library

Sears Canada Holiday 2013Sears 2013Familiprix Reel

Retail circular support increases in US CPG

Canadian Tire Advertising Canadian Tire is one of

Canada's largest advertisers. Catalogue – used to

communicate product information and drive traffic

Flyers (circulars) – 90 % readership; distributed to 11 million households weekly to support catalogue objectives

Television Television spring 2

013

Canadian Tire TV Advertising Canadian Tire used TV spokespeople in demo-

mercials until 2006. Why did Canadian Tire drop the spokespeople?

Canadian Tire guy ranked the #1 most annoying person on TV in a poll conducted among readers of Globe and Mail TV column

"demo-mercials" were effective, but advertising wear-out "It was time for something new, something fresh,

something different, and maybe something a little more light hearted," Canadian Tire's Lisa Gibson told CTV News.

The replacement: a series of no name couples using a more humourous, less in your face, sales approach.

Source: CTV News, “Canadian Tire dumps know-it-all neighbour ads”, www.ctv.ca, March 10, 2006

Although Canadian Tire guy ads were competitive in nature, there is a risk of negatively impacting the retailer’s image if they are not well perceived

This example illustrates the importance of market research and the truly integrated nature of retail strategy execution

Canadian Tire Institutional Advertising

Sales PromotionSales promotion is used to generate immediate action and encompasses the paid communication activities other than advertising, public relations, and personal selling that stimulate consumer purchases and dealer effectiveness

Sales promotion includes point-of-purchase displays, coupons, contests, demonstrations and special events

Sales promotion is also said to include loyalty programs As with all the other promotional tools, there are trade-offs

with using sales promotion that must be balanced Sales promotion is effective when used to generate consumer

interest or excitement and is viewed as a complement to other tools

Sales promotion is used to generate immediate action and encompasses the paid communication activities other than advertising, public relations, and personal selling that stimulate consumer purchases and dealer effectiveness

Sales promotion includes point-of-purchase displays, coupons, contests, demonstrations and special events

Sales promotion is also said to include loyalty programs As with all the other promotional tools, there are trade-offs

with using sales promotion that must be balanced Sales promotion is effective when used to generate consumer

interest or excitement and is viewed as a complement to other tools

Canadian Tire Sales Promotion Coupons Sweepstakes Canadian Tire Money

Debuted in 1958 Canada’s most popular loyalty

rewards program with 90% redemption

Has evolved to include Canadian Tire 'Money' On the Card™

New electronic loyalty program…

Do you think loyalty programs are really sales promotions?Do you think loyalty programs are really sales promotions?

The Future of Retail Promotion Greater Use of Social Media

How? Consumer Generated Media (CGM) Smartphones and Location Based Promotion

Best Buy Increased Engagement and Interactivity

Zellers Festive finale