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
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
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
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?