mkt 12

Promotion and Sales Promotion

  • Definition: Short-term incentive to encourage purchase or sales of a product or service.
  • Objectives:
    • Stimulate immediate purchases
    • Influence consumer behavior, not attitudes
    • Tailored to Product Life Cycle (PLC) stage
Common Promotional Tools
  • Coupons: Immediate price reduction; encourage trial and repurchase.
  • Rebates: Delayed discount, preferred by manufacturers (build database, reduce immediate cash out).
  • Premiums: Free items or services with purchase (e.g., "gift with purchase" in cosmetics).
  • Contests/Sweepstakes: Build interest, encourage engagement (e.g., Tim Hortons "Roll Up the Rim").
  • Sampling: Reduces risk for customers; common in cosmetics, food.
  • Loyalty Programs: Reward repeat customers; must be easy to use, personalized, and mobile-accessible.
  • Shopper Marketing/POP Displays: In-store messaging to encourage last-minute purchase.

Trade Promotions

  • Definition: Targeted at wholesalers/retailers, not consumers.
  • Includes:
    • Trade allowances
    • Display incentives
    • Trade shows and events
    • Training programs
  • Purpose: Push products down the channel by encouraging retailers to stock and promote.

Personal Selling

  • Definition: Direct interaction between a sales rep and potential buyers to influence a purchase decision.
  • Why Use It?:
    • High-involvement or complex products
    • Immediate feedback and adaptation
    • Builds relationships
  • Types:
    • Traditional Selling: Focus on closing sales.
    • Relationship (Consultative) Selling: Focus on long-term partnerships, understanding customer needs.
Steps in the Selling Process
  1. Lead generation (prospecting)
  2. Lead qualification (assess readiness and fit)
  3. Pre-approach (research client)
  4. Sales presentation (formal meeting)
  5. Handling objections
  6. Closing the sale
  7. Follow-up
Technology in Selling
  • Increases efficiency (CRM, e-commerce)
  • Enhances customer knowledge
  • Doesn’t replace relationship, but supports it
  • CPSA: Canadian Professional Sales Association offers the Certified Sales Professional (CSP) designation.

Social Media in Integrated Marketing Communications (IMC)

  • Why Social Media?:
    • Shift from mass media to smaller, personalized screens
    • Enables real-time, two-way engagement
    • Low cost, high reach, measurable
  • Canadian Stats:
    • 63% use social media
    • Facebook and YouTube dominate
    • Gen Z: 48 minutes/day on smartphones
    • 50% of TV viewers also use smartphones while watching
Online Buyer Behavior (Canada)
  • 60% of purchases made by only 18% of shoppers
  • 82% of travel bookings are online
  • Online sales account for ~15% of retail in Canada
Social Commerce
  • Definition: Combines e-commerce with social interaction
  • Sites: Pinterest, Etsy, TripAdvisor
  • Features: ratings, reviews, UGC (user-generated content)

Digital Advertising and Media Strategy

Types of Media
  • Paid: Google Ads, Facebook Ads
  • Owned: Company’s website, blog, social media accounts
  • Earned: Reviews, word of mouth, shares
Google Search vs. Display Network
  • Search: Text ads on search results
  • Display: Image or video ads on websites
  • Display reaches 90% of global internet users
  • Google Ads:
    • Auction-based cost-per-click (CPC)
    • Average CPC: $1–$2 search, <$1 display
    • Expensive keywords (e.g., law) can cost $50+/click
    • Small businesses spend ~$10,000/month on Google Ads
Facebook Ads
  • Costs affected by:
    1. Bid amount
    2. Ad quality and relevance
    3. Estimated action rate
    4. Audience targeting
    5. Time of year
    6. Placement
    7. Optimization strategy
Key Social Media Tools
  • Media Types:
    • Social Networks: Facebook, LinkedIn
    • Media Sharing: YouTube, Pinterest, Instagram
    • Microblogs: Twitter/X
    • Review Sites: Yelp, TripAdvisor
    • Location-Based: Foursquare (less popular now)
    • Podcasts & Gaming: Interactive, immersive brand experiences
Mobile & Apps
  • High video consumption
  • Apps increase engagement, brand presence
  • Widgets: Small tools for integration into websites

Metrics and Measurement

  • ROMI (Return on Marketing Investment):
    ROMI=(Incremental Revenue−Campaign Costs)Campaign Costs×100ROMI = \frac{(Incremental\,Revenue - Campaign\,Costs)}{Campaign\,Costs} \times 100
Listening Systems
  • Use social media monitoring tools to analyze mentions, sentiment, trends
  • Enables real-time response and engagement
Social Media Planning Process
  1. Define social media objectives
  2. Align with overall IMC goals
  3. Choose appropriate platforms
  4. Monitor, measure, and adapt
  5. Engage with community and encourage user interaction