ADVERTISING: Out-of-home and Point-of-sale

Sales Promotion A special incentive to: –Distributors –Salespeople, or –Customers to encourage an immediate sale

Growth of Sales Promotion 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% '89‘90‘91‘92'93'94'95'96'97'98'99‘00 Consumer Promotions Media Advertising Trade Promotions Percent of Total Promotional Dollars, 3-year Moving Average.

Obtaining trials Increasing repurchase Increasing overall consumption Rewarding current customers Reaching out to a new market Enhancing advertising efforts Objectives of Sales Promotion

Sales Promotion Vehicles Consumer-Oriented “Pull” Samples Coupons Premiums Contests/sweepstakes Refunds/rebates Bonus packs Price-offs Event sponsorship Trade-Oriented “Push” Contests, dealer incentives Trade allowances Point-of-purchase displays Dealer premiums Trade shows Cooperative advertising

Sampling The Products Are of Relatively Low Unit Value, So Samples Don’t Cost Much The Products Are Divisible and Can Be Broken Into Small Sizes That Can Reflect the Products Features and Benefits The Purchase Cycle Is Relatively Short So the Consumer Can Purchase in a Relatively Short Time Period The Products Are of Relatively Low Unit Value, So Samples Don’t Cost Much The Products Are Divisible and Can Be Broken Into Small Sizes That Can Reflect the Products Features and Benefits Sampling Works Best When

Samples -- Media Door-to-door Direct mail In-store sample pack Cross-product sampling Co-op package distribution With newspaper / magazine Any of above with coupon

Display Cards

Spending on Event Sponsorship

Benefits of Event Marketing 1. Greater Awareness 2. Associate Product with Event 3. New Potential Clients (Sales) 4. Media Coverage

Quote of the day If you’re selling a product that needs to be purchased regularly, and it’s really great, just give away free samples. Mike Basil Professor of Marketing