Chapter 14 Sales Promotion

Sales Promotion 1. Sales activities that supplement both personal selling and marketing, coordinate the two, and help to make them effective. (example: display) 2. More loosely the combination of personal selling, advertising, and all supplementary selling activities.

Sales Promotions Pros Encourages consumer sales response Flexible Functions at consumer and trade levels

Sales Promotion Cons Can damage brand equity Care must be taken to coordinate the various messages of advertising.

Effective Sales Promotion Functions To inform To motivate

Objectives for Promotion Gain trial among nonusers Increase repeat purchases Expand brand usage Defend against competitors Support/reinforce an ad campaign Increase distribution cooperation

Forms of Sales Promotion Event marketing Premiums and incentives Point of sale Sponsorships Licensing Etc.

Event Marketing

Virtual Advertising Computer-generated ads, logos, and products that are super-imposed on a live feed or inserted into a completed movie or television show.

Deals Designed to save the customer money Sales Coupons Mail-in-rebates Premium offers

Coupons

Point of Purchase Advertising Displays prepared by the manufacturer for use where the product is sold.

Primary Advantages of POPS Advertising Motivate unplanned shopping Brand and product reminders Influence brand switching Informing Reminding Persuading Merchandising

Premiums Extra incentives to encourage a consumer to make a purchase.

Premiums and Incentives Items given to customers in exchange for a purchase or some action Types of premiums Traffic-building premiums Continuity premiums In- or on-pack premiums Self-liquidating premiums

Specialty Advertising Difference between Premiums = do not have logos printed on them Specialties = have advertiser’s logo and given with no obligation Reasons for using specialties Customer retention/appreciation Connection with trade show Build goodwill; enhance image Create awareness Generate sales leads/responses

Coupons Distribution Redemption fraud Mass coupon distribution (free-standing insert) Electronic distribution Redemption fraud When a person sends in coupons for which no product purchase was made

Growing Areas of Sampling Newspaper distribution Event/venues marketing In-store sampling In-pack/co-op programs Internet sampling

Sweepstakes vs. Contests Sweepstakes = based solely on chance Contests = must contain some element of skill

Contest

Cooperative Advertising Purpose Allows retailers to stretch advertising budgets Build goodwill with retailers; local support Media strong supporters of co-op

Special Forms of Co-op Vender programs Ingredient manufacturer Manufacturer to wholesaler co-op

Directories and Yellow Pages Print and electronic medium 89% of yellow page users will make a purchase. Specialized directories

Trade Inventories Sales incentives Types Dealer incentives

Example of Dealer Incentive