Chapter 9 Sales Promotion Strategies

Categories of Promotion Strategies Coupons Sampling Premiums Loyalty Programs Sweepstakes Contests BOGO Extra Amounts Brand Demonstrations Cash Back Free Trial Bonus Packs Shared Programs Logo Merchandise Experiences Figure 9 There are many different types of promotion, but these fifteen are the most frequently used. While most involve financial incentives, some reward continued purchase of the brand, or even special recognition. The important distinction of any promotion is that it does NOT involve a product feature or consumer benefits. Promotions are all about motivating people to buy immediately or within a short time frame..

Promotion Goals by Category Coupons Distribution Redemption Data Analysis Sweepstakes Entries Individuals Information Sampling Participants Feedback Conversion Rewards Brand Loyalty Usage Rate Registration Figure 9.2 Each category of promotion is evaluated by using a different measurement that is relevant to its purpose. Although sales are the ultimate goal, these distinct promotional goals are used to evaluate the degree of success for individual programs.  

Estimating Value of Promotions Total Value Program Costs Advertising Support Administrative Expenses Incremental Sales & Profits Figure 9.3 The total cost of implementing a promotion program has three components: the program costs, advertising support, and administrative expenses. When these costs are subtracted from the incremental sales and profits, the actual value of a promotion can be determined.

Measuring Promotion Effectiveness Digital Platform Metrics Search Results Website Visits Social Media Marketing Metrics Incremental Sales Profit per Unit Market Share Communication Metrics Awareness Levels Perceived Image Brand Prefernce Figure 9.4 Three different metrics can be used for evaluating the effectiveness of a brand promotion. These include all the measurement from digital media, traditional advertising, and marketing. The combination provides a comprehensive perspective of promotion as an IMC strategy.