Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 16-1©2004 Pearson Education Canada Inc. Sales Promotion “Activity that provides special incentives to bring about immediate action from consumers, distributors, and an organization’s sales force.”

Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 16-2©2004 Pearson Education Canada Inc. Consumer Promotion “Incentives offered consumers to prompt extra brand sales.” Marketer Distributor Consumer Promotion Objectives Promotion Objectives Trial purchase Brand loyalty Multiple purchase

Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 16-3©2004 Pearson Education Canada Inc. Consumer Promotion Activities Coupons Samples Contests Cash Refunds Premiums Loyalty Programs Delayed Payments Combinations Coupons Samples Contests Cash Refunds Premiums Loyalty Programs Delayed Payments Combinations The stage of the product life cycle and the nature of competition influence which alternatives to use.

Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 16-4©2004 Pearson Education Canada Inc. Coupons Distributed Source: Nielsen Promotional Services Billions of Coupons

Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 16-5©2004 Pearson Education Canada Inc. Coupons Redeemed Source: Nielsen Promotional Services Millions of Coupons

Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 16-6©2004 Pearson Education Canada Inc. Coupons Distributed by Media Distribution Method FSI52%55%55%55%55% In-store17%17%17%17%16%16% In/On Package16%16%13%13%12%12% Direct Mail8%8%5%5%5%5% Magazine/Newspaper2%2%5%6%6% Charity2%2%2%2%2% Other3%3%3%4%4%

Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 16-7©2004 Pearson Education Canada Inc. Coupon Strategies Product-Delivered Coupons In-pack and on-pack coupons help achieve loyalty objectives. Media-Delivered Coupons Mail, magazine, newspaper and online coupons achieve trial objectives.

Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 16-8©2004 Pearson Education Canada Inc. Samples An appropriate strategy for launching a new product or improving an existing product.  Perceived favourably by consumers  Many alternatives for delivery  Expensive

Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 16-9©2004 Pearson Education Canada Inc. Contests An activity that generates short-term excitement. Sweepstakes Instant Wins Send in entries for a grand prize, other prizes. Pre-seeded winning tickets from a fixed ticket universe. Entry forms provide database information.

Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 16-10©2004 Pearson Education Canada Inc. Premium Offers An item offered free or at a bargain price with another product.  Attaching a sample size product  Free items inside a package  Fast food restaurant giveaways with meals

Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 16-11©2004 Pearson Education Canada Inc. Loyalty Programs A bonus (reward) offered at point-of-sale for a customer’s patronage. Canadian Tire Money Shoppers Drug Mart Optimum Card Air Miles Canadian Tire and Shoppers offer immediate gratification.

Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 16-12©2004 Pearson Education Canada Inc. Trade Promotion “Incentives offered to distributors to secure marketing support.” Marketer Distributor Consumer Promotion Objectives Promotion Objectives Secure listings Increase volume In-store display

Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 16-13©2004 Pearson Education Canada Inc. Trade Promotion Activities Trade Allowances Performance Allowances Cooperative Advertising Display Material Trade Allowances Performance Allowances Cooperative Advertising Display Material When used together the impact is maximized. Dealer Premiums Collateral Material Trade Shows Dealer Premiums Collateral Material Trade Shows For lead generation and personal selling situations.

Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 16-14©2004 Pearson Education Canada Inc. Personal Selling “Personalized communications between a seller and buyer in which the benefits of a product are presented in order to make a sale.”

Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 16-15©2004 Pearson Education Canada Inc. Roles of a Sales Rep There’s more to selling…than selling! Gather market intelligence Solve customer’s problems Locate and maintain customers Follow-up service

Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 16-16©2004 Pearson Education Canada Inc. Types of Selling  Business-to-Business  Retail  Direct (In-home and telemarketing)  Online

Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 16-17©2004 Pearson Education Canada Inc. Steps in Selling Process Prospecting Pre-approach Approach Presentation Handling Objections Handling Objections Closing Follow-up 7 Steps: simple in theory; difficult in practice.

Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 16-18©2004 Pearson Education Canada Inc. The Future of Personal Selling Selling is a team effort CRM programs Impact of technology The nature of selling is changing rapidly.

Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 16-19©2004 Pearson Education Canada Inc. Event Marketing “An integrated communications plan behind an event theme.” Event Sponsorship “Financial support of an event in return for advertising privileges.

Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 16-20©2004 Pearson Education Canada Inc. Primary Types of Sponsorship Sports Entertainment Culture/Arts Sponsorship is a $9.5 billion business in North America. Sports is the largest segment attracting 70% of revenue.

Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 16-21©2004 Pearson Education Canada Inc. Event and Sponsorship Strategies An organization can invest a lot or a little. The benefits are the same but on a different level. Global International National Regional Local Global International National Regional Local Companies like McDonald’s and Coca-Cola support International and local events.

Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 16-22©2004 Pearson Education Canada Inc. Event Marketing Strategy  Exclusivity  Complements Other Promotional Activity  Targeting Ability  Image  Long-term benefit; short-term cost The event should meet predetermined criteria.

Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 16-23©2004 Pearson Education Canada Inc. Benefits of Sponsorship Awareness / association with event Perceived image with target market New business Media coverage Sales increase in post-event period