CONSTRAINTS ON CHANNEL MEMBER PROMOTIONAL SUPPORT WHOLESALE LEVEL Product Line Product Line The Market The Market Service Requirements Service Requirements Nature of competition Nature of competition RETAIL LEVEL Product Assortment Nature of the Market Type of Store Competition

PROMOTIONAL STRATEGIES CONSIDERATIONS Should not be haphazard Should not be haphazard Should be part of an overall program Should be part of an overall program Investment you make to generate cooperation Investment you make to generate cooperation

Example of Manufacturer Promotional Activities Cooperative advertising Cooperative advertising Point-of purchase display material and assistance Point-of purchase display material and assistance Demonstrations Demonstrations Coupon-handling allowances Coupon-handling allowances Promotional allowances Promotional allowances Retailer tag lines in manufacturer advertising Retailer tag lines in manufacturer advertising Salesperson incentives Salesperson incentives Contests for buyers and salespeople Contests for buyers and salespeople Missionary sales force Missionary sales force Retail sales force training Retail sales force training Deals of all types Deals of all types Store fixtures Store fixtures

PROMOTIONAL STRATEGIES TYPES Cooperative advertising Cooperative advertising Promotional allowances Promotional allowances Display and selling aids Display and selling aids In-store promotions In-store promotions Contest and Incentives Contest and Incentives Special promotional deals Special promotional deals Training programs Training programs Quotas Quotas Missionary selling Missionary selling Trade Shows Trade Shows HARD HITTING KINDER & GENTLER

WHEN IS COOPERATIVE ADVERTISING MORE IMPORTANT? SIGNIFICANT ROLE Shopping goods Shopping goods Infrequently purchased goods Infrequently purchased goods Relatively expensive Relatively expensive Considered purchase Considered purchase Purchase ego enhancement Purchase ego enhancement Hidden attributes Hidden attributes Brand loyalty low Brand loyalty low Personal service retailing Personal service retailing Selective distribution Selective distribution LESSER ROLE Convenience goods Frequently purchased goods Relatively inexpensive Impulse purchase Utilitarian purchase Easily observed product attributes Brand loyalty high Self-service retailing Broad distribution