1. Chapter 11 Sales Promotion

2. Role of sales promotion  Activities that provide extra value or incentives to the sales force, distributors, or ultimate consumer.  Are designed to encourage buyers to make purchases.  To purchase larger quantities of the product  To try the new product  To enhance the brand loyalty

3. Reasons for the shift from Advertising to sales promotion p.331-332  A transfer 轉移 of power from manufacturers to retailers  Manufacturers have more power before, now a manufacturer who is able to provide discounts and promotional support will be given shelf space.  Branding- use sales promotion techniques in an attempt to keep loyal 忠誠 customers and to gain new customers.  Too many new brands; cause Ad less effective  Consumers become less brand loyal, more interested in price, value, and convenience 便利性

4. Consumer- oriented sales promotion Objectives p.333  Trial 試用包 : risk free  Repurchase 再次購買 : competition 競爭  Increasing consumption 消費量 of an existing 現存的 ; 現行的 brand  Defending 保衛 current consumers from competition  Strengthening 加強 advertising and marketing efforts

5. Consumer Promotions  Price deals  Coupons  Refunds and rebates  Sampling 試驗樣品  Contests and sweepstakes  Premiums  Specialties  Allowing 允許 the consumer to try the product or service  Most successful sales promotion technique used to encourage 鼓 勵 the use of a new product, because offer a risk-free opportunity to try

6. Consumer Promotions  Price deals  Coupons 折價卷  Refunds and rebates  Sampling  Contests and sweepstakes  Premiums  Specialties  Provide a discount on the price of the product  Retailer  Manufacturer

7. Consumer Promotions p.337-341  Price-off deals  Coupons  Refunds and rebates  Sampling  Contests and sweepstakes  Premiums 附贈獎品 或獎金  Specialties  Tangible reward 有形的 獎賞 for a particular act  Work by adding value to the product  Direct premiums  Mail-in premiums  Self-liquidating 能自行收 回成本並獲利的  consumer to pay for the cost of the premium

8. Consumer Promotions p.341-342  Price-off deals  Coupons  Refunds and rebates  Sampling  Contests 比賽 and sweepstakes 抽獎  Premiums  Specialties  Create excitement by promising something for nothing  Contests based on skill or ability  Sweepstakes 彩卷抽獎 based on luck

9. Consumer Promotions  Price-off deals  Coupons  Refunds 退款 and rebates 折扣 、貼現  Sampling  Contests and sweepstakes  Premiums  Specialties  Marketer’s offer to return a certain amount of money to the consumer  Refund is money given directly to consumer at the point-of-purchase.  To encourage a consumer to switch brands  Rebate is a price deduction given upon proof-of- purchase.

10. Consumer Promotions  Price-off deals  Coupons  Refunds and rebates  Sampling  Contests and sweepstakes  Premiums  Bonus Packs  Extra amounts of a product, given in addition to what is expected.

11. Consumer-oriented sales promotion- Techniques p.343  Price-off deals  Coupons  Refunds and rebates  Sampling  Contests and sweepstakes  Premiums  Specialties  Temporary price reduction or sale price  The marked down price of the item

12. Consumer-oriented sales promotion- Techniques p.343  Reward 獎勵 Programs and frequent-buying clubs  Coupons  Refunds and rebates  Sampling  Contests and sweepstakes  Premiums  Specialties  Reward frequent buyers for their purchases with incentives 獎勵 of money- off coupons, gifts, invitations 邀請 to special members only events.  First used in airline industry

13. Consumer-oriented sales promotion- Techniques p.345  Deferred billing 延期的  Coupons  Refunds and rebates  Sampling  Contests and sweepstakes  Premiums  Specialties  Opportunity for the consumer to postpone or delay payment of a purchase.  This incentive is used to accelerate purchases when money is limited.

14. Trade-oriented Sale Promotion p.345  Objectives  Supporting new products  Supporting established brands  Encouraging retailers to promote brands  Building inventories

15. Trade Promotions Techniques p.347-348  Point-of-purchase display  Trade allowances and incentives  Trade shows and exhibits  When a manufacturer rewards a seller financially for purchase or support  Buying allowances  Advertising allowances

16. Trade Promotions Techniques p.347-348  Point-of-purchase display  Trade incentives and deals  Trade shows and exhibits  Manufacturer- designed display distributed to retailers  Retailers use the displays to call their customer’s attention to product promotions

17. Trade Promotions Techniques p.347-348  Point-of-purchase display  Trade incentives and deals  Trade shows and exhibits  When companies in the same industry gather to present and sell their merchandise and to demonstrate products

18. Trade Promotions Techniques p.347-348  Point-of-purchase display  Trade incentives and deals  Trade shows and exhibits  Cooperative Advertising  Manufacturer works with the retailer to develop an ad and shares in the cost of running that advertisement.