1. Sales Promotion

2. Sales Promotion
Whereas advertising gives a reason to buy, Sales promotion gives an incentive to buy….
Marketing communication activities, other than advertising, personal selling, and public relations, in which a short-term incentive motivates a purchase

3. Sales promotion vs. Ad vs. sponsorship

4. Reasons for growth
Consumer behavior: more selective, less loyal and more likely switch brand.
Pricing: consumer expects constant price reductions.
Market share: SP encourages brand switching, increasing market share.
Parity products: when products are similar, promotion becomes the tie breaker.

5. Reasons for growth
Communications clutter: Individual ads get lost in communications clutter, and are hardly noticed by the majority of consumers.
Buying decisions is taken in the store: An increasing number of product or brand purchasing decisions are essentially impulse-buying decisions
More easily measured: Advertising is often aimed at obtaining intermediate effects, such as awareness and favorable attitudes.

6. Reasons for growth
Power of the retailer: dominant retailer demands a variety of promotional incentives before allowing products into their store.

7. Sales promotion: objectives
Immediate Purchases
Increase Trial
Targeting a specific market
Encourage repurchase
Increase ad effectiveness
Encourage brand switching
Encourage brand loyalty
Many new brands are merely new versions of an existing product without unique benefits, so advertising alone cannot induce trial. Sales promotion tools have become an important part of new brand introduction strategies; the level of initial trial can be increased through techniques such as sampling, couponing, and refund offers

8. Trial and purchase
Lever Brothers introduced its Lever 2000 brand of bar soap, it distributed millions of free samples along with a 75-cent coupon. The samples allowed
consumers to try the new soap, while the coupon provided an incentive to purchase it.

9. Specific market + brand equity
Perdue Farms, Inc., the country’s fourth-largest poultry producer, developed a contest to support its Fun Shapes line of breaded chicken nuggets among its core target of women between the ages of 25 and 49 and its secondary market of children ages 2 to 12. The Fun Shapes line is a series of different and uniquely shaped nuggets including basketball, baseball, tic-tac-toe, dinosaur, and space-theme designs.

10. Increase consumption
Arm & Hammer baking soda. Exhibit 16-9 shows a clever freestanding insert (FSI) that promotes the brand’s new fridge-freezer pack, which absorbs more odors in
refrigerators and freezers.
FSI: Advertising brochure, card, or leaflet inserted in a newspaper or magazine, usually to serve as a reply coupon or discount voucher.

11. Brand switching

12. Ad effectiveness

13. A sales promotion objectives grid

14. Tools for Consumer Sales Promotion
Coupons
Premiums
Loyalty Marketing Programs
Contests & Sweepstakes
Sampling
Price off
Popular Tools
for
Consumer Sales
Promotion

15. Tools for Consumer Sales Promotion
Coupon
Price packs
Premium
A certificate that entitles consumers to an immediate price reduction.
Offer lower than usual price or greater than usual quantity.
An extra item offered to the consumer, usually in exchange for some proof of purchase.

16. Free-Standing Inserts (FSI)

17. Tools for Consumer Sales Promotion
Sampling
A promotional program that allow the consumer the opportunity to try a product or service for free.

18. Sampling Methods of Sampling Direct mail Door-to-door delivery
Packaging with another product
Retail store demonstration

19. Tools for Consumer Sales Promotion
Contest
Sweepstakes
Promotions that require skill or ability to compete for prizes.
Promotions that depend on chance or luck, with free participation.

20. Tools for Trade Sales Promotion
Trade Allowances
Push Money
Training
Free Merchandise
Point of purchase display
Contest and incentives
Unique Tools
for
Trade Sales
Promotion

21. Tools for trade Sales Promotion
allowance
Push money
Contest and
incentives
A discount offered to retailers or wholesalers to encourage them to stock, promote or display the manufacturer's product.
cash payment made directly to promote and sell the manufacturer's product.
sponsor contest for reseller and use prize such as trips, special merchandises

22. Tools for trade Sales Promotion
Point of
purchase
Any form of special display that advertises merchandises.

23. Tools for trade Sales Promotion
Goals of
Point-of-Purchase
Displays
Build traffic
Advertise the product
Induce impulse buying

24. The Role of Trade Sales Promotion
Improve trade relations
Gain new distributors
Build or reduce
dealer inventories
Obtain support for
consumer sales promotions