1. Chapter 14 Sales Promotion
Kleppner’s
Advertising
Procedure, 18e
Lane * King * Reichart

2. Learning Objectives
Discuss the complementary roles of sales promotion and advertising.
Discuss the general forms of promotion available to marketers.
Explain the basic approaches to product association and tie-ins
Discuss the varied types of couponing today.
Discuss the uses of sales promotion consumer and trade incentives.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

3. Pros of Sales Promotions
Encourages consumer sales response
Extremely flexible with a number of techniques to reach consumers across demographic and lifestyle categories
Functions at both consumer and trade levels to encourage high levels of distribution and goodwill
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

4. Cons of Sales Promotions
Can damage brand equity by replacing image of product with price competition
Care must be taken to coordinate various messages
Some forms, like couponing, do not provide a competitive source of differentiation
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

5. Sales Promotion
Sales promotions are sales activities that supplement both personal selling and marketing, coordinating the two, and helping to make them effective.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

6. Promotional Categories
Transactional
Relational
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

7. Exhibit 14.3 The Consumer Communication and Purchase Process
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

8. Possible Promotional Objectives
To gain trial among nonusers of a brand or service
To increase repeat purchase and/or multiple purchases
To expand brand usage
To defend share against competitors
To support and reinforce an advertising campaign
To increase distribution
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

9. Factors to Consider When Developing Promotional Strategy
Customer attitudes and buying behaviors
Brand strategy
Competitive strategy
Advertising strategy
Trade environment
Other external factors
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

10. Forms of Sales Promotion
Event marketing
Virtual advertising
Sponsorships
Point-of-purchase advertising
Premiums and incentives
Interactive/digital
Product sampling
Sweepstakes and contests
Cooperative advertising
Trade shows and exhibits
Directories and yellow pages
Trade incentives
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

11. Event Marketing Corporate sponsorship Staged promotions
Product licensing
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

12. Point-of-Purchase Advertising
Motivates unplanned shopping
Offers brand and product reminders
Influences brand switching
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

13. Premiums
Premiums are items other than the product itself given to purchasers of a product as an inducement to buy.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

14. Types of Premiums Traffic-building Continuity In- or on-pack
Self-liquidating
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

15. Reasons for Using Specialties
To promote customer retention and appreciation
To use with trade shows
To build goodwill and enhance image
To create awareness of new products
To generate sales leads and responses
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

16. Exhibit 14.7 FSI Delivers Coupons
Coupons are the most popular form of sales promotion.
Free-standing inserts are a common form of coupon distribution.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

17. Sampling Sampling is the free distribution of a product to a prospect.
Experiential sampling incorporates sampling with a consumer engagement device (like Hershey’s KISSMOBILE).
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

18. Growth in Sampling Newspaper distribution Event marketing
In-store sampling
In-pack/co-op programs
Internet sampling
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

19. Sweepstakes and Contests
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

20. Cooperative Advertising
National firm pays 50% of cost for most co-op advertising; some at 100%
National manufacturers build goodwill with retailers; encourage local support of brands; and, qualify for lower local rates, especially in newspapers
Manufacturers also gain a positive association between local retailers and their products, and enhance brand equity
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

21. Types of Cooperative Advertising
Vendor programs
Ingredient manufacturer co-op
Manufacturer-to-wholesaler co-op
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

22. Trade Shows There are all types of trade shows!
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

23. Forms of Trade Incentives
Dealer
incentives
Sales
incentives
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

24. For Discussion What is the primary disadvantage of sales promotion?
What are the major advantages and disadvantages of event marketing?
Why is point-of-purchase advertising so important to many advertisers?
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall