1. Chapter 14
Sales Promotion

2. Sales Promotion
1. Sales activities that supplement both personal selling and marketing, coordinate the two, and help to make them effective. (example: display)
2. More loosely the combination of personal selling, advertising, and all supplementary selling activities.

3. Sales Promotions Pros Encourages consumer sales response Flexible
Functions at consumer and trade levels

4. Sales Promotion Cons Can damage brand equity
Care must be taken to coordinate the various messages of advertising.

5. Effective Sales Promotion Functions
To inform
To motivate

6. Objectives for Promotion
Gain trial among nonusers
Increase repeat purchases
Expand brand usage
Defend against competitors
Support/reinforce an ad campaign
Increase distribution cooperation

7. Forms of Sales Promotion
Event marketing
Premiums and incentives
Point of sale
Sponsorships
Licensing
Etc.

8. Event Marketing

9. Virtual Advertising
Computer-generated ads, logos, and products that are super-imposed on a live feed or inserted into a completed movie or television show.

10. Deals Designed to save the customer money Sales Coupons
Mail-in-rebates
Premium offers

11. Coupons

12. Point of Purchase Advertising
Displays prepared by the manufacturer for use where the product is sold.

13. Primary Advantages of POPS Advertising
Motivate unplanned shopping
Brand and product reminders
Influence brand switching
Informing
Reminding
Persuading
Merchandising

14. Premiums
Extra incentives to encourage a consumer to make a purchase.

15. Premiums and Incentives
Items given to customers in exchange for a purchase or some action
Types of premiums
Traffic-building premiums
Continuity premiums
In- or on-pack premiums
Self-liquidating premiums

16. Specialty Advertising
Difference between
Premiums = do not have logos printed on them
Specialties = have advertiser’s logo and given with no obligation
Reasons for using specialties
Customer retention/appreciation
Connection with trade show
Build goodwill; enhance image
Create awareness
Generate sales leads/responses

17. Coupons Distribution Redemption fraud
Mass coupon distribution (free-standing insert)
Electronic distribution
Redemption fraud
When a person sends in coupons for which no product purchase was made

18. Growing Areas of Sampling
Newspaper distribution
Event/venues marketing
In-store sampling
In-pack/co-op programs
Internet sampling

19. Sweepstakes vs. Contests
Sweepstakes = based solely on chance
Contests = must contain some element of skill

20. Contest

21. Cooperative Advertising Purpose
Allows retailers to stretch advertising budgets
Build goodwill with retailers; local support
Media strong supporters of co-op

22. Special Forms of Co-op Vender programs Ingredient manufacturer
Manufacturer to wholesaler co-op

23. Directories and Yellow Pages
Print and electronic medium
89% of yellow page users will make a purchase.
Specialized directories

24. Trade Inventories
Sales incentives
Types
Dealer incentives

25. Example of Dealer Incentive