1. András BauerMarketing Management1 Sales Promotion Sales promotions have become dominant in many industries, due to support existing brands create excitement reflect to market segmentation

2. András BauerMarketing Management2 Sales Promotion in the Marketing System Due to an institutional setup, sales promotions not only address consumers, but the trade, as well. It can support the willingness to carry and merchandise the product by retailers or distributors

3. András BauerMarketing Management3 A successful promotion for many reasons: A. Increase in sales is higher than decrease after the promotion. B. Sales level after promotion is higher than before promotion TIME SALESSALES

4. András BauerMarketing Management4 Consumer promotions Product based (bonus packs and samples) Price based (price, coupons, rebates, financing, frequency) Premiums Place based (displays) Games and sweeptakes

5. András BauerMarketing Management5 Trade promotions Product based (free gods, returns) Price based (allowances, payment terms) Place based (slotting fees, display fees) Advertising based (coop ads, selling aids) Sales based (incentives, contests, prizes)

6. András BauerMarketing Management6 Promotional Objectives Separated by time, consumer segmentation and required impact

7. András BauerMarketing Management7 Promotional Objectives Short run 1. Current Customers Buy More Buy Now Be Loyal 2. Occasional Customers 3. Non-Customers Long run 1. Increase awareness 2. Change image

8. András BauerMarketing Management8 Criticism of Promotions Do not help to build image Increase consumer price sensitivity Have strong impact on purchase timing

9. András BauerMarketing Management9 Image-Building Promotions Image-building promotions aim to effect brand image through creating associations, other than low price Strategically correct contests and sweepstakes Tie-ins with other companies

10. András BauerMarketing Management10 A different strategy EDLP - Every Day Low Price, as a strategy was pioneered by Procter and Gamble, to overcome production volatility (pantry filling effects) HI-LO - High-Low, is practiced by the industry and trade, because it creates higher excitement

11. András BauerMarketing Management11 Competitive Promotions Diaper manufacturer Kimberly-Clark entered a foreign market To prevent the trial of Huggies, P&G played a pantry-filling promotion game to protect its market (double diaper packaging, lower price, plus a direct marketing campaign to relevant households)