1. Sales Promotion

2. 16-2 Sales Promotion What is the difference between advertising and sales promotion? Advertising provides a reason to buy, and sales promotion provides an incentive to buy

3. 16-3 Advertising vs Sales Promotion Creates immediate action Adds tangible value Contributes to short-term profitability Creates a brand image over time Adds intangible value Contributes to longer term profitability Sales PromotionAdvertising

4. 16-4 Effects of Sales Promotion Consumer behavior –Switch brands Pricing –Expect price reductions Market share –Switching brands changes market share Parity products –Increases differentiation Retailers –Expect incentives from suppliers

5. 16-5 Consumer Promotions

6. 16-6 Price Deals Cents-off Price-pack deals Bonus packs Banded packs

7. 16-7 Coupons Provides a discount on the price of the product Two types: Retailer Manufacturer

8. 16-8 Refunds and Rebates Offer to return money to the consumer

9. 16-9 Sampling Allows the consumer to try the product or service

10. 16-10 Contests and Sweepstakes Creates excitement Contests are based on skill or ability Sweepstakes are based on luck

11. 16-11 Premiums Works by adding value Store In-pack On-pack Container Self-liquidating Mail in

12. 16-12 Ad Specialty Presents the brand’s name on something that is given away as a reminder

13. 16-13 Objective of Consumer Sales Promotion Create Awareness Induce usage Incentive to switch brands Brand reminder

14. 16-14 Trade Promotions

15. 16-15 Push versus Pull What is the difference between these two promotional strategies?

16. 16-16 Point-of-Purchase Display Manufacturer- designed display distributed to retailers Retailers use the displays to call their customer’s attention to product promotions

17. 16-17 Retailer Kits Materials that support retailer’s selling efforts –Ad slicks –Product spec’s –Display instructions

18. 16-18 Trade Shows and Exhibits Companies in the same industry gather to present and demonstrate products

19. 16-19 Trade Promotion Two primary roles for a trade promotion Trade support Create excitement

20. 16-20 Trade Promotion Techniques Discounts and Allowances Spiffs (push money) Quantity discounts Promotional allowances Advertising allowances Display allowances

21. 16-21 Promotions That Blend Advertising, Promotion and PR Sponsorships and event marketing Interactive and Internet promotions Loyalty programs Partnership programs

22. 16-22 Discussion Question You have just been named product manager for Bright White, a new laundry detergent that will be introduced to the market within the next six months. How would you use a push strategy? How would you use a pull strategy?