1. BUSINESS MARKET TECHNIQUES
Chapter 11:
SALES PROMOTION:
CONSUMER, TRADE,
and
BUSINESS MARKET TECHNIQUES
11.1

2. Basic Forms of Sales Promotion
Trade-Market Sales Promotion
Trade Market Sales Promotion
Business-Market Sales Promotion
11..2

3. The Importance and Growth of Sales Promotion
SALES PROMOTION IS GROWING FASTER THAN ADVERTISING
GROWTH IN THE USE OF SALES PROMOTION
Demand for Greater Accountability
Short-Term Orientation
Consumer Response to Promotions
Proliferation of Brands
Increased Power of Retailers
Media Clutter
11..3

4. Sales Promotion Techniques, Like Couponing, Are
Designed to Have a Short-Term Effect on Sales

5. Sales Promotion in the Consumer Market
OBJECTIVES FOR CONSUMER-MARKET SALES PROMOTION
Stimulate Trial Purchase
Stimulate Repeat Purchases
Stimulate Larger Purchases
Introduce a New Brand
Combat or Disrupt Competitors’ Strategies
Contribute to Integrated Marketing Communications
11.5

6. Sales Promotion in the Consumer Market (con’t)
CONSUMER MARKET SALES PROMOTION TECHNIQUES
Coupons
Oldest and Most Widely Used Sales Promotion
Annually, 300 Billion Distributed
Many Advantages
Also Problems
Price-Off Deals – Offers Consumers ¢ or $ off Merchandise
Premiums and Advertising Specialties
Premiums – Items offered Free or Reduced w/Purchase
Free Premium – Provides an Item at No Cost
Self-Liquidating Premium – Consumer Pays Most or
All Cost of Premium
11.6

7. “Price Off” Deals Are
Commonly Used
by Local Retailers
11.7

8. Sales Promotion in the Consumer Market (con’t)
CONSUMER MARKET SALES PROMOTION TECHNIQUES (con’t)
Contests and Sweepstakes
Contest – Consumers Compete for Prizes
Sweepstakes – Promo where Winners are Determined by Chance
Substantial Problems with Both
Regulations and Restrictions
Game Becomes Primary Focus; Brand Secondary
Hard to Get Message Across in Context of Game
11.8

9. Sales Promotion in the Consumer Market (con’t)
CONSUMER MARKET SALES PROMOTION TECHNIQUES (con’t)
Sampling and Trial Offers
Sampling – Provide Consumers with Trial Opportunity
In-Store Sampling
Door-to-Door Sampling
Mail Sampling
Newspaper Sampling
On-Package Sampling
Mobile Sampling
Trial Offers
11.9

10. Sampling is an Effective
Way to Create Trial-Use
Within Appropriate
Target Markets

11. Sales Promotion in the Consumer Market (con’t)
CONSUMER MARKET SALES PROMOTION TECHNIQUES (con’t)
Phone and Gift Cards
Product Placement (Brand Placement)
Rebates
Frequency Programs
Event Sponsorship
11.11

12. Sales Promotion in the Trade and Business Markets
OBJECTIVES FOR PROMOTIONS IN THE TRADE MARKET
Obtain Initial Distribution
Increase Order Size
Encourage Cooperation with Consumer-Market Sales Promotion
Increase Store Traffic
11.12

13. Sales Promotion in the Trade and Business Markets
TRADE-MARKET SALES PROMOTION TECHNIQUES
Push Strategy – Sales Promotions Directed at Trade
Point-of-Purchase Displays
Incentives
Allowances
Merchandise Allowances
Slotting Fees
Bill Back Allowances
Off-Invoice Allowances
Sales-Training Programs
Cooperative (Co-op) Advertising
Vertical Cooperative Advertising
11.13

14. Sales Promotion in the Trade and Business Markets
BUSINESS MARKET SALES PROMOTION TECHNIQUES
Trade Shows
Business Gifts
Premium and Specialty Advertising
Trial Offers
Frequency Programs
11.14

15. Loyalty Among Businesses
Frequency Programs
Encourage Brand
Loyalty Among Businesses
11.15

16. Sales Promotion, the Internet, and New Media
USE OF SALES PROMOTION BY INTERNET COMPANIES
Sampling
Incentives
Loyalty Programs
Virtual Tour of Prizes in Contests
Use of the Internet and New Media to Implement Sales Promotion
On-Line Promotional Stores
Other On-Line Companies Help
Sweepstakes
11.16

17. The Risks of Sales Promotions
CREATING A PRICE ORIENTATION
BORROWING FROM FUTURE SALES
ALIENATING CURRENT CUSTOMERS
TIME AND EXPENSE
LEGAL CONSIDERATIONS
11.17

18. The Coordination Challenge
Message Coordination
Message Should Attract Attention or Offer Consumer Increased Value: Reduce Price, Chance to Win a Prize
Attention and Value Act as Incentive to Choose Brand
Hard to Coordinate Promotion Message with Advertising
Media Coordination
Reaching Right Target is Critical
Advertising Should Always Precede Sales Promotion
11.18

19. Conclusions From Recent Research
SHORT-TERM PRODUCTIVITY OF PROMOTIONS MUCH MORE DRAMATIC THAN SHORT-TERM ADVERTISING EFFECTS
1% REDUCTION IN PRICE PRODUCES GREATER RESULTS THAN 1% INCREASE IN ADVERTISING
SALES PROMOTION RARELY GENERATES LONG-TERM EFFECTS
MOST POWERFUL EFFECTS COME FROM ADVERTISING & SALES PROMOTION USED TOGETHER
11.19