1. 1 MARKETING CHANNELS Promotion Strategy Berman Chapter 10 Version 3.0

2. 2 A. Special factors B. Strategies C. Push Strategies D. Pull Strategies

3. 3 Promotional Strategy A. Special Factors Channel members –Manufacturers –Promotional Agencies Advertising Public Relations –Wholesalers –Retailers

4. 4 Elements –Lead generation –Cooperative Advertising –Demonstrations Considerations –Primary demand –Selective demand –indirect promotional effort

5. 5 B. Strategies Push –through the channel vs Pull –through the consumer allocation to each strategy

6. 6 C. Push Strategies Member Information Sources Manufacturer Reps Trade Pub Advertising Catalogs Trade Shows Direct mail Newsletters New lines Existing lines 59% 67% 45 30 25 34 16 10 16 15 4 6

7. 7 Push Strategy 1. Advertising –dealer listings, promotions 2. Personal Selling –Sales Reps Roles TeacherReviewerWorking partner AmbassadorOmbudsmanMotivator 3. Sales Training Programs stage one - basic training stage two - joint sales calls stage three - dealer sufficiency

8. 8 4. Sales Promotion –Street money –Pay-for-performance programs –push money - spiffs, Pm’s –distributor recognition programs Publicity Improving push promotions

9. 9 D. Pull Strategies 1.Advertising –account specific advertising –cooperative advertising national vs local third party documentation agencies 2.Personal Selling

10. 10 3. Sales Promotion “Types” couponing consumer direct couponing retailer ads couponing - instore Premium offers sweepstakes pre-priced products cents-off promotions sampling new products money back offers/ cash refunds sampling established products contests

11. 11 Sales Promotion –details coupons rebates trade shows –visitors –diversified –multi industry exhibitions –multi industry

12. 12 Pull Oriented Strategies 4. Miscellaneous Sales Promotions premiums –self-liquidating –fulfillment houses –frequent user clubs contests, sweepstakes point of purchase displays instore materials

13. 13 Pull Oriented Strategies (cont) Publicity Improving public relations –common image integration –professional organization structures internal coop advertising coordinator newspaper industry organizer –integrated marketing database marketing –alternative promotional media

14. 14 Pull Oriented Strategies (cont) 5. Legal Aspects –promotional allowances Robinson Patman –reimbursement for promotional expenses