1. Sales Promotion & PR

2. Sales Promotions Incentives Build excitement Encourage trial/purchase – Sometimes encourage repeat purchase Behavior driven – Not for attitude formation Mainly short term Consider brand positioning Can cheapen the brand

3. Types of Sales Promotions End Consumer – Loyal  reinforce behavior – Competitor  brand switching – Brand switchers  buy you more often – Price conscious  buy you, add value

4. Sales Promotion Tactics Coupons & Rebates Premiums Loyalty Programs Contests & Sweepstakes Sampling POP Online Product Placement

5. Coupons & Rebates Coupons – Stimulate demand/induce trial – Can be measured – High cost – Low redemption rates – Low repeat customers AFTER promotion Rebates – Stimulate demand – Increases value perception – Easily copied – Advance future sales

6. Online & Mobile Coupons

7. Problems with social deals

8. Premiums & Deals Premiums – Gift with purchase – Goodwill – Perception of value – Buy for premium NOT product – Carefully managed Deals (BoGo) – Encourage Trial – Reduce consumer risk – Reduce perception of value

9. Loyalty Programs Create loyalty Encourage repurchase High cost Build database of customer

10. Contests & Sweepstakes Contests – Increase consumer involvement – Generate excitement – Requires skill – Must be monitored Sweepstakes – Increases involvement with product – Sales decline after sweepstakes is over – No purchase necessary

11. Sampling Encourages trial Direct involvement High cost to the firm Reduced risk to customer Tie in with retail – purchase moment Direct contact with customer

12. POP High visibility Encourages brand trial Difficult to get good location Can be costly At purchase moment Can be visual or audio or mobile

13. Product Placement Demonstrates product use Non traditional display Firm has little control Product can be overshadowed

14. Public Relations Examples – Event Sponsorships – Press Releases – Cause Marketing – Event/Product Launches Proactive v Reactive Strategy Good Media contacts Leverage and measure