Intro to Sales Promotion
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Transcript Intro to Sales Promotion
Retail Promotion Mix
Sales
Advertising Promotion
Publicity
Personal
Selling
The Retail Promotion Mix
Advertising:
Is paid, nonpersonal communication
through various media to inform or
persuade members of a particular
audience; includes communication of
products, services, institutions, and
ideas.
The Retail Promotion Mix
Sales promotion:
Involves the use of media and
nonmedia marketing pressure applied
for a predetermined, limited period of
time at the level of consumer, retailer,
or wholesaler in order to stimulate trial,
increase consumer demand, or improve
product availability.
The Retail Promotion Mix
Publicity:
Is non-paid-for communications of
information about the company or
product, generally in some media
form.
The Retail Promotion Mix
Personal selling:
Involves a face-to-face interaction
with the consumer with the goal of
selling consumer merchandise or
services.
Sales Promotion Examples
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Coupons
Price-off deals
Premiums
Contests/sweeps
Samples and trials
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Phone gift cards
Rebates
Frequency programs
Event sponsorship
Objectives for Consumer-Market
Sales Promotion
1. Stimulate trial purchase
2. Stimulate repeat purchases
3. Stimulate larger purchases
4. Introduce a new brand
5. Combat or disrupt competitors
Sales Promotion!
What is sales promotion anyway?
Why do it?
Who does it?
How do you do it?
WHAT?
Sales Promotion is a form of
Communication
The sale of a product, fashion or otherwise, occurs
only when it meets or satisfies the customer’s
NEEDS
WANTS
DESIRES
WHY?
build customer loyalty
disseminate information
Establish or reinforce a company’s
image
WHY?
The Objective of Sales Promotion is
To sell an idea, product or service
arouses the buying impulse by addressing
the customer’s basic needs
giving reasons to buy
perking interest
Encouraging action
WHO?
Retailers use sales promotion to
bring traffic into their stores, and it
includes advertising, sales
promotion, publicity, and personal
selling.
WHO?
Manufacturers use incentives to induce
the trade and/or consumers to buy a
brand and encourage sales force to
aggressively sell it by creating a
perception of greater brand value.
HOW?
Targeting and research are
essential FIRST!
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Who are you selling to?
What do they want?
What do they care about it?
Who do they want to be?
Sales Promotion vs. Advertising
Short term demand vs. long term demand
Encourage brand switching vs. brand loyalty
Induce trial use vs. encourage repeat
purchase
Promote price vs. promote image
Immediate results vs. long term effects
Measurable results vs. difficult to measure
• Advertising spending as a
percentage of total marketing
communications expenditures has
declined in recent years.
• Promotional spending, however,
has steadily increased.
What does A.I.D.A stand for?
Attention – get them to notice you
Interest – make them want to know more
Desire
– now they want your product
Action
– they actually purchase it!