Transcript Slide 1
Sales Promotion, Events,
and Sponsorships
Part 5: Integration and Evaluation
Chapter 16
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Key Points
Explain the principles that drive the use of
sales promotion
List and explain the use of various
consumer promotions
Summarize the types and purposes of
trade promotions
Describe the use of other types of
promotions
Explain the strategic use of promotions in
marketing
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Marketing Mix Strategies
product
Cost,
Profit,
Value expectation
Advertising
Public relations,
Sales promotion,
Personal selling,
Direct marketing,
Packaging
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Product designs,
Branding,
Maintenance,
Packaging
price
Wholesaler,
place
Retailer,
Transporter,
promotion Intermediary
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The Practice of Sales Promotion
A marketing discipline
that utilizes a variety of
incentive techniques to
structure sales-related
programs that generate
a specific, measurable
action or response
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Why Sales promotion?
Company Side
Consumer Side
-Need for short-term profit
- Easy to evaluate the impact
(from sales volume)
- High cost of Media
-Market share: battle for market
share instead of product growth
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-Consumer behavior: expect the
short term price reduction
-Pricing: reduce the risk of
purchase
-Parity products :increasing sales
when products are largely
undifferentiating e.g. mass product
-Power of the retailer: dominant
retailers demand incentives to offer
shelf space
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Result
Sales promotion: cost less, produce
immediate results (short-term sales)
Consumer:
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Risk
Value added (more for less)
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Types of Sales promotion
Consumer Sales promotion is a promotion aim at ultimate consumers of products
Trade Sales promotion is a value added program directed at trade members (reseller)
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Consumer Promotions
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Price Deals
- Cents-off: Reduce prices e.g. 20%
discount, 50 % discount
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Price Deals
Price–pack deals: offer additional
quantities of the product being
purchased or provide the consumer with
something extra
Ex: buy two get one free
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Price Deals
Bonus pack: offer additional amount of the product being
purchased but contain in the packaging
Ex: 25%more in this bottle of ketchup”
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Price Deals
Banned pack: more units of a product sold at a lower price
than if they were bought a the regular singular unit price
e.g Mama, toothpaste, soap
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Coupon
Coupon: are small written contracts that grant holders a
price reduction within time frame
1) Retailer-sponsored coupons: redeemable only at the
specified outlet
2) Manufacturer-sponsored coupons: redeemable at
any outlet (distributor)
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Refund and Rebate
Refund and rebate: Offer to return the certain amount of
money to the consumer
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Consumer Promotion
Sampling: Allow the consumer to try the
sample of the product
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Consumer Promotion
Contest: Engage consumers who compete
for prizes based on skill or ability based on
skills or talent
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Consumer Promotions
Sweepstakes: Award prizes to consumers.
Based on luck or chance of selection
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Consumer Promotions
Specialties items: Give- away items as a
reminder for the brand
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Consumer Promotion
Premium: an extra product or tangible reward for consumer’s particular
behaviors usually purchase
1. Direct premium award given at the time of purchase
-- Store premiums: given to customers at the retail site e.g premium at
7elevent, department store
-- In-pack premiums are inserted in the package at the factory e.g toys
inside the snack package
-- On-pack premiums are placed outside the package e.g detergent with
brush
-- Container premiums in which the package is the premium e.g. S&P
cookie box
2. Mail premium are sent to consumers after they meet certain requirement.
--Self-liquidation programs is a payment be mailed in along with some
proof of purchase before the customer receives the premium
-- the customers save the coupons or special labels attached to the product
that can be redeemed for merchandise
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Premium
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Other Types of Premium
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Exercise: identify types of sales
promotion
Top Shop offers “Buy 2 Get 1 free” promotion for T-shirts
Herbal Essence shampoo gives more 50% in quantity at
the same price
Berman toothpastes are sold in a pack of 3 at discount
price
Latest Ovaltincampaign requires the Ovaltin consumers
to return the Ovaltin package with their names for lucky
draw. It offers many valuable prizes.
7 Eleven offers ‘Kitty pillow’ for the purchase of more
than 100 baht +pay more 20 baht.
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Consumer Sales Promotion Objective
Specialt
VS Types
y Ad
Awareness
Trial
- Special Event
-Special Event
-Sponsorship
-Sampling
-Point-of-purchase-Price deal e.g.
Cent off
-Coupon
Maintain & Increase
Market Share
-coupon
-premium
-special event
-contest
-sweepstake
-Price Deals
Principles
and Effective IMC Practice
Use AdvertisingADVERTISING
to support
each
objective
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Brand Reminder
Specialty items
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Trade Sales Promotion
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Trade Sales promotion
Goal
-Designed by manufacturer to get cooperation of people
in distribution channel (trade member)
-Encourage the promotion of product to the consumer
-gauged from sales volume
Target: Resellers (wholesaler, retailer)
2 Roles:
- Trade support: to stimulate in-store merchandising,
superior store location, shelf space
- Excitement: to create the high level of attention from
resellers about the product sales
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Types of trade Sales promotion
-Point-of-purchase (POP) display: Manufacturer-designed display distributed to retailers
to get attention from the customers
Example: Special rack, display carton, banner, sticker, signs, price card, etc.
- Retailer (dealer) kits: Materials and information to help retailer sell ability such as
price information, product specification, product display instruction, etc.
- Contest and sweepstakes: can motivate resellers (increase relationship)
- Trade shows and exhibition: provide opportunities to exchange information,
demonstrate and sample products and sell merchandise (usu. same industry)
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POP
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Types of trade promotion (contd.)
-Trade incentive and deals: Reward for purchasing at the certain amount of product.
-- Bonuses (push money, spiff): monetary bonus paid to store’s salesperson based on the units
that salesperson sells over a period of time
-- Dealer loaders are premiums (=consumer premium) a manufacturer gives to a retailer for buying
a certain amount of product e.g. free trip,
--allowances: is a price reducing and reward program for trade to
purchase in a certain amount of product (discount)
-- advertising allowance: the manufacturer pays the resellers a certain amount of money to advertise
the manufacturer’s product (flat amount or percentage according to the gross purchase)
-- Cooperative ads.: contractual arrangement between manufacturer and resellers, the manufacturer
agrees to pay a part or all ad expenses incurred by the resellers.
-- display allowances: direct payment of cash or goods is given to the resellers if the resellers agree
ADVERTISING Principles and Effective IMC Practice
to set up the point-of-purchase (POP)
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Consumer Sales Promotion Objective
VS Types
Attention
-Point-of-purchase
(trade and consumer)
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Motivation
-Trade deals
-contest
-prize
ADVERTISING Principles and Effective IMC Practice
Information & Trial
-Trade Show&
Exhibition
-Retailer (Dealer )
Kits
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Promotions that Across the lines
Awareness
+sales
Sponsorship: Company supports an event either financially or by
donating supplies and services
e.g. Olympics, golf tournament
Event marketing: Building product marketing’s program around
a sponsored event.
-Practice of linking a brand to an event that usually matches the
brand to the target market’s lifestyle e.g. Nokia (Lamour) +
Fashion Week
Aerial advertising support: Balloon, Giant model, etc.
Loyalty Program (loyalty program or continuity
program): is a promotion to increase customer retention
In order to keep and reward the continued patronage e.g.
member card, airline frequent flier program
(
Higher purchase
Greater benefits )
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SPONSORSHIPS
Pepsi was a sponsor for
Concert of Black Eyed Peas
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Mc Donald’s Aerial Advertising
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Starbucks Gold Membership
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Promotions that Across the lines
Partnership programs:
Co-marketing: Manufacturer and retailer develop a marketing
communication program together e.g. P&G with Tesco Lotus
Co-Branding: Two companies come togather to offer the
product e.g. Credit card co. with restaurants, hotels, spa
(both get brand equity)
Licensing agreements (rents): A company’s legal
permission for other manufacturers to use their company’s
logos, symbols, trade characters, identities for or use on other
product e.g. Waltz Disney products (the co. gets the money +
extend the brand)
Tie-ins: associate complementary brands linking two
complementary products in a promotion e.g. McDonald &
Walz Disney
( 2 products joined bigger impact ,
share the advertising cost)
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CO-MAR KETING
Drink Pepsi has a chance to win Yamaha Meo ZR when
buy pepsi product up to 500 bath receive 1 coupon
compete for the prize. Only at Makro
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C
O
U
P
O
N
CO-BRANDING
DISCOUNT 10%
For Zoo Park
DISCOUNT 50%
For Alangran Theater
DISCOUNT 20%
For Park
DISCOUNT 20%
For Mini Siam
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DISCOUNT 10%
For Fun Park
DISCOUNT 20 bath
For Crocodile
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Farm
DISCOUNT 10%
For Fun Park
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A limited collection
MAC Hello Kitty
by US. MAC Cosmetics and
Japanese
company Sanrio have teamed up to create
MAC Hello Kitty
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Marketing Mix Strategies (contd.)
PLACE (DISTRIBUTION):
- Have mechanism for delivering and
servicing the product and receive payment
-- Market Coverage Strategy: geographic
distribution eg. BKK, nationwide
--Push Strategy: direct marketing efforts at
reseller (many channels)
Pull Strategy: direct marketing efforts at
consumer (create demand)
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Push, Pull, and Combination Strategies
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Activity
Each pair gives one example of
consumer sales promotion
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