Transcript moriarty8e_overheads_16

Advertising Principles
and Practices
Sales Promotion,
Events, and
Sponsorships
Frontier Campaigns for Votes and Hits
• Frontier wanted to encourage
customers to book online to save
money and build their database.
• Citizens \voted for their favorite
animal online; animals
“campaigned” on the Web site.
• The results: 4,000 blog entries, a
million votes, a 50% increase in
Web traffic, and a 400%
increase in qualified email
addresses.
Prentice Hall, © 2009
16-2
Categories of Sales Promotion
• Consumer
– Targeted to consumer: people like you and
me.
• Trade
– Targeted to people/companies in the
distribution channel such as buyers, brokers,
distributors, wholesales, dealers, franchisees,
retailers, etc.
• Sales Force
– Directed at the firm’s salespeople to motivate
them to increase their sales including training,
sales presentations, support materials,
incentives, performance bonuses, contests.
Prentice Hall, © 2009
16-3
Types of Consumer Promotions
• Price Deals—temporary
price reduction or sale
– Cents-off deal
– Price-pack deals (prize in
cereal box)
– Bonus packs (25% more)
– Banded packs (toothpaste
and brush)
• Coupon
– Retailer: redeemable only
at their outlet
– Manufacturer: at any
outlet carrying the
product
Prentice Hall, © 2009
16-4
Types of Consumer Promotions
• Refunds and Rebates
– Marketers offer to return a certain amount of
money to the consumer who purchases the
product (or coupon to encourage repeat use).
• Sampling
– Allowing the consumer to try the product or
service (in-store, mailed, dentist office,
newspaper).
• Contests and Sweepstakes
– Create excitement by promising “something for
nothing” and offering impressive prizes.
– Contests based on skill/ability; you compete for
prizes.
– Sweepstakes based on luck; send in your name for
a drawing.
Prentice Hall, © 2009
16-5
Types of Consumer Promotions
• Premiums
– Tangible reward for a particular act
– Work by adding value to the product
•
•
•
•
Store premiums: given at retail site
In-pack premiums (in the package)
On-pack premiums (attached to package)
Container premiums (package is premium)
– Self-liquidating
• Mail payment with proof of purchase
• Specialties
– Presents the brand’s name on something that is
given away as a reminder
• Key chains, pens, calendars, tote bags, coffee mugs
Prentice Hall, © 2009
16-6
Types of Trade Promotions:
Point-of-Purchase (POP) Display
• Manufacturers
design and distribute
displays to retailers
to draw attention to
their products.
• Racks, display
cartons, banners,
signs, moving parts,
lights, action
Prentice Hall, © 2009
16-7
Types of Trade Promotions:
Retailer (Dealer) Kits
• Materials that support
retailer’s selling
efforts or help
representatives make
sales calls on
prospective retailing
customers
• Product spec sheets,
ad slicks/discs
Prentice Hall, © 2009
16-8
Types of Trade Promotions:
Trade Incentives and Deals
• When a manufacturer gives sellers a
financial reward for purchasing a certain
amount of product or supporting a
promotion
– Includes special displays, extra purchases,
superior store locations, more local promotion
– Retailers get special discounts, free goods,
gifts, cash from manufacturer
– Advertising allowances: deals on coop
advertising and deals for using promotional
displays
Prentice Hall, © 2009
16-9
Types of Trade Promotions:
Contests
• Advertisers can develop contests and
sweepstakes to motivate resellers.
• Contests are far more common than
sweepstakes because they can be more
closely tied to product sales.
– The store or person who exceeds the quota by the
greatest percentage wins the contest
Prentice Hall, © 2009
16-10
Types of Trade Promotions:
Trade Shows and Exhibits
• When companies in the same
industry gather to present and sell
their merchandise and demonstrate
their products
Prentice Hall, © 2009
16-11
Crossover Promotions:
Sponsorships and Event Marketing
• Sponsorships are when
companies support an event,
say a sporting event, concert,
or charity either financially or
by donating supplies and
services.
• Event marketing means
building a product’s
marketing program around a
sponsored event, such as the
Olympics or a golf
tournament.
Prentice Hall, © 2009
16-12
Crossover Promotions:
Other Promotional Support
• Blimps, balloons,
inflatables, and
skywriting planes
capture attention and
create excitement at
events
– Goodyear Blimp
– Met Life’s Snoopy
blimps
– Inflatable Spiderman to
promote the movie
• Internet sweepstakes
• Internet coupons
Prentice Hall, © 2009
16-13
Crossover Promotions:
Loyalty Programs
• Also called a continuity or frequency
program
• A promotion to increase customer retention
• Frequent flyers programs, TGI Friday’s
“Frequent Fridays”
• These programs also capture information to
use for more targeted promotions and
advertising.
Prentice Hall, © 2009
16-14
Crossover Promotions:
Partnership Programs
• Comarketing involves manufacturers developing
marketing communication programs with their
main retail accounts, instead of for them.
• Cobranding occurs when two companies come
together to offer a product (e.g., American
Airlines, Citibank Visa)
• With licensing, one company gives another
company the right to use its legally protected
trademarks and logos on products and in
advertising or promotion.
• Tie-ins are when two companies are displayed,
advertised, or promoted together to multiply
impact. (e.g., McDonald’s Shrek Happy Meals)
Prentice Hall, © 2009
16-15
Promotion Strategy
• Promotion Objectives
– Introduce a new product
– Create brand awareness
– Brand building
• The Issue of Brand Building
– Critics say price promotions
undermine the brand; proponents
say it helps build brand image.
– Advertising must be more
accountable and promotion more
brand-focused.
• Promotion Integration
– Advertising and promotion should
combine their different strengths.
• Promotion Effectiveness
– Measured by volume, response
rates, and redemption
Prentice Hall, © 2009
16-16
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright © 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Prentice Hall, © 2009
16-17