Transcript Sales Promotion

Sales Promotion
Sales Promotion

Whereas advertising gives a reason to buy,
Sales promotion gives an incentive to buy….

Marketing communication activities, other
than advertising, personal selling, and public
relations, in which a short-term incentive
motivates a purchase
Sales promotion vs. Ad vs. sponsorship
Reasons for growth
Consumer behavior: more selective, less
loyal and more likely switch brand.
 Pricing: consumer expects constant price
reductions.
 Market share: SP encourages brand
switching, increasing market share.
 Parity products: when products are
similar, promotion becomes the tie
breaker.

Reasons for growth
Communications clutter: Individual ads
get lost in communications clutter, and
are hardly noticed by the majority of
consumers.
 Buying decisions is taken in the store: An
increasing number of product or brand
purchasing decisions are essentially
impulse-buying decisions
 More easily measured: Advertising is often
aimed at obtaining intermediate effects,
such as awareness and favorable attitudes.

Reasons for growth

Power of the retailer: dominant retailer
demands a variety of promotional
incentives before allowing products into
their store.
Sales promotion: objectives
Immediate Purchases
Increase Trial
Targeting a specific market
Encourage repurchase
Increase ad effectiveness
Encourage brand switching
Encourage brand loyalty
Trial and purchase
Specific market + brand equity
Increase consumption
Brand switching
Ad effectiveness
A sales promotion objectives grid
Tools for Consumer Sales Promotion
Coupons
Premiums
Loyalty Marketing Programs
Popular Tools
for
Consumer Sales
Promotion
Contests & Sweepstakes
Sampling
Price off
Tools for Consumer Sales Promotion
Coupon
A certificate that entitles
consumers to an immediate
price reduction.
Price packs
Offer lower than usual price or
greater than usual quantity.
Premium
An extra item offered to the
consumer, usually in exchange
for some proof of purchase.
Free-Standing Inserts (FSI)
Tools for Consumer Sales Promotion
Sampling
A promotional program that allow the
consumer the opportunity to try a
product or service for free.
Sampling
Direct mail
Methods
of
Sampling
Door-to-door
delivery
Packaging with
another product
Retail store
demonstration
Tools for Consumer Sales Promotion
Contest
Promotions that require skill or ability
to compete for prizes.
Sweepstakes
Promotions that depend on
chance or luck, with
free participation.
Tools for Trade Sales Promotion
Trade Allowances
Push Money
Training
Free Merchandise
Unique Tools
for
Trade Sales
Promotion
Point of purchase display
Contest and incentives
Tools for
trade Sales Promotion
Trade
allowance
Push money
Contest and
incentives
A discount offered to retailers or
wholesalers to encourage them to
stock, promote or display the
manufacturer's product.
cash payment made directly to
promote and sell the manufacturer's
product.
sponsor contest for reseller and
use prize such as trips, special
merchandises
Tools for
trade Sales Promotion
Point of
purchase
Any form of special display that
advertises merchandises.
Tools for
trade Sales Promotion
Build traffic
Advertise the product
Goals of
Point-of-Purchase
Displays
Induce impulse buying
The Role of
Trade Sales Promotion
Gain new distributors
Obtain support for
consumer sales promotions
Build or reduce
dealer inventories
Improve trade relations