Transcript 9b - media sales promo

Chapter 14
Sales Promotion
Kleppner’s
Advertising
Procedure, 18e
Lane * King * Reichart
Learning Objectives
• Discuss the complementary roles of sales
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promotion and advertising.
Discuss the general forms of promotion
available to marketers.
Explain the basic approaches to product
association and tie-ins
Discuss the varied types of couponing today.
Discuss the uses of sales promotion consumer
and trade incentives.
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Pros of Sales Promotions
• Encourages consumer sales response
• Extremely flexible with a number of
techniques to reach consumers across
demographic and lifestyle categories
• Functions at both consumer and trade levels
to encourage high levels of distribution and
goodwill
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Cons of Sales Promotions
• Can damage brand equity by replacing image
of product with price competition
• Care must be taken to coordinate various
messages
• Some forms, like couponing, do not provide a
competitive source of differentiation
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Sales Promotion
• Sales promotions are sales activities that
supplement both personal selling and
marketing, coordinating the two, and helping
to make them effective.
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Promotional Categories
Transactional
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Relational
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Exhibit 14.3 The Consumer
Communication and Purchase Process
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Possible Promotional Objectives
• To gain trial among nonusers of a brand or
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service
To increase repeat purchase and/or multiple
purchases
To expand brand usage
To defend share against competitors
To support and reinforce an advertising
campaign
To increase distribution
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Factors to Consider When
Developing Promotional Strategy
Customer attitudes and buying behaviors
Brand strategy
Competitive strategy
Advertising strategy
Trade environment
Other external factors
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Forms of Sales Promotion
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Event marketing
Virtual advertising
Sponsorships
Point-of-purchase
advertising
• Premiums and
incentives
• Interactive/digital
• Product sampling
• Sweepstakes and
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contests
Cooperative
advertising
Trade shows and
exhibits
Directories and
yellow pages
Trade incentives
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Event Marketing
• Corporate sponsorship
• Staged promotions
• Product licensing
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Point-of-Purchase Advertising
• Motivates
unplanned shopping
• Offers brand and
product reminders
• Influences brand
switching
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Premiums
• Premiums are items other than the product
itself given to purchasers of a product as an
inducement to buy.
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Types of Premiums
Traffic-building
Continuity
In- or on-pack
Self-liquidating
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Reasons for Using Specialties
To promote customer retention and appreciation
To use with trade shows
To build goodwill and enhance image
To create awareness of new products
To generate sales leads and responses
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Exhibit 14.7
FSI Delivers Coupons
Coupons are the most
popular form of sales
promotion.
Free-standing inserts
are a common form of
coupon distribution.
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Sampling
• Sampling is the free distribution of a product
to a prospect.
• Experiential sampling incorporates
sampling with a consumer engagement
device (like Hershey’s KISSMOBILE).
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Growth in Sampling
Newspaper distribution
Event marketing
In-store sampling
In-pack/co-op programs
Internet sampling
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Sweepstakes and Contests
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Cooperative Advertising
• National firm pays 50% of cost for most co-op
advertising; some at 100%
• National manufacturers build goodwill with
retailers; encourage local support of brands;
and, qualify for lower local rates, especially in
newspapers
• Manufacturers also gain a positive association
between local retailers and their products, and
enhance brand equity
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Types of Cooperative Advertising
• Vendor programs
• Ingredient manufacturer co-op
• Manufacturer-to-wholesaler co-op
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Trade Shows
• There are all types of trade shows!
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Forms of Trade Incentives
Dealer
incentives
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Sales
incentives
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For Discussion
• What is the primary disadvantage of sales
promotion?
• What are the major advantages and
disadvantages of event marketing?
• Why is point-of-purchase advertising so
important to many advertisers?
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