Sales Promotion, Events, and Sponsorships

Part 5: Integration and Evaluation Chapter 16

Chapter Outline
I. II. III. IV. V. VI. Chapter Key Points The Practice of Sales Promotion Consumer Promotions Trade Promotions Promotions that Cross the Line Promotion Strategy

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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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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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Growth in Sales Promotion

Pressure for short-term profits Need for accountability Easy to evaluate Move to Sales Promotion Consumer behavior Pricing Market share Parity products Power of the retailer

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Consumer Promotions
Price deals Coupons Refunds and rebates Sampling Contests and sweepstakes Premiums Specialties
Temporary price reduction or sale price
Cents-off Price-pack deals Bonus packs Banded packs

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Consumer Promotions
Price deals Coupons Refunds and rebates Sampling Contests and sweepstakes Premiums Specialties
Provide a discount on the price of the product
Retailer Manufacturer

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Consumer Promotions
Price deals Coupons Refunds and rebates Sampling Contests and sweepstakes Premiums Specialties
Marketers offer to return a certain amount of money to the consumer

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Consumer Promotions
Price deals Coupons Refunds and rebates Sampling Contests and sweepstakes Premiums Specialties
Allowing the consumer to try the product or service

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Consumer Promotions
Price deals Coupons Refunds and rebates Sampling Contests and sweepstakes Premiums Specialties
Create excitement by promising something for nothing Contests based on skill or ability Sweepstakes based on luck

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Consumer Promotions
Price deals Coupons Refunds and rebates Sampling Contests and sweepstakes Premiums Specialties
Tangible reward for a particular act Work by adding value to the product
Store premiums In-pack premiums On-pack premiums Container premiums

Self-liquidating
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Consumer Promotions
Price deals Coupons Refunds and rebates Sampling Contests and sweepstakes Premiums Specialties
Presents the brands name on something that is given away as a reminder

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How to Use Consumer Promotions

Awareness Trial Maintain or increase market share Brand reminder

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Trade Promotions
Point-of-purchase display Retailer kits Trade incentives and deals Contests Trade shows and exhibits
Manufacturer-designed display distributed to retailers Retailers use the displays to call their customers attention to product promotions

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Trade Promotions
Point-of-purchase display Retailer kits Trade incentives and deals Contests Trade shows and exhibits
Materials that support retailers selling efforts or help representatives make sales calls on prospective retailing customers

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Trade Promotions
Point-of-purchase display Retailer kits Trade incentives and deals Contests Trade shows and exhibits
When a manufacturer rewards a seller financially for purchase or support
Buying allowances Advertising allowances

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Trade Promotions
Point-of-purchase display Retailer kits Trade incentives and deals Contests Trade shows and exhibits
Advertisers can develop contests and sweepstakes to motivate resellers Contests far more common

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Trade Promotions
Point-of-purchase display Retailer kits Trade incentives and deals Contests Trade shows and exhibits
When companies in the same industry gather to present and sell their merchandise and to demonstrate products

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How to Use Trade Promotion

Two primary roles for a trade promotion
Trade support Excitement

Demand: Push-and-Pull strategies

Bonuses Dealer loaders Buying allowances Advertising allowances Cooperative advertising Display allowance

Attention Motivation Information

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Promotions That Cross the Lines

Promotion techniques that blur the lines between promotions, advertising, and public relations Sponsorships and event marketing Other promotional support Interactive and Internet promotions Loyalty programs Partnership programs

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Promotion Strategy
Promotion objectives The issue of brand building Promotion integration Promotion effectiveness

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