chapter 1 promotion and public... · 02.01.2013 1 1 chapter 16 sales promotion, and public...
TRANSCRIPT
02.01.2013
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Chapter 16
Sales Promotion, and
Public Relations
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What is Sales Promotion ?
Sales promotion is a mass communication technique
that offers short-term incentives
to encourage purchase or sales of a product or service.
Offers Reasons to Buy Now.
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Rapid Growth of Sales Promotion
Sales promotion can take the form of consumer
promotions, business promotions, trade promotions or sales
force promotions.
Rapid growth in the industry has been achieved because:
Product managers are facing more pressure to
increase their current sales,
Companies face more competition,
Advertising efficiency has declined,
Consumers have become more deal oriented.
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Sales Promotion Objectives
Increase short-term sales or help build long-term market share. obtaining trial and purchase
increasing consumption of established brand
defending current customers
Get retailers to: carry new items and more inventory,
advertise products,
give products more shelf space, and
buy product ahead.
In general, sales promotion should focus on consumer relationship building.
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Sample
Coupons
Cash Refunds
Price Packs
Premiums
Advertising Specialties
Trial amount of a product
Savings when purchasing specified products
Refund of part of the purchase price
Reduced prices marked on the label or package
Goods offered free or low cost as an incentive to buy a product
Articles imprinted with an advertiser’s name given as gifts
Major Consumer Sales Promotion Tools Sample
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Coupon
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Price Packs
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Premiums
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Advertising Specialties
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Patronage Rewards
Point-of-Purchase
Contests
Sweepstakes
Game
Cash or other rewards for the use of a certain product
Displays and demonstrations that take place at the point of sale
Consumers submit an entry to be judged
Consumers submit their names for a drawing
Presents consumers with something every time they buy
Major Consumer Sales Promotion Tools
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Patronage Rewards
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Trade-Promotion Objectives
Persuade Retailers or Wholesalers to Carry a Brand
Give a Brand Shelf Space
Promote a Brand in Advertising
Push a Brand to Consumers
Major Trade Sales Promotion Tools
Trade-Promotion Tools
Discounts
Allowances
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Business-Promotion Objectives
Generate Business Leads
Stimulate Purchases
Reward Customers
Motivate Salespeople
Business-Promotion Tools
Conventions
Trade Shows
Sales Contests
Major Business Sales Promotion Tools
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Decide on the Size of the Incentive
Set Conditions for Participation
Evaluate the Program
Determine How to Promote and Distribute the Promotion Program
Determine the Length of the Program
Developing the Sales Promotion Program
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What is Public Relations?
Public relations involves building good relations with the company’s various publics
by obtaining favorable publicity,
building up a good corporate image,
and handling or heading off unfavorable rumors, stories, and events.
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Press Relations or Agentry
Product Publicity
Public Affairs
Lobbying
Investor Relations
Development
Public Relations
Departments May
Perform Any of All
of the Following
Functions:
Major Public Relations Functions
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News
Speeches
Special Events
Written Materials Audiovisual
Materials
Corporate Identity Materials
Public Service
Activities
Web Site
Major Public Relations Tools
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Setting Public Relations Objectives
Choosing the Public Relations Messages and Vehicles
Implementing the Public Relations Plan
Evaluating Public Relations Results
Major Public Relations Decisions
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Public Relations Tie-in:
Sponsorships relate to special events
Types of Sponsorships:
Sports sponsorships
Entertainment, tours, and attractions
Festivals, fairs, and annual events
Cause-related marketing
Arts
Special Events: Sponsorships
Reasons for Growth:
Avoids clutter
Cost efficient / effective
Enhances brand equity
Allows for lifestyle or geographic targeting
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Selecting Sponsorship Events --
Consider:
Is it consistent with brand
image or will it benefit the
brand image?
Does it offer a strong
probability of reaching the
target audience?
Does the event complement
existing sponsorships and
other IMC efforts?
Special Events: Sponsorships
Selecting Sponsorship Events
-- Consider:
Is the event cluttered by
many other sponsors?
Is the event economically
viable?
Has the competition
previously sponsored the
event? Is there a risk of
confusing the target
audience as to the
sponsor’s identity?
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If you were responsible for
marketing an anti-aging cream,
WHAT EVENTS OR CAUSES
WOULD YOU CHOOSE TO
SPONSOR (LOCAL OR
NATIONAL)?
WHY?
Discussion Question