sales promotion. 16-2 sales promotion what is the difference between advertising and sales...

Sales Sales PromotionPromotion

16-2

Sales PromotionSales Promotion

What is the difference between advertising and sales promotion?

Advertising provides a reason to buy, and sales promotion provides an incentive to buy

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Advertising vs Sales PromotionAdvertising vs Sales Promotion

• Creates immediate action

• Adds tangible value

• Contributes to short-term

profitability

• Creates a brand image

over time

• Adds intangible value

• Contributes to longer

term profitability

Sales PromotionAdvertising

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Effects of Sales PromotionEffects of Sales Promotion• Consumer behavior

– Switch brands

• Pricing– Expect price reductions

• Market share– Switching brands changes

market share

• Parity products– Increases differentiation

• Retailers– Expect incentives from

suppliers

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Consumer Consumer PromotionsPromotions

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Price DealsPrice Deals

• Cents-off

• Price-pack deals

• Bonus packs

• Banded packs

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CouponsCoupons• Provides a

discount on the

price of the

product

• Two types:

• Retailer

• Manufacturer

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Refunds and RebatesRefunds and Rebates

• Offer to

return money

to the

consumer



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SamplingSampling

• Allows the consumer to try the product or service



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Contests Contests and and

SweepstakesSweepstakesCreates excitement • Contests are based on

skill or ability• Sweepstakes are based

on luck



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PremiumsPremiums

Works by adding value • Store • In-pack • On-pack • Container

Self-liquidating• Mail in






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Ad SpecialtyAd Specialty

• Presents the brand’s name on something that is given away as a reminder



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Objective of Consumer Objective of Consumer Sales PromotionSales Promotion

• Create Awareness

• Induce usage

• Incentive to switch brands

• Brand reminder

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Trade Trade PromotionsPromotions

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Push versus PullPush versus Pull

What is the difference between these two promotional strategies?

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Point-of-Purchase DisplayPoint-of-Purchase Display

• Manufacturer-designed display distributed to retailers

• Retailers use the displays to call their customer’s attention to product promotions



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Retailer KitsRetailer Kits

• Materials that

support retailer’s

selling efforts

– Ad slicks

– Product spec’s

– Display instructions



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Trade Shows and ExhibitsTrade Shows and Exhibits

• Companies in the

same industry

gather to present

and demonstrate

products

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Trade PromotionTrade Promotion

• Two primary roles for a trade promotion• Trade

support• Create

excitement

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Trade Promotion TechniquesTrade Promotion Techniques

Discounts and Allowances • Spiffs (push money)• Quantity discounts• Promotional allowances• Advertising allowances • Display allowances

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Promotions That Blend Promotions That Blend Advertising, Promotion and PR Advertising, Promotion and PR

• Sponsorships and event marketing

• Interactive and Internet promotions

• Loyalty programs• Partnership

programs





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Discussion Question Discussion Question

You have just been named product

manager for Bright White, a new

laundry detergent that will be

introduced to the market within the

next six months.

• How would you use a push strategy?

• How would you use a pull strategy?

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