Sales Promotion, Events, and Sales Promotion, Events, and SponsorshipsSponsorships

Chapter 16

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Chapter OutlineChapter Outline

I. Chapter Key Points

II. The Practice of Sales Promotion

III. Consumer Promotions

IV. Trade Promotions

V. Promotions that Cross the Line

VI. Promotion Strategy

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Key PointsKey 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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Promotion Marketing Association:Promotion Marketing Association:Your Link to the World of PromotionYour Link to the World of Promotion

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The Practice of Sales The Practice of Sales PromotionPromotion

• 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 PromotionGrowth in Sales Promotion

• Pressure for short-term profits

• Need for accountability• Easy to evaluate

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Move to Sales PromotionMove to Sales Promotion

• Consumer behavior• Pricing• Market share• Parity products• Power of the retailer

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The Institute of Sales PromotionThe Institute of Sales Promotion

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Consumer Promotions:Consumer Promotions:Price DealsPrice Deals

• Temporary price reduction or sale price– Cents-off

– Price-pack deals

– Bonus packs

– Banded packs

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Consumer Promotions:Consumer Promotions:CouponsCoupons

• Provide a discount on the price of the product– Retailer

– Manufacturer

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Consumer Promotions:Consumer Promotions:Refunds and RebatesRefunds and Rebates

• Marketer’s offer to return a certain amount of money to the consumer

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Consumer Promotions:Consumer Promotions:SamplingSampling

• Allowing the consumer to try the product or service

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Consumer Promotions:Consumer Promotions:Contests and SweepstakesContests and Sweepstakes

• Create excitement by promising something for nothing• Contests based on skill or ability• Sweepstakes based on luck

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Consumer Promotions:Consumer Promotions:PremiumsPremiums

• 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:Consumer Promotions:SpecialtiesSpecialties

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

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How to Use Consumer PromotionsHow to Use Consumer Promotions

• Awareness• Trial• Maintain or increase

market share• Brand reminder

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IAS Promotes.com:IAS Promotes.com:Specializing in Specialty ItemsSpecializing in Specialty Items

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Types of Trade Promotions:Types of Trade Promotions: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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Types of Trade Promotions:Types of Trade Promotions:Retailer KitsRetailer Kits

• Materials that support retailer’s selling efforts or help representatives make sales calls on prospective retailing customers

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Types of Trade Promotions:Types of Trade Promotions:Trade Incentives and DealsTrade Incentives and Deals

• When a manufacturer rewards a seller financially for purchase or support– Buying allowances

– Advertising allowances

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Types of Trade Promotions:Types of Trade Promotions:ContestsContests

• Advertisers can develop contests and sweepstakes to motivate resellers

• Contests far more common

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Types of Trade Promotions:Types of Trade Promotions:Trade Shows and ExhibitsTrade Shows and Exhibits

• When companies in the same industry gather to present and sell merchandise and demonstrate products

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How to Use Trade PromotionHow to Use Trade Promotion

• Two primary roles for a trade promotion– Trade support

– Excitement

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How to Use Trade PromotionHow to Use Trade Promotion

• Demand: Push-and-Pull strategies• Attention• Motivation• Information

Figure 2.3

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The eChannel Group:The eChannel Group:Bringing Fusion To The MarketBringing Fusion To The Market

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Promotions That Cross the LinesPromotions That Cross the Lines

• Promotion techniques that blur the lines between promotions, advertising, and public relations

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Promotions That Cross the Lines Promotions That Cross the Lines

• Sponsorships and event marketing

• Other promotional support

• Interactive and Internet promotions

• Loyalty programs• Partnership programs

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

Creates immediate action

Added value strategies rely on rational appeals; impulse appeals use emotion

Adds tangible value to the product or service

Contributes greatly to short-term profitability

Creates a brand image over time

Relies on emotional appeals

Adds intangible value to the product or service through image

Contributes moderately to short-term profitability

Sales PromotionAdvertising

The Differences between Advertising and Sales Promotion

Table 16.2

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Upromise Uses Values Marketing to Pay Upromise Uses Values Marketing to Pay for Collegefor College

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