Sales Promotion

• Promotion activities—other than advertising, publicity and personal selling—that stimulate interest, trial, or purchase

• May be targeted at channel members, final customers or users, or employees

• Sales promotion spending is increasing at the expense of traditional media advertising

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Different Types of Sales Promotion for Different Targets

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Computer-generated Coupon

On-Shelf Coupon

Trade Show

Outdoor Display

Erodes Brand Loyalty

Need For

Alternatives

Erodes Brand Loyalty

Customers start to

expect it

Problems With Sales Promotions

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

KeyProblems

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Sales Promotion EffectExhibit 15-5a

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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Sales Promotion EffectExhibit 15-5b

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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Sales Promotion EffectExhibit 15-5c

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