Many sales promotions are not effective brand building tools. If he overuse of sales promotion may result in negative attitudes. Profitability increases may be low. Sales promotion programs often require big implementation costs. Sales promotion tend to orient toward short term. Sales promotion works on a direct behavioral level.
promotional big ideas
The first step of sales promotion planning. The key is to come up with exciting and challenging promotional ideas that capture the target market.
Primary categories of sales promotion
The most common sales promotion strategies target the three audiences of promotions: consumer, trade, and sales force.
Consumer sales promotions are directed at the ultimate user of a good or service.
Examples of consumer promotions
price deals- a temporary reduction or a sale price, or even freebies.
Require customers to take action before receiving the premium. A self liquidator premium usually requires that a payment be mailed in along with some proof of purchase.
Type types -retailer- sponsored coupons can be redeemed only at the specific retail outlet. -manufacturer. Sponsored coupons can be redeemed at any outlet.
a cents off deal
is a reduction in the normal price charged for a good or service.
deals provide the consumer with extra through the package itself. Exp. A prize in a cereal box
are more units of a product sold at a lower price than if they were bought at the regular single-unit price.
refunds and rebates
a refund or rebate is a marketers offer to return a certain amount of money to a consumer who purchases the product.
Allowing the consumer to try the product or service is called sampling.
a premium is a tangible reward for a particular act, usually purchasing a product or visiting the point of purchase.
four variations of direct premiums
1. Store premiums-given to customers at retail site 2. In pack premiums- inserted in the package at the factory 3. On pack premiums- placed on the outside of the package at the factory 4. Container premiums- in which the package is the premium.
require participants to compete for a prize or prizes based on some sort of skill or ability.
requires only that participants submit their names to be included in a drawing or other chance selection
type of sweepstakes but requires customers to return
presents the brands name on something that is given away in an attempt to remind consumers about the brand. Exp. Calendars, water bottles.
Include print, broadcast, and online. Direct mail has dominated the delivery of special promotions but much has moved to the internet.
Many advertising campaigns include a campaign dedicated website designed to tie in. Others offer special offers to online purchasers.
First step in consumer decision making. Used to call attention to the brand name to get consumers to try a product.
Consumers must also perceive the brand as offering some clear benefit compared to competitors.
Is generally most effective when reinforced on the pot with product coupons. Consumers like this because they do not lose money if they dislike a product
are usually done through coupons, refunds, rebates or premiums. They are effective because the encourage consumers to purchase a product before a deadline.
coupons mainly encourage
Trial, brand switching, and reward repeat business.
Can be used to reward loyal users in order to encourage their repeat business.
price deals are particularly effective in situations
where price deals are particularly effective in those situations where price is an important factor in brand choice or if consumers are not brand loyal.
Promotion tools such as coupons, premiums, special events and sweepstakes help too
In addition to new product launches, promotions are also used at the _____ stage. This means that you changed advertising to remind customers about positive experience they had with the product.
An important principle to remember is that:
Consumer promotion is of little use if the product is not available where the consumer can find it.
Trade promotions are usually directed at distribution channel members, a practice that is sometimes referred to as ______ _____.
Is directed at wholesalers and retailers that provides trade members with information about new products and their selling points.
retailer (dealer) kits
materials that support retailers selling efforts or that help represent make sales calls on prospective retailing customers are often designed as sales kits.
trade incentives and deals
Similar to consumer price deals, a manufacturer may reward a re seller financially for purchase of a certain level of product or support of a promotion.
are buying allowances for increasing purchases and advertising allowances, which include deals on cooperative advertising.
Point of purchase display two types
1. Manufacturer designed displays 2. signs and displays used by retailers
Special racks, display cartons, banners, signs and price cards.
To stimulate in store , merchandising, or other trade support.
To create a high level of excitement about the product among those responsible for its sale.
directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product
A promotion strategy that calls for using the sales force and trade promotion to push the product through channels. The producer promotes the product to channel members who in turn promote it to final consumers
monetary rewards offered by companies for exceptional performance as incentives to further increase productivity
premiums that manufactors give to retailer for buying certain amount of product, like giving mangers a free trip to superbowl for selling a certain amount of beer
a deal or discount offered to resellers in the form of a price reduction on product ordered during a fixed time period
price reductions to firms in the channel to encourage them to advertise or otherwise promote the firm's products locally
A contractual agreement between the manufacturer and the re sellers, the manufacturer agrees to pay a part or all of the advertising expenses incurred by the retailers
A direct payment of cash or goods is given to the retailer if the retailer agrees to set up the point of sale display. Before issuing the payment the manufacturer requires the retailers signature on a certificate of agreement.
Some trade promotions are designed not only to get the attention of the trade members, but also to grab the attention of customers.
Most trade promotions are designed to, in some way, motivate trade members to cooperate with the manufacturers promotion.
Trade shows display products and provide an opportunity to sample and demonstrate products, particularly for trade buyers, the people who buy for stores.
occur when companies support an event, such as a sporting event, concert, or charity, either financially or by donating supplies and services. Typically cost along of money. Companies use it to increase the perceived value of the brand in the consumers mind.
means building a products marketing program around a sponsored event, such as the Olympics or a golf tournament.
describes the marketing practice of linking a brand to an even. Exp. Tours
Business to business
promotions also use events to reach trade audiences, which can include sales staff, distributors, retailers, and franchisees.
is the term given to promotional stunts used at events, such as the Olympics and the soccer and rugby World Cups, by companies that are not official sponsors.
also called a continuity or freguency program is a promtion to increase customer retention.
When two companies come together to offer a product.
Legally protected brand identity items, such as logos, symbols, and brand characters, must be licensed, that is, a legal contract gives another company the right to use the brand identity element.
Tie-ins/ Cross Promotions
an effective strategy for marketers using associations between complementary brands to make one plus one equal three.
1. Can aid in a new product launch and can deliver a trail. 2. Can build a brand over time by reinforcing advertising images and messages. 3. Are not effective in achieving all marketing objectives.
The goal of creating a ____ is to produce promotions that increase sales and profits.
primarily used to create a brand image and high levels of brand awareness over time. Adds intangible value- brand personality and image- to a good or service.
primarily used to create immediate action. Adds tangible value to the good or service and contributes greatly to the profitability of the brand.
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Chapter 16 B
Ch. 15. Sales Promotion, Point of Purchase ADV, and Support Media