ADVERTISING: Sales Promotion

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ADVERTISINGSales Promotion
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Sales Promotion

• A special incentive to
• Distributors
• Salespeople, or
• Customers
• to encourage an immediate sale

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Allocations to Advertising, Trade and Consumer
Promotions
100
Consumer Promotions
90
80
70
Media Advertising
60
50
40
30
Trade Promotions
20
10
0
'86
'87
'88
'89
'90
'91
'92
'93
'94
'95
'96
'97
Percent of total promotional dollars.
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Types of Promotions

• Franchise Building
• LONG TERM preferences
• Communicate distinctive brand identity
• Example
• Frequency programs with brand or store image
• Non-Franchise Building
• IMMEDIATE sales
• Examples
• Price-off deals
• Bonus packs
• Rebates or refunds

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Objectives of Sales Promotion

• Obtaining trials
• Increasing repurchase
• Increasing overall consumption
• Rewarding current customers
• Reaching out to a new market
• Enhancing advertising efforts

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Sales Promotion Vehicles
Consumer-Oriented Pull
Trade-Oriented Push
Samples
Contests, dealer incentives
Coupons
Trade allowances
Premiums
Point-of-purchase displays
Contests/sweepstakes
Dealer premiums
Refunds/rebates
Trade shows
Bonus packs
Cooperative advertising
Price-offs
Event sponsorship
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Samples -- Media

• Door-to-door
• Direct mail
• In-store sample pack
• Cross-product sampling
• Co-op package distribution
• With newspaper / magazine
• Any of above with coupon

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Display Cards
10
Coupons

• Advantage
• Works will increase sales
• Disadvantages
• May be redeemed by loyal users who would buy
  anyway
• Sometimes difficult to estimate redemption levels
  in advance
• Expensive

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The Sales Promotion Dilemma
Our Firm
Continue Promotions
Reduce Promotions
Lose market share low profits

• Maintain share
• low profits

Continue Promotions
Competition
Gain market share But low profits
Higher profits for everyone!
Reduce Promotions
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Percent of Sales with Coupons
13
Sweepstakes and Contests

• ADVANTAGES
• Gets consumer involved with the product
• Generates interest and attracts attention to
  advertising
• DISADVANTAGES
• May overshadow the product
• May detract from brand image

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Spending on Event Sponsorship
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Benefits of Event Marketing
1. Greater Awareness 2. Associate Product with
Event 3. New Potential Clients (Sales) 4. Media
Coverage
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Quote of the day

• If youre selling a product that needs to be
  purchased regularly, and its really great,
• just give away free samples.
• Mike Basil
• Professor of Marketing