Session 5: Promotion and Personal Selling

1
Session 5 Promotion and Personal Selling

• GBA 633

2
Growing Role of Promotion

• Locus of power changes
• Customer demand and expectations
• Short-term results emphasis
• ________________
• Price sensitivity
• Reduced loyalty
• _________________
• Synergy

3
___________________

• Expenditures or incentives used by manufacturers
  and channel members to push goods through the
  channel.
• 7 to 10 of sales revenue goes for trade
  promotions.
• Approximately 50 of total promotional dollars
  spent.
• To be effective, must be integral part of IMC
  program.

4
Push Versus Pull Strategy
Producer/ Service Provider
Channel
Consumers
Producer/ Service Provider
Channel
Consumers
5
_________________

• Trade allowances
• Trade contests
• Trade incentives
• Training programs
• Vendor support programs
• Specialty advertising
• Point-of-purchase displays

6
Trade Allowances

• __________________
• __________________
• ____________________
• __________________

7
___________________

• Achieve sales targets
• Spiff money
• Prizes or cash
• Any channel members
• Conflict of interests

8
_________________

• Cooperative merchandising agreement (CMA)
• Corporate sales program (CSP)
• Producing plant allowance (PPA)
• Back haul allowance (BHA)
• Cross-dock or Pedal runs
• Premium or bonus pack

9
Vendor Support Programs

• _________________________
• _________________________

10
Objectives of Trade Promotions

• Initial distribution
• Prime retail location or shelf space
• Maintain support
• Counter competitive activities
• Increase order size
• Build retail inventories
• Reduce excess inventories
• Enhance channel relationships
• Enhance the IMC program

11
Concerns About Trade Promotions

• High cost
• Outside of IMC Plan
• Over-reliance
• Short-term sales goals
• Potential erosion of brand image
• Impact on small manufacturers

12
___________________________

• Coupons
• Premiums
• Contests and sweepstakes
• Refunds and rebates
• Sampling
• Bonus packs
• Price-offs
• Loyalty programs

13
__________________________

• On, in or near package (3)
• Instant redemption
• Bounceback
• Cross-ruff

• Print media (88)
• FSI (80)
• Direct mail (4)
• Other methods (5)
• In-store
• Sampling
• Scanner-delivered
• Response offer
• Internet
• Fax
• Sales staff
• U-pons

14
Coupon Issues

• Reduced revenues
• Mass cutting
• Counterfeiting
• Misredemption
• Cultural differences

• Face value of coupon
• Distribution method
• Coupon for preferred brand or brand in evoked set

15
Types of_______________

• Free-in-the-mail
• In- or on-package
• Store or manufacturer
• Self-liquidating

16
____________________

• Legal restrictions
• Must overcome clutter
• Right combination of prizes
• Extrinsic and intrinsic value
• Tie-in opportunities with special events or other
  companies
• POP displays and other marketing tools

17
_______________________

• Visibility
• Encourages action
• Profitable for retailers to handle

• Not too complicated
• Avoid becoming permanent component

18
____________________

• In-store distribution
• Direct sampling
• Response sampling
• Cross-ruff sampling
• Media sampling
• Professional sampling
• Selective sampling

19
________________________

• Increase usage
• Competitive actions
• Stockpiling
• Customer loyalty
• New users
• Brand switching

20
_________________

• Temporary price reduction
• Boost short-term sales
• Generate customer traffic
• Implemented easily

• Cautions
• Customer price sensitivity
• Impact on brand and corporate image

21
Developing a _____________

• Enhance the value of the product
• Fully cost program
• Design good reward structure

22
Promotion Combinations

• Over-lay
• Intra-company tie-in
• Inter-company tie-in

23
Types of Consumers

• ________________________
• ________________________
• ________________________

24
_____________________________

• 18.7 of B-to-B marketing budgets spent on sales
  promotions

• Coupons
• Premiums
• Sweepstakes and contests
• Sampling
• Bonus packs

25
_____________________________

• Difficult to centralize
• Laws vary
• Differences in distribution rates
• Requires an experienced international sales
  promotion coordinator

26
_________________________

• Single transaction sales
• Order-taking sales
• Cashier
• Commission retail sales
• Selling services
• Cross-selling
• Telemarketing
• In-bound telemarketing
• Out-bound telemarketing

27
Consumer Buying Decision Process
Post Purchase Behavior
Evaluation of Alternatives
Information Search
Problem Awareness
Purchase
28
Business-to-Business Personal Selling

• Field sales
• In-house sales
• Telemarketing sales
• Internet sales

29
Personal Selling Process
30
Selling Approaches

• Stimulus-response
• Need-satisfaction
• Problem-solution
• Mission-sharing