Sales Promotion

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Chapter 16

• Sales Promotion

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Sales Promotion

• An extra incentive to buy
• An inducement to intermediaries
• Targeted to different parties
• With the primary objective of creating an
  immediate sale
• Two Types

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Reasons for Increase inSales Promotion

• Growing Power of ________
• Declining Brand _______
• Increased Promotional _________
• Brand ___________
• ____________ of Consumer Markets
• Short-Term _______
• Increased ____________
• Competition
• ________

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Two types of Promotions

• Franchise-Building
• Non-Franchise Building

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Consumer Franchise-Building(CFB) Promotions

• CFB Promotional Objectives
• CFB Techniques and Practices
• Frequency programs encourage ____________
• Frequency programs encourage _____________
• Offers consistent with brand or store image . . .

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Nonfranchise-Building(non-FB) Promotions

• Non-FB Promotional Objectives
• Non-FB Promotions . . .
• Do not identify _______ brand features
• Do not contribute to brand identity or image
• Non-FB Promotions may include . . .
• Non-FB Promotions shortcomings

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Sales Promotion Uses

• Introduce new products
• Get existing customers to __________
• Attract new customers
• Combat ___________
• Maintain sales in _________
• Increase retail inventories
• Tie in advertising and personal selling
• Enhance personal selling efforts

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

• Door-to-door
• Direct mail
• In-store sampling
• On-package sampling
• Event sampling
• Cross-product sampling
• With newspaper / magazine
• Any of above with coupon
• The Internet

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Coupon Distribution

• Freestanding inserts (FSI)
• Direct mail
• Newspapers and magazines
• Inside/outside package

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Coupon Types

• Bounce-back coupons
• Cross-ruff coupons
• Instant coupon
• In-store coupon

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Pros and Cons of Coupons

• Pros
• Cons

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Trade-oriented Sales Promotion Objectives

• Obtain distribution for new products
• Maintain trade support for established brands
• Encourage retailers to display established brands
• Build retail inventories

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The Sales Promotion Dilemma
Our Firm
Maintain Promotions
Cut Back Promotions
Maintain Promotions
All Others
Cut Back Promotions