Ch16 Sales Promotion-Events and Sponsership
Ch16 Sales Promotion-Events and Sponsership
INTEGRATION AND
EVALUATION
Chapter Wells, Moriarty, Burnett &
Lwin
16 ADVERTISING Principles
and Effective IMC Practice
Koekemoer L. (2004).,
Marketing Communications,
Juta and Company Ltd.
Revised by Chutinun K,
2014.
SALES
PROMOTION,
EVENTS,
Key
the usePoints
• Explain the principles that drive
of sales promotion
• List and explain the use of various
consumer promotions
• Summarize the types and purposes
of trade promotions
• Describe the use of other
types of promotions
• Explain the strategic use of
promotions in marketing
Growth of Sales
promotion?
Company Side Consumer Side
• Need for short-term • Consumer behavior: less
profit loyal to brand names
• Added value: reduce the
• Easy to evaluate the
risk of purchase, get
impact (from sales
more for less
volume)
• Pricing: expect the short
• High cost of Media term price reduction
• Parity products: increasing
• Market share: battle
sales when products are
for market share
largely undifferentiating
instead of product
• Power of the retailer:
growth
dominant retailers
demand incentives to
offer shelf space
Sales
Promotion
• A marketing discipline that utilizes a variety of
incentive techniques to structure sales-
related programs that generate a specific,
measurable action or response
• cost less, produce immediate results (short-term
sales)
• Consumers risk value added (more for less)
Types of Sales
promotion
1. Consumer Sales Promotion
◤ Retailer-sponsored coupons:
redeemable only at the specified
outlet
◤ Manufacturer-sponsored coupons:
redeemable at any outlet
(distributor)
1. Consumer Sales Refund
Promotion
and
Refund and rebate:
Rebate
Offer to return the certain amount of money
to the consumer or sometimes it may be a
coupon or other benefits to encourage
repeat use.
Sampli
Sampling: ng
Allow the consumer to try the sample of the
product
1. Consumer Sales Conte
Promotion
st
Contest: Engage consumers who compete
for prizes based on some sort of skill or
ability.
Sweepstak
esto
Sweepstakes: Award prizes
consumers. Based on luck or
chance of selection
Specialties
items
Specialties items: Give- away items as a
reminder for the brand
1. Consumer Sales Premiu
Promotion
m
Premium: an extra product or tangible reward for
consumer’s particular behaviors, usually
purchasing
◤Direct premium award given at the time of
purchase
• Store premiums: given to customers at the retail site
• In-pack premiums are inserted in the package at the
factory
• On-pack premiums are placed outside the package
• Container premiums in which the package is the
premium
◤Free-in-the-mail premium
A free-in-the-mail premiums is usually an item (not
available in shops) that is sent to selected consumers
who provide proof of purchase.
2. Trade Sales
Promotion
1. Point-of-purchase (POP)
display Trade Support
2. Retailer (dealer) kits
3. Trade shows and
exhibition
4. I. Bonuses (push money,
Contest
5. Tradespiff)
incentive and deals
Excitement
II. Dealer loaders
III. Buying Allowances
IV. Advertising Allowance
V. Cooperative ads
VI. Display Allowances
• Goal
o Designed by manufacturer to get
cooperation of people in distribution
channel (trade member)
o Encourage the promotion of product to
the consumer
o Gauged from sales volume
• Target: Resellers (wholesaler, retailer)
• 2 Roles:
1) Trade support: to stimulate in-store
merchandising, superior store
location, shelf space
2) Excitement: to create the high level of
attention from resellers about the
product ⭢ sales
2. Trade Sales
Promotion
• Event Marketing
• Sponsorship
• Interactive and Internet
Promotions
• Loyalty Programs
• Partnership Promotions
• Sponsorship: Company supports an event either
financially or by donating supplies and services
• Event marketing: Building product marketing’s program
around a sponsored event. Practice of linking a brand to
an event that usually matches the brand to the target
market’s lifestyle
e.g. Greenwave + Fat Festival
• Interactive and Internet Promotion: There are a number of
ways that advertisers can use the internet for sales
promotion program. Ex: sampling, sweepstakes,
contests, coupons, etc.
• Loyalty Program (loyalty program or continuity program):
is a promotion to increase customer retention in order to
keep and reward the continued patronage e.g. member
card, airline frequent flier program