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Ch16 Sales Promotion-Events and Sponsership

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0% found this document useful (0 votes)
31 views19 pages

Ch16 Sales Promotion-Events and Sponsership

Uploaded by

shahzaibrizvi35
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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PART FIVE:

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

is a promotion aim at ultimate


consumers of products
2. Trade Sales Promotion

is a value added program directed


at trade members (resellers)
Push, Pull, and Combination
Strategies
1. Consumer Sales 1. Price Deals
Promotion 2. Coupons
3. Refunds and Rebates
4. Sampling
5. Contests and
Sweepstakes
6. Premiums
7.Specialties items
1. Consumer Sales Price
Promotion
◤ Cents-off deals: Deals
Reduce prices e.g. 20% discount, 50 %
discount
◤ Price–pack deals (value pack):
They can take any of the two
forms;
◤Bonus pack:
offer additional amount of the
product being purchased but contain
in the packaging
Ex: 25%more in this bottle of ketchup
◤Banded pack:
more units of a product sold at a lower price
than if they were bought a the regular
1. Consumer Sales Coup
Promotion
on
Coupon: are small written contracts that grant
holders a price reduction or other benefits
within time frame

◤ 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

• Point-of-purchase (POP) display:


Manufacturer-designed display distributed to
retailers to get attention from the customers
o Special rack, display carton, banner, sticker, signs, price
card, etc.
• Retailer (dealer) kits:
Materials and information to help retailer sell
ability such as price information, product
specification, product display instruction, etc.
• Trade shows and exhibition: provide opportunities to
exchange information, demonstrate and sample
products and sell merchandise (usu. same industry)
• Contest and sweepstakes:
can motivate resellers (increase relationship)
• Trade incentive and deals: Reward for purchasing at
the certain amount of product.
I. Bonuses (push money, spiff): monetary bonus
paid to store’s salesperson based on the units that
salesperson sells
over a period of time
II. Dealer loaders are premiums (=consumer premium) a
manufacturer gives to a retailer for buying a certain
amount of product e.g. free trip
III. Buying Allowances: is a price reducing and reward program
for trade to purchase in a certain amount of product
(discount)
IV. Display Allowances: direct payment of cash or goods is
given to the resellers if the resellers agree to set up the
point-of-purchase (POP)
V. Advertising Allowance: the manufacturer pays the
resellers a certain amount of money to advertise the
manufacturer’s product (flat amount or percentage
Promotions that across the lines

• 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

⭡ Higher purchase, ⭡ Greater Benefit


• Partnership programs
o Co-marketing:
Two separate brands develop a marketing
communication program together e.g. P&G with
Tesco Lotus
o Co-Branding: Two companies come together
to offer a product
o Tie-ins: associate complementary brands linking
two complementary products in a promotion and
also in an advertisement. 2 products joined ⭢
bigger impact ,share the advertising cost
o Licensing agreements (rents): A company’s legal
permission for other manufacturers to use their
company’s logos, symbols, trade characters,
identities for or use on other product. e.g. Waltz
Disney products (the comp. gets money + extend
the brand)

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