Beruflich Dokumente
Kultur Dokumente
Sales Promotion
(Chapter 16)
1
Sales Promotion
An extra A tool to
incentive to buy speed up sales
Targeted to
different parties
2
Sales Promotion Increases
Brand proliferation
Increased accountability
Competition
Clutter
3
Objectives of Consumer-Oriented Promotions
To increase
consumption of an
established brand
4
Sales Promotion Vehicles
Consumer-Oriented Trade-Oriented
Samples Contests, incentives
Price-off deals
Frequency programs
Event marketing
5
1. Sampling
Consumers are given some quantity of a product for no
charge to induce trial.
Door-to-door
Direct mail
In-store
On package
Event
Newspaper/magazine insert
Internet sites
6
2. Couponing
A ticket/document that can be exchanged for a financial discount or
rebate when purchasing a product.
• Media Delivery
– Free Standing Inserts (FSI)
• Direct Mail
• In or on packages
• In stores and at POP
7
Electronic Coupons
• Online printable coupons
• Coupon apps
• E-Coupon on shopping
sites
• Coupon code:
– A string of letters/numbers
to enter into a promotional
box on a site's shopping
cart checkout page to
obtain a discount on their
purchase.
3. Premiums
Types of Premiums
Self-liquidating Premiums:
Free Premiums:
consumers are required to pay
Only requires purchase of the
some or all of the cost of the
product
premium
10
Examples of Premiums
Happy Meal Toys
https://www.youtube.com/watch?v=GM7rjGixctY
4. Contests and Sweepstakes
Contests: Sweepstakes:
Consumers compete for prizes or Winners are purely determined by
money on the basis of skills or ability chance
13
• Eristoff Vodka's Belgian Competition Will Reward You If Real
Wolves 'Reply'
http://creativity-online.com/work/eristoff-vodka-howl-with-a-wolf/33125
• Cannon PhotoMarathon 2017 Hong Kong
17
6. Bonus Packs
Offers the consumer an extra amount of a product at the
regular price by providing larger containers or extra units
18
7. Price-off Deals
Provide a reduction in the regular price of the brand
• Initiated by manufactures
• Right on the package
through specifically marked
price packs
19
8. Loyalty Programs
20
9. Event Marketing
21
23
There are more…
Summary of Consumer-Oriented Promotions
Induce Trial:
Samples
• Samples
• Coupons
Coupons • Rebates
• Free premiums
Premiums
Customer Retention/ Loading:
Contests/sweepstakes • Price-off deals
• Bonus packs
Refunds/rebates • Free premiums
• Loyalty programs
Bonus Packs • Rebates
Support IMC program/build
Price-off deals
brand equity:
• Events
Loyalty programs
• Premiums
• Contests/sweepstakes
Event marketing • Loyalty programs
25
Trade Oriented Promotions
26
Types of Trade Oriented Promotions
Trade allowances
Buying
Promotional
Slotting
Training programs
Trade shows
27
Displays and POP Materials
28
Cooperative Advertising
Cooperative advertising is the sharing of costs for locally placed advertising
between a retailer or wholesaler and a manufacturer.
Problems With Sales Promotion
• A brand that is over-promoted may lose perceived value.
• Consumers who consistently purchase a brand because of a
coupon or price-off deal may attribute their behavior to
promotional incentives, rather than to a favorable attitude toward
a brand.
• Sales promotion trap is inevitable.
• Marketers must be careful not to damage the brand franchise with
sales promotions, or get the firm in a promotional war that erodes
profit margins and threatens the company’s long-term existence.
Budget allocation
Proper coordination of sales
promotion with other IMC tools
is essential if the firm is to take
advantage of the opportunities
offered by each, and get the
most out of its promotional
budget.
Coordination of
themes
Media support and
timing
Final Project
• Due Date: Nov 27th (session A) or Nov 28th (session B)
– All the hardcopies and softcopies will be collected at the beginning of the
class. No late project will be accepted.
– Submit the hardcopy of your final project
– Submit the hardcopy of Veriguide confirmation page with all of your
team members’ signatures on it (completed before class starts)!
– Submit the softcopy of your final project (in PDF format), presentation
slides, and supplementary materials in a burned disk.
• Evaluation Criteria:
– Persuasiveness: Are you convinced by the campaign? Is it feasible and
effective?
– Originality: How creative are the proposed programs?
– Content Clarity: Is the presentation is clearly structured? Does it contain
necessary details?
– Presentation Skills: Presentation manner, dress code, time control, and
handling of Q&As.
Final Exam
• Date: Dec 1st (Saturday)
• Time: 10:00 - 11:30am
• Venue: YIA_LT6
• Format: Multiple choices; short questions
(total 70 points; 35%)
• Scope:
– Lecture notes (excluding examples)
– Book chapters (go to the last page of syllabus for page numbers)
• Full-page mini cases/examples will not be tested
• The “IMC Perspective,” “Ethical Perspective,” “Digital and Social Media
Perspective,” and “Global Perspective” pages in the textbook will not
be tested
– Supplementary reading materials will not be tested.
– Focus on comprehension and application