Relation to textThis slide relates to pages 542-548 of the text. Summary OverviewManufacturers use a variety of trade promotion tools as inducements for wholesalers and retailers. These promotions include contests and incentives, trade allowances, displays and point-of-purchase materials, sales training programs, trade shows and co-op advertising. Use of this slideUse this slide to point out the types of incentives that manufacturers use to get wholesalers and retailers to treat them, and their products, favorably.
Relation to textThis slide relates to pages 549-550 of the text. Summary OverviewSales promotion techniques work best in conjunction with advertising and other integrated marketing tools. When properly planned and executed to work together, advertising and sales promotion can have a synergistic effect much greater than that of either promotional mix alone. 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. Use of this slideUse this slide when explaining the importance of coordinating all your sales, advertising, and IMC tools.
ctions intended to convince individuals to purchase a good or
service. A typical business will only offer a consumer promotion
like a reduced price, free sample or bonus offer for a short period
in order to stimulate demand for and awareness of the product
Consumer promotion is easier now then what it was before, brands are
able to pull consumers to buy their products easily. This is usually done
in addition to advertising, advertisements are shown for a longer
duration, while consumer promotion is done as a form of sales
Consumer promotions are a way to attract new customers and
grow your customer base. This is a common objective for new
companies or new product launches.
Getting customers to switch brands by offering free samples and
free trials is another goal. This approach limits the risk to
customers when giving your product a try.
Clearing out extra merchandise, combating competitor
promotions and generating short-term revenue and cash flow are
other common consumer promotion goals.
ObjECTIvES Of CONSUMER PROMOTIONS
ree trials and samples
uy one get one free deals
remiums and ad specialties
ontests and sweepstakes
CONSUMER PROMOTION TyPES...
ustomers are given coupons during holiday season and at times for
their birthdays and anniversaries. A certain percentage of
discounts are given, customers are encouraged to buy products at
a reduced price.
Free-in-the-mail (gifts for buying)
In/on-package (attached gifts… e.g.: toys)
Store or manufacturer (provided at time of purchase from
store or manufac.)
Self-liquidating (premium sold at cost to consumer)
Time (short life spans – popularity wanes)
Cost (exclusivity increases demand and thus higher prices
for desired items)
CONTESTS AND SWEEPSTAKES
ontest :participant must compete (activity needed)…often
purchase needed to enter
o purchase required, chances of winning are probability driven (a
random draw). May have restrictions of one entry per store, etc.
Refund: return of the full amount of money tendered by the
Rebate: returns a portion of the money tendered by the
How are they used????
Refunds – for trial offers
Rebates – to promote the sale of other company products,
or the sale of the purchase product
REfuNDS AND REbATES
xamples: Rebates on Computer Hardware (Printers), website that
gives you the best purchase price for items, services – cash back if
Trial offers: let you try the product first hand – most people
won’t go through the trouble of sending it back unless they are
Rebates: future sales – rebates on next item purchased
Both: mailing lists
Offering in whole or part a product or service to the customer
free of charge
Good for promotion of new products or improved products
Better at point of purchase than in mail or delivery
Works well with other forms of promotion
e.g.: sample a food at a grocery store and have coupons at the
sample table so that customers get a deal on the purchase
epsi Taste Test
ye glasses cleaner (just soap)
indow cleaning (will clean one window)
• Cost is high.
(Try BUZZ marketing in lieu?)
• Packaging must be congruent with full size version for product
• Requires careful planning of distribution.
How to Succeed:
• As part of IMC plan
• Focus is to induce TRIAL USE
• Most effective for NEW products or NEW versions
• Can switch BRAND LOYALTY (up to 70%)
onus packs offer the consumer an extra amount of a product at the
regular price by providing larger containers or extra units.
onus packs result in a lower cost per unit for the consumer.
rovide extra value
ffective defensive maneuver
educe the price of brand
rice-Off reductions are typically offered right on the package
ypically, price-off rage from 10-25 percent
romotional discount reaches the consumer rather than being kept by the trade.
traDe orienteD sales
Sales promotion programs target to the trade should be based on
well defined objectives and measurable goals and a consideration
of what the marketer wants to accomplish.
ajor aim of trade promotion is to keep marketing intermediaries like
wholesalers and retailers interested more and more so that :-
hey do distribution properly.
rovide support for new products.
aintaining support for established brand.
ncouraging retailers to display established . brands.
tyPes of traDe orienteD Promotions
POP displaysPOP displays
Sales trainingSales training
Trade showsTrade shows
Contests and incentivesContests and incentives
Trade allowancesTrade allowances
Co-op AdvertisingCo-op Advertising
CoorDinating sales, aDvertising, imC
Media support and
Pay for performance
24 hours marketing
Results can be measured
Used to build database
Can easily reach younger
You can target market to
Education based marketing
Use of video
Build brand through social
Test headlines and copy
majOR REaSONS fOR USiNg
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