Consumer promotion

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  • 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.
  • Consumer promotion

    1. 1. Consumer Promotions
    2. 2. 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 being promoted. CONSUMER PROMOTIONS
    3. 3.  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 promotion.
    4. 4.  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
    5. 5. oupons ercent-off discounts ree trials and samples uy one get one free deals ebates remiums and ad specialties ontests and sweepstakes CONSUMER PROMOTION TyPES...
    6. 6. 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. COUPONS....
    7. 7. COUPONS
    8. 8. PREMIUMS Types: 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)
    9. 9. Issues: Time (short life spans – popularity wanes) Cost (exclusivity increases demand and thus higher prices for desired items)
    10. 10. CONTESTS AND SWEEPSTAKES ontest :participant must compete (activity needed)…often purchase needed to enter
    11. 11. SWEEPSTAKES o purchase required, chances of winning are probability driven (a random draw). May have restrictions of one entry per store, etc.
    12. 12.  Refund: return of the full amount of money tendered by the customer  Rebate: returns a portion of the money tendered by the customer  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 (TRiAl OffERS)
    13. 13. CONT… xamples: Rebates on Computer Hardware (Printers), website that gives you the best purchase price for items, services – cash back if not satisfied oal of: Trial offers: let you try the product first hand – most people won’t go through the trouble of sending it back unless they are really unsatisfied. Rebates: future sales – rebates on next item purchased Both: mailing lists
    14. 14. SAmPliNg  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
    15. 15. SAmPlES ExAmPlES epsi Taste Test hoe cleaner ye glasses cleaner (just soap) indow cleaning (will clean one window)
    16. 16. mEThODS n-store distribution irect sampling esponse sampling n-package sampling edia sampling vent sampling elective sampling
    17. 17. Cont… Problems: • Cost is high. (Try BUZZ marketing in lieu?) • Packaging must be congruent with full size version for product recognition. • 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%)
    18. 18. 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 Bonus PaCks
    19. 19. PriCe-off Deals 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.
    20. 20. traDe orienteD sales Promotion 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.
    21. 21. 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.
    22. 22. tyPes of traDe orienteD Promotions BuyingBuying PromotionalPromotional SlottingSlotting POP displaysPOP displays Sales trainingSales training Trade showsTrade shows Contests and incentivesContests and incentives Trade allowancesTrade allowances Co-op AdvertisingCo-op Advertising TypesTypes
    23. 23. CoorDinating sales, aDvertising, imC tools Budget allocation Coordination of themes Media support and timing
    24. 24. DisPlay aDvertising
    25. 25. WeB Banner aDvertising
    26. 26. POP UPS/POP UNDER
    27. 27. SEaRch ENgiNE maRkEtiNg
    28. 28. SEaRch ENgiNE OPtimiSatiON
    29. 29. SPONSORED SEaRch
    30. 30. SOcial mEDia maRkEtiNg
    31. 31. mObilE aDvERtiSiNg
    32. 32. Email aDvERtiSiNg
    33. 33. PaY PER click maRkEtiNg
    34. 34.  Pay for performance  24 hours marketing  Results can be measured  Used to build database  E-mail marketing  Can easily reach younger customer  You can target market to almost anyone  Education based marketing  Mobile Marketing  Use of video  Build brand through social media  Test headlines and copy majOR REaSONS fOR USiNg iNtERNEt maRkEtiNg
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