This document discusses sales promotion strategies. It defines sales promotion as direct inducements that offer extra value or incentives to consumers or the sales force to create immediate sales. The objectives of consumer promotions are to obtain trial, increase brand consumption, defend current customers, target segments, and build brand equity. Trade promotion objectives include obtaining distribution, maintaining trade support, and encouraging retailer inventory and product display. Common consumer promotion vehicles are samples, coupons, premiums, contests, and rebates, while trade vehicles include contests, allowances, displays, and cooperative advertising. The document also lists factors to consider when selecting promotional events.

1. Chapter 16
Sales Promotion

2. Sales Promotion
A direct inducement that offers an extra value
or incentive for the product to the sales force,
distributors, or the ultimate consumer with the
primary objective of creating an immediate sale
A program designed to build interest in or
encourage purchase of a product during a
specified time period
16

3. Objectives of Consumer-Oriented
Sales Promotion
• Obtain Trial and Purchase
• Increase Consumption of an Established Brand
• Defend (Maintain) Current Customers
• Target a Specific Segment
• Tie together other IMC efforts
• Build brand equity
16

4. Objectives of Trade-Oriented
Sales Promotion
• Obtain Distribution of New Products
• Maintain Trade Support for Existing Products
• Encourage Retailers to Display Existing Brands
• Build Retail Inventories
16

5. Sales Promotion Vehicles
Consumer-Oriented
Trade-Oriented
Samples
Contests, dealer incentives
Coupons
Trade allowances
Premiums
Point-of-purchase displays
Contests/sweepstakes
Training programs
Refunds/rebates
Trade shows
Bonus packs
Cooperative advertising
Price-offs
Event sponsorship
16

6. Eight Sampling Media
• Door-to-door
• Direct mail
• Central location
• In-store sample pack
• Cross-product sampling
• Co-op package distribution
• With newspaper /
magazine
• Any of above with coupon
16

7. Selecting an Event
•
•
•
•
•
•
Is the event consistent with the brand image?
•
Can you create a customized event?
Will the event reach the target audience?
How likely is sponsor misidentification?
Is the event cluttered?
Does the event complement the IMC program?
Is the event economically viable?
16