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Consumer
Promotions
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
 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.
 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
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...
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....
COUPONS
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)
Issues:
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
SWEEPSTAKES
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
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)
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
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
SAmPlES ExAmPlES
epsi Taste Test
hoe cleaner
ye glasses cleaner (just soap)
indow cleaning (will clean one window)
mEThODS
n-store distribution
irect sampling
esponse sampling
n-package sampling
edia sampling
vent sampling
elective sampling
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%)
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
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.
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.
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
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
CoorDinating sales, aDvertising, imC
tools
Budget allocation
Coordination of
themes
Media support and
timing
DisPlay aDvertising
WeB Banner aDvertising
POP UPS/POP UNDER
SEaRch ENgiNE maRkEtiNg
SEaRch ENgiNE OPtimiSatiON
SPONSORED SEaRch
SOcial mEDia maRkEtiNg
mObilE aDvERtiSiNg
Email aDvERtiSiNg
PaY PER click maRkEtiNg
 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
Consumer promotion
Consumer promotion

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Consumer promotion

  • 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.  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.
  • 5.  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
  • 6. 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...
  • 7. 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....
  • 9.
  • 10.
  • 11. 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)
  • 12. Issues: Time (short life spans – popularity wanes) Cost (exclusivity increases demand and thus higher prices for desired items)
  • 13.
  • 14. CONTESTS AND SWEEPSTAKES ontest :participant must compete (activity needed)…often purchase needed to enter
  • 15.
  • 16.
  • 17. SWEEPSTAKES o purchase required, chances of winning are probability driven (a random draw). May have restrictions of one entry per store, etc.
  • 18.
  • 19.
  • 20.  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)
  • 21. 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
  • 22. 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
  • 23. SAmPlES ExAmPlES epsi Taste Test hoe cleaner ye glasses cleaner (just soap) indow cleaning (will clean one window)
  • 24. mEThODS n-store distribution irect sampling esponse sampling n-package sampling edia sampling vent sampling elective sampling
  • 25. 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%)
  • 26. 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
  • 27.
  • 28. 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.
  • 29.
  • 30. 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.
  • 31. 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.
  • 32. 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
  • 33. CoorDinating sales, aDvertising, imC tools Budget allocation Coordination of themes Media support and timing
  • 34.
  • 44. PaY PER click maRkEtiNg
  • 45.  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

Editor's Notes

  1. 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.
  2. 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.