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2. Chapter 18
Consumer and Trade Sales Promotion
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M
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

3. After studying this chapter
you should be able to:
• Explain the role and significance of sales
promotion in the marketing communications
mix.
• Understand why sales promotion
expenditures account for a significant portion
of many firms’ marketing communications
budgets.
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• Discuss the objectives and techniques of
consumer sales promotion.

4. After studying this chapter
you should be able to:
• Discuss the objectives and techniques
of trade sales promotion.
• Explain the limitations of sales
promotion.
• Realize how deceptive and fraudulent
sales promotion victimizes both
consumers and marketers.
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5. The Role of Sales Promotion
• Sales Promotion:
– Consists of media and non-media marketing
communications employed for a predetermined,
limited time to stimulate trial, increase consumer
demand, or improve product availability.
• Consumer Sales
Promotion:
– Directed at Consumers
• Trade Sales Promotion:
– Directed at Resellers
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6. The Significance of Sales Promotion
The Significance of Sales Promotion
Sales Promotion
Expenditures
Consumer Factors
Impact of Technology
Increased Retail Power
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7. The 10 Commandments of Creative
The 10 Commandments of Creative
Sales Promotion
Sales Promotion
1.
2.
3.
4.
5.
6.
7.
8.
Set specific objectives
Know how basic promotion techniques work
Use simple, attention-getting copy
Use contemporary, easy-to-track graphics
Clearly communicate the concept
Reinforce the brand’s advertising message.
Support the brand’s positioning and image.
Coordinate promotional efforts with other
marketing plans.
9. Know the media you work with.
10. Involve the trade.
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8. Consumer Sales Promotion
Consumer Sales Promotion
Objectives of Consumer Sales
Promotion:
•
Stimulate trial
•
Increase consumer inventory and
consumption
•
Encourage repurchase
•
Neutralize competitors
•
Increase sales of complementary
products
•
Stimulate impulse purchasing
•
Allow flexible pricing
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9. Consumer Sales Promotion
Consumer Sales Promotion
Techniques
Techniques
••
••
••
••
••
••
••
••
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Price Deals
Price Deals
Coupons
Coupons
Rebates
Rebates
Cross-Promotions
Cross-Promotions
Contests, Sweepstakes,
Contests, Sweepstakes,
Games
Games
Premiums
Premiums
Sampling
Sampling
Advertising Specialties
Advertising Specialties

10. Trade Sales Promotion
Trade Sales Promotion
Objectives of Trade Sales Promotion:
•
•
•
•
•
•
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Gain/maintain distribution
Influence resellers to promote product
Influence resellers to offer price discount
Increase reseller inventory
Defend against competitors
Avoid reduction of normal prices

11. Trade Sales Promotion Techniques
Trade Sales Promotion Techniques
•
•
•
•
•
•
•
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Trade Allowances
Dealer Loaders
Trade Contests
Point-of-Purchase Displays
Trade Shows
Training Programs
Push Money

12. Limitations of Sales Promotion
Limitations of Sales Promotion
• It typically cannot reverse a genuine declining
sales trend.
• Marketers cannot reasonable expect sales
promotion to convert refection of an inferior
product into acceptance.
• Sales promotion may even weaken the brand
image.
• Sales promotion has also been blamed for
encouraging competitive retaliation.
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13. Limitations of Sales Promotion
Limitations of Sales Promotion
• Short-term volume gain at the sacrifice of
profits.
– Forward Buying:
• People buy more than they need at the deal
price.
– Pay-for-Performance Trade Promotions:
• Retailers are rewarded for making sales to
consumers rather than making purchases from
manufacturers.
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14. Ethical and Legal Issues
Ethical and Legal Issues
in Sales Promotion
in Sales Promotion
• Deceptive Sales Promotion
• Fraud:
•
•
•
•
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The Fake Storefront
Stuffing the Ballot Box
Playing the Middleman
The Redemption Scam

15. Ethical and Legal Issues
Ethical and Legal Issues
in Sales Promotion
in Sales Promotion
Diverting (or Arbitraging):
• Secretly purchasing a product where it
is less expensive, usually as a result
of a trade promotion, and reselling in
areas where prices are higher.
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16. Global Concerns
Global Concerns
• The Global
Perspective requires
marketers to make an
extra effort to become
familiar with local laws
and customs.
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17. Marketing and Sales
VP of Marketing and Sales
 Supervise the Marketing and Sales Departments for a specified Business Unit
 Control and monitor annual plan, advertising and marketing budgets within the Business Unit
Director of Sales and Marketing
Oversee the responsibilities of the Marketing and Sales Department
Marketing and Sales
Maintain and improve public image of the Company through all
advertising, marketing and promotional materials
VP of Marketing and Sales
VP of Marketing and Sales
Supervise Marketing and Sales Managers, Sales Consultants and
Administrators
Senior Management Level Positions
Mid-Management Level Positions
Senior Management Level Positions
Mid-Management Level Positions
Create and monitor budgets
 Director of Marketing and Sales
 Marketing and Sales Manager




Director of Sales
Coordinate sales activities in a given Business Unit
Set sales quotas for a given period
Director of Marketing
Supervise marketing functions in a specific Business Unit
Coordinate advertising and public relations
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Director of Marketing and Sales
Director of Marketing
Director of Marketing
Director of Sales
Director of Sales



Marketing and Sales Manager
Marketing Manager
Marketing Manager
Sales Manager
Sales Manager
Internet Marketing Manager
Internet Marketing Manager
Professional Level Positions
Professional Level Positions
  Assistant Marketing Manager
Assistant Marketing Manager
  Market Analyst
Market Analyst
  Sales Consultant
Sales Consultant
Entry Level and Support Positions
Entry Level and Support Positions
  Sales Assistant
Sales Assistant
  Sales Host/Hostess
Sales Host/Hostess
  Sr. Sales and Closing Coordinator
Sr. Sales and Closing Coordinator
  Sales and Closing Coordinator
Sales and Closing Coordinator
  Marketing Administrator
Marketing Administrator
  Sales Administrator
Sales Administrator

18. Marketing and Sales
Marketing and Sales Manager
Manage various marketing programs and initiatives
Manage sales activities
Marketing Manager
Manage various marketing programs and initiatives
Coordinate photo shoots for product photography needs, advertising and displays
Develop methods to increase Company sales and exposure through various media (print, radio,
billboards, etc.)
Sales Manager
Responsible for the overall success (i.e. sales conversions, Sales Consultant skill development,
coordination
of marketing events, etc.) of multiple communities under his/her supervision
Monitor contracts in coordination with community efforts to insure Company goals related to in-house
mortgage and title capture
Internet Marketing Manager
Coordinate creation of business unit marketing materials
Coordinate web presentations for the business units’ communities in planning
Coordinate IPIX photo shoots for all new models and clubhouses
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19. Marketing and Sales
Assistant Marketing Manager
Assist with developing advertising concepts and placements
Assist with other various marketing programs and strategies
Market Analyst
Shop competition in the field
Gather market related data
Prepare marketing graphs
Marketing and Sales
Sales Consultant
Secure contracts for purchase of new homes
Facilitate mortgage capture and title capture
Sales Assistant
Assist Sales Consultant with sales process while
developing the skills needed to become an
independent consultant
Assist customers with sales process
VP of Marketing and Sales
VP of Marketing and Sales
Senior Management Level Positions
Senior Management Level Positions
 Director of Marketing and Sales
 Director of Marketing and Sales
 Director of Marketing
 Director of Marketing
 Director of Sales
 Director of Sales
Sales Host/Hostess
Receive, register and direct visitors
Perform clerical duties in order to ensure an effective, efficient flow
of telephone calls and visitors
Provide model tours
Help maintain neat appearance of the models
Distribute current price lists
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Mid-Management Level Positions
Mid-Management Level Positions
Marketing and Sales Manager
 Marketing and Sales Manager
 Marketing Manager
 Marketing Manager
 Sales Manager
 Sales Manager
 Internet Marketing Manager
 Internet Marketing Manager

Professional Level Positions
Professional Level Positions
 Assistant Marketing Manager
 Assistant Marketing Manager
 Market Analyst
 Market Analyst
 Sales Consultant
 Sales Consultant
Entry Level and Support Positions
Entry Level and Support Positions
 Sales Assistant
 Sales Assistant
 Sales Host/Hostess
 Sales Host/Hostess
 Sr. Sales and Closing Coordinator
 Sr. Sales and Closing Coordinator
 Sales and Closing Coordinator
 Sales and Closing Coordinator
 Marketing Administrator
 Marketing Administrator
 Sales Administrator
 Sales Administrator

20. Marketing and Sales
Senior Sales and Closing Coordinator
Supervise daily activities of the Sales and Closing Coordinators
Ensure closing dates are being maintained in system and communicated to customer
Ensure contract cancels/switches/deposits are processed in a timely manner
Perform sales and closing duties
Sales and Closing Coordinator
Perform sales and contract administration
Confirm and prepare preliminary closing figures
Coordinate settlement processes with construction, mortgage, buyer and title company
Marketing or Sales Administrator
Perform administrative activities in support of the department
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