capítulo 12 clow y baack
DESCRIPTION
Del libro Publicidad, promoción y comunicación integral en marketing. de los autores Clow y Baack. Estas presentaciónes normalmente son de apoyo para el profesor, pero las comparto por si no las han logrado obtener. El libro es genial.TRANSCRIPT
Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall
12 Chapter Twelve
Sales Promotions
12-1
Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall
Sales Promotions
Hook Fans
Corpus Christi Hooks – Double A
Affiliate of Houston Astros
Attendance – 7,000 per game
Thrives on consumer promotions
30 promotional nights (72 home games)
Discounts and giveaways
Sponsorships and trade promotions
Whataburger Field
“Postgame catch” and “Kids Day”
Fun, family entertainment
12
12-2
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Chapter Overview
• Consumer promotions
• Individuals/businesses that use product
• Trade promotions
• Directed to channel members
• Possible erosion of brand equity
• Can differentiate a brand
• Use varies – product life cycle
12 Sales Promotions
12-3
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• Coupons
• Premiums
• Contests and sweepstakes
• Refunds and rebates
• Sampling
• Bonus packs
• Price-offs
F I G U R E 1 2 . 1
Types of Consumer Promotions
12-4
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Coupons
• 323 billion distributed
• 3 billion redeemed (0.93%)
• Average value was 89 cents
• Savings of $3.47 billion
• Coupon usage
• 78% of households use
• 64% willing to switch brands
12-5
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F I G U R E 1 2 . 2
Percentage of Consumers and Coupon Usage
Always
20.7%
Sometimes
37.7%
Rarely
17.0%
Never
24.6%
Source: Karen Holt, “Coupon Crimes,” Promo, Vol. 17, No. 5 (April 2004), pp. 23-29.
12-6
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A coupon accompanies this informational Gold Bond advertisement.
12-7
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Influencing Brand Purchases
• Sampling 7.78
• Word-of-mouth 7.18
• Coupons 5.91
• Advertising 5.61
• Contests 1.24
On a scale of 1 to 10, the following are the top five influences on
the brand purchased by a consumer.
Source: The Second Annual Survey of Consumer Preferences for Product Sampling, Santella &
Associates (Http://www.santella.com/marketing.htm).
12-8
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Percentage of Sales with a Coupon
• Disposable diapers 17.1%
• Detergents 15.0%
• Meal starters 14.2%
• Dough products (refrigerated) 13.6%
• Cereal 13.4%
• Wrapping materials, bags 12.8%
• Oral hygiene products 11.7%
• Household cleaners 11.7%
Product category % of sales using
manufacturer’s coupon
Source: AC Nielson Scantrack, Santella & Associates
12-9
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• Print media (90%)
• FSI (88%)
• Direct mail
• On- or in-package
• In-store
• Sampling
• Scanner-delivered
• Cross-ruffing
• Response offer
• Internet
• Fax
• Sales staff
F I G U R E 1 2 . 3
Methods of Distributing Coupons
12-10
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Print and FSI Coupons
• Consumers must make conscious effort to
clip coupon
• Creates brand awareness
• Must purchase brand on next trip to retailer
• More likely to recall brand name
12-11
Reasons for using:
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Types of Coupons
• Instant redemption
• Bounce-back
• Scanner-delivered
• Cross-ruffing
• Response offer
12-12
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Coupon Redemption Rates
• Instant redeemable 39.3%
• Bounce-back 17.2%
• Instant redeemable – cross ruff 17.1%
• Electronic shelf 10.2%
• Electronic checkout 7.8%
• In-pack 5.8%
• On-pack 4.7%
• Direct mail 3.5%
• Handout 3.1%
• Free-standing inserts 1.3%
Type of coupon Percent Redeemed
Source: Santella & Associates
12-13
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Problems with Coupons
• Reduced revenues • Used by brand preference consumers (80%)
• “Necessary evil”
• $500 million illegally redeemed • Mass cutting
• Counterfeiting
• Misredemption
12-14
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Types of Premiums
• Free-in-the-mail
• In- or on-package
• Store or manufacturer
• Self-liquidating
12-15
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Premium Offer
Click picture for video.
An ad by Haik
Humble Eye Center
offering a premium
with the purchase of
custom pair of eye
glasses.
12-16
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• Match the premium to the target market
• Carefully select the premiums • Avoid fads, try for exclusivity
• Pick premium that reinforces firm’s product and image
• Integrate the premium with other IMC tools • especially advertising and POP displays
• Don’t expect premiums to increase short-term profits
Source: Based on Don Jagoda, “The Seven Habits of Highly Successful Premiums,” Incentive, (August
1999), Vol. 173, Issue 8, pp. 104-105.
F I G U R E 1 0 . 4
Keys to Successful Premiums
12-17
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Fast-food chains are
well known for their
in-store premiums.
12-18
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Contests and Sweepstakes
• Contests – require activity, skill
• Can require purchase to enter • Some states illegal
• Sweepstakes – random chance
• Must publish odds of winning
• Cannot require purchase
• Rewards
• Extrinsic
• Intrinsic
12-19
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Contests and Sweepstakes
• Rewards
• Extrinsic • Choosing the right prizes
• Intrinsic • Choosing the right contests and sweepstakes
• Alternative locations
• Internet
• Mobile phone
12-20
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Contests and Sweepstakes
Goals
• Coordinate with other marketing
• Encourage customer traffic • Boost sales - questionable
• Intrinsic rewards draws customers back
• Increase in brand awareness
12-21
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Refunds and Rebates
• Refunds – soft goods
• Rebates – hard goods
• Hassle to redeem
• Now expected by consumers
• Redemption rates
• 30% overall
• 65% for rebates over $50
12-22
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• In-store distribution
• Direct sampling
• Response sampling
• Cross-ruff sampling
• Media sampling
• Professional sampling
• Selective sampling
F I G U R E 1 2 . 6
Types of Sampling
12-23
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Benefits of Sampling
• Introduce new products
• Generate interest
• Generate leads
• Collect information
• Internet sampling
• Boost sales
12-24
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Experiment
Impact of In-Store Sampling
• Meat product A 100% 430% 110%
• Meat product B 100% 590% 123%
• Meat product C 100% 185% 100%
• Bread product 100% 170% 90%
• Biscuit product A 100% 359% 64%
• Biscuit product B 100% 201% 49%
Product Previous 4 weeks Sampling Week Following 4 weeks
Source: Michelle Lawson, Dalton McGuinness and Don Esslemont, “The Effect of In-Store Sampling on the
Sale of Food Products,” Marketing Bulletin, 1990, Vol. 1, pp 1-6.
12-25
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Experiment
Impact of In-Store Sampling on Competitors
• Bread product 100% 170% 90%
• Competitor A 100% 106% 105%
• Competitor B 100% 79% 93%
• Competitor C 100% 78% 86%
Product Previous 4 week Sampling week Following 4 weeks
Source: Michelle Lawson, Dalton McGuinness and Don Esslemont, “The Effect of In-
Store Sampling on the Sale of Food Products,” Marketing Bulletin, 1990, Vol. 1, pp 1-6.
12-26
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Sampling Programs
• Problems
• Cost
• Distribution
• Effective sampling
• Component of IMC plan
• Stimulate trial usage
• Target audience of sample
12-27
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• Increase usage of a product
• Match or preempt competition
• Stockpile the product
• Develop customer loyalty
• Attract new users
• Encourage brand switching
F I G U R E 1 2 . 7
Reasons for Using Bonus Packs
12-28
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Problems with Bonus Packs
• Rarely attract new customers
• Some consumers skeptical
• Small bonus – price not changed
• Large bonus – price increased first
12-29
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Price-Offs
• Temporary price reduction
• Stimulating sales
• Reduces financial risk
• Brand switching
• Stockpiling
12-30
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Price-Offs
• Proven to be successful
• Appeal of monetary savings
• Reward is immediate
• Problems • Can have a negative impact on profit
• Encourages consumers to become more
price-sensitive
• Potential image on brand image
12-31
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Impact of Price-off on
Consumer Purchase
Source: “Studies Indicate Coupons are an Effective Promotional Tool,” Santella &
Associates (http://www.santella.com/coupon.htm)
Consumer unaware item was on sale.
51%
Consumer purchased because of sale price
9%
Consumer would have purchased item anyway
40%
12-32
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Promotion Combinations
• Overlay
• Intra-company tie-in
• Inter-company tie-in
12-33
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Planning Consumer Promotions
12-34
Promotion Prone
Brand Loyal
Price Sensitive
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Retail Incentives Consumer Promotions
• Increase store traffic
• Increase store sales
• Attract new customers
• Increase the basket size
12-35
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Trade Promotions
12-36
• Account for 70% of marketing budget
• Often 2nd largest expense
• Account for 17.4% of gross sales
Trade
Promotions
Trade Allowances
Trade Incentives
Trade Contests
Trade Shows
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• Off-invoice allowance • Price discount
• 35% of all trade dollars
• Slotting fees
• Exit fees
F I G U R E 12 . 10
Trade Allowances
12-37
Slotting Fees • Retailer justification
• Cost to add new products to inventory
• Requires shelf space
• Simplifies decision about new products
• Adds to bottom line
• Manufacturer objections
• Form of extortion
• Divert money from advertising and marketing
• Detrimental to small manufacturers
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Trade Allowance Complications
• Failure to pass allowances on to retail customers • Only occurs 52% of the time
• Retailers like only one brand on-deal at a time
• Retailers can schedule and promote on-deal brands
• Forward buying • Pass savings on or pocket higher margin
• Additional carrying costs
• Diversion • Pass savings on or pocket higher margin
• Additional shipping costs
12-39
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Trade Contests
• Used to achieve sales targets
• Funds known as “spiff money”
• Rewards can be prizes or cash
• Can be designed for various channel members
• Some organizations do not allow trade contests because of possible conflict of interests
12-40
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F I G U R E 12 . 11
Trade Incentives
12-41
• Cooperative merchandising
agreement
• Premium or bonus pack
• Co-op advertising programs
Trade
Incentive
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Cooperative Merchandising
Agreement
• Formal agreement
• Popular with manufacturers
• Retailer must perform marketing functions
• Manufacturer maintains control
• Longer-term commitments
• Benefit retailers
• Schedule calendar promotions
12-42
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Cooperative Advertising
• Manufacturer pays part of retailer’s ad costs
• Retailer must follow specific guidelines
• No competing brands
• Retailers accrue monies
• Amount is based on sales
• Allows retailers to expand advertising
• Manufacturers gain exposure in local markets
12-43
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Trade Shows
• Manufacturers (sellers) • Display merchandise
• Seek prospects
12-44
• Retailers (buyers) • Compare merchandise
• Seek vendors
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• Education seekers
• Reinforcement seekers
• Solution seekers
• Buying teams
• Power buyers
Source: English, “On Displays,” Business First - Western New York, (Nov. 29, 1999), Vol. 16, No. 31, pp. 31-32.
F I G U R E 12 . 12
12-45
Categories of Buyers at Trade Shows
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Trade Shows • Few deals finalized at trade show
• International attendees want to make deals
• Increase in international trade shows
• National shows being replaced by regional and niche shows
• Niche shows • Provide better prospects
• Lower costs
12-46
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Concerns Trade Promotions
• Corporate reward structure
• Used for short-term sales goals
• Tend to be used outside of IMC Plan
• Costs
• Over-reliance to push merchandise
• Difficult to reduce – competitive pressures
• Potential erosion of brand image
12-47