copyright © 2007 pearson education canada 16-1 sales promotion “activity that provides special...

Copyright © 2007 Pearson Education Canada 16-1

Sales Promotion

“Activity that provides special incentives to bring

about immediate action from consumers, distributors,

and an organization’s sales force.”


Consumer Promotion

“Incentives offered consumers to prompt extra brand sales.” A pull strategy that creates demand at POP.

MarketerMarketer DistributorDistributor ConsumerConsumer

PromotionObjectivesPromotionObjectives

Trial purchase

Brand loyalty

Multiple purchases


Consumer Promotion Activities

• Coupons• Samples• Contests• Cash Refunds• Premiums• Loyalty Programs• Delayed Payments• Combinations

• Coupons• Samples• Contests• Cash Refunds• Premiums• Loyalty Programs• Delayed Payments• Combinations

The stage in the product life cycle and the nature of competition influence which promotion offer to use.


Coupon Distribution / Redemption

Consumer Coupons 2004

Quantity Distributed 2.93 billion

Quantity Redeemed 99 million

Average Face Value Redeemed $1.55

Consumer Savings $118 million


Coupon Strategies

Media-DeliveredCoupons

Media-DeliveredCoupons

Direct mail and print media coupons achieve trial purchase objectives. Used in introduction and growth stages.

Product-DeliveredCoupons

Product-DeliveredCoupons

In-pack and on-pack coupon help achieve loyalty objectives. More common in late growth and mature stage.


Samples

An effective strategy when launching a new product or improving an existing product.

Perceived favourably by consumers

Many options for delivery

Expensive

On-site sampling (experiential marketing) is growing in popularity with marketers.


Contests

An activity that generates short-term excitement.

SweepstakesSweepstakes

Instant WinsInstant Wins

Send in entry for a grand prize; other prizes.

Pre-seeded winning tickets from a fixed ticket universe.

RRRoll up the rim


Cash Refund

$ returned directly to consumers after a purchase has been made.

SlippageSlippageBuyers start collecting for an offer but do not follow through.

Refunds and rebates are effective for achieving single-purchase or multiple purchase objectives.


Premium Offers

An item offered free or at a bargain price with the purchase of a product.

Attaching a sample size product

Free items inside a package

Giveaways with fast food meals

A good premium differentiates a brand at a critical time and place…at point-of-purchase.


Loyalty Programs

An accumulating bonus reward offered at point-of-purchase for a customer’s patronage.

Canadian Tire $

Shoppers Drug Mart Optimum Card

Air Miles


Trade Promotion

“Incentives offered distributors to secure marketing support. A push strategy to move product through the channel.

MarketerMarketer DistributorsDistributors ConsumerConsumer

PromotionObjectivesPromotionObjectives

Secure listings

Increase volume

In-store merchandising


Trade Promotion Activities

Trade AllowancePerformance Allowance

Co-operative AdvertisingDisplay Material

Trade AllowancePerformance Allowance

Co-operative AdvertisingDisplay Material

Dealer PremiumCollateral Material

Trade Shows

Dealer PremiumCollateral Material

Trade Shows

When activities are combined the impact is maximized.

For lead generation and personal selling situations.


Personal Selling

“Personalized communications between a seller

and buyer in which the benefits of a product are

presented in order to make a sale.”


Roles of a Sales Rep

There’s more to selling…than selling!

Gather market intelligence

Solve customer’s problems

Locate and maintain customers

Follow-up service


Types of Selling

Personal selling is effective in many business situations.

Business-to-Business

Retail

Direct Selling – Telemarketing and Online


Steps in Selling Process

ProspectingProspecting Pre-approachPre-approach ApproachApproach

PresentationPresentation

HandlingObjections

HandlingObjectionsClosingClosingFollow-upFollow-up

7 Steps: simple in theory; difficult in practice.


Event Marketing

Event Marketing:

“An integrated communications plan behind an event theme.”

Event Sponsorship:

“Financial support of an event in return for advertising privileges.”


Primary Types of Sponsorship

SportsSports EntertainmentEntertainment Culture/ArtsCulture/Arts

Sponsorship is a $11.1 billion industry in North America. Sports is the largest segment attracting 70% of revenue.


Event and Sponsorship Strategies

An organization can invest a lot or a little. The benefits are same but on a different level.

• Global• International• National• Regional • Local

• Global• International• National• Regional • Local

Companies like McDonald’s and Coca-Cola support global events and local events.


Sports Sponsorship

From amateur to professional, and grassroots to international, sports sponsorships are attractive.

Ambushers pop up at events. An ambusher is a non-sponsor giving a false impression they are a sponsor.


Venue Marketing

Naming rights to buildings gets a company name in the media frequently.


Entertainment and Cultural Events

EntertainmentSponsorship

EntertainmentSponsorship

Cultural/ArtsSponsorship

Cultural/ArtsSponsorship

Embraces music concerts, film festivals and comedy festivals.

Embraces dance, literature, sculpture, painting and theatre.


Event Marketing Strategy

The event should meet predetermined criteria.

Exclusivity Complements other IMC activities Targeting ability Image Long-term benefit; short-term cost


Benefits of Sponsorship

Awareness / association with event

Perceive image with target

New business

Media coverage

Sales increase in post-event period