Sales Promotion, Events, and Sponsorships

1
Sales Promotion, Events, and Sponsorships

• Part 5 Integration and Evaluation
• Chapter 16

2
Chapter Outline

• Chapter Key Points
• The Practice of Sales Promotion
• Consumer Promotions
• Trade Promotions
• Promotions that Cross the Line
• Promotion Strategy

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Key Points

• Explain the principles that drive the use of
  sales promotion
• List and explain the use of various consumer
  promotions
• Summarize the types and purposes of trade
  promotions
• Describe the use of other types of promotions
• Explain the strategic use of promotions in
  marketing

4
The Practice of Sales Promotion

• A marketing discipline that utilizes a variety of
  incentive techniques to structure sales-related
  programs that generate a specific, measurable
  action or response

5
Growth in Sales Promotion

• Pressure for short-term profits
• Need for accountability
• Easy to evaluate

• Move to Sales Promotion
• Consumer behavior
• Pricing
• Market share
• Parity products
• Power of the retailer

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Consumer Promotions

• Price deals
• Coupons
• Refunds and rebates
• Sampling
• Contests and sweepstakes
• Premiums
• Specialties

• Temporary price reduction or sale price
• Cents-off
• Price-pack deals
• Bonus packs
• Banded packs

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Consumer Promotions

• Price deals
• Coupons
• Refunds and rebates
• Sampling
• Contests and sweepstakes
• Premiums
• Specialties

• Provide a discount on the price of the product
• Retailer
• Manufacturer

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Consumer Promotions

• Price deals
• Coupons
• Refunds and rebates
• Sampling
• Contests and sweepstakes
• Premiums
• Specialties

• Marketers offer to return a certain amount of
  money to the consumer

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Consumer Promotions

• Price deals
• Coupons
• Refunds and rebates
• Sampling
• Contests and sweepstakes
• Premiums
• Specialties

• Allowing the consumer to try the product or
  service

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Consumer Promotions

• Price deals
• Coupons
• Refunds and rebates
• Sampling
• Contests and sweepstakes
• Premiums
• Specialties

• Create excitement by promising something for
  nothing
• Contests based on skill or ability
• Sweepstakes based on luck

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Consumer Promotions

• Price deals
• Coupons
• Refunds and rebates
• Sampling
• Contests and sweepstakes
• Premiums
• Specialties

• Tangible reward for a particular act
• Work by adding value to the product
• Store premiums
• In-pack premiums
• On-pack premiums
• Container premiums
• Self-liquidating

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Consumer Promotions

• Price deals
• Coupons
• Refunds and rebates
• Sampling
• Contests and sweepstakes
• Premiums
• Specialties

• Presents the brands name on something that is
  given away as a reminder

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How to Use Consumer Promotions

• Awareness
• Trial
• Maintain or increase market share
• Brand reminder

14
Trade Promotions

• Point-of-purchase display
• Retailer kits
• Trade incentives and deals
• Contests
• Trade shows and exhibits

• Manufacturer-designed display distributed to
  retailers
• Retailers use the displays to call their
  customers attention to product promotions

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Trade Promotions

• Point-of-purchase display
• Retailer kits
• Trade incentives and deals
• Contests
• Trade shows and exhibits

• Materials that support retailers selling efforts
  or help representatives make sales calls on
  prospective retailing customers

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Trade Promotions

• Point-of-purchase display
• Retailer kits
• Trade incentives and deals
• Contests
• Trade shows and exhibits

• When a manufacturer rewards a seller financially
  for purchase or support
• Buying allowances
• Advertising allowances

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Trade Promotions

• Point-of-purchase display
• Retailer kits
• Trade incentives and deals
• Contests
• Trade shows and exhibits

• Advertisers can develop contests and sweepstakes
  to motivate resellers
• Contests far more common

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Trade Promotions

• Point-of-purchase display
• Retailer kits
• Trade incentives and deals
• Contests
• Trade shows and exhibits

• When companies in the same industry gather to
  present and sell their merchandise and to
  demonstrate products

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How to Use Trade Promotion

• Two primary roles for a trade promotion
• Trade support
• Excitement

• Demand Push-and-Pull strategies
• Bonuses
• Dealer loaders
• Buying allowances
• Advertising allowances
• Cooperative advertising
• Display allowance
• Attention
• Motivation
• Information

20
Promotions That Cross the Lines

• Promotion techniques that blur the lines between
  promotions, advertising, and public relations

• Sponsorships and event marketing
• Other promotional support
• Interactive and Internet promotions
• Loyalty programs
• Partnership programs

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Promotion Strategy

• Promotion objectives
• The issue of brand building
• Promotion integration
• Promotion effectiveness