Description
A direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale. The ppt covers basics of sales promotion along with the reasons, causes, increases and various other concepts related to sales promotion like sampling, couponing, premium etc
16
Sales Promotion
Dr. Subhadip Roy
Sales Promotion
“A direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale.”
An extra incentive to buy
A tool to speed up sales
Targeted to different parties
Sales Promotion Vehicles
Consumer-Oriented
Samples
Trade-Oriented
Contests, incentives
Trade allowances Point-of-purchase displays Training programs Trade shows Cooperative advertising
Coupons
Premiums Contests/sweepstakes Refunds/rebates
Bonus Packs
Price-off deals Frequency programs Event marketing
Media Often Delivers a Promotion Message
Sales Promotion Increases
Growing power of retailers
Reasons
Declining brand loyalty
Increased promotional sensitivity Brand proliferation Fragmentation of consumer markets Short-term focus of marketers
Increased accountability
Competition Clutter
Objectives of Consumer-Oriented Promotions
To increase consumption of an established brand To obtain trial and purchase To defend (maintain) current customers
Objectives
Enhance IMC efforts and build brand equity
To target a specific segment
Sampling
Sampling Works Best When
The products are of relatively low unit value
The product can be broken into a small piece or size that reflects the full features and benefits
The purchase cycle is relatively short
Sampling Methods
Door-to-door
Methods
Direct mail In-store On package Event
Newspaper/magazine insert
Internet sites
Couponing
The oldest and most widely used sales promotion tool
Nearly 240 billion distributed each year in the US
85% of consumers use coupons; 21% use them regularly
Pros and Cons of Coupons
Advantages
Appeals to price sensitive consumer Can offer price break without retailers co-op Effective way to induce trial of products
Disadvantages
Hard to tell how many consumers use them and when Often used by loyal consumers who may purchase anyway Declining redemption rates and high costs of couponing Misredemption and fraud
Can be way to defend market share and encourage repurchase
Popular Coupons
Coupons are Available Electronically
Premiums
An offer of an item, merchandise, or service, free or at a low cost, that is an extra incentive for customers
Types of Premiums
Self-liquidating: consumer required to pay some or all of the cost of the premium
Free: Only requires purchase of the product
Premiums
Contest
More Consumer-Oriented Promotions
Refunds and rebates
Bonus packs
Price-off Deals Loyalty programs Event marketing
Trade Oriented Promotions
Objectives
Obtain distribution for new products
Maintain support for established brands Encourage display of products Build retail inventories
Types of Trade Oriented Promotions
Contests and incentives Types
Co-op Advertising
Trade allowances
POP displays
Sales training
Buying Promotional Slotting
Trade shows
Examples
Coordinating Sales, Advertising, IMC Tools
Budget allocation
Coordination of themes
Media support and timing
Problems With Sales Promotion
Aspects of Consumer Promotions
Economic
Informative
Affective
Thank You, Class
doc_871772873.ppt
A direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale. The ppt covers basics of sales promotion along with the reasons, causes, increases and various other concepts related to sales promotion like sampling, couponing, premium etc
16
Sales Promotion
Dr. Subhadip Roy
Sales Promotion
“A direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale.”
An extra incentive to buy
A tool to speed up sales
Targeted to different parties
Sales Promotion Vehicles
Consumer-Oriented
Samples
Trade-Oriented
Contests, incentives
Trade allowances Point-of-purchase displays Training programs Trade shows Cooperative advertising
Coupons
Premiums Contests/sweepstakes Refunds/rebates
Bonus Packs
Price-off deals Frequency programs Event marketing
Media Often Delivers a Promotion Message
Sales Promotion Increases
Growing power of retailers
Reasons
Declining brand loyalty
Increased promotional sensitivity Brand proliferation Fragmentation of consumer markets Short-term focus of marketers
Increased accountability
Competition Clutter
Objectives of Consumer-Oriented Promotions
To increase consumption of an established brand To obtain trial and purchase To defend (maintain) current customers
Objectives
Enhance IMC efforts and build brand equity
To target a specific segment
Sampling
Sampling Works Best When
The products are of relatively low unit value
The product can be broken into a small piece or size that reflects the full features and benefits
The purchase cycle is relatively short
Sampling Methods
Door-to-door
Methods
Direct mail In-store On package Event
Newspaper/magazine insert
Internet sites
Couponing
The oldest and most widely used sales promotion tool
Nearly 240 billion distributed each year in the US
85% of consumers use coupons; 21% use them regularly
Pros and Cons of Coupons
Advantages
Appeals to price sensitive consumer Can offer price break without retailers co-op Effective way to induce trial of products
Disadvantages
Hard to tell how many consumers use them and when Often used by loyal consumers who may purchase anyway Declining redemption rates and high costs of couponing Misredemption and fraud
Can be way to defend market share and encourage repurchase
Popular Coupons
Coupons are Available Electronically
Premiums
An offer of an item, merchandise, or service, free or at a low cost, that is an extra incentive for customers
Types of Premiums
Self-liquidating: consumer required to pay some or all of the cost of the premium
Free: Only requires purchase of the product
Premiums
Contest
More Consumer-Oriented Promotions
Refunds and rebates
Bonus packs
Price-off Deals Loyalty programs Event marketing
Trade Oriented Promotions
Objectives
Obtain distribution for new products
Maintain support for established brands Encourage display of products Build retail inventories
Types of Trade Oriented Promotions
Contests and incentives Types
Co-op Advertising
Trade allowances
POP displays
Sales training
Buying Promotional Slotting
Trade shows
Examples
Coordinating Sales, Advertising, IMC Tools
Budget allocation
Coordination of themes
Media support and timing
Problems With Sales Promotion
Aspects of Consumer Promotions
Economic
Informative
Affective
Thank You, Class
doc_871772873.ppt