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Consumer Promotions: Types and Strategies for Effective Marketing

debbie avatar
debbie
17 diapositives · 319 Views · Dec 15, 2012

Consumer promotions—a key marketing strategy that incentivizes consumers to select or purchase products. It outlines various types of promotions including coupons, premiums, contests, refunds, sampling, bonus packs, and price-offs. The chapter categorizes consumers into promotion-prone, brand-loyal, and price-sensitive groups. It discusses the effectiveness of sampling for new products, strategies for designing sampling programs, and critical keys to successful premiums and contests. Explore the essential tips for implementing effective consumer promotions.

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Consumer Promotions: Types and Strategies for Effective Marketing
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  1. Consumer Promotions Chapter 10

  2. Consumer Promotions Defined • An incentive or an enticement that encourages a consumer to either select or purchase a product.

  3. Types of Consumer Promotions • Coupons • Premiums • Contests and sweepstakes • Refunds and rebates • Sampling • Bonus packs • Price-offs

  4. Consumers and Sales Promotions Targeted consumers are classified three ways: • Promotion prone consumers • Brand loyal consumers • Price sensitive consumers Take a look at question 8, on page 330. discuss with classmates seated close to you.

  5. F I G U R E 1 0 . 5 Types of Sampling • In-store distribution • Direct sampling • Response sampling • Cross-ruff sampling • Media sampling • Professional sampling • Selective sampling

  6. What’s Happening? http://www.eggs.ca/ContestsPromos/Default.aspx http://www.youtube.com/watch?v=5OfMb90v4qg http://money.cnn.com/2009/02/03/news/companies/dennys_breakfast.fortune/index.htm?postversion=2009020411 http://ca.youtube.com/watch?v=RYgKQ3_hWA4 http://ca.youtube.com/watch?v=uYIBAswqMEM http://ca.youtube.com/watch?v=CALvpp4nuJg

  7. Sampling • How effective would sampling be for the goods and services listed on the right? • How would you design a sampling program that would be effective, yet not too costly? • What type of consumers would you target for the sampling? • Fitness center • Ice cream • Dental service • Clothing manufacturer • Auto repair service • Office supply store

  8. Sampling • Most effective when used to introduce a new product or a new version of a product. • Primary purpose is to encourage trial use by a customer. • Sampling is a very effective IMC tool when used correctly. • The two key drawbacks to sampling programs are: • Cost • Customers discarding the sample without trying it.

  9. Types of Coupons • Instant redemption • Scanner-delivered • Cross-ruffing/Co-branding • Response offer • E-coupons • Bounce-back/return coupon

  10. A coupon accompanies this informational Gold Bond advertisement

  11. Types of Premiums • Free-in-the-mail • In- or on-package • Store or manufacturer • Self-liquidating

  12. Fast-food chains are well known for their in-store premiums.

  13. F I G U R E 1 0 . 4 Keys to Successful Premiums • Match the premium to the target market. • Carefully select the premiums (Avoid fads, try for exclusivity). • Pick a premium that reinforces the firm’s product and image. • Integrate the premium with other IMC tools (Especially advertising and POP displays). • Don’t use premiums to increase profits. Source: Based on Don Jagoda, “The Seven Habits of Highly Successful Premiums,” Incentive, (August 1999), Vol. 173, Issue 8, pp. 104-105.

  14. Creating Successful Contests and Sweepstakes • Know the legal restrictions. • Must overcome clutter. • Find the right combination of prizes. • Must consider extrinsic and intrinsic value. • Look for tie-in opportunities with special events or other companies. • Must be coordinated with POP Displays and other marketing tools.

  15. Successful Rebate/Refund Programs • Visibility. • Encourages customers to act. • Not be too complicated. • Avoid becoming a permanent component of the purchase decision (automobile rebates) • Profitable for retailers to handle.

  16. F I G U R E 10 . 6 Reasons for Using Bonus Packs • Increase usage of the product • Match or pre-empt competitive actions. • Stockpiling of product. • Develop customer loyalty. • Attract new users. • Encourage brand switching.

  17. Price-Offs • Temporary reduction in price. • Excellent for boosting short-term sales. • Excellent for generating customer traffic. • Can be implemented easily. • Must be careful not to increase customer price sensitivity. • Can have detrimental impact on brand and corporate image.