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ADVERTISING: Sales Promotion

ADVERTISING: Sales Promotion. Sales Promotion. A special incentive to: Distributors Salespeople, or Customers to encourage an immediate sale. Allocations to Advertising, Trade and Consumer Promotions. 100%. Consumer Promotions. 90%. 80%. 70%. Media Advertising. 60%. 50%. 40%. 30%.

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ADVERTISING: Sales Promotion

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  1. ADVERTISING:Sales Promotion

  2. Sales Promotion • A special incentive to: • Distributors • Salespeople, or • Customers • to encourage an immediate sale

  3. Allocations to Advertising, Trade and Consumer Promotions 100% Consumer Promotions 90% 80% 70% Media Advertising 60% 50% 40% 30% Trade Promotions 20% 10% 0% '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 Percent of total promotional dollars.

  4. Types of Promotions • Franchise Building • LONG TERM preferences • Communicate distinctive brand identity • Example: • “Frequency” programs with brand or store image • Non-Franchise Building • IMMEDIATE sales • Examples: • Price-off deals • Bonus packs • Rebates or refunds

  5. Objectives of Sales Promotion • Obtaining trials • Increasing repurchase • Increasing overall consumption • Rewarding current customers • Reaching out to a new market • Enhancing advertising efforts

  6. Sales Promotion Vehicles Consumer-Oriented “Pull” Trade-Oriented “Push” Samples Contests, dealer incentives Coupons Trade allowances Premiums Point-of-purchase displays Contests/sweepstakes Dealer premiums Refunds/rebates Trade shows Bonus packs Cooperative advertising Price-offs Event sponsorship

  7. Samples -- Media • Door-to-door • Direct mail • In-store sample pack • Cross-product sampling • Co-op package distribution • With newspaper / magazine • Any of above with coupon

  8. Display Cards

  9. Coupons Advantage • Works – will increase sales Disadvantages • May be redeemed by loyal users who would buy anyway • Sometimes difficult to estimate redemption levels in advance • Expensive

  10. The Sales Promotion Dilemma Our Firm Reduce Promotions Continue Promotions Lose market share low profits Maintain share low profits Continue Promotions Competition Gain market share But low profits Higher profits for everyone! Reduce Promotions

  11. 43% Disposable Diapers 35% Ready-to-Eat Cereal 29% Liquid Detergents 25% Deodorants 24% Sanitary Protection 20% Coffee 12% Pet Food 11% Adult Cold Remedies 8% Carbonated Beverages 7% Candy 2% Gum Percent of Sales with Coupons

  12. Sweepstakes and Contests ADVANTAGES: • Gets consumer involved with the product • Generates interest and attracts attention to advertising DISADVANTAGES • May overshadow the product • May detract from brand image

  13. Spending on Event Sponsorship

  14. Benefits of Event Marketing 1. Greater Awareness 2. Associate Product with Event 3. New Potential Clients (Sales) 4. Media Coverage

  15. Quote of the day If you’re selling a product that needs to be purchased regularly, and it’s really great, just give away free samples. Mike Basil Professor of Marketing

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