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Sales Promotion and POP Advertising

Sales Promotion and POP Advertising. Chapter 18 with Duane Weaver. Sales Promotion Defined. “…the use of incentive techniques that create a perception of greater brand value among consumers, the trade, and business buyers” designed “to create a short-term increase in sales by:

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Sales Promotion and POP Advertising

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  1. Sales Promotion and POP Advertising Chapter 18 with Duane Weaver

  2. Sales Promotion Defined “…the use of incentive techniques that create a perception of greater brand value among consumers, the trade, and business buyers” designed “to create a short-term increase in sales by: • motivating trial use, • encouraging larger purchases or • stimulating repeat sales.” (O’Guinn, Allen, Semenik, p. 649)

  3. Drivers of Sales Promotions • Accountability – easier to associate directly with sales results • Managers focused on short term • Cost-conscious buyer trend battering over-valued brands • Brand Clutter – need to support attention toward a specific brand identity. • Value driven retailers demanding manufacturer “trade promotions”

  4. Differentiating Trade Promotion from Consumer Promotion • Trade Promotions – incentives provided by manufacturers or other distribution channel members to drive initiatives towards the retailer to increase retail stock levels/sales. • Consumer Promotions – incentives provided by the retailer to stimulate increases in purchases and/or trials by the consumer.

  5. Objectives for Consumer Promotions • Stimulate Trial Purchase • Stimulate Repeat Purchase • Stimulate Larger Purchase • Introduce New Brand • Combat/Disrupt Competitors’ Strategies • Support IBP or IMC plan

  6. Types of Consumer Promotions • Coupons • Price-Off • Premiums • Free premium (give-a-ways) • Self-Liquidating premium (consumer pays cost) • Advertising specialities (message on useful item to be displayed with no obligation) • Contests and Sweepstakes (compete or gamble) • Sampling/Trial Offers • Gift Cards • Rebates • Frequency/Loyalty Programs • P-O-P (Point-Of-Purchase) Displays

  7. Types of Trade Promotions • Incentives • Allowances (merchandise allowance, slotting, bill back, amount off-invoice) • Training Programs • Co-op Advertising

  8. Types of Business Market Promotions • Trade Shows • Business Gifts • Premiums • Trial Offers • Frequency/Loyalty Programs

  9. Risks of Sales Promotions • Price Orientation Created • Borrows from Future Sales • Alienates Customers (when adjust program – e.g.: airlines miles). • Time and Expense – process, cost. • Legal Considerations – lottery, contests, gambling…etc.

  10. Discussion Questions • Page 668 • Question 4 • Question 5 • Question 6 • Question 8 • For next class, use any newspaper or magazine that you find over the next week and bring at least 4 samples (each) relative to question 3 to display for the class to view. We will discuss their usefulness and which ones stand out the most and why.

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