Sales promotion Flashcards
Changes in sales promotion (5)
- Inside: pressure to increase current sales (effective short-term tool)
- External: stiff competition + less differentiated brand
- Decresing advertising efficiency (cost, clutter, legal)
- Consumers: want lower price, better deal
- Promotion clutter: to many -> weaker ability to trigger an immerdiate purchase
ways to fight promotion clutter (3)
- larger coupon values
- dramatic POP displays
- deliver promotions thru digital and SM
Consumer Promotion Objectives (2)
- urge short-term buying
- boost customer-brand engagement
trade promo. obj. (3)
get retailers to
- carry new items and more inventory
- promote the product
- give more shelf space
business promo obj (4)
- generate business leads
- stimulate purchase
- rewards customer
- motivate salespeople
salesforce promotion obj (2)
- Get more SF support for new/current product
- get SP to sign up for new accounts
Consumer Promo Tools (9)
- Samples
- Coupons
- Rebates
- Price Packs
- Premiums
- Advertising Specialties
- Point-of-purchase
- Contest, sweeptakes and games
- Event marketing/sponsorship
Trade promotion tools (3+)
- allowance
- free goods
- push money - cash, gift to dealers/sf
can also used contests, premiums, displays
Business Promotion tools (2)
- convention and trade shows
- sales contest
Samples
offers of a trial amount of a product
- most effective >< most expensive
- introduce a new product /create new excitement for existing one
Coupons
certificates that save buyers money when they purchase specified products
- promote early trial of a new brand
- stimulate sales of a mature brand
rebates (cash refunds)
Price reduction occurs after the purchase
Price packs (cents-off deals)
savings off the regular price of a product
premiums
- goods offered either free or at low cost as an incentive to buy a product
- may come in/outside the pack, or through email
advertising specialties (promotional product)
useful articles imprinted with an advertisers’ name, logo, message that are given as Gifts
Point of purchase
display and demonstration that take place at the point of sale
event marketing/sponsorship
create their own brand marketing
serve as a sole or participating sponsors of events created by others
4 Steps to develop the sales promotion program
- select tools
- size
- set conditions for participation
- evaluation
