1 / 10

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:

neviah
Download Presentation

Sales Promotion and POP Advertising

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  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.

More Related