1 / 36

Chapter 17

Chapter 17. Sales Promotion, Point-of-Purchase Advertising, and Support Media. PPT 17- 1. © 2009 South-Western, a part of Cengage Learning. Part Five: Integrated Brand Promotion.

ull
Download Presentation

Chapter 17

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. Chapter 17 Sales Promotion, Point-of-Purchase Advertising, and Support Media PPT 17-1 © 2009 South-Western, a part of Cengage Learning

  2. Part Five: Integrated Brand Promotion • We have considered the Process, Planning, Preparation, and Placement of advertising and IBP in the first Four Parts of the book • Now we take a detailed look at the full range of IBP tools available to the advertiser • Each of these IBP tools has a unique capability to influence audience perception of a brand PPT 17-2

  3. Sales Promotion--Defined “Using incentives to create a perception of greater brand value” • Consumer Market sales promotion • Induce household consumers to purchase a firm’s brand • Trade-Market sales promotion • Motivate distributors, wholesalers, and retailers to stock and feature a brand • Business Market sales promotion • Cultivate buyers in large corporations who make purchase decisions PPT 17- 3

  4. Sales Promotion Examples Coupons Brand placements Contests Gift Cards Allowances Sweepstakes Point of Purchase Displays Incentives Sampling Price-off deals Premiums Loyalty Programs Trade Shows PPT 17- 4

  5. Sales Promotion vs. Advertising • Short term demand vs. long term demand • Encourages brand switching vs. brand loyalty • Induces trial use vs. encourage repeat purchase • Promotes price vs. image • Immediate results vs. long term effects • Measurable results vs. difficult to measure PPT 17- 5

  6. Importance of Sales Promotion • $300 billion in 2008 • Growth rate: 4-8 percent • Reasons for growth: • Demand for accountability • Short-term orientation • Consumer response to promotions • Proliferation of brands • Increased power of retailers • Media clutter PPT 17- 6

  7. Objectives for Consumer-Market Sales Promotion 1. Stimulate trial purchase 2. Stimulate repeat purchases 3. Stimulate larger purchases 4. Introduce a new brand 5. Combat or disrupt competitors 6. Contribute to IBP PPT 17- 7

  8. Consumer-Market Sales Promotion Techniques • 1. Coupons 2. Price-off deals • 3. Premiums 4. Contests/sweeps • 5. Samples & trials 6. Phone gift cards • Brand placements 8. Rebates • Frequency programs • Event sponsorship PPT 17- 8

  9. Coupons • Entitles a buyer to a price reduction for a product or service • Advantages • Give a discount to price sensitive consumer while selling product at full price to others • Induce brand switching • Timing and distribution can be controlled • Stimulates repeat purchases • Gets regular users to trade up within a brand array PPT 17- 9

  10. Ad in Context Example Coupons are the most widely used form of consumer sales promotion. PPT 17-10

  11. Coupons • Disadvantages • Time of redemption cannot be controlled • No way to prevent current customers from redeeming coupons • Coupon programs require costly administration • Fraud is a serious, chronic problem PPT 17- 11

  12. Price-Off Deals • Offers consumer reduced price at point of purchase through specially marked packages • Advantages • Controllable by manufacturer • Can effect positive price comparisons • Consumers believe it increases value of a known brand • Disadvantage • Retailers believe it creates inventory and pricing problems PPT 17- 12

  13. Premiums and Advertising Specialties • Premiums: free or at a reduced price with another purchase • Free premiums provide item at no cost • Self-liquidating premiums require consumers to pay most of the cost of the item • Advertising specialties: • A message placed on a free, useful item PPT 17- 13

  14. Ad in Context Example Premiums attract attention to a brand and offer the consumer something for free. PPT 17- 14

  15. Contests and Sweepstakes • Contests: consumers compete for prizes based on skill or ability. • Sweepstakes: winners picked by chance • Both create excitement and interest • But . . . • Legal and regulatory requirements are complex • Consumers may focus on the game rather than the brand • Difficult to get an IBP message across in a game PPT 17- 15

  16. Samples and Trial Offers • Sampling: Giving consumer an opportunity to use a brand on a trial basis with little or no risk • Types of sampling • In-store (Costco) – Newspaper • Door-to-door – On-package • Mail – Mobile (on-site) • Trial offers • Used for more expensive items • Consumer tries product for a fixed time PPT 17- 16

  17. Phone and Gift Cards • Manufacturers offer either for free or for purchase debit cards • with phone time • or preset spending limits • Examples include offers from Starbucks, Barnes & Noble, and The Gap PPT 17- 17

  18. Rebates • Money back offer requiring the buyer to mail a request for money back from the manufacturer • Often tied to multiple purchases • Many consumers fail to bother sending in the rebate request form PPT 17- 18

  19. Frequency Programs • Also known as continuity programs • Offers customers discounts or free products for repeat patronage • Common in airline, hotel, and restaurant businesses PPT 17- 19

  20. Objectives for Promotions in the Trade Market • Objectives: Uses a “push” strategy: Push the product into the distribution channel to the consumer: • Obtain initial distribution • Increase order size • Encourage cooperation with consumer market sales promotions • Increase store traffic PPT 17- 20

  21. Trade-Market Sales Promotion Techniques • Incentives: Push money • Allowances: Merchandise allowances, slotting fees, bill- back allowances, off-invoice allowances • Sales Training Programs • Cooperative (Co-Op) Advertising PPT 17- 21

  22. Business Market Sales Promotion Techniques • Trade Shows • Business gifts • Premiums and advertising specialties • Trial offers • Frequency programs PPT 17- 22

  23. Ad in Context Example Trial offers are very effective in the business market. Why? PPT 17- 23

  24. Risks of Sales Promotion • Create a price orientation • Borrow from future sales • Alienate loyal customers • Time and expense • Legal considerations PPT 17- 24

  25. Point of Purchase (P-O-P) Advertising • Definition • Materials used in the retail setting to attract shoppers’ attention to a brand, to convey primary product benefits, or highlight pricing information. • Displays may feature “price-off” deals as well. • Objectives for Point-of-Purchase Advertising • Draw consumers’ attention to a brand in the retail setting. • Maintain purchase loyalty among brand loyal users. • Stimulate increased or varied usage of the brand. • Stimulate trial use by users of competitive brands. PPT 17- 25

  26. P-O-P Advertising and the Trade and Business Markets • Product displays and information sheets encourage retailers to support one distributor or manufacturer’s brand over another. • P-O-P promotions can help win precious shelf space and exposure in a retail setting. • A P-O-P display should be designed to draw attention to a brand, increase turnover, and possibly distribute coupons or sweepstakes entry forms. • To combat losing business to online shopping, retailers are trying to enliven the retail environment, and point-of-purchase displays are one strategy. PPT 17- 26

  27. Support Media • Purpose: To reinforce or extend a message being delivered through other media • Signs, billboards, posters • Transit • Aerial • Specialty • Directory PPT 17-27

  28. Outdoor Signage and Billboards • Advantages • Wide local exposure • Captivating • Around-the-clock exposure • Address an immediate need or desire • Disadvantages • Message limits • Location affects impact • Relatively expensive • Criticized by environmental groups PPT 17-28

  29. Transit Ads • Transit Ads • Urban environments • Demographic segmentation • Timely to purchase • Build brand awareness PPT 17-29

  30. Ad in Context Example Transit ads can reach a target audience in well defined geographic areas. PPT 17-30

  31. Aerial Ads • Aerial Ads • Blimps increasingly common • Common at sporting events • Skies are getting crowded! • Networks are in control PPT 17-31

  32. Directory Advertising • Advantages • High acceptance • High availability • Final link to purchase • Disadvantages • Too many directories • Long lead times • Limited creativity • New: CD-ROM and Web-based directories PPT 17-32

  33. Ad in Context Example Web based directories offer convenience and speed. PPT 17-33

  34. Packaging • Promotional Benefits of Packaging to the Advertiser: • The package carries the brand name and logo • The package can communicate “value” • The package can communicate “image” and “quality” PPT 17-34

  35. Ad in Context Example Packaging highlights the brand name, quality and image. PPT 17-35

  36. When Support Media are More than Support Media • Guerrilla Marketing—”Stunt” promotions • Viral campaigns—Using influencers (Chapter 20) • Special Events—Creating visibility and “affinity” for a brand among a highly select target group PPT 17-36

More Related