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Class 10: Consumer

Sales Promotion

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Content

What is Sales Promotion?

Promotional Tools

Promotion Strategies

Packaging

Ads & Dis Ads

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Sales Promotion

sales promotion: short-term, value

added offer designed to motivate an

immediate response

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2 Types ofSales Promotion

high spending on advertising &

promotions to build up consumerdemand for a product

consumers ask (pressure) retailers forthe product>> retailers ask

wholesalers>> wholesalers ask

producers

use sales force and

trade promotionactivities to create

consumer demand

for productproducer promotes

product to

wholesalers>>wholesalers

promote toretailers >>

retailers promoteto consumers

Pulltra

depromotion

consumer promotion

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Sales PromotionObjectives

increase trail & repurchase

reinforce brand image &

strengthen relationships

extend the use of a brand

cross-sell

increase customer retention

build customer database

counter

competitive offers

increase frequency / or

quantity of purchases

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Sales PromotionTools

premiums

sweepstakes,

contests, games

sampling

rebates

price reductions

coupons

specialties

point-of-purchase

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Question

Why do brand managers

like sales promotion ?

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Promotion Strategies

Partnership Strategy Loyalty Strategy

Cross Promotion

-two of more products are

promoted together, such

as cheese & crackers

-team up to boost image

-share costs

Loyalty Marketing

-promotions specifically

designed for customer

retention

(i.e. punch card buy ten

get 11th for free)

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Ads & Dis adsof Sales Promotion

advantages

-Effective at changing

behavior in the short-run

-Relatively easy to measuresuccess and contribution

-Close to being value adding

(for the product)

-flexible

disadvantages

-lessened

in-store control

-can get lost amongstmany competing

messages

-easily duplicated

-can lead topromotional wars

-can harm brand image

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Packaging

Often the last seen ad for a brand

Critical for packaged goods

Helps you win at the first moment of truth

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Packaging Often the last seen ad for a brand

Critical for packaged goods

Helps you win at the first moment of truth

advantages

-protects the product

-free media before,

during, and after purchase

-adds value and convenience

disadvantages

-can be copied by

competitors (but lessso these days)

-contributes to waste

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Design = Integral partof a product

Packaging & product

designers are now typically

involved in some of the

earliest stagesof planning

for new/improved products.

Why? Design is no longer just

part of aesthetics, but part of

the product function itself.

Design now also sometimes

involves usersin the design

process (user innovation)

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Final Note:

While advertising often

seen as the most glamorouspart of MC, sales promotion

and packaging offer the

opportunity of being themost inventive areasand

those best suited to moveconsumers through the final

steps in the buying decisiontoward purchase