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Sales Promotion, Events, and Sponsorships. Part 5: Integration and Evaluation Chapter 16. Chapter Outline. Chapter Key Points The Practice of Sales Promotion Consumer Promotions Trade Promotions Promotions that Cross the Line Promotion Strategy. Key Points.

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sales promotion events and sponsorships

Sales Promotion, Events, and Sponsorships

Part 5: Integration and Evaluation

Chapter 16

chapter outline
Chapter Outline
  • Chapter Key Points
  • The Practice of Sales Promotion
  • Consumer Promotions
  • Trade Promotions
  • Promotions that Cross the Line
  • Promotion Strategy
key points
Key Points
  • Explain the principles that drive the use of sales promotion
  • List and explain the use of various consumer promotions
  • Summarize the types and purposes of trade promotions
  • Describe the use of other types of promotions
  • Explain the strategic use of promotions in marketing
the practice of sales promotion
The Practice of Sales Promotion
  • A marketing discipline that utilizes a variety of incentive techniques to structure sales-related programs that generate a specific, measurable action or response
growth in sales promotion
Pressure for short-term profits

Need for accountability

Easy to evaluate

Move to Sales Promotion

Consumer behavior

Pricing

Market share

Parity products

Power of the retailer

Growth in Sales Promotion
consumer promotions
Price deals

Coupons

Refunds and rebates

Sampling

Contests and sweepstakes

Premiums

Specialties

Temporary price reduction or sale price

Cents-off

Price-pack deals

Bonus packs

Banded packs

Consumer Promotions
consumer promotions7
Price deals

Coupons

Refunds and rebates

Sampling

Contests and sweepstakes

Premiums

Specialties

Provide a discount on the price of the product

Retailer

Manufacturer

Consumer Promotions
consumer promotions8
Price deals

Coupons

Refunds and rebates

Sampling

Contests and sweepstakes

Premiums

Specialties

Marketer’s offer to return a certain amount of money to the consumer

Consumer Promotions
consumer promotions9
Price deals

Coupons

Refunds and rebates

Sampling

Contests and sweepstakes

Premiums

Specialties

Allowing the consumer to try the product or service

Consumer Promotions
consumer promotions10
Price deals

Coupons

Refunds and rebates

Sampling

Contests and sweepstakes

Premiums

Specialties

Create excitement by promising something for nothing

Contests based on skill or ability

Sweepstakes based on luck

Consumer Promotions
consumer promotions11
Price deals

Coupons

Refunds and rebates

Sampling

Contests and sweepstakes

Premiums

Specialties

Tangible reward for a particular act

Work by adding value to the product

Store premiums

In-pack premiums

On-pack premiums

Container premiums

Self-liquidating

Consumer Promotions
consumer promotions12
Price deals

Coupons

Refunds and rebates

Sampling

Contests and sweepstakes

Premiums

Specialties

Presents the brand’s name on something that is given away as a reminder

Consumer Promotions
how to use consumer promotions
How to Use Consumer Promotions
  • Awareness
  • Trial
  • Maintain or increase market share
  • Brand reminder
trade promotions
Point-of-purchase display

Retailer kits

Trade incentives and deals

Contests

Trade shows and exhibits

Manufacturer-designed display distributed to retailers

Retailers use the displays to call their customer’s attention to product promotions

Trade Promotions
trade promotions15
Point-of-purchase display

Retailer kits

Trade incentives and deals

Contests

Trade shows and exhibits

Materials that support retailer’s selling efforts or help representatives make sales calls on prospective retailing customers

Trade Promotions
trade promotions16
Point-of-purchase display

Retailer kits

Trade incentives and deals

Contests

Trade shows and exhibits

When a manufacturer rewards a seller financially for purchase or support

Buying allowances

Advertising allowances

Trade Promotions
trade promotions17
Point-of-purchase display

Retailer kits

Trade incentives and deals

Contests

Trade shows and exhibits

Advertisers can develop contests and sweepstakes to motivate resellers

Contests far more common

Trade Promotions
trade promotions18
Point-of-purchase display

Retailer kits

Trade incentives and deals

Contests

Trade shows and exhibits

When companies in the same industry gather to present and sell their merchandise and to demonstrate products

Trade Promotions
how to use trade promotion
Two primary roles for a trade promotion

Trade support

Excitement

Demand: Push-and-Pull strategies

Bonuses

Dealer loaders

Buying allowances

Advertising allowances

Cooperative advertising

Display allowance

Attention

Motivation

Information

How to Use Trade Promotion
promotions that cross the lines
Promotion techniques that blur the lines between promotions, advertising, and public relations

Sponsorships and event marketing

Other promotional support

Interactive and Internet promotions

Loyalty programs

Partnership programs

Promotions That Cross the Lines
promotion strategy
Promotion Strategy
  • Promotion objectives
  • The issue of brand building
  • Promotion integration
  • Promotion effectiveness