ADVERTISING:
Out-of-home and Point-of-sale
Sales Promotion
•
A special incentive to:
– Distributors
– Salespeople, or
– Customers
•
to encourage an immediate sale
Growth of Sales Promotion
100%
90%
Consumer Promotions
80%
70%
60%
Media Advertising
50%
40%
30%
20%
Trade Promotions
10%
0%
'89 ‘90 ‘91 ‘92 '93 '94 '95 '96 '97 '98 '99 ‘00
Percent of Total Promotional Dollars, 3-year Moving Average.
Objectives of Sales Promotion
• Obtaining trials
• Increasing repurchase
• Increasing overall consumption
• Rewarding current customers
• Reaching out to a new market
• Enhancing advertising efforts
Sales Promotion Vehicles
Consumer-Oriented “Pull”
Trade-Oriented “Push”
Samples
Contests, dealer incentives
Trade allowances
Point-of-purchase displays
Dealer premiums
Trade shows
Cooperative advertising
Coupons
Premiums
Contests/sweepstakes
Refunds/rebates
Bonus packs
Price-offs
Event sponsorship
Sampling
Sampling Works Best
When
The Products
Are of Relatively
Low Unit Value,
So Samples
Don’t Cost Much
The Products Are
Divisible and Can
Be Broken Into
Small Sizes That
Can Reflect the
Products Features
and Benefits
The Purchase
Cycle Is
Relatively Short
So the
Consumer Can
Purchase in a
Relatively Short
Time Period
Samples -- Media
• Door-to-door
• Direct mail
• In-store sample pack
• Cross-product sampling
• Co-op package distribution
• With newspaper / magazine
• Any of above with coupon
Display Cards
Spending on Event Sponsorship
How much is spent
(billions)
Where it is spent
$6
$5
$4
$3
$2
$1
4.705.00
4.20
3.70
3.30
2.80
2.50
2.10
1.75
$0
88 89 90 91 92 93 94 95 96
10%
9%
67%
Sports
Festivals
Arts
8%
6%
Music
Cause Mktg.
Benefits of Event Marketing
1. Greater Awareness
2. Associate Product with Event
3. New Potential Clients (Sales)
4. Media Coverage
Quote of the day
If you’re selling a product
that needs to be purchased
regularly, and it’s really
great, just give away free
samples.
Mike Basil
Professor of Marketing