IMC Mass Media Strategy
Sales Promo-----Adv-----------PR
Direct Appeals--- Indirect Appeals
Objectives
SALES PROMOTION is a
direct inducement offering extra incentives all along the marketing route to enhance
the product’s movement from producer to consumer.
Sales promotion objectives (see chart)
Main Elements of Definition
Is designed to speed up the selling process
Why has sales promotion grown dramatically in recent years, in some cases at the
expense of traditional media advertising?
Marketplace conditions
Consolidation puts retailers in power position in the distribution chain
Drive for short-term results
The “changing” consumer
The surplus marketplace
Main Elements (Cont’d.)
Involves direct inducement (money, prizes, extra products, gifts, or specialized
information) that provides some extra incentives to buy, visit the store, request
literature, or take some other action
Main Elements (Cont’d.)
May be used anywhere along the marketing route: from manufacturer to dealer,
dealer to customer, or manufacturer to customer
Reasons for Using SP
Retain current customers
Load current customers
Increase product usage
Trade customers up
Reach new users
Reinforce brand advertising
Benefits of SP
Generates sales that might not otherwise be achieved
Motivates consumers to select a specific brand, particularly when all brands
appear equal.
Generates more immediate, measurable payoff than traditional advertising.
Drawbacks of SP
Excessive promotion at the expense of advertising hurts profits. A good expenditure
balance for consumer products is 60% for trade and consumer promotion, 40% for
advertising.
A higher level of advertising (relative to promotion) increases profits.
Drawbacks of SP (Cont’d.)
A high level of trade promotion relative to advertising and consumer promotion
has a positive effect on short-term market share, but a negative effect on brand
attitudes and long-term market share
Without an effective advertising effort to emphasize brand image and quality,
customers become deal-prone rather than brand loyal.
Drawbacks of SP (Cont’d.)
Overemphasis on price eventually destroys brand equity.
PERHAPS THE BIGGEST DRAWBACK TO SALES PROMOTION IS ITS
VERY HIGH COST.
TRADE PROMOTIONS
Slotting allowances

Trade Deals

Display allowances

Buy-back allowances

Advertising allowances

Cooperative advertising/advertising materials
TRADE PROMOTIONS (Cont’d.)
Dealer premiums and contests

Push money or spiffs

Collateral sales material

Company conventions and dealer meetings
Coupons
Coupon
Cents off
Point-of-Purchase Coupon
Rebate
Sampling
Contest
Sweepstakes
CONSUMER PROMOTIONS
Premiums
Specialty Advertising
Continuity Programs
www.pticorp.com/products. www.aampromos.com
Premium
Premium
Continuity Program
Public Relations:
http://www.prsa.org/
Four Important Differences from Advertising:
PR lacks total control over the final message
PR addresses a variety of audiences
PR involves no direct media costs
PR contains important aspects that are outside the realm of marketing
PR Objectives
Keeping management in touch with public sentiments
Aligning the organization with public attitudes
Correcting or updating public perceptions
Adding value to brands
Responding to crisis situations
Public Relations Vehicles
Press Releases
Press Conferences
Special Events
Crisis Communications
Special Communications
Product Placement
Cause-Related Marketing
Public-Service and Advocacy Advertising
THE END