02.01.2013
What is Sales Promotion ?
Sales promotion is a mass communication technique
Chapter 16
that offers short-term incentives
Sales Promotion, and
Public Relations
to encourage purchase or sales of a product or service.
Offers Reasons to Buy Now.
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Rapid Growth of Sales Promotion
Sales Promotion Objectives
Sales promotion can take the form of consumer
promotions, business promotions, trade promotions or sales
force promotions.
Rapid growth in the industry has been achieved because:
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Companies face more competition,
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Advertising efficiency has declined,
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Consumers have become more deal oriented.
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obtaining trial and purchase
increasing consumption of established brand
defending current customers
Get retailers to:
Product managers are facing more pressure to
increase their current sales,
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Increase short-term sales or help build long-term market
share.
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carry new items and more inventory,
advertise products,
give products more shelf space, and
buy product ahead.
In general, sales promotion should focus on consumer
relationship building.
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Major Consumer Sales
Promotion Tools
Sample
Trial amount of a product
Coupons
Savings when purchasing specified
products
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Sample
Cash Refunds
Refund of part of the purchase price
Price Packs
Reduced prices marked on the label or
package
Premiums
Goods offered free or low cost as an
incentive to buy a product
Advertising
Specialties
Articles imprinted with an advertiser’s
name given as gifts
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Coupon
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Price Packs
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Premiums
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Major Consumer Sales
Promotion Tools
Advertising Specialties
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Patronage Rewards
Cash or other rewards for the use of a
certain product
Point-of-Purchase
Displays and demonstrations that take
place at the point of sale
Contests
Consumers submit an entry to be judged
Sweepstakes
Consumers submit their names for a
drawing
Game
Presents consumers with something every
time they buy
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Patronage Rewards
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Major Trade Sales Promotion Tools
Trade-Promotion
Objectives
Trade-Promotion
Tools
Persuade Retailers or
Wholesalers to Carry a Brand
Discounts
Give a Brand Shelf Space
Promote a Brand in
Advertising
Allowances
Push a Brand to Consumers
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Developing the Sales
Promotion Program
Major Business Sales
Promotion Tools
Business-Promotion
Objectives
Business-Promotion
Tools
Generate Business Leads
Conventions
Stimulate Purchases
Trade Shows
Reward Customers
Sales Contests
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Decide on the Size of the Incentive
Set Conditions for Participation
Determine How to Promote and
Distribute the Promotion Program
Motivate Salespeople
Determine the Length of the Program
Evaluate the Program
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02.01.2013
What is Public Relations?
Major Public Relations Functions
Press Relations or Agentry
Public relations involves building good relations with the
company’s various publics
Public Relations
Departments May
Perform Any of All
of the Following
Functions:
Product Publicity
Public Affairs
by obtaining favorable publicity,
Lobbying
building up a good corporate image,
Investor Relations
and handling or heading off unfavorable rumors, stories,
and events.
Development
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Major Public Relations
Decisions
Major Public Relations Tools
Setting Public Relations Objectives
News
Web Site
Speeches
Public
Service
Activities
Choosing the Public Relations Messages
and Vehicles
Special
Events
Implementing the Public Relations Plan
Corporate
Identity
Materials
Audiovisual
Materials
Written
Materials
Evaluating Public Relations Results
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Special Events:
Sponsorships
Public Relations Tie-in:
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Sponsorships relate to
special events
Types of Sponsorships:
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Sports sponsorships
Entertainment, tours, and
attractions
Festivals, fairs, and annual
events
Cause-related marketing
Arts
Special Events: Sponsorships
Selecting Sponsorship Events -Consider:
Reasons for Growth:
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Avoids clutter
Cost efficient / effective
Enhances brand equity
Allows for lifestyle or
geographic targeting
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Is it consistent with brand
image or will it benefit the
brand image?
Does it offer a strong
probability of reaching the
target audience?
Does the event complement
existing sponsorships and
other IMC efforts?
Selecting Sponsorship Events
-- Consider:
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Is the event cluttered by
many other sponsors?
Is the event economically
viable?
Has the competition
previously sponsored the
event? Is there a risk of
confusing the target
audience as to the
sponsor’s identity?
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02.01.2013
Discussion Question
If you were responsible for
marketing an anti-aging cream,
WHAT EVENTS OR CAUSES
WOULD YOU CHOOSE TO
SPONSOR (LOCAL OR
NATIONAL)?
WHY?
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