Sales Promotion

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Warm-Up
• What is your favourite promotion?
• What is your favourite Advertisement on
TV right now? Why do you like it?
Promotion Topics:
Advertising
Sales Promotion
– Goals of Ads
– Selecting the Appeal
– Types of Media
–
–
–
–
–
–
–
–
Contests & Sweepstakes
Refunds & Rebates
Coupons
Premiums & SelfLiquidators
Samples
Special Sales
Point of Purchase / Sale
(POP/S)
ADD: Co-promotion
Advertising Goals
Goals of Advertising:
1. Brand Awareness & Positioning
2. Brand Trial
3. Brand Preference
4. Brand Reminder
5. Brand Repositioning
Advertising Appeal
Appealing to consumers using one of the
four motivational areas:
1.Biological – need for health and security
Examples: Health foods, home security,
pharmaceutical brands, automobiles
Doesn’t work for: Airlines, toxic household
cleaners
Advertising Appeal
Four motivational areas:
1. Biological
2. Emotional – focus on consumer’s feelings;
love for children, feelings of romance or
pride
Examples: Downey fabric softener, Perfume,
Canadian Armed Forces
Advertising Appeal
Four motivational areas:
1. Biological
2. Emotional
3. Rational – Consumer reasoning; stresses
convenience, cost savings, warranties,
logical reason to buy
Examples: Honda for mileage, Minute Rice,
Guaranteed Trials
Advertising Appeal
Four motivational areas:
1. Biological
2. Emotional
3. Rational
4. Social – focus on social pressures
influencing consumer behaviour, including
body shape, appropriate behaviour, social
acceptance.
Examples: Acne face wash, Axe deodorant
Group Activity
• On the given sheet of paper, list 5 ads in
the source you were provided
• For each ad, name:
– Advertising Goal
– Advertising Appeal / Motivation
– Explanation for why
Brainstorm: Types of Media
Magazines
Newspaper
2
Television
Out-of-Home
Direct-toHome
1
Radio
4
3
5
Internet
7
Specialty
8
6
Types of Media
1. Magazines
Opportunity to link with specific audience / interests.
Several readers – passed on form of media.
Types of Media
1. Magazines
2. Newspapers
Geographic flexibility for specific cities.
Link ads to relevant content / sections of the paper.
Types of Media
1. Magazines
2. Newspapers
3. Television
Expensive but capable to broadcast
nationally to many viewers.
Dynamic and changing media with
rise of PVRs and internet viewing.
Types of Media
1.
2.
3.
4.
Magazines
Newspapers
Television
Radio
Geographic flexibility for specific cities or regions.
Link ads to relevant stations for your target or day parts.
Types of Media
1.
2.
3.
4.
5.
Magazines
Newspapers
Television
Radio
Out-of-Home
Difficult to ‘break through’,
Not targeted (except washroom
stalls). Must be very brief,
mostly visual.
Types of Media
1.
2.
3.
4.
5.
6.
Geographic targeting. Relatively cheaper than TV or Radio.
Magazines
Not “durable”, often thrown away or discarded.
Newspapers
Television
Radio
Out-of-Home
Direct-to-Home
Types of Media
1.
2.
3.
4.
5.
6.
7.
Magazines
Newspapers
Television
Radio
Out-of-Home
Direct-to-Home
Internet
Source: www2.sims.berkeley.edu/.../internet.htm
Websites, banner ads & email
advertising.
Permission-based email is
when consumers have given
their address to the company.
Types of Media
1.
2.
3.
4.
5.
6.
7.
8.
Magazines
Newspapers
Television
Radio
Out-of-Home
Direct-to-Home
Internet
Specialty
Also known as premium &
incentive marketing. Company
logo/message is put on
merchandise, then given away.
Promotion Topics:
Advertising
Sales Promotion
– Goals of Ads
– Selecting the Appeal
– Types of Media
–
–
–
–
–
–
–
–
Contests & Sweepstakes
Refunds & Rebates
Coupons
Premiums & SelfLiquidators
Samples
Special Sales
Point of Purchase / Sale
(POP/S)
ADD: Co-promotion
Reasons for Promotion
Why do you think businesses use Sales
Promotion?
• Build traffic in store
• Create extra interest in product
• Increase sales during downperiod or heavy competition
• Motivate staff
• Introduce new product,
generate trial
• Stock clearance
Contests & Sweepstakes
• Award prize to select
participant
• Can be used with other
aspects of promotion
• Incentive to provide
information
Refunds & Rebates
• Great for data collection because
consumers supply information
• Low redemption rates = lower
cost than straight discounts
• Common with electronics, i.e.
Best Buy
Coupons
• Entitles you to a reduction in
price of product or service
• Obtained from internet, mail,
print ads, store register, other
locations in store
• Redemption rate = % of
coupons used
– Measures effectiveness of
promotion
– Avg redemption for direct mail
~3.5% vs. in-store ~6.5%
Premiums & Self-Liquidators
• Allow consumers to get something by
purchasing something else
– Premium = free product/service, often
called “Gift with Purchase”
– Self-Liquidator = product or service at
substantially reduced price
Samples
• One of the most effective,
yet most expensive
promotional activities is
sampling
• Instant trial
• Good example execution of
samples with displayed
product for purchase is
Costco
Special Sales
• Special events:
– Introduce new product /
service
– Clear out old stock
– Generate store traffic
– To be competitive
during seasonal events
(i.e. NOW!)
Point of Sale (POS)
• Special racks, cases, shelves and
temporary displays all called POP or POS
• Displays set up in store or right at cash
• Increase “impulse” purchases
Co-Promotions
• Companies partner to
raise awareness and
reach of each respective
brand
• Classic examples:
movies, hot new products,
sports teams,
charity/cause marketing
THANK YOU!
• Next Class:
– New Project on PROMOTIONS
• In pairs, bring in 3 promotions that are currently in
the market (if on-line, bring print out)
• Assignment questions will be provided tomorrow,
along with in-class time to work on them
• IF you forget your promotions, some will be
assigned to you… but don’t forget, it’s easier to do
a project on something that INTERESTS YOU.
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