Sales Promotion, Events,
and Sponsorships
Part 5: Integration and Evaluation
Chapter 16
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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
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Marketing Mix Strategies
product
Cost,
Profit,
Value expectation
Advertising
Public relations,
Sales promotion,
Personal selling,
Direct marketing,
Packaging
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Product designs,
Branding,
Maintenance,
Packaging
price
Wholesaler,
place
Retailer,
Transporter,
promotion Intermediary
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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
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Why Sales promotion?
Company Side
Consumer Side
-Need for short-term profit
- Easy to evaluate the impact
(from sales volume)
- High cost of Media
-Market share: battle for market
share instead of product growth
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-Consumer behavior: expect the
short term price reduction
-Pricing: reduce the risk of
purchase
-Parity products :increasing sales
when products are largely
undifferentiating e.g. mass product
-Power of the retailer: dominant
retailers demand incentives to offer
shelf space
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Result
Sales promotion: cost less, produce
immediate results (short-term sales)
Consumer:
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Risk
Value added (more for less)
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Types of Sales promotion
Consumer Sales promotion is a promotion aim at ultimate consumers of products
Trade Sales promotion is a value added program directed at trade members (reseller)
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Consumer Promotions
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Price Deals
- Cents-off: Reduce prices e.g. 20%
discount, 50 % discount
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Price Deals
Price–pack deals: offer additional
quantities of the product being
purchased or provide the consumer with
something extra
Ex: buy two get one free
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Price Deals
Bonus pack: offer additional amount of the product being
purchased but contain in the packaging
Ex: 25%more in this bottle of ketchup”
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Price Deals
Banned pack: more units of a product sold at a lower price
than if they were bought a the regular singular unit price
e.g Mama, toothpaste, soap
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Coupon
Coupon: are small written contracts that grant holders a
price reduction within time frame
1) Retailer-sponsored coupons: redeemable only at the
specified outlet
2) Manufacturer-sponsored coupons: redeemable at
any outlet (distributor)
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Refund and Rebate
Refund and rebate: Offer to return the certain amount of
money to the consumer
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Consumer Promotion
Sampling: Allow the consumer to try the
sample of the product
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Consumer Promotion
Contest: Engage consumers who compete
for prizes based on skill or ability based on
skills or talent
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Consumer Promotions
Sweepstakes: Award prizes to consumers.
Based on luck or chance of selection
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Consumer Promotions
Specialties items: Give- away items as a
reminder for the brand
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Consumer Promotion
Premium: an extra product or tangible reward for consumer’s particular
behaviors usually purchase
1. Direct premium award given at the time of purchase
-- Store premiums: given to customers at the retail site e.g premium at
7elevent, department store
-- In-pack premiums are inserted in the package at the factory e.g toys
inside the snack package
-- On-pack premiums are placed outside the package e.g detergent with
brush
-- Container premiums in which the package is the premium e.g. S&P
cookie box
2. Mail premium are sent to consumers after they meet certain requirement.
--Self-liquidation programs is a payment be mailed in along with some
proof of purchase before the customer receives the premium
-- the customers save the coupons or special labels attached to the product
that can be redeemed for merchandise
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Premium
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Other Types of Premium
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Exercise: identify types of sales
promotion
 Top Shop offers “Buy 2 Get 1 free” promotion for T-shirts
 Herbal Essence shampoo gives more 50% in quantity at
the same price
 Berman toothpastes are sold in a pack of 3 at discount
price
 Latest Ovaltincampaign requires the Ovaltin consumers
to return the Ovaltin package with their names for lucky
draw. It offers many valuable prizes.
 7 Eleven offers ‘Kitty pillow’ for the purchase of more
than 100 baht +pay more 20 baht.
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Consumer Sales Promotion Objective
Specialt
VS Types
y Ad
Awareness
Trial
- Special Event
-Special Event
-Sponsorship
-Sampling
-Point-of-purchase-Price deal e.g.
Cent off
-Coupon
Maintain & Increase
Market Share
-coupon
-premium
-special event
-contest
-sweepstake
-Price Deals
Principles
and Effective IMC Practice
Use AdvertisingADVERTISING
to support
each
objective
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Brand Reminder
Specialty items
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Trade Sales Promotion
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Trade Sales promotion
 Goal
-Designed by manufacturer to get cooperation of people
in distribution channel (trade member)
-Encourage the promotion of product to the consumer
-gauged from sales volume
 Target: Resellers (wholesaler, retailer)
 2 Roles:
- Trade support: to stimulate in-store merchandising,
superior store location, shelf space
- Excitement: to create the high level of attention from
resellers about the product sales
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Types of trade Sales promotion
-Point-of-purchase (POP) display: Manufacturer-designed display distributed to retailers
to get attention from the customers
Example: Special rack, display carton, banner, sticker, signs, price card, etc.
- Retailer (dealer) kits: Materials and information to help retailer sell ability such as
price information, product specification, product display instruction, etc.
- Contest and sweepstakes: can motivate resellers (increase relationship)
- Trade shows and exhibition: provide opportunities to exchange information,
demonstrate and sample products and sell merchandise (usu. same industry)
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POP
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Types of trade promotion (contd.)
-Trade incentive and deals: Reward for purchasing at the certain amount of product.
-- Bonuses (push money, spiff): monetary bonus paid to store’s salesperson based on the units
that salesperson sells over a period of time
-- Dealer loaders are premiums (=consumer premium) a manufacturer gives to a retailer for buying
a certain amount of product e.g. free trip,
--allowances: is a price reducing and reward program for trade to
purchase in a certain amount of product (discount)
-- advertising allowance: the manufacturer pays the resellers a certain amount of money to advertise
the manufacturer’s product (flat amount or percentage according to the gross purchase)
-- Cooperative ads.: contractual arrangement between manufacturer and resellers, the manufacturer
agrees to pay a part or all ad expenses incurred by the resellers.
-- display allowances: direct payment of cash or goods is given to the resellers if the resellers agree
ADVERTISING Principles and Effective IMC Practice
to set up the point-of-purchase (POP)
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Consumer Sales Promotion Objective
VS Types
Attention
-Point-of-purchase
(trade and consumer)
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Motivation
-Trade deals
-contest
-prize
ADVERTISING Principles and Effective IMC Practice
Information & Trial
-Trade Show&
Exhibition
-Retailer (Dealer )
Kits
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Promotions that Across the lines
Awareness
+sales
Sponsorship: Company supports an event either financially or by
donating supplies and services
e.g. Olympics, golf tournament
Event marketing: Building product marketing’s program around
a sponsored event.
-Practice of linking a brand to an event that usually matches the
brand to the target market’s lifestyle e.g. Nokia (Lamour) +
Fashion Week
Aerial advertising support: Balloon, Giant model, etc.
Loyalty Program (loyalty program or continuity
program): is a promotion to increase customer retention
In order to keep and reward the continued patronage e.g.
member card, airline frequent flier program
(
Higher purchase
Greater benefits )
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SPONSORSHIPS
Pepsi was a sponsor for
Concert of Black Eyed Peas
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Mc Donald’s Aerial Advertising
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Starbucks Gold Membership
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Promotions that Across the lines
Partnership programs:
Co-marketing: Manufacturer and retailer develop a marketing
communication program together e.g. P&G with Tesco Lotus
Co-Branding: Two companies come togather to offer the
product e.g. Credit card co. with restaurants, hotels, spa
(both get brand equity)
Licensing agreements (rents): A company’s legal
permission for other manufacturers to use their company’s
logos, symbols, trade characters, identities for or use on other
product e.g. Waltz Disney products (the co. gets the money +
extend the brand)
Tie-ins: associate complementary brands linking two
complementary products in a promotion e.g. McDonald &
Walz Disney
( 2 products joined  bigger impact ,
 share the advertising cost)
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CO-MAR KETING
Drink Pepsi has a chance to win Yamaha Meo ZR when
buy pepsi product up to 500 bath receive 1 coupon
compete for the prize. Only at Makro
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C
O
U
P
O
N
CO-BRANDING
DISCOUNT 10%
For Zoo Park
DISCOUNT 50%
For Alangran Theater
DISCOUNT 20%
For Park
DISCOUNT 20%
For Mini Siam
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DISCOUNT 10%
For Fun Park
DISCOUNT 20 bath
For Crocodile
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Farm
DISCOUNT 10%
For Fun Park
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A limited collection
MAC Hello Kitty
by US. MAC Cosmetics and
Japanese
company Sanrio have teamed up to create
MAC Hello Kitty
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Marketing Mix Strategies (contd.)
PLACE (DISTRIBUTION):
- Have mechanism for delivering and
servicing the product and receive payment
-- Market Coverage Strategy: geographic
distribution eg. BKK, nationwide
--Push Strategy: direct marketing efforts at
reseller (many channels)
Pull Strategy: direct marketing efforts at
consumer (create demand)
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Push, Pull, and Combination Strategies
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Activity
Each pair gives one example of
consumer sales promotion
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