Sales Promotion and POP
Advertising
Chapter 18 with Duane Weaver
Sales Promotion Defined
1.
2.
3.
“…the use of incentive techniques that
create a perception of greater brand value
among consumers, the trade, and business
buyers” designed “to create a short-term
increase in sales by:
motivating trial use,
encouraging larger purchases or
stimulating repeat sales.”
(O’Guinn, Allen, Semenik, p. 649)
Drivers of Sales Promotions
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Accountability – easier to associate directly
with sales results
Managers focused on short term
Cost-conscious buyer trend battering overvalued brands
Brand Clutter – need to support attention
toward a specific brand identity.
Value driven retailers demanding manufacturer
“trade promotions”
Differentiating Trade Promotion from
Consumer Promotion
Trade Promotions – incentives provided
by manufacturers or other distribution
channel members to drive initiatives
towards the retailer to increase retail
stock levels/sales.
 Consumer Promotions – incentives
provided by the retailer to stimulate
increases in purchases and/or trials by
the consumer.

Objectives for Consumer
Promotions
Stimulate Trial Purchase
 Stimulate Repeat Purchase
 Stimulate Larger Purchase
 Introduce New Brand
 Combat/Disrupt Competitors’ Strategies
 Support IBP or IMC plan
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Types of Consumer Promotions
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Coupons
Price-Off
Premiums
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Free premium (give-a-ways)
Self-Liquidating premium (consumer pays cost)
Advertising specialities (message on useful item to be displayed with
no obligation)
Contests and Sweepstakes (compete or gamble)
Sampling/Trial Offers
Gift Cards
Rebates
Frequency/Loyalty Programs
P-O-P (Point-Of-Purchase) Displays
Types of Trade Promotions
Incentives
 Allowances
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(merchandise allowance, slotting, bill back, amount
off-invoice)
Training Programs
 Co-op Advertising
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Types of Business Market
Promotions
Trade Shows
 Business Gifts
 Premiums
 Trial Offers
 Frequency/Loyalty Programs
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Risks of Sales Promotions
Price Orientation Created
 Borrows from Future Sales
 Alienates Customers (when adjust
program – e.g.: airlines miles).
 Time and Expense – process, cost.
 Legal Considerations – lottery, contests,
gambling…etc.
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Discussion Questions
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Page 668
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Question 4
Question 5
Question 6
Question 8
For next class, use any newspaper or
magazine that you find over the next week and
bring at least 4 samples (each) relative to
question 3 to display for the class to view. We
will discuss their usefulness and which ones
stand out the most and why.