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1-2McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 18Chapter 18
Consumer and Trade Sales PromotionConsumer and Trade Sales PromotionConsumer and Trade Sales PromotionConsumer and Trade Sales Promotion
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• Explain the role and significance of sales promotion in the marketing communications mix.
• Understand why sales promotion expenditures account for a significant portion of many firms’ marketing communications budgets.
• Discuss the objectives and techniques of consumer sales promotion.
After studying this chapter you should be able to:
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• Discuss the objectives and techniques of trade sales promotion.
• Explain the limitations of sales promotion.
• Realize how deceptive and fraudulent sales promotion victimizes both consumers and marketers.
After studying this chapter you should be able to:
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The Role of Sales Promotion
• Sales Promotion:– Consists of media and non-media marketing
communications employed for a predetermined, limited time to stimulate trial, increase consumer demand, or improve product availability.
• Consumer Sales Promotion:– Directed at Consumers
• Trade Sales Promotion:– Directed at Resellers
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The Significance of Sales PromotionThe Significance of Sales Promotion
Sales Promotion Expenditures
Consumer Factors
Impact of Technology
Increased Retail Power
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The 10 Commandments of Creative Sales Promotion
The 10 Commandments of Creative Sales Promotion
1. Set specific objectives2. Know how basic promotion techniques work3. Use simple, attention-getting copy4. Use contemporary, easy-to-track graphics5. Clearly communicate the concept6. Reinforce the brand’s advertising message.7. Support the brand’s positioning and image.8. Coordinate promotional efforts with other
marketing plans.9. Know the media you work with.10. Involve the trade.
1. Set specific objectives2. Know how basic promotion techniques work3. Use simple, attention-getting copy4. Use contemporary, easy-to-track graphics5. Clearly communicate the concept6. Reinforce the brand’s advertising message.7. Support the brand’s positioning and image.8. Coordinate promotional efforts with other
marketing plans.9. Know the media you work with.10. Involve the trade.
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Consumer Sales PromotionConsumer Sales Promotion
Objectives of Consumer Sales Promotion:
• Stimulate trial• Increase consumer inventory and
consumption• Encourage repurchase • Neutralize competitors• Increase sales of complementary
products• Stimulate impulse purchasing • Allow flexible pricing
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Consumer Sales Promotion Techniques
Consumer Sales Promotion Techniques
• Price Deals • Coupons • Rebates• Cross-Promotions• Contests, Sweepstakes,
Games• Premiums• Sampling• Advertising Specialties
• Price Deals • Coupons • Rebates• Cross-Promotions• Contests, Sweepstakes,
Games• Premiums• Sampling• Advertising Specialties
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Trade Sales PromotionTrade Sales Promotion
Objectives of Trade Sales Promotion:• Gain/maintain distribution• Influence resellers to promote product• Influence resellers to offer price discount• Increase reseller inventory• Defend against competitors• Avoid reduction of normal prices
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Trade Sales Promotion TechniquesTrade Sales Promotion Techniques
• Trade Allowances• Dealer Loaders• Trade Contests• Point-of-Purchase Displays• Trade Shows• Training Programs• Push Money
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Limitations of Sales PromotionLimitations of Sales Promotion
• It typically cannot reverse a genuine declining sales trend.
• Marketers cannot reasonable expect sales promotion to convert refection of an inferior product into acceptance.
• Sales promotion may even weaken the brand image.
• Sales promotion has also been blamed for encouraging competitive retaliation.
• It typically cannot reverse a genuine declining sales trend.
• Marketers cannot reasonable expect sales promotion to convert refection of an inferior product into acceptance.
• Sales promotion may even weaken the brand image.
• Sales promotion has also been blamed for encouraging competitive retaliation.
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Limitations of Sales PromotionLimitations of Sales Promotion
• Short-term volume gain at the sacrifice of profits.– Forward Buying:
• People buy more than they need at the deal price.
– Pay-for-Performance Trade Promotions:• Retailers are rewarded for making sales to
consumers rather than making purchases from manufacturers.
• Short-term volume gain at the sacrifice of profits.– Forward Buying:
• People buy more than they need at the deal price.
– Pay-for-Performance Trade Promotions:• Retailers are rewarded for making sales to
consumers rather than making purchases from manufacturers.
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Ethical and Legal Issues in Sales Promotion
Ethical and Legal Issues in Sales Promotion
• Deceptive Sales Promotion
• Fraud:• The Fake Storefront
• Stuffing the Ballot Box
• Playing the Middleman
• The Redemption Scam
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Ethical and Legal Issues in Sales Promotion
Ethical and Legal Issues in Sales Promotion
Diverting (or Arbitraging):• Secretly purchasing a product where it
is less expensive, usually as a result of a trade promotion, and reselling in areas where prices are higher.
Diverting (or Arbitraging):• Secretly purchasing a product where it
is less expensive, usually as a result of a trade promotion, and reselling in areas where prices are higher.
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Global ConcernsGlobal Concerns
• The Global Perspective requires marketers to make an extra effort to become familiar with local laws and customs.
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Marketing and Sales
VP of Marketing and Sales Supervise the Marketing and Sales Departments for a specified Business Unit Control and monitor annual plan, advertising and marketing budgets within the Business Unit
Director of Sales and Marketing Oversee the responsibilities of the Marketing and Sales DepartmentMaintain and improve public image of the Company through all advertising, marketing and promotional materialsSupervise Marketing and Sales Managers, Sales Consultants and AdministratorsCreate and monitor budgets
VP of Marketing and SalesVP of Marketing and Sales
Senior Management Level Positions Director of Marketing and Sales Director of Marketing Director of Sales
Senior Management Level Positions Director of Marketing and Sales Director of Marketing Director of Sales
Mid-Management Level Positions Marketing and Sales Manager Marketing Manager Sales Manager Internet Marketing Manager
Mid-Management Level Positions Marketing and Sales Manager Marketing Manager Sales Manager Internet Marketing Manager
Professional Level Positions Assistant Marketing Manager Market Analyst Sales Consultant
Professional Level Positions Assistant Marketing Manager Market Analyst Sales Consultant
Entry Level and Support Positions Sales Assistant Sales Host/Hostess Sr. Sales and Closing Coordinator Sales and Closing Coordinator Marketing Administrator Sales Administrator
Entry Level and Support Positions Sales Assistant Sales Host/Hostess Sr. Sales and Closing Coordinator Sales and Closing Coordinator Marketing Administrator Sales Administrator
Marketing and Sales
Director of SalesCoordinate sales activities in a given Business UnitSet sales quotas for a given period
Director of MarketingSupervise marketing functions in a specific Business UnitCoordinate advertising and public relations
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Marketing and Sales
Marketing and Sales Manager Manage various marketing programs and initiativesManage sales activities
Marketing ManagerManage various marketing programs and initiativesCoordinate photo shoots for product photography needs, advertising and displaysDevelop methods to increase Company sales and exposure through various media (print, radio, billboards, etc.)
Sales ManagerResponsible for the overall success (i.e. sales conversions, Sales Consultant skill development, coordination
of marketing events, etc.) of multiple communities under his/her supervisionMonitor contracts in coordination with community efforts to insure Company goals related to in-house
mortgage and title capture
Internet Marketing ManagerCoordinate creation of business unit marketing materialsCoordinate web presentations for the business units’ communities in planningCoordinate IPIX photo shoots for all new models and clubhouses
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Marketing and Sales
Assistant Marketing ManagerAssist with developing advertising concepts and placementsAssist with other various marketing programs and strategies
Market Analyst Shop competition in the fieldGather market related dataPrepare marketing graphs
VP of Marketing and SalesVP of Marketing and Sales
Senior Management Level Positions Director of Marketing and Sales Director of Marketing Director of Sales
Senior Management Level Positions Director of Marketing and Sales Director of Marketing Director of Sales
Mid-Management Level Positions Marketing and Sales Manager Marketing Manager Sales Manager Internet Marketing Manager
Mid-Management Level Positions Marketing and Sales Manager Marketing Manager Sales Manager Internet Marketing Manager
Professional Level Positions Assistant Marketing Manager Market Analyst Sales Consultant
Professional Level Positions Assistant Marketing Manager Market Analyst Sales Consultant
Entry Level and Support Positions Sales Assistant Sales Host/Hostess Sr. Sales and Closing Coordinator Sales and Closing Coordinator Marketing Administrator Sales Administrator
Entry Level and Support Positions Sales Assistant Sales Host/Hostess Sr. Sales and Closing Coordinator Sales and Closing Coordinator Marketing Administrator Sales Administrator
Marketing and Sales
Sales ConsultantSecure contracts for purchase of new homesFacilitate mortgage capture and title capture
Sales AssistantAssist Sales Consultant with sales process while
developing the skills needed to become an independent consultantAssist customers with sales process
Sales Host/Hostess Receive, register and direct visitorsPerform clerical duties in order to ensure an effective, efficient flow
of telephone calls and visitorsProvide model toursHelp maintain neat appearance of the modelsDistribute current price lists
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Marketing and Sales
Senior Sales and Closing CoordinatorSupervise daily activities of the Sales and Closing CoordinatorsEnsure closing dates are being maintained in system and communicated to customerEnsure contract cancels/switches/deposits are processed in a timely mannerPerform sales and closing duties
Sales and Closing CoordinatorPerform sales and contract administrationConfirm and prepare preliminary closing figuresCoordinate settlement processes with construction, mortgage, buyer and title company
Marketing or Sales AdministratorPerform administrative activities in support of the department