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Sales Sales PromotionPromotion
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Sales PromotionSales Promotion
What is the difference between advertising and sales promotion?
Advertising provides a reason to buy, and sales promotion provides an incentive to buy
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Advertising vs Sales PromotionAdvertising vs Sales Promotion
• Creates immediate action
• Adds tangible value
• Contributes to short-term
profitability
• Creates a brand image
over time
• Adds intangible value
• Contributes to longer
term profitability
Sales PromotionAdvertising
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Effects of Sales PromotionEffects of Sales Promotion• Consumer behavior
– Switch brands
• Pricing– Expect price reductions
• Market share– Switching brands changes
market share
• Parity products– Increases differentiation
• Retailers– Expect incentives from
suppliers
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Consumer Consumer PromotionsPromotions
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Price DealsPrice Deals
• Cents-off
• Price-pack deals
• Bonus packs
• Banded packs
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CouponsCoupons• Provides a
discount on the
price of the
product
• Two types:
• Retailer
• Manufacturer
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Refunds and RebatesRefunds and Rebates
• Offer to
return money
to the
consumer
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SamplingSampling
• Allows the consumer to try the product or service
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Contests Contests and and
SweepstakesSweepstakesCreates excitement • Contests are based on
skill or ability• Sweepstakes are based
on luck
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PremiumsPremiums
Works by adding value • Store • In-pack • On-pack • Container
Self-liquidating• Mail in
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Ad SpecialtyAd Specialty
• Presents the brand’s name on something that is given away as a reminder
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Objective of Consumer Objective of Consumer Sales PromotionSales Promotion
• Create Awareness
• Induce usage
• Incentive to switch brands
• Brand reminder
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Trade Trade PromotionsPromotions
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Push versus PullPush versus Pull
What is the difference between these two promotional strategies?
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Point-of-Purchase DisplayPoint-of-Purchase Display
• Manufacturer-designed display distributed to retailers
• Retailers use the displays to call their customer’s attention to product promotions
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Retailer KitsRetailer Kits
• Materials that
support retailer’s
selling efforts
– Ad slicks
– Product spec’s
– Display instructions
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Trade Shows and ExhibitsTrade Shows and Exhibits
• Companies in the
same industry
gather to present
and demonstrate
products
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Trade PromotionTrade Promotion
• Two primary roles for a trade promotion• Trade
support• Create
excitement
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Trade Promotion TechniquesTrade Promotion Techniques
Discounts and Allowances • Spiffs (push money)• Quantity discounts• Promotional allowances• Advertising allowances • Display allowances
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Promotions That Blend Promotions That Blend Advertising, Promotion and PR Advertising, Promotion and PR
• Sponsorships and event marketing
• Interactive and Internet promotions
• Loyalty programs• Partnership
programs
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Discussion Question Discussion Question
You have just been named product
manager for Bright White, a new
laundry detergent that will be
introduced to the market within the
next six months.
• How would you use a push strategy?
• How would you use a pull strategy?