Sales Promotion & PR

Sales Promotions

• Incentives• Build excitement• Encourage trial/purchase– Sometimes encourage repeat purchase

• Behavior driven– Not for attitude formation

• Mainly short term• Consider brand positioning• Can cheapen the brand

Types of Sales Promotions

• End Consumer– Loyal reinforce behavior– Competitor brand switching– Brand switchers buy you more often– Price conscious buy you, add value

Sales Promotion Tactics

• Coupons & Rebates• Premiums• Loyalty Programs• Contests & Sweepstakes• Sampling• POP• Online• Product Placement

Coupons & Rebates

• Coupons– Stimulate demand/induce trial– Can be measured– High cost– Low redemption rates– Low repeat customers AFTER promotion

• Rebates– Stimulate demand– Increases value perception– Easily copied– Advance future sales

Online & Mobile Coupons

Problems with social deals

Premiums & Deals

• Premiums – Gift with purchase– Goodwill– Perception of value– Buy for premium NOT product– Carefully managed

• Deals (BoGo)– Encourage Trial– Reduce consumer risk– Reduce perception of value

Loyalty Programs

• Create loyalty• Encourage repurchase• High cost• Build database of customer

Contests & Sweepstakes

• Contests– Increase consumer involvement– Generate excitement– Requires skill– Must be monitored

• Sweepstakes– Increases involvement with product– Sales decline after sweepstakes is over– No purchase necessary

Sampling

• Encourages trial• Direct involvement• High cost to the firm• Reduced risk to customer• Tie in with retail – purchase moment• Direct contact with customer

POP

• High visibility• Encourages brand trial• Difficult to get good location• Can be costly• At purchase moment• Can be visual or audio or mobile

Product Placement

• Demonstrates product use• Non traditional display• Firm has little control• Product can be overshadowed

Public Relations

• Examples– Event Sponsorships– Press Releases– Cause Marketing– Event/Product Launches

• Proactive v Reactive Strategy• Good Media contacts• Leverage and measure