1. 15
Sales Promotion, Point-of-Purchase Advertising, and Support Media

2. Coordination Challenge
Events
Directories
Television
Internet
Billboards
Magazines
Transit
Branded
Entertainment
Radio

3. Traditional Support Media
Purpose: To reinforce or extend a message being delivered through other media
Signs, billboards
Transit
Aerial
Specialty
Directory

4. Outdoor Signage and Billboards
Advantages
Wide local exposure
Captivating
Around-the-clock exposure
Address an immediate need or desire
Disadvantages
Message limits
Location affects impact
Relatively expensive
Criticized by environmental groups

5. Transit Ads Transit Ads Urban environments Demographic segmentation
Timely to purchase
Build brand awareness

6. Aerial Ads Aerial Ads Blimps increasingly common
Common at sporting events
Networks are in control

7. What is Vehicle Wrapping?
Vehicle wrapping is a form of outdoor advertising
Digitally-generated graphics are printed on vinyl, and subsequently “wrapped” onto vehicles
Has become an international advertising medium

8. Outdoor Advertising - An Overview
U.S. advertisers spent $4.8 billion on outdoor media in 1999
Outdoor ads represent 2% of all advertising media
Growing approximately 10% per year
Growth is faster than:
Total Advertising Expenditures
Gross Domestic Product (GDP)

9. The Power of the Personal Vehicle
The Average Person:
Spends two hours per day in a car
Averages 48 miles per day on the weekends
Makes four or five trips each day
125 million Americans commute to work daily
Daily trips have increased by 110% since 1970
Total number of cars on the road is up over 174%
Motorists travel 3.4 trillion miles each year
Source: Federal Highway Administration
Outdoor Advertising Association of America (OAAA)

10. Wrapping for the Advertiser
Advertisers approach trucking companies, dealerships, etc. to “use” their vehicle(s)
Costs from $500 to $2500 to wrap an automobile
The use of vinyl technology has made the medium more cost effective
Aids in helping build awareness or maintain brand image

11. Continued . . . Global Positioning System (GPS)
Satellite-based tracking system
Installed by plugging device into cigarette lighter
Provides 24-hr., three dimensional position, velocity and time information
Updates data every four minutes
Is key in determining OTS (opportunity to see)

12. Wrapping for the Consumer
Companies such as Autowraps, Media Vehicles and Ads on Wheels are designed to accommodate people who would like to have their vehicle wrapped

13. Three Types of Vehicle Wrapping
Continued. . .
Three Types of Vehicle Wrapping
Full Wrap
Covers entire exterior, including windows
Driver is paid $450 max per month
Decal Graphic
Requires only 50%exterior coverage, usually a large graphic or text image
Driver is paid $250 max per month
Window Wrap
Covers two rear windows and back windshield
Driver is paid $150 max per month

14. Maintenance Takes 8 hrs for full wrap
Takes 4 hrs for decal and/or window wrap
Installation takes place within 30 mile radius of driver
Driver is asked to provide proof of insurance, a DMV report, and sign agreements
Required to drive approx hours per month
Meet with field monitor for a monthly inspection, and to switch out GPS system

15. Businesses - Advantages
Can provide exposure in urban areas and on the interstate
Allows for outdoor advertising where no billboard space exists
Have the ability to entertain, educate and inform
Geographic and demographic flexibility
This form of advertising is less intrusive and annoying than other forms

16. Businesses - Disadvantages
Must maintain message control
Social Responsibility
I.e. “Make 7…Up Yours”
Cannot be used as the sole promotional tool
Component of an overall communications mix

17. Consumer - Advantages Generate extra income
Low-end and high-end cars are used
Some companies are willing to donate their wrapped vehicles if motorists will drive them
Great for those with no mode of transportation
Some companies sell their wrapped vehicles at special discount rates

18. Consumer - Disadvantages
Too eye-catching for the open road
“Sophisticated Graffiti”
Could spark an onslaught of spray painting on buildings, cars and trucks
Difficult to break contracts

19. Airport Advertising: Dioramas
The following airport advertising info is from Yong Jun Sung & Pumsoon Park
- the first and most commonly utilized
- located throughout the terminals in arrivals, departures, ticketing and baggage claim areas
- Wall, shelter, and king-size dioramas

20. Wraps - The most widely used form of U.S. - Applied to flat surfaces
(walls, windows, and floors)
- Flexible in size and shape
- For short or long term campaign

21. Cylinder Showcases - Highly visible units
- Display products and services
- Secure setting for products such as
perfume, jewelry, fashions, and ceramics

22. SkyScreens (Plasma) - Provide digital advertising and information
- At high-traffic passenger cluster areas
- Catch the eyes of people

23. Baggage Cart Sponsorships
- Deliver total audience coverage
- Message frequency

24. Others
Bus shelter
Kiosks
Leaflet dispensers

25. Message Effectiveness
Traveler arrive at airport 57 minutes
Prior to departure
On average
On average
Passengers spend 93 minutes at the airport
High recall rates for airport advertising

26. How We Measure? JFK, NY – 31,700,604 (Rank #20)
1. Overall airport traffic
Ex) World airport ranking by total passengers 1999
Atlanta – 78,092,940 (Rank #1)
JFK, NY – 31,700,604 (Rank #20)
Orlando – total passengers 29,203,755 (Rank #24)
2. The number of brochures or leaflets taken from displays

27. Rate examples JFK International Airport (NY)
Orlando International Airport
Annual Passenger
Monthly Passenger
31,
29,203,755
2,641,717
2,433,644
Popular Vehicles
Diorama
$ 4,000
$ 3,300
Spectacular
$ 12,000
$ 9,500
Exhibition Area
$ 24,000
$ 8,000
Interactive Courtesy
Phone Center
$ 2,000
$ 1,500
SkyScreen
$ 35,000
$ 25,000
JFK Airport (NY)
Orlando Airport
43” x 62”
7’ x 11’
16” x 10”
6’ x 4’
Size
* per month & unit

28. Directory Advertising: CD-ROM and Web-based Directories
Advantages
High acceptance
High availability
Final link to purchase
Disadvantages
Too many directories
Long lead times
Limited creativity

29. Power Struggles and Sales Promotion
Sales promotion plays a key strategic role in the channel of distribution
Big name brands must be supported with sales promotion and POP to get the support of retailers through self space allocation.
The top 10 retailers control 43% of all packaged goods sales so they can dictate which brands get how much shelf space.
Brand marketers spend $30 billion a year on sales promotion and POP to gain favored retailer treatment and to provide incentives to household consumers and business buyers.

30. Sales Promotion
Using incentives to create a perception of greater brand value
Consumer Market
Induce household consumers to purchase a firm’s brand
Trade-Market
Motivate distributors, wholesalers, and retailers to stock and feature a brand
Business Buyer
Cultivate buyers in large corporations who make purchase decisions

31. Sales Promotion Examples
Coupons
Trade shows
Contests
Gift Cards
Allowances
Sweepstakes
Incentives
Sampling
Price-off deals
Premiums
Brand placements
Loyalty programs

32. Sales Promotion vs. Advertising
Short term demand vs. long term demand
Encourage brand switching vs. brand loyalty
Induce trial use vs. encourage repeat purchase
Promote price vs. promote image
Immediate results vs. long term effects
Measurable results vs. difficult to measure

33. Importance of Sales Promotion
$100 plus billion industry
Growth rate: 4-8 percent
Reasons for growth:
Demand for accountability
Short-term orientation
Consumer response to promotions
Proliferation of brands
Increased power of retailers
Media clutter

34. Objectives for Consumer-Market Sales Promotion
1. Stimulate trial purchase
2. Stimulate repeat purchases
3. Stimulate larger purchases
4. Introduce a new brand
5. Combat or disrupt competitors
6. Contribute to IMC

35. Consumer-Market Sales Promotion Techniques
Coupons
Price-off deals
Premiums
Contests/sweeps
Samples and trials
Phone gift cards
Brand placements
Rebates
Frequency programs
Event sponsorship

37. Coupons Entitles a buyer to a price reduction for a product or service
Advantages
Give a discount to price sensitive consumer while selling product at full price to others
Induce brand switching
Timing and distribution can be controlled
Stimulates repeat purchases
Gets regular users to trade up within a brand array

38. Coupons (cont’d) Disadvantages Time of redemption cannot be controlled
No way to prevent current customers from redeeming coupons
Coupon programs require costly administration
Fraud is a serious, chronic problem

39. Price-Off Deals
Offering consumers a reduced price at point of purchase through specially marked packages
Advantages
Is controllable by manufacturer.
Affects positive price comparisons.
Increases consumers’ belief in the value of a known brand.
Disadvantage
Retailers believe it creates inventory and pricing problems.

40. Premiums and Advertising Specialties
Free or reduced price for an item with the purchase of another item.
Free premiums provide item at no cost.
Self-liquidating premiums require consumers to pay most of the cost of the item
Advertising specialties:
A message placed on a free, useful item

41. Contests and Sweepstakes
Contests: consumers compete for prizes based on skill or ability.
Sweepstakes: winners picked by chance
Both create excitement and interest
But…
Legal and regulatory requirements are complex.
Consumers may focus on the game rather than the brand.
Difficult to get an IBP message across in a game.

42. Nordstrom Launches 'Twilight' Line, Gives Away Tickets to 'New Moon' Premiere

43. Samples and Trial Offers
Sampling
Giving a consumer an opportunity to use a brand on a trial basis with little or no risk
Types of sampling
In-store – Newspaper
Door-to-door – On-package
Mail – Mobile
Trial offers
Used for more expensive items
Try product for a fixed time
Trader Joes Example

44. Gift Cards
Manufacturers offer either for free or for purchase debit cards.
With phone time
Or with preset spending limits
Examples
Offers from Sephora, and The Gap.

45. Rebates
Money back offer requiring the buyer to mail a request for money back from the manufacturer.
Often tied to multiple purchases.
Many consumers fail to bother sending the request.
Canon example

46. Frequency Programs Also known as “continuity programs”
Offer customers discounts or free products for repeat patronage
Common in the airline, travel, and restaurant businesses

47. Objectives for Promotions in the Trade Market
Objectives: Use a “push” strategy
Push a product into the distribution channel towards the consumer
Obtain initial distribution
Increase order size
Encourage cooperation with consumer market sales promotions
Increase store traffic

48. Trade-Market Sales Promotion Techniques
Incentives: Push money
Allowances: Merchandise allowances, slotting fees, bill-back allowances, off-invoice allowances
Sales Training Programs
Cooperative (Co-Op) Advertising

49. Business Market Sales Promotion Techniques
Trade Shows
Business gifts
Premiums and advertising specialties
Trial offers
Frequency programs

50. Trial offers are very effective in the business market. Why?
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51. Sales Promotion, the Internet, and New Media
Sampling removes risk associated with consumer trial.
Internet firms use incentives to make Web sites “sticky.”
Internet is used to implement sales promotions and distribute coupons.

52. Risks of Sales Promotion
Creates a price orientation
Borrows from future sales
Alienates consumers
Time and expense
Legal considerations

53. Point-of-Purchase (P-O-P) Advertising
Materials used in the retail setting to attract shoppers’ attention to a brand, to convey primary product benefits, or highlight pricing information.
Objectives for P-O-P Advertising
Draw consumers’ attention to a brand in the retail setting.
Maintain purchase loyalty among brand loyal users.
Stimulate increased or varied usage of the brand.
Stimulate trial use by users of competitive brands.

54. P-O-P Advertising and the Trade and Business Markets
Product displays and information sheets encourage retailers to support one distributor or manufacturer’s brand over another.
P-O-P promotions can help win precious shelf space and exposure in a retail setting.
A P-O-P display is designed to draw attention to a brand, increase turnover, and possibly distribute coupons or sweepstakes entry forms.
To combat losing business to online shopping, retailers are trying to enliven the retail environment, and P-O-P displays are one strategy.

55. Coordination Challenge
Message coordination
Media coordination
Research conclusions:
Short-term effects can be dramatic.
Short-term effects are often not profitable.
Rare for long-term effects to occur.
Most power effects result from advertising and sales promotion being used together.