1. Sales Promotion and Point of Purchase
11-1
Chapter 11
Sales Promotion and Point of Purchase

2. Explain the importance and growth of sales promotion.
11-2
Explain the importance and growth of sales promotion.
Describe the main sales promotion techniques used in the consumer market.
Describe the main sales promotion techniques used in the trade channel and business markets.
Identify the risks to the brand of using sales promotion.
Understand the role and techniques of point-of-purchase advertising.
Describe the role of support media in a comprehensive integrated marketing communication plan.

3. Role of Sales Promotion
11-3
Role of Sales Promotion
Sales promotions use incentives to motivate action by
consumers
members of the trade channel
business buyers.
Sales promotions serve different purposes than mass-media advertising does, and many companies spend more on sales promotions than ever before.
Reasons for greater reliance on promotions include:
pressure on marketing managers for greater accountability
short-term marketing orientations
deal-prone shoppers
brand proliferation
the increasing power of large retailers
media clutter

4. Consumer Sales Promotion
11-4
Consumer Sales Promotion
Objectives for consumer-market sales promotions include:
stimulate trial purchases
stimulate repeat purchases
introduce a new brand
contribute to IMC effort
combat or disrupt competitors’ strategies
stimulate larger purchases

5. Consumer Sales Promotion, Continued
11-5
Consumer Sales Promotion, Continued
Techniques for consumer-market sales promotions include:
Coupons, price-off deals, phone and gift cards, and premiums (free and self-liquidating) and advertising specialties provide obvious incentives for purchase.
Contests, sweepstakes, and product placements can be excellent devices for stimulating brand interest.
Trial offers and a variety of sampling techniques help get a product into the hands of the target audience:
in-store sampling
door-to-door sampling
mail sampling
newspaper sampling
on-package sampling
mobile sampling
Rebates and frequency programs provide rewards for repeat purchase.

6. Sales Promotion to the Trade and Business Buyers
11-6
Sales Promotion to the Trade and Business Buyers
Objectives for trade-market sales promotions include:
obtaining initial distribution
increasing order size
encouraging cooperation with consumer-market sales promotions
increasing store traffic

7. Sales Promotion to the Trade and Business Buyers, Continued
11-7
Sales Promotion to the Trade and Business Buyers, Continued
Techniques for trade-market sales promotions include:
incentives (push-money)
allowances
merchandise allowances
slotting fees
bill-back allowances
off-invoice allowances
sales-training
vertical cooperative advertising

8. Sales Promotion to the Trade and Business Buyers, Continued
11-8
Sales Promotion to the Trade and Business Buyers, Continued
Techniques for business-market sales promotions include:
trade shows
business gifts
premiums and advertising specialties
trial offers
frequency programs

9. Risks of Sales Promotion
11-9
Risks of Sales Promotion
The risks of sales promotions include:
creating a price orientation/lowering brand image
borrowing from future sales
alienating customers
time and expense
legal considerations

10. Point-of-Purchase (P-O-P) Advertising
11-10
Point-of-Purchase (P-O-P) Advertising
Point-of-purchase (P-O-P) advertising refers to materials used in the retail setting to attract shoppers’ attention to a firm’s brand, convey primary brand benefits, or highlight pricing information.
P-O-P displays may feature price-off deals or other consumer and business sales promotions.
P-O-P objectives include:
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.
P-O-P formats include:
Short-term promotional displays (used for six months or less)
Permanent long-term displays (used for more than six months).
In trade and business markets, P-O-P displays encourage retailers to support one manufacturer’s brand over another; they can also be used to gain preferred shelf space and exposure in a retail setting.

11. 11-11
Support Media
The traditional support media include outdoor signage, billboard, transit, aerial, and directory advertising.
Billboards and transit advertising (out-of-home media) are excellent means for carrying simple messages into specific metropolitan markets.
To assess locations, the industry sends individuals to ride the boards.
Aerial advertising can also be a great way to break through the clutter and target specific geographic markets in a timely manner. However, this is becoming diluted because of reductions in costs.
Directory advertising, primarily the Yellow Pages directories, can be a sound investment because it helps a committed customer locate an advertiser’s product.
Packaging can be considered in the support media category because the brand’s package carries important information for consumer choice at the point of purchase including the brand logo and “look and feel” of the brand.
Guerilla marketing is becoming more commonly adopted by marketing firms as their primary promotional style.