Sales Promotion, Events, and Sponsorships Advertising Principles and Practices

Frontier Campaigns for Votes and Hits \ Frontier wanted to encourage customers to book online to save money and build their database. Citizens voted for their favorite animal online; animals “campaigned” on the Web site. The results: 4,000 blog entries, a million votes, a 50% increase in Web traffic, and a 400% increase in qualified addresses. 16-2Prentice Hall, © 2009

16-3 Categories of Sales Promotion Consumer –Targeted to consumer: people like you and me. Trade –Targeted to people/companies in the distribution channel such as buyers, brokers, distributors, wholesales, dealers, franchisees, retailers, etc. Sales Force –Directed at the firm’s salespeople to motivate them to increase their sales including training, sales presentations, support materials, incentives, performance bonuses, contests.

Prentice Hall, © Types of Consumer Promotions Price Deals—temporary price reduction or sale –Cents-off deal –Price-pack deals (prize in cereal box) –Bonus packs (25% more) –Banded packs (toothpaste and brush) Coupon –Retailer: redeemable only at their outlet –Manufacturer: at any outlet carrying the product

Prentice Hall, © Types of Consumer Promotions Refunds and Rebates –Marketers offer to return a certain amount of money to the consumer who purchases the product (or coupon to encourage repeat use). Sampling –Allowing the consumer to try the product or service (in-store, mailed, dentist office, newspaper). Contests and Sweepstakes –Create excitement by promising “something for nothing” and offering impressive prizes. –Contests based on skill/ability; you compete for prizes. –Sweepstakes based on luck; send in your name for a drawing.

Prentice Hall, © Types of Consumer Promotions Premiums –Tangible reward for a particular act –Work by adding value to the product Store premiums: given at retail site In-pack premiums (in the package) On-pack premiums (attached to package) Container premiums (package is premium) –Self-liquidating Mail payment with proof of purchase Specialties –Presents the brand’s name on something that is given away as a reminder Key chains, pens, calendars, tote bags, coffee mugs

Prentice Hall, © Types of Trade Promotions: Point-of-Purchase (POP) Display Manufacturers design and distribute displays to retailers to draw attention to their products. Racks, display cartons, banners, signs, moving parts, lights, action

Prentice Hall, © Types of Trade Promotions: Retailer (Dealer) Kits Materials that support retailer’s selling efforts or help representatives make sales calls on prospective retailing customers Product spec sheets, ad slicks/discs

Prentice Hall, © Types of Trade Promotions: Trade Incentives and Deals When a manufacturer gives sellers a financial reward for purchasing a certain amount of product or supporting a promotion –Includes special displays, extra purchases, superior store locations, more local promotion –Retailers get special discounts, free goods, gifts, cash from manufacturer –Advertising allowances: deals on coop advertising and deals for using promotional displays

Prentice Hall, © Types of Trade Promotions: Contests Advertisers can develop contests and sweepstakes to motivate resellers. Contests are far more common than sweepstakes because they can be more closely tied to product sales. –The store or person who exceeds the quota by the greatest percentage wins the contest

Prentice Hall, © Types of Trade Promotions: Trade Shows and Exhibits When companies in the same industry gather to present and sell their merchandise and demonstrate their products

Prentice Hall, © Crossover Promotions: Sponsorships and Event Marketing Sponsorships are when companies support an event, say a sporting event, concert, or charity either financially or by donating supplies and services. Event marketing means building a product’s marketing program around a sponsored event, such as the Olympics or a golf tournament.

Prentice Hall, © Crossover Promotions: Other Promotional Support Blimps, balloons, inflatables, and skywriting planes capture attention and create excitement at events –Goodyear Blimp –Met Life’s Snoopy blimps –Inflatable Spiderman to promote the movie Internet sweepstakes Internet coupons

Prentice Hall, © Crossover Promotions: Loyalty Programs Also called a continuity or frequency program A promotion to increase customer retention Frequent flyers programs, TGI Friday’s “Frequent Fridays” These programs also capture information to use for more targeted promotions and advertising.

Prentice Hall, © Crossover Promotions: Partnership Programs Comarketing involves manufacturers developing marketing communication programs with their main retail accounts, instead of for them. Cobranding occurs when two companies come together to offer a product (e.g., American Airlines, Citibank Visa) With licensing, one company gives another company the right to use its legally protected trademarks and logos on products and in advertising or promotion. Tie-ins are when two companies are displayed, advertised, or promoted together to multiply impact. (e.g., McDonald’s Shrek Happy Meals)

Prentice Hall, © Promotion Objectives –Introduce a new product –Create brand awareness –Brand building The Issue of Brand Building –Critics say price promotions undermine the brand; proponents say it helps build brand image. –Advertising must be more accountable and promotion more brand-focused. Promotion Integration –Advertising and promotion should combine their different strengths. Promotion Effectiveness –Measured by volume, response rates, and redemption Promotion Strategy

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