Copyright © 2007 Pearson Education Canada 16-1 Sales Promotion “Activity that provides special incentives to bring about immediate action from consumers, distributors, and an organization’s sales force.”

Copyright © 2007 Pearson Education Canada 16-2 Consumer Promotion “Incentives offered consumers to prompt extra brand sales.” A pull strategy that creates demand at POP. Marketer Distributor Consumer Promotion Objectives Promotion Objectives Trial purchase Brand loyalty Multiple purchases

Copyright © 2007 Pearson Education Canada 16-3 Consumer Promotion Activities Coupons Samples Contests Cash Refunds Premiums Loyalty Programs Delayed Payments Combinations Coupons Samples Contests Cash Refunds Premiums Loyalty Programs Delayed Payments Combinations The stage in the product life cycle and the nature of competition influence which promotion offer to use.

Copyright © 2007 Pearson Education Canada 16-4 Coupon Distribution / Redemption Consumer Coupons2004 Quantity Distributed2.93 billion Quantity Redeemed99 million Average Face Value Redeemed $1.55 Consumer Savings$118 million

Copyright © 2007 Pearson Education Canada 16-5 Coupon Strategies Media-Delivered Coupons Media-Delivered Coupons Direct mail and print media coupons achieve trial purchase objectives. Used in introduction and growth stages. Product-Delivered Coupons Product-Delivered Coupons In-pack and on-pack coupon help achieve loyalty objectives. More common in late growth and mature stage.

Copyright © 2007 Pearson Education Canada 16-6 Samples An effective strategy when launching a new product or improving an existing product.  Perceived favourably by consumers  Many options for delivery  Expensive On-site sampling (experiential marketing) is growing in popularity with marketers.

Copyright © 2007 Pearson Education Canada 16-7 Contests An activity that generates short-term excitement. Sweepstakes Instant Wins Send in entry for a grand prize; other prizes. Pre-seeded winning tickets from a fixed ticket universe. RRRoll up the rim

Copyright © 2007 Pearson Education Canada 16-8 Cash Refund $ returned directly to consumers after a purchase has been made. Slippage Buyers start collecting for an offer but do not follow through. Refunds and rebates are effective for achieving single-purchase or multiple purchase objectives.

Copyright © 2007 Pearson Education Canada 16-9 Premium Offers An item offered free or at a bargain price with the purchase of a product.  Attaching a sample size product  Free items inside a package  Giveaways with fast food meals A good premium differentiates a brand at a critical time and place…at point-of-purchase.

Copyright © 2007 Pearson Education Canada Loyalty Programs An accumulating bonus reward offered at point-of-purchase for a customer’s patronage. Canadian Tire $ Shoppers Drug Mart Optimum Card Air Miles

Copyright © 2007 Pearson Education Canada Trade Promotion “Incentives offered distributors to secure marketing support. A push strategy to move product through the channel. Marketer Distributors Consumer Promotion Objectives Promotion Objectives Secure listings Increase volume In-store merchandising

Copyright © 2007 Pearson Education Canada Trade Promotion Activities Trade Allowance Performance Allowance Co-operative Advertising Display Material Trade Allowance Performance Allowance Co-operative Advertising Display Material Dealer Premium Collateral Material Trade Shows Dealer Premium Collateral Material Trade Shows When activities are combined the impact is maximized. For lead generation and personal selling situations.

Copyright © 2007 Pearson Education Canada Personal Selling “Personalized communications between a seller and buyer in which the benefits of a product are presented in order to make a sale.”

Copyright © 2007 Pearson Education Canada Roles of a Sales Rep There’s more to selling…than selling! Gather market intelligence Solve customer’s problems Locate and maintain customers Follow-up service

Copyright © 2007 Pearson Education Canada Types of Selling Personal selling is effective in many business situations.  Business-to-Business  Retail  Direct Selling – Telemarketing and Online

Copyright © 2007 Pearson Education Canada Steps in Selling Process Prospecting Pre-approach Approach Presentation Handling Objections Handling Objections Closing Follow-up 7 Steps: simple in theory; difficult in practice.

Copyright © 2007 Pearson Education Canada Event Marketing Event Marketing: “An integrated communications plan behind an event theme.” Event Sponsorship: “Financial support of an event in return for advertising privileges.”

Copyright © 2007 Pearson Education Canada Primary Types of Sponsorship Sports Entertainment Culture/Arts Sponsorship is a $11.1 billion industry in North America. Sports is the largest segment attracting 70% of revenue.

Copyright © 2007 Pearson Education Canada Event and Sponsorship Strategies An organization can invest a lot or a little. The benefits are same but on a different level. Global International National Regional Local Global International National Regional Local Companies like McDonald’s and Coca-Cola support global events and local events.

Copyright © 2007 Pearson Education Canada Sports Sponsorship From amateur to professional, and grassroots to international, sports sponsorships are attractive. Ambushers pop up at events. An ambusher is a non- sponsor giving a false impression they are a sponsor.

Copyright © 2007 Pearson Education Canada Venue Marketing Naming rights to buildings gets a company name in the media frequently.

Copyright © 2007 Pearson Education Canada Entertainment and Cultural Events Entertainment Sponsorship Entertainment Sponsorship Cultural/Arts Sponsorship Cultural/Arts Sponsorship Embraces music concerts, film festivals and comedy festivals. Embraces dance, literature, sculpture, painting and theatre.

Copyright © 2007 Pearson Education Canada Event Marketing Strategy The event should meet predetermined criteria. Exclusivity Complements other IMC activities Targeting ability Image Long-term benefit; short-term cost

Copyright © 2007 Pearson Education Canada Benefits of Sponsorship Awareness / association with event Perceive image with target New business Media coverage Sales increase in post-event period