Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Sales Promotion “Activity that provides special incentives to bring about immediate response from consumers, distributors, and an organization’s sales force.

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Promotion Strategy Marketer Wholesaler Retailer Consumer Pull Push

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Consumer Promotion Pulls the product through the channel Marketer Distributors Consumers Objectives: Trial purchase Brand loyalty Multiple purchase

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Consumer Promotion Activities  Coupons  Free Samples  Contests  Cash Refunds  Premiums  Loyalty Programs  Delayed Payment Incentives

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Coupons Distributed Billions of Coupons Source: Nielsen Promotional Services

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Coupons Redeemed Redeemed in Millions Source: Nielsen Promotional Services

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Methods of Coupon Distribution Coupons are distributed four basic ways: 1.Product 2.Media 3.Point-of-Purchase 4.Electronically

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Coupon Distribution by Media FSI54%55% In-Store11%17% In/On Pack17%13% Direct Mail 6% 5% Other12%10% Figures are for manufacturer distributed coupons. Source: NCH Promotional Services

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Coupon Redemption by Media FSIs15%10% In-Store29%48% In/On Pack44%29% Direct Mail 5% 6% Other 7% 7% Figures are for manufacturer distributed coupons. Source: NCH Promotional Services

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Redemption Rates by Distribution Media RangeAverage In/On Package0.3% % 5.6% FSIs0.1% % Direct Mail0.1% % 4.6% Magazine0.1% % 1.0% In-Store0.1% % 7.2% Other0.1% % 1.9% Source: NCH Promotional Services

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Free Samples Free product in a trial or regular size.  Effective for achieving trial purchase  In-store samples are most common method of delivery  Cross-sampling

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Contests Contests create temporary excitement for a brand.  Sweepstakes  Instant Wins Successful contests have significant media advertising support.

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Cash Refunds Money returned directly to the consumer by the manufacturer.  Encourage loyalty and multiple purchases  Slippage commonly occurs  Successful refund offers require strong P-O-P support

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Premiums An item offered free or at a bargain price when a product is purchased. It is usually offered three ways. 1.Mail-in 2.In/On Pack 3.Coupon Offer at P-O-P

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Loyalty Programs A frequent buyer program offers consumers a bonus, such as points or “play money.”  Canadian Tire Money  Club Z at Zellers and Bay  Shoppers Drug Mart’s Optimum Card The goal is to encourage loyalty through repeat purchases.

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Trade Promotion Pushes the product through the channel Marketer Distributors Consumers Objectives: Secure listings Build sales volume Secure merchandising support

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Trade Promotion Strategies  Trade Allowance  Performance Allowance  Co-operative Advertising Allowance  Retail In-Ad Coupons

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Trade Promotion Strategies  Dealer Premiums  Collateral Material  Dealer Display Material (P-O-P)  Trade Shows

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Budget Allocations by Activity Trade Promotion Advertising Consumer Promotion 50% 77% 25% 12% 24% 11% U.S.Canada Source: Nielsen Promotional Services

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Consumer vs Trade Promotion In the packaged goods market there has been a steady shift toward trade promotion, largely due to: Growth of Generic and Private Label products Buying Power Concentration Recessionary Markets

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Integrating Promotion Strategies Promotion strategies must be integrated with other marketing communications activities. Strategic decisions must be made on: 1.The frequency of promotions 2.Relationships between the product and the promotion 3.Creative and Media Strategies

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Role of Salesperson There is more to selling, than selling. In a competitive environment the salesperson is responsible for: 1.Gathering market intelligence 2.Problem solving 3.Locating and maintaining customers 4.Follow-up service

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Types of Selling Personal selling occurs in all markets but in some it is more visible than others.  Business-to-Business  Retail  Direct In-home Telemarketing Online

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Personal Selling Strategies Personal selling involves seven basic steps that can be classified in three stages: 1.Pre-presentation 2.Presentation 3.Post-presentation

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Pre-Presentation Stages Prospecting Preapproach A procedure for developing leads Qualifying a customer to determine real need for product

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Presentation Stages Approach Presentation Handling Objections Handling Objections Initial contact to get attention Persuasive delivery and demonstration Answering concerns raised by the customer Closing Asking for the order

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Post-Presentation Stage Follow-up 1.The sale never ends! 2.Keeping customers satisfied is the key to success 3.Resolve problems quickly and correctly