1. Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed McGraw-Hill/Irwin 12a Sales Promotion

2. A direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or ultimate consumer with the primary objective of creating an immediate sale 16-2

3. Sales Promotion Vehicles Samples Coupons Premiums Contests/sweepstakes Refunds/rebates Bonus Packs Price-off deals Frequency programs Cooperative advertising Trade allowances Sales training programs Contests, incentives POP displays Trade shows Consumer-OrientedTrade-Oriented Event marketing 16-3

4. Reasons for Sales Promotion Increases Declining brand loyalty Increased promotional sensitivity Brand proliferation Fragmented consumer markets Short-term focus of marketers Increased accountability Competition Clutter Growing power of retailers 16-4

5. Sale Promotion Concerns Negative impact of sales promotions Fewer dollars to build brand equity Encourages consumers to purchase on the basis of price Detracts from the value of the brand 16-5

6. Objectives of Consumer-Oriented Promotions Increase consumption of an established brand Target a specific segment Enhance IMC efforts and build brand equity Defend (maintain) current customers Obtain trial and purchase 16-6

7. Sampling The products are of relatively low unit value The product can be broken into a small piece or size that reflects the full features and benefits The purchase cycle is relatively short Sampling Works Best When 16-7

8. Pros and Cons of Coupons AdvantagesDisadvantages Appeals to price sensitive consumers Can offer discounts without retailer cooperation Effective way to induce trial of products Defends market share and encourages repurchase Often used by loyal consumers who would purchase anyway Misredemption and fraud Hard to tell how many consumers will use them and when Low redemption rates and high costs 16-8

9. In-Store Tear-off pads Handouts Dispensers Register printout Types of Coupons In/On-Pack Bounce-back Cross-ruff Instant 16-9

10. Premiums An offer of an item, merchandise, or service, free or at a low cost, that is an extra incentive for customers Types of Premiums Free: Only requires purchase of the product Self-liquidating: consumer required to pay some or all of the cost of the premium 16-10

11. More Consumer-Oriented Promotions Contests and sweepstakes Refunds and rebates Bonus packs Price-off Deals Loyalty programs Event marketing 16-11

12. Trade Oriented Promotions Maintain support for established brands Encourage display of products Build retail inventories Obtain distribution for new products Objectives 16-12

13. Types of Trade Oriented Promotions Buying Promotional Slotting POP displays Sales training Trade shows Contests and incentives Trade allowances Co-op Advertising Types 16-13

14. Cooperative Advertising Trade-oriented cooperative advertising The cost of advertising is shared by more than one party Forms Horizontal Ingredient-sponsored Vertical 16-14

15. The Sales Promotion Trap 16-15