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Promotional Strategy Chapter 16: Sales Promotion Part 3.

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Presentation on theme: "Promotional Strategy Chapter 16: Sales Promotion Part 3."— Presentation transcript:

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2 Promotional Strategy Chapter 16: Sales Promotion Part 3.

3 Promotional Strategy Chapter 16: Sales Promotion Part 4: Trade Promotion

4 Trade Promotion Reasons for trade promotion.

5 Everyday Low Pricing (EDLP) vs. Hi-Low Pricing. ===========Regular price============ ===========Discount price===========

6 Everyday Low Pricing (EDLP) vs. Hi-Low Pricing. ===========Regular price============ ===========Discount price===========

7 Everyday Low Pricing (EDLP) vs. Hi-Low Pricing. ===========Regular price============ ===========Discount price===========

8 Everyday Low Pricing (EDLP) vs. Hi-Low Pricing. ===========Regular price============ ===========Discount price===========

9 Everyday Low Pricing (EDLP) vs. Hi-Low Pricing. ===========Regular price============ ===========Discount price===========

10 Everyday Low Pricing (EDLP) vs. Hi-Low Pricing. ===========Regular price============ ----------------------EDLP------------------------- ===========Discount price===========

11 Percentage of Promotions Vehicles Used by Package Goods Manufacturers 0% 25% 50% 75% 100% Money back offers/other refunds Couponing consumer directCents-off promotions Couponing in retailers' ads Couponing in store Sampling new products Sampling established products Premium offersElectronic retail promotionsSweepstakesInternet promotionsContests Prepricing on package Other

12 43% 35% 29% 25% 24% 20% 12% 11% 8% 7% 2%Gum Candy Carbonated Beverages Adult Cold Remedies Pet Food Coffee Sanitary Protection Deodorants Liquid Detergents Ready-to-Eat Cereal Disposable Diapers Percent of sales made with coupons for various products

13 Arm & Hammer uses a promotion offer to encourage new uses of its product Source: Courtesy Church & Dwight Co., Inc.

14 Contests can be used to build brand equity

15 Samples are often distributed with local newspapers

16 Gerber developed a sweepstakes in conjunction with a loyalty program Source: Courtesy Gerber Products Company.

17 End of Part 3


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