Chapter 16 - Sales promotion. The main goals of this chapter are: To understand the role of sales promotion in a company's integrated marketing communications program and to examine why it is increasingly important, to examine the various objectives of sales promotion programs, to examine the types of consumer and trade-oriented sales promotion tools and the factors to consider in using them. | Chapter 16 Sales Promotion An extra incentive to buy A tool to speed up sales An extra incentive to buy A tool to speed up sales Targeted to different parties Sales Promotion “A direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale.” Types of Sales Promotion Activities Reasons for the Increase in Sales Promotion Growing power of retailers and declining brand loyalty Increased promotional sensitivity Brand proliferation Fragmentation of the consumer market Short-term focus and increased accountability Competition and clutter Growth of digital marketing Consumer Franchise-Building versus Nonfranchise-Building Promotions Consumer franchise-building (CFB) promotions Communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity Build long-term brand preference Help achieve full-price purchases that are not dependent on promotional offers Capable of converting consumers to loyal customers Nonfranchise-building (non-FB) promotions Accelerate the purchase decision process and generate an immediate increase in sales Do not contribute to the building of brand identity and image Merely borrow customers from other brands Sampling Products are of relatively low unit value, so samples don’t cost much Products are divisible and can be broken into small sizes that reflect the products features and benefits Purchase cycle is relatively short so the consumer can soon purchase again Sampling Works Best When Sampling Methods Door-to-door sampling Sampling through the mail In-store sampling On-package sampling Event sampling Sampling through magazines and newspapers Sample request forms Sampling through the internet and social media Advantages and Limitations of Couponing Advantages Appeals to price-sensitive customers Does not require retailers’ cooperation . | Chapter 16 Sales Promotion An extra incentive to buy A tool to speed up sales An extra incentive to buy A tool to speed up sales Targeted to different parties Sales Promotion “A direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale.” Types of Sales Promotion Activities Reasons for the Increase in Sales Promotion Growing power of retailers and declining brand loyalty Increased promotional sensitivity Brand proliferation Fragmentation of the consumer market Short-term focus and increased accountability Competition and clutter Growth of digital marketing Consumer Franchise-Building versus Nonfranchise-Building Promotions Consumer franchise-building (CFB) promotions Communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity Build long-term brand preference Help achieve .
