02.01.2013

1

1

Chapter 16

Sales Promotion, and

Public Relations

2

What is Sales Promotion ?

Sales promotion is a mass communication technique

that offers short-term incentives

to encourage purchase or sales of a product or service.

Offers Reasons to Buy Now.

3

Rapid Growth of Sales Promotion

Sales promotion can take the form of consumer

promotions, business promotions, trade promotions or sales

force promotions.

Rapid growth in the industry has been achieved because:

Product managers are facing more pressure to

increase their current sales,

Companies face more competition,

Advertising efficiency has declined,

Consumers have become more deal oriented.

4

Sales Promotion Objectives

Increase short-term sales or help build long-term market share. obtaining trial and purchase

increasing consumption of established brand

defending current customers

Get retailers to: carry new items and more inventory,

advertise products,

give products more shelf space, and

buy product ahead.

In general, sales promotion should focus on consumer relationship building.

5

Sample

Coupons

Cash Refunds

Price Packs

Premiums

Advertising Specialties

Trial amount of a product

Savings when purchasing specified products

Refund of part of the purchase price

Reduced prices marked on the label or package

Goods offered free or low cost as an incentive to buy a product

Articles imprinted with an advertiser’s name given as gifts

Major Consumer Sales Promotion Tools Sample

6

02.01.2013

2

Coupon

7 8

Price Packs

9

Premiums

10

Advertising Specialties

11 12

Patronage Rewards

Point-of-Purchase

Contests

Sweepstakes

Game

Cash or other rewards for the use of a certain product

Displays and demonstrations that take place at the point of sale

Consumers submit an entry to be judged

Consumers submit their names for a drawing

Presents consumers with something every time they buy

Major Consumer Sales Promotion Tools

02.01.2013

3

Patronage Rewards

13 14

15 16

Trade-Promotion Objectives

Persuade Retailers or Wholesalers to Carry a Brand

Give a Brand Shelf Space

Promote a Brand in Advertising

Push a Brand to Consumers

Major Trade Sales Promotion Tools

Trade-Promotion Tools

Discounts

Allowances

17

Business-Promotion Objectives

Generate Business Leads

Stimulate Purchases

Reward Customers

Motivate Salespeople

Business-Promotion Tools

Conventions

Trade Shows

Sales Contests

Major Business Sales Promotion Tools

18

Decide on the Size of the Incentive

Set Conditions for Participation

Evaluate the Program

Determine How to Promote and Distribute the Promotion Program

Determine the Length of the Program

Developing the Sales Promotion Program

02.01.2013

4

19

What is Public Relations?

Public relations involves building good relations with the company’s various publics

by obtaining favorable publicity,

building up a good corporate image,

and handling or heading off unfavorable rumors, stories, and events.

20

Press Relations or Agentry

Product Publicity

Public Affairs

Lobbying

Investor Relations

Development

Public Relations

Departments May

Perform Any of All

of the Following

Functions:

Major Public Relations Functions

21

News

Speeches

Special Events

Written Materials Audiovisual

Materials

Corporate Identity Materials

Public Service

Activities

Web Site

Major Public Relations Tools

22

Setting Public Relations Objectives

Choosing the Public Relations Messages and Vehicles

Implementing the Public Relations Plan

Evaluating Public Relations Results

Major Public Relations Decisions

23

Public Relations Tie-in:

Sponsorships relate to special events

Types of Sponsorships:

Sports sponsorships

Entertainment, tours, and attractions

Festivals, fairs, and annual events

Cause-related marketing

Arts

Special Events: Sponsorships

Reasons for Growth:

Avoids clutter

Cost efficient / effective

Enhances brand equity

Allows for lifestyle or geographic targeting

24

Selecting Sponsorship Events --

Consider:

Is it consistent with brand

image or will it benefit the

brand image?

Does it offer a strong

probability of reaching the

target audience?

Does the event complement

existing sponsorships and

other IMC efforts?

Special Events: Sponsorships

Selecting Sponsorship Events

-- Consider:

Is the event cluttered by

many other sponsors?

Is the event economically

viable?

Has the competition

previously sponsored the

event? Is there a risk of

confusing the target

audience as to the

sponsor’s identity?

02.01.2013

5

25

If you were responsible for

marketing an anti-aging cream,

WHAT EVENTS OR CAUSES

WOULD YOU CHOOSE TO

SPONSOR (LOCAL OR

NATIONAL)?

WHY?

Discussion Question