Sales Promotion, Events, and Sponsorships

Wells, Moriarty, Burnett & Lwin - Xth Edition

ADVERTISING Principles and Effective IMC Practice 1

Sales Promotion, Events, and Sponsorships

Part 5: Integration and EvaluationChapter 16

Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice 1-2

Key PointsExplain the principles that drive the use of

sales promotionList and explain the use of various

consumer promotionsSummarize the types and purposes of

trade promotionsDescribe the use of other types of

promotionsExplain the strategic use of promotions in

marketing


price

product

place

promotion

Product designs, Branding, Maintenance,Packaging

Cost, Profit,

Value expectation Wholesaler, Retailer, Transporter,IntermediaryPublic relations,

Sales promotion, Personal selling,

Direct marketing, Packaging

Advertising

Marketing Mix Strategies


The Practice of Sales Promotion

A marketing discipline that utilizes a variety of incentive techniques to structure sales-related programs that generate a specific, measurable action or response


Why Sales promotion?

-Need for short-term profit- Easy to evaluate the impact (from sales volume)- High cost of Media-Market share: battle for market share instead of product growth

-Consumer behavior: expect the short term price reduction-Pricing: reduce the risk of purchase-Parity products :increasing sales when products are largely undifferentiating e.g. mass product-Power of the retailer: dominant retailers demand incentives to offer shelf space

Company Side Consumer Side

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http://images.google.co.th/imgres?imgurl=http://greenpack.rec.org/consumer_society/images/consumer_society.jpg&imgrefurl=http://greenpack.rec.org/consumer_society/index.shtml&h=450&w=457&sz=49&hl=th&start=2&tbnid=vAgoxKSeX_FuoM:&tbnh=126&tbnw=128&prev=/images%3Fq%3Dconsumer%26gbv%3D2%26svnum%3D10%26hl%3Dth%26sa%3DN


Result

Sales promotion: cost less, produce immediate results (short-term sales)

Consumer: Risk Value added (more for less)


Consumer Sales promotion is a promotion aim at ultimate consumers of products Trade Sales promotion is a value added program directed at trade members (reseller)

Types of Sales promotion



Consumer Promotions


Price Deals

- Cents-off: Reduce prices e.g. 20% discount, 50 % discount


Price–pack deals: offer additional quantities of the product being purchased or provide the consumer with something extra

Ex: buy two get one free

Price Deals


Price Deals

Bonus pack: offer additional amount of the product being purchased but contain in the packaging

Ex: 25%more in this bottle of ketchup”


Price Deals

Banned pack: more units of a product sold at a lower price than if they were bought a the regular singular unit price e.g Mama, toothpaste, soap


Coupon

Coupon: are small written contracts that grant holders a price reduction within time frame

1) Retailer-sponsored coupons: redeemable only at the specified outlet

2) Manufacturer-sponsored coupons: redeemable at any outlet (distributor)


Refund and Rebate

Refund and rebate: Offer to return the certain amount of money to the consumer


Consumer Promotion

Sampling: Allow the consumer to try the sample of the product


Consumer Promotion

Contest: Engage consumers who compete for prizes based on skill or ability based on skills or talent


Consumer Promotions

Sweepstakes: Award prizes to consumers. Based on luck or chance of selection


Consumer Promotions

Specialties items: Give- away items as a reminder for the brand


Premium: an extra product or tangible reward for consumer’s particular behaviors usually purchase

1. Direct premium award given at the time of purchase -- Store premiums: given to customers at the retail site e.g premium at

7elevent, department store -- In-pack premiums are inserted in the package at the factory e.g toys

inside the snack package -- On-pack premiums are placed outside the package e.g detergent with

brush -- Container premiums in which the package is the premium e.g. S&P

cookie box

2. Mail premium are sent to consumers after they meet certain requirement. --Self-liquidation programs is a payment be mailed in along with some

proof of purchase before the customer receives the premium -- the customers save the coupons or special labels attached to the product

that can be redeemed for merchandise

Consumer Promotion


Premium


Other Types of Premium


Exercise: identify types of sales promotion

Top Shop offers “Buy 2 Get 1 free” promotion for T-shirts Herbal Essence shampoo gives more 50% in quantity at

the same price Berman toothpastes are sold in a pack of 3 at discount

price Latest Ovaltincampaign requires the Ovaltin consumers

to return the Ovaltin package with their names for lucky draw. It offers many valuable prizes.

7 Eleven offers ‘Kitty pillow’ for the purchase of more than 100 baht +pay more 20 baht.


Consumer Sales Promotion Objective VS Types

Awareness Trial Maintain & Increase Market Share Brand Reminder

- Special Event-Sponsorship-Point-of-purchase

-Special Event-Sampling-Price deal e.g. Cent off-Coupon

-coupon-premium-special event-contest-sweepstake-Price Deals

Specialty items

Specialty Ad

Use Advertising to support each objective



Trade Sales Promotion


Goal -Designed by manufacturer to get cooperation of people

in distribution channel (trade member) -Encourage the promotion of product to the consumer -gauged from sales volume Target: Resellers (wholesaler, retailer) 2 Roles:- Trade support: to stimulate in-store merchandising,

superior store location, shelf space- Excitement: to create the high level of attention from

resellers about the product sales

Trade Sales promotion



Types of trade Sales promotion

-Point-of-purchase (POP) display: Manufacturer-designed display distributed to retailers to get attention from the customersExample: Special rack, display carton, banner, sticker, signs, price card, etc.

- Retailer (dealer) kits: Materials and information to help retailer sell ability such as price information, product specification, product display instruction, etc.

- Contest and sweepstakes: can motivate resellers (increase relationship)

- Trade shows and exhibition: provide opportunities to exchange information, demonstrate and sample products and sell merchandise (usu. same industry)


POP



-Trade incentive and deals: Reward for purchasing at the certain amount of product.

-- Bonuses (push money, spiff): monetary bonus paid to store’s salesperson based on the unitsthat salesperson sells over a period of time

-- Dealer loaders are premiums (=consumer premium) a manufacturer gives to a retailer for buying a certain amount of product e.g. free trip,

--allowances: is a price reducing and reward program for trade to purchase in a certain amount of product (discount)

-- advertising allowance: the manufacturer pays the resellers a certain amount of money to advertise the manufacturer’s product (flat amount or percentage according to the gross purchase)

-- Cooperative ads.: contractual arrangement between manufacturer and resellers, the manufacturer agrees to pay a part or all ad expenses incurred by the resellers.

-- display allowances: direct payment of cash or goods is given to the resellers if the resellers agree to set up the point-of-purchase (POP)

Types of trade promotion (contd.)


Consumer Sales Promotion Objective VS Types

Attention Motivation Information & Trial

-Point-of-purchase(trade and consumer)

-Trade deals-contest-prize

-Trade Show&Exhibition-Retailer (Dealer )Kits


Sponsorship: Company supports an event either financially or by donating supplies and servicese.g. Olympics, golf tournament

Event marketing: Building product marketing’s program around asponsored event. -Practice of linking a brand to an event that usually matches the brand to the target market’s lifestyle e.g. Nokia (Lamour) + Fashion Week

Aerial advertising support: Balloon, Giant model, etc.

Promotions that Across the linesAwareness

+sales

Loyalty Program (loyalty program or continuity program): is a promotion to increase customer retentionIn order to keep and reward the continued patronage e.g. member card, airline frequent flier program( Higher purchase Greater benefits )


SPONSORSHIPS

Pepsi was a sponsor for Concert of Black Eyed Peas


Mc Donald’s Aerial Advertising


Starbucks Gold Membership


Promotions that Across the lines

Partnership programs: -Co marketing: Manufacturer and retailer develop a marketin

g communication program together e.g. P&G with Tesco Lotus -Co Branding: Two companies come togather to offer the product e.g. Credit card co. with restaurants, hotels, spa (both get brand equity)Licensing agreements (rents): A company’s legal permission for other manufacturers to use their company’s logos, symbols, trade characters, identities for or use on other product e.g. Waltz Disney products (the co. gets the money + extend the brand)Tie-ins: associate complementary brands linking two complementary products in a promotion e.g. McDonald & Walz Disney( 2 products joined bigger impact , share the advertising cost)


CO-MARMAR KETINGKETING

Drink Pepsi has a chance to win Yamaha Meo ZR when buy pepsi product up to 500 bath receive 1 coupon compete for the prize. Only at Makro


CO-BRANDINGCOUPON DISCOUNT 10%

For Zoo ParkDISCOUNT 20% For Park

DISCOUNT 10% For Fun Park

DISCOUNT 50% For Alangran Theater

DISCOUNT 20% For Mini Siam

DISCOUNT 20 bath For Crocodile Farm

DISCOUNT 10% For Fun Park


A limited collection MAC Hello Kitty

by US. MAC Cosmetics and Japanese company Sanrio have teamed up to create MAC Hello Kitty


PLACE (DISTRIBUTION):- Have mechanism for delivering and

servicing the product and receive payment-- Market Coverage Strategy: geographic

distribution eg. BKK, nationwide--Push Strategy: direct marketing efforts at

reseller (many channels)Pull Strategy: direct marketing efforts at

consumer (create demand)

Marketing Mix Strategies (contd.)


Push, Pull, and Combination Strategies


Activity

Each pair gives one example of consumer sales promotion

Sales Promotion, Events, and Sponsorships

Documents

Transcript of Sales Promotion, Events, and Sponsorships