Consumer and trade

promotions

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Promotional Mix

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The Role of Sales Promotion

Sales Consists of media and nonmedia

marketing communications employed
Promotion
for a predetermined, limited time to
stimulate trial, increase consumer
demand, or improve product
availability.

Consumer sales promotion is

directed at consumers.

Trade sales promotion is directed at

resellers.

Bearden Marketing 5th Ed 18-3 © 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Sales Promotion

Sales
Consumer
Promotion
Factors
Expenditures

The Significance
of
Sales Promotion

Increased Retail Impact of

Power Technology

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10 Commandments of Sale Promotion

1. Set specific objectives. Undisciplined, undirected creative

work is a waste of time and resources.
2. Know how basic promotion techniques work. A
sweepstakes shouldn’t be used to encourage multiple
purchases or a refund to get new customers. A price-off deal
can’t reverse a brand’s downward sales trend.
3. Use simple, attention-getting copy. Most promotions are
built around a simple idea: “save 75 cents.” Emphasize the
idea, and don’t try to be cute.
4. Use contemporary, easy-to-track graphics. Don’t expect
to fit 500 words and 20 illustrations into a quarter-page,
freestanding insert.
5. Clearly communicate the concept. Words and graphics
must work together to get the message across.
Bearden Marketing 5th Ed 18-5 © 2007 The McGraw-Hill Companies, Inc. All rights reserved.
10 Commandments of Sale Promotion

6. Reinforce the brand’s advertising message. Tie

promotions to the brand’s ad campaign.
7. Support the brand’s positioning and image. This is
especially important for image-sensitive brands and categories,
like family-oriented Kraft.
8. Coordinate promotional efforts with other marketing
plans. Be sure to coordinate schedules and plans. A consumer
promotion should occur simultaneously with a trade promotion;
a free-sample promotion should be timed in conjunction with the
introduction of a new line.
9. Know the media you work through. Determine which
media will work best. Should samples be distributed in stores,
door-to-door, or through direct mail? Does the promotion need
newspaper or magazine support?
10. Involve the trade. Build relationships with key resellers.
Bearden Marketing 5th Ed 18-6 © 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Consumer Sales Promotion

Objectives of Consumer Sales Promotion:

 Stimulate trial
 Increase consumer inventory and consumption
 Encourage repurchase
 Neutralize competitors
 Increase sales of complementary products
 Stimulate impulse purchasing
 Allow flexible pricing

Bearden Marketing 5th Ed 18-7 © 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Stimulate trial

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WASTE HAT JUNIOR!

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Increase consumption

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Having a snack Daily!

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 NECC Ad of eggs
https://www.youtube.com/watch?v=-B-UF-tuMgg

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Stimulate sales

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Encourage repurchase

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Neutralize competition(Pepsi’s ad
shows coke as Halloween

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Jio hitting Vodafone and Airtel
Hard!

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Increase sale of complementary
products

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Stimulate impulse purchase

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Flexible pricing

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Consumer Sales Promotion Techniques

Price Deals A price deal is a temporary reduction

in the price of a product. There are
two primary types of price deals:
cents-off deals and price-pack deals.

A coupon is typically a printed

Coupons certificate giving the bearer a stated
price reduction or special value on a
specific product, generally for a
specific period.

more

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Price deal

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Price deal

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Coupons

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Consumer Sales Promotion Techniques

A rebate is a cash reimbursement to

Rebates a buyer for purchasing a product. The
consumer must mail a rebate form,
the purchase receipt, and proof of
purchase to the manufacturer.

Cross- A cross-promotion (tie-in), is the

Promotions collaboration of two or more firms in
a sales promotion. Crosspromotions
enhance the communications effort
of all the participating firms.

more
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Rebate

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Cross promotions

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Mergers are Different!

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Product line of the same company!

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Consumer Sales Promotion Techniques

Contests, A contest offers prizes based on the

Games skill of contestants. A sweepstakes
offers prizes based on a chance
drawing of participants’ names.
Games are similar to sweepstakes,
but they cover a longer period.

An item given free or at a bargain

Premiums
price to encourage the consumer to
buy is called a premium.

more

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 Contest games(New flavors asked
on FB)

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Premium gifts for Men!

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Premium

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Consumer Sales Promotion Techniques

Sampling A sample is a small size of a product

made available to prospective
purchasers, usually free of charge.

Advertising An advertising specialty, also

Specialities called a promotional product, is an
item of useful or interesting
merchandise given away free of
charge and typically carrying an
imprinted name or message.

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Sampling

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Advertising specialty

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Activity

-Devise a Cross
promotion for the
brand
-Plan a premium for
the brand.
-Need- Urinary
inconvenience

Bearden Marketing 5th Ed 18-36 © 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Trade Sales Promotion Techniques

Trade Trade allowances are short-term

Allowances special allowances, discounts, or deals
granted to resellers as an incentive to
stock, feature, or in some way
participate in the cooperative
promotion of a product.

Dealer A dealer loader is a premium given

Loaders to a reseller to encourage
development of a special display or
product offering.
more

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Bearden Marketing 5th Ed 18-38 © 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Trade Sales Promotion Techniques

Trade A trade contest typically associates

Contests prizes with sales of the sponsor’s
product. Trade contests generate
interest, which makes them useful for
motivating resellers.

Point-of- Point-of-purchase displays are

Purchase generally used at the retail level to
Display call customer attention to a featured
product.

more

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 TRADE CONTESTS

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Salesperson and Trades promotions

• Salesperson of the Month: Having an employee or

salesperson of the month is a pretty straightforward
way of rewarding great work on an ongoing basis.

• Raffle prized: Each salesperson or employee can obtain

raffle tickets for every sale or specific objective that they
reach throughout the month. Then at the end of the month or
quarter, you can have a drawing to award a large prize or a
few smaller prizes

Bearden Marketing 5th Ed 18-41 © 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Point of purchase

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 Old Spice's Evocative Cabinet

• Old Spice brings its

commercials to life using the
same cosmetic patterns printed
on a cardboard display.  
• It evokes the brand recognition
instilled from their viral
commercials to shout “Old
Spice” from across the store.  

Bearden Marketing 5th Ed 18-43 © 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Trade Sales Promotion Techniques

A trade show is a periodic, semi-

Trade Shows public event at which suppliers rent
booths to display products and
provide information to potential
buyers.

Training Some manufacturers sponsor or pay

Programs for training programs for customer
employees.

more

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Training programs

The VR-enhanced
classes offer entirely
realistic scenarios
that can occur in any
Walmart supermarket
or store and require
the trainee to make
decisions based on
what they see in front
of them.

Bearden Marketing 5th Ed 18-45 © 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Trade show!

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Trade show

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Trade Sales Promotion Techniques

Push money, also called spiffs (for

Push Money
special promotional products
incentive funds), is what a
manufacturer pays retail sales-
people to encourage them to promote
its products over competitive brands.

Bearden Marketing 5th Ed 18-48 © 2007 The McGraw-Hill Companies, Inc. All rights reserved.
 Pushing JUMPIN

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