Professional Documents
Culture Documents
Week 9 Sales Promotion
Week 9 Sales Promotion
Chapter 18
• Consumer Sales
Promotion:
– Directed at Consumers
• Trade Sales Promotion:
– Directed at Resellers
1-5
The Significance of Sales Promotion
Sales Promotion
Expenditures
Consumer Factors
Impact of Technology
1-6
The 10 Commandments of Creative
Sales Promotion
1. Set specific objectives
2. Know how basic promotion techniques work
3. Use simple, attention-getting copy
4. Use contemporary, easy-to-track graphics
5. Clearly communicate the concept
6. Reinforce the brand’s advertising message.
7. Support the brand’s positioning and image.
8. Coordinate promotional efforts with other
marketing plans.
9. Know the media you work with.
10. Involve the trade.
1-7
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
1-8
Consumer Sales Promotion
Techniques
• Price Deals
• Coupons
• Rebates
• Cross-Promotions
• Contests, Sweepstakes,
Games
• Premiums
• Sampling
• Advertising Specialties
1-9
Trade Sales Promotion
1-10
Trade Sales Promotion Techniques
• Trade Allowances
• Dealer Loaders
• Trade Contests
• Point-of-Purchase Displays
• Trade Shows
• Training Programs
• Push Money
1-11
Limitations of Sales Promotion
• It typically cannot reverse a genuine declining
sales trend.
1-12
Limitations of Sales Promotion
• Short-term volume gain at the sacrifice of
profits.
– Forward Buying:
• People buy more than they need at the deal
price.
1-13
Ethical and Legal Issues
in Sales Promotion
• Deceptive Sales Promotion
• Fraud:
• The Fake Storefront
• Stuffing the Ballot Box
• Playing the Middleman
• The Redemption Scam
1-14
Ethical and Legal Issues
in Sales Promotion
Diverting (or Arbitraging):
• Secretly purchasing a product where it
is less expensive, usually as a result
of a trade promotion, and reselling in
areas where prices are higher.
1-15
Global Concerns
• The Global
Perspective requires
marketers to make an
extra effort to become
familiar with local laws
and customs.
1-16