Chapter 11

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Chapter 11

Sales Promotion and Point of Purchase

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1. Explain the importance and growth of sales promotion. 2. Describe the main sales promotion techniques used in

the consumer market. 3. Describe the main sales promotion techniques used in

the trade channel and business markets. 4. Identify the risks to the brand of using sales

promotion. 5. Understand the role and techniques of point-of-

purchase advertising. 6. Describe the role of support media in a

comprehensive integrated marketing communication plan.

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Role of Sales Promotion

? Sales promotions use incentives to motivate action by ? consumers ? members of the trade channel ? business buyers

? Sales promotions serve different purposes than mass-media advertising does, and many companies spend more on sales promotions than ever before.

? Reasons for greater reliance on promotions include: ? pressure on marketing managers for greater accountability ? short-term marketing orientations ? deal-prone shoppers ? brand proliferation ? the increasing power of large retailers ? media clutter

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Role of Sales Promotion, Continued

Exhibit 11.1 Complementary Roles

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Role of Sales Promotion, Continued

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Consumer Sales Promotion

? Objectives for consumer-market sales promotions include: ? stimulate trial purchases ? stimulate repeat purchases ? introduce a new brand ? contribute to IMC effort ? combat or disrupt competitors' strategies ? stimulate larger purchases

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Consumer Sales Promotion, Continued

Exhibit 11.2 Objectives for Consumer-Market Sales Promotion

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Consumer Sales Promotion, Continued

? Techniques for consumer-market sales promotions include: ? Coupons, price-off deals, phone and gift cards, and premiums (free and self-liquidating) and advertising specialties provide obvious incentives for purchase. ? Contests, sweepstakes, and product placements can be excellent devices for stimulating brand interest. ? Trial offers and a variety of sampling techniques help get a product into the hands of the target audience: ? in-store sampling ? door-to-door sampling ? mail sampling ? newspaper sampling ? on-package sampling ? mobile sampling

? Rebates and frequency programs provide rewards for repeat purchase.

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