Chapter 18 - Chapter 18 - Sales Promotion and...

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Chapter 18 -- Sales Promotion and Point-of-Purchase Advertising (4e) 638 what 2 bad things happen if your brand is NOT supported by sales promotion? (in general, promotions are important to prevent big retailers from dictating which brands get store shelf space and which don’t.) Any competitive brands- like ALL, Old English, and Huggies, that are being supported with sales promotions WILL get retailer’s attention and shelf space preference Private label or “house” brands can make inroads on the big names 638 what balance do brands seek to maintain when they belly up to sales promo and p-o-p bar? They hope to keep a balance of power with the retailers and promote their brands by spending big on promo techniques √639 sales promotion o definition : the use of inventive techniques that create a perception of greater brand value among consumer, the trade, and business buyers. o intent : to create a short term increase in sales by motivating trial use, encouraging larger purchases, or stimulating repeat purchases. 3 types of sales promo and gist of each o consumer market sales promotion -includes coupons, price off deals, premiums, contests and sweepstakes, sampling and trial offers, rebates, loyalty programs, and phone and gift cards >> induce consumers to purchase their brand, not competitors o trade market sales promotion – uses point of purchase displays, incentives, allowances, or cooperative advertising as ways of motivating distributors, wholesalers, and retailers to stock and feature a firm’s brand in their store merchandising programs o business market promotion- designed to cultivate buyers in large corporations who are making purchase decisions about a wide range of products including computers, offices supplies, and consulting services. Techniques used for business buyers are similar to trade market techniques and include trade shows, premiums, incentives, and loyalty frequency programs. 640 sales promotion has been growing faster than advertising in recent years in recent years, sales promo expenditures have grown at an annual rate of 4 to 8 percent, compared to about 3 to 5 percent for advertising. √641 Ex. 18.3 -- five purposes of sales promotion versus advertising promotion (5): o stimulate SHORT term demand o encourage brand SWITCHING
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o induce TRIAL USE o promote PRICE orientation o obtain immediate, often MEASURABLE RESULTS advertising (5): o cultivate LONG term demand o encourage brand LOYALTY o encourage REPEAT PURCHASES o promote IMAGE/FEATURE orientation o obtain LONG TERM EFFECTS, often difficult to measure 641 percentage of marketing dollars invested in adv. v. trade/business promo v. consumer promo shift has been away from mass media advertising and toward consumer trade sales promos. Budget allocation on averages is
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This note was uploaded on 03/19/2008 for the course ADV 318J taught by Professor Murphey during the Spring '07 term at University of Texas at Austin.

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Chapter 18 - Chapter 18 - Sales Promotion and...

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