ADV_318J_Chapter_18

ADV_318J_Chapter_18 - Chapter 18 Notes 2 things that happen...

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Unformatted text preview: Chapter 18 Notes- 2 things that happen if brand is not supported by sales promotion: o (1) Any competitive brands that are being supported w/ sales promotion will get retailer’s attention and shelf space. o (2) Private label or “house” brands can make inroads on the big names.- Brands seek to maintain balance of power with the retailers when they belly up to the sales promo and p-o-p purchase bar. When they do this, the brands get more in-store exposure.- Sales promotion – the use of incentive techniques that create a perception of greater brand value among consumers, the trade, and business buyers. Want to increase short-term sales by motivating trial use, encouraging larger purchases, or stimulating repeat purchases.- Types of sales promotion (gist) o (1) Consumer-market sales promo – coupons, price-off deals, premiums, contests and sweepstakes, sampling and trial offers, rebates, loyalty/frequency programs, and phone and gift cards. Want to induce consumers into buying their brand over competitors’ brands. o (2) Trade-market sales promo – p-o-p 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 (3) Business-market promo – cultivates buyers in large corporations who are making purchase decisions about a wide range of products including computers, office supplies, and consulting services. Techniques are similar to trade-market techniques.- Sales promotion has been growing faster than advertising in recent years (4 to 8 percent, as opposed to advertising’s 3 to 5 percent)- Purposes of sales promo vs. advertising o (1) Stimulate short term demand vs. cultivate long term demand. o (2) Encourage brand switching vs. encourage brand loyalty o (3) Induce trial use vs. encourage repeat purchases o (4) Promote price orientation vs. Promote image/feature orientation o (5) Obtain immediate, often measurable results vs. obtain long-term effects, often difficult to measure.- Percentage of spending by marketers o Advertising – 17.5% o Trade and business promotions – 54% o Consumer promotions – 28.5%- Reasons for shifting away from mass media advertising to sales promotion (642): o Demand for greater accountability – immediate effects of sales promo are typically easier to document. We are in an era of cost cutting and downsizing, and companies are demanding greater accountability across all functions....
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ADV_318J_Chapter_18 - Chapter 18 Notes 2 things that happen...

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