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

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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 retailers 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 firms 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 advertisings 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...

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