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Chapter 8: Sales PromotionSales PromotionsPromotions are activities that focus on making a sale, usually in a short period of time. When planning and implementing promotions, the marketing organization provides an offer to customers in return for something they must do. The right promotion must be offered at the right time if the offer is to bring true benefit to the brand or companySales Promotion: an activity that provides incentives to bring about immediate response from customers, distributors and an organization’s sales forceThe consumer or final user must be motivated to take advantage of the offerThe distributor (reseller of goods) must be motivated to support the offer by providing merchandising supportThe company’s sales force must be motivated to sell the promotion to its trade customersConsumer Promotion:an incentive offered to consumers to stimulate purchases or encourage loyaltyEx. coupons, free samples, contests, rebates, price incentives and rewards programsThese types of promotions are planned to help pullthe product through the channel of distributionPull: demand created by directing promotional activities at consumers or final users, who in turn pressure retailers to supply the product or serviceMany companies now include experiential marketing activities in their promotion strategiesConsumer promotion can play a key role in an integrated marketing communications plan“What would best convince you to try a new brand of beer?”oProduct sampling and tasting events – 42.6%oGiveaways – 20.6 %oContests – 14.3%oTelevision advertising – 7.8%Trade Promotions: an incentive offered to channel members to encourage them to provide marketing andmerchandising support for a particular brandEx. discounts and allowances, cooperative advertising funds, dealer premiums and incentives, andpoint-of-purchase materialsSuch promotions pushthe product through the channel of distributionsPush:demand created by directing promotional activities at intermediaries, who in turn promote the product or service among consumersTo be successful, an organization must determine what type of promotion will contribute the most to achieving its objectives. In most cases, it is a combination of consumer and trade promotionsSuch a decision is based on the market analysis that precedes the development of any sales promotion plan
Sales Promotion PlanningLike any other component of the marketing communications mix, a sales promotion plan is but one component of a much larger planIt must directly fit into the marketing communications plan and play a role in achieving the specific objectives that are identified in that planWhereas advertising plans have a long-term perspective and longer-term objectives, the sales promotion plan adopts a short-term view and achieves objectives of more immediate natureSales promotions are activities that complement advertising