Chapter 8 - Sales Promotions.docx - Chapter 8 Sales Promotion Sales Promotions Promotions are activities that focus on making a sale usually in a short

Chapter 8 - Sales Promotions.docx - Chapter 8 Sales...

This preview shows page 1 - 3 out of 8 pages.

Chapter 8: Sales Promotion Sales Promotions Promotions 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 company Sales Promotion : an activity that provides incentives to bring about immediate response from customers, distributors and an organization’s sales force The consumer or final user must be motivated to take advantage of the offer The distributor (reseller of goods) must be motivated to support the offer by providing merchandising support The company’s sales force must be motivated to sell the promotion to its trade customers Consumer Promotion: an incentive offered to consumers to stimulate purchases or encourage loyalty Ex. coupons, free samples, contests, rebates, price incentives and rewards programs These types of promotions are planned to help pull the product through the channel of distribution Pull : demand created by directing promotional activities at consumers or final users, who in turn pressure retailers to supply the product or service Many companies now include experiential marketing activities in their promotion strategies Consumer promotion can play a key role in an integrated marketing communications plan “What would best convince you to try a new brand of beer?” o Product sampling and tasting events – 42.6% o Giveaways – 20.6 % o Contests – 14.3% o Television advertising – 7.8% Trade Promotions : an incentive offered to channel members to encourage them to provide marketing and merchandising support for a particular brand Ex. discounts and allowances, cooperative advertising funds, dealer premiums and incentives, and point-of-purchase materials Such promotions push the product through the channel of distributions Push: demand created by directing promotional activities at intermediaries, who in turn promote the product or service among consumers To 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 promotions Such a decision is based on the market analysis that precedes the development of any sales promotion plan
Image of page 1
Sales Promotion Planning Like any other component of the marketing communications mix, a sales promotion plan is but one component of a much larger plan It must directly fit into the marketing communications plan and play a role in achieving the specific objectives that are identified in that plan Whereas 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 nature Sales promotions are activities that complement advertising
Image of page 2
Image of page 3

You've reached the end of your free preview.

Want to read all 8 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture