Chapter 16 - Chapter 16 T H E SCOPE AND ROLE OF SALES PRO...

Chapter 16
THE SCOPE AND ROLE OF SALES PROMOTION
-Sales Promotion- a direct inducement that offers an extra value or incentive for
the product to the sales force, distributors, or the ultimate consumer with the
primary objective of creating an immediate sale. (extra incentive, acceleration tool,
targeted to different parties)
1. Consumer-oriented sales promotion- activities including sampling,
couponing, premiums, contests and sweepstakes, refunds and rebates, bonus
packs, price-offs, frequency programs, and event marketing, and are designed
to induce them to purchase the marketer’s brand.
2. Trade-oriented sales promotion- Includes dealer contests and incentives,
trade allowances, point-of-purchase displays, sales training programs, trade
shows, cooperative advertising, and other programs designed to motivate
distributors and retailers to carry a product and make an extra effort to push
it to their customers.
THE GROWTH OF SALES PROMOTION
• REASONS FOR THE INCREASE IN SALES PROMOTION
o The Growing Power of Retailers
o Declining Brand Loyalty
o Increased Promotional Sensitivity
o Brand Proliferation
o Fragmentation of the Consumers Market

o Short-Term Focus
o Increased Accountability
o Competition
-account-specific marketing (co-marketing)- manufacturer collaborates
with an individual retailer to create a customized promotion that
accomplishes mutual objectives.
• CONCERNS ABOUT THE INCREASED ROLE OF SALES
PROMOTION
• CONSUMER FRANCHISE-BUILDING VERSUS NONFRANCHISE-
BUILDING PROMOTIONS
-consumer franchise-building (CFB) promotions- Sales promotion activities
that communicate distinctive brand attributes and contribute to the development
and reinforcement of brand identity.
-Nonfranchise-building (non-FB) promotions- Designed to accelerate the
purchase decision process and generate an immediate increase in its sales. These
activities do not communicate information about a brand’s unique features of the
benefits of using it, so they do not contribute to the building of brand identity and
image. (Price-off deals, bonus packs, rebates, refunds, etc)
CONSUMER-ORIENTED SALES PROMOTION
• OBJECTIVES OF CONSUMER-ORIENTED SALES PROMOTION
o Obtaining Trial and Repurchase
o Increasing Consumption of an Established Brand

o