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Unformatted text preview: Chapter 16 T HE SCOPE AND ROLE OF SALES PROMOT ION-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. T rade-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. T HE GROWTH OF SALES PROMOT ION • REASONS FOR T HE I NCREASE I N SALES PROMOT ION o The Growing Power of Retailers o Declining Brand Loyalty o I ncreased Promotional Sensitivity o Brand Proliferation o Fragmentation of the Consumers Market o Short-Term Focus o I ncreased 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 T HE I NCREASED ROLE OF SALES PROMOT ION • CONSUMER FRANCH ISE-BU ILD I NG VERSUS NONFRANCH ISE- BU ILD I NG PROMOT IONS-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-OR IENTED SALES PROMOT ION • OBJECT IVES OF CONSUMER-OR IENTED SALES PROMOT ION o Obtaining T ri al and Repurchase o I ncreasing Consumption of an Established Brand o...
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This note was uploaded on 01/10/2010 for the course MATH 215 taught by Professor Orrwel during the Fall '08 term at Alabama State University.
- Fall '08