Promotion Refresher

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Click to edit Master subtitle style 11 Promotion Refresher Attempts to inform, persuade and remind the consumer
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The Changing Environment © Harder and harder to reach the consumer via traditional mediums: © What’s going on… © Retailers are more powerful © Fragmentation of US audience © Technology
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The Past—Mass Markets © The Products: © McDonald’s © Coke © IBM © Band Stand © The Media © Three or Four major networks on TV © Major Magazines © Large percentage of consumers read the local paper © Top 40 rock
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The Present © © books © Athletic equipment © Musical artists © © Make your own _____ via the internet © _1000s of TV stations © ______ Magazines
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SALES PROMOTION OBJECTIVES: Stimulate Response Accelerate Consumption Add Involvement Tangible Value Reduce Risk Build Databases*
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66 Trade Oriented Sales Promotion © WHY so much? © What are the goals? © Think back to push vs pull marketing
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77 Trade-oriented Sales Promotion © Allowances © Off invoice allowance– retailer receives X% off (or free product) for ordering during a certain time period © Bill-Back Allowance—retailer must earn this, then billed back to the manufacturer © Ad allowance © Display allowances © Slotting allowance
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88 Trade-oriented Sales Promotion © Pay-for-performance—reward for selling product © Category management © Co-op advertising—reseller features manufacturer’s product in ads. © Vendor Supported Programs © Kroger’s develops campaign, cost$ 200,000—get 10 suppliers to pay $20,000 each—suppliers get shelfspace & ad feature
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99 Trade-Oriented © Contests—prizes for meeting a sales goal © Trade incentives—reward for other tasks (displays, sampling, etc.) © Push money/spiffs – extra bonus to retail salespeople for selling the brand © Trade Shows
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1010 Consumer Oriented © Why so much?- try it and then use more (sampling, coupons, © What are the goals?
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1111 Consumer Oriented © Sampling © Direct mail © Newspapers © Door-to-door © Event © In-store © internet Couponing Mail Media POP In or on-pack internet
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1212 Consumer Oriented © Premiums © Free with purchase © Mail-in © In/on/near pack © Self-liquidating (send in enough $$ to cover
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