manufacturer is no longer in control of how it is sold Funds are allocated to

Manufacturer is no longer in control of how it is

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manufacturer is no longer in control of how it is sold Funds are allocated to activities that get the product out of a distributor's warehouse and into displays on the retail sales floor Sales Promotion Strategy Decisions about sales promotion strategy focus on the selection of the best promotion activity to meet the objectives Preference may be given to listing allowances, trade and performance allowances, and cooperative advertising allowances The manager must decide about the balance between consumer promotions (pull) and trade promotions (push) Key decisions about trade promotion strategy involve the allocation of funds among the diffeent alternatives Successful promotions use both and are carefully integrated with other forms of marketing
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communications to maximize impact on the intended target audience Second component of the sales promotion strategy involves integration with the advertising strategy Sales promotion will only work if it receives the necessary media support, so another decision must be made about allocating funds specifically for promotion-relatd programs The media strategy will focus on two objectives: Creating awareness for the promotion Providing details about how the consumer can take advantage of the promotion (e.g. How to send in order forms for premium offers or entry forms for contests) Television is an ideal medium for creating instant awareness of the promotion In-store advertising can also assist in achieving awareness objectives while playing a key role in communicating details of the offer Trade customers must be made aware of consumer promotion offers, a task that falls on the shoulders of the manufacturer's sales repesentatives The sales representatives will integrate the consumer promotion offer with their trade promotion plans Logistics and Fulfillment Involves working out all of the details of the offer Depending on the nature of the promotion, there will be a variety of dates and deadlines, there will be other companies involved in planning and implementing the offer and there will need to be a system in place to deliver the goods to consumers Questions that help start to create a plan of action for implementing the awareness and fulfillment sides of the promotion: Where will the entry forms be sent? Who wil the third-party organization be? Who are the contest prize suppliers and what are the cost? Measurement and Evaluation A promotion must be evaluated based on the objectives that were established for it If the objective was to generate trial purchase, how many new users were attracted to the product? To answer, pre and post promotions is necessary Specific promotions are also measured by response rates of consumers Consumer Promotion Execution Various forms of consumer promotions that are often included in sales promotion plans Major types of consumer promotions include coupons, samples, contests, cash rebates and
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