Several factors have contributed to the rapid growth of sales promotion. 1) inside the company, product managers face greater pressures to increase current sales, and they view promotion as an effective short-run sales tool. 2) externally, the company faces more competition, and competing brands are less differentiated. 3) advertising efficiency has declined because of rising costs, media clutter, and legal restraints. 4) Consumers have become more deal oriented The growing use of sales promotion has resulted in promotion clutter Sale Promotion Objectives - Sellers may use consumer promotions to urge short-term customer buying or enhance customer brand involvement. Objectives for trade promotions include getting retailers to carry new items and more inventory, buy ahead, or promote the company’s products and give them more shelf space. - For the sales force, objectives include getting more sales force support for current or new products or getting salespeople to sign up new accounts. 5 describe the main sales promotion tools. (textbook, pp. 551–556) Consumer promotions include a wide range of tools – from samples, coupons, refunds, premiums, and point-of-purchase displays to contests, sweepstakes, and event sponsorships. Samples are offers of a trial amount of a product. Coupons are certificates that give buyers a saving when they purchase specified products.
- Cash refunds – are like coupons except that the price reduction occurs after the purchase rather than at the retail outlet. - Price packs – offer consumers savings off the regular price of a product. - Premiums – are goods offered either free or al low cost as incentive to buy a product, ranging from toys included with kids’ products to phone cards and DVDs. - Advertising specialties AKA promotional products are useful articles imprinted with an advertiser’s name, logo or message that are given as gifts to consumers. - Point-of-purchase promotions include displays and demonstrations that take place at the point of sale. - A sweepstakes calls for consumers to submit their names for a draw. A game presents consumers with something… - Event marketing OR event sponsorships. Trade Promotions – can persuade resellers to carry a brand, give it shelf space, promote it in their advertising, and push it to consumers. Business Promotions – are used to generate business leads, stimulate purchases, reward customers, and motivate salespeople. Sales contest – is a contest for salespeople or dealers to motivate them to increase their sale performance over a given period. 6 discuss the development of a sales promotion program. (textbook, p. 556) Beyond selecting the types of promotions to use, marketers must make several other decisions in designing the full sales promotion program. - First, they must determine the size of the incentive; they must also set conditions for participation - They must determine how to promote and distribute the promotion program itself; the length of the promotion is also important. - Evaluation is also very important.