To stimulate repeat purchases by existing customers o Encourage customers to

To stimulate repeat purchases by existing customers o

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To stimulate repeat purchases by existing customersoEncourage customers to make multiple purchases at once o“Buy two get one free” offered reduces the likelihood of a consumer purchasing competitor brands (at least temporarily) Dealing with customer relationship management brand loyalty for an extended periodoPromotion alternatives that can meet both short and long-term brand objectives oLoyalty cards The overall goal of trade promotions is to give sales a jolt in the short run oTrade promotions must be confined to what they can realistically achieve oDesigned to encourage distributors to carry a product and then sell it to retailers,and to increase the volume sold for products they already carry oThree objectives2
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For a new product secure listings with distributors, an agreement madeby a wholesaler to distribute a manufacturer’s product to the retailer it supplies Build sales volume on either a seasonal or a predetermined cycle basis throughout the year Secure merchandising support from distributors Once the product leaves the manufacturer’s warehouse, the manufacturer is no longer in control of how it is sold Sales Promotion Strategy Focus on the selection of the best promotion activity to meet the objectives Point the organization in a certain direction, and it agreed to, the tactical details are then developed Provides a different kind of incentive oOffer saving oChance to win something oReward Key decisions about trade promotion strategy involve the allocation of funds amount the various alternatives oManagers must also decide about the balance between consumer promotions (pull) and trade promotions (push) Integration with the advertising strategy oA promotion is an added incentive temporarily becomes the brand’s unique selling point A good sales promotion is designed so that it offers consumers meaningful value A sales promotion will work only if it receives the necessary media support, so another decision must be made about allocating funds specifically for promotion-related programs oThe media strategy will focus on two objectives:Creating awareness for the promotion Providing detail about how the consumer can take advantage of the promotion TV is an ideal medium for creating instant awareness of the promotion oHigh-impact TV advertising in a short period (blitz strategy) is common In-store advertising can also assist in achieving awareness objectives while playing a key role in communicating details of the offer oThe ideal situation is to have brand displays in store supported by posters and shelf-cards at the product’s regular shelf location to draw attention to the promotion The manufacture’s sales representatives have the task of making trade customers awareof consumer promotion offers oPrepare specific sales literature such as broachers, pamphlets, and display material for representatives to use to introduce the promotion 3
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