Sales promotion thomas hill

• 1. SALES PROMOTION THOMAS HILLBA 260 SUMMER 2012 S

2. What is it?S One of 7 aspects of the promotional mix which targets orincentivizes consumers to buy your product or service S Advertising S Personal selling S Sales promotion S Public relations S Direct marketing S Corporate image S SponsorshipS The sales promotion is targeted towards the customer,sales staff and/or the companys distribution channel orretailer 3. S Usually a short-run tool used to stimulate demand for acertain product or serviceS Extremely effective and popular amongst most, if not all,major companies in the USS Estimates state that sales promotion accounts for $400 billion per annumS The goal: immediate purchaseS What can we do as a company that will drive people to want to buy our product or service immediately 4. Examples:S Free SamplesS ContestsS Premiums S Tradeshows S Vacation GiveawaysS CouponsS Loyalty Marketing Programs 5. Two greatest effects:S Lowers the price of the good or service to increase demandS Adds value to the current product or service to increase demand As advertising offers the consumer a reason to buy, the sales promotion offers the consumer incentive to buy 6. Benefits to sales promotions:S A lot cheaper and easier to measure than advertising:S Take any major sporting event for examplegetting the necessary airtime to promote your product can cost millionsS Its difficult to objectively measure the impact of many advertising campaignsS Whereas with sales promotions, marketers know the exact number of coupons redeemed, contest entries, free samples given, etc. 7. Types of Consumers andGoals of Sales PromotionSales PromotionType of Buyer Desired Results Examples Reinforce behaviorLoyal Loyalty marketing Increase consumptionCustomers Bonus packs Change purchase timing SamplingCompetitors Break loyalty Sweepstakes,Customers Persuade to switchcontests, premiums Price-loweringBrand Persuade to buy yourpromotionSwitchersbrand more often Trade deals Appeal with low Coupons, price-offPrice Buyers prices packages, refunds Supply added value Trade deals**Maj-Britt Kimm Chapter 18 Powerpoint slide #8** 8. S Once marketers are ableto understand thedynamics occurring withintheir product categoryand have determined theparticular consumers andconsumer behavior theywant to influence, theycan go about selectingpromotional tools toachieve these goals.Lamb et. al, 2011. 9. Some ContemporaryExamples 10. Premiums 11. Premiums continued.. 12. Loyalty Marketing Programs 13. Contests and Sweepstakes 14. Sampling