Canadian Marketing in Action, 6th ed. Keith J. Tuckwell Sales Promotion “Activity that provides special incentives to bring about immediate action from consumers, distributors, and an organization’s sales force.”
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell 16-1©2004 Pearson Education Canada Inc. Sales Promotion “Activity that provides special incentives.
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Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
16-1 ©2004 Pearson Education Canada Inc.
Sales Promotion
“Activity that provides special incentives to bring about immediate action from consumers, distributors, and an organization’s sales force.”
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
16-2 ©2004 Pearson Education Canada Inc.
Consumer Promotion
“Incentives offered consumers to prompt extra brand sales.”
MarketerMarketer DistributorDistributor ConsumerConsumer
Promotion ObjectivesPromotion Objectives
•Trial purchase•Brand loyalty•Multiple purchase
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
16-3 ©2004 Pearson Education Canada Inc.
Consumer Promotion Activities
• Coupons• Samples• Contests• Cash Refunds• Premiums• Loyalty Programs• Delayed Payments• Combinations
• Coupons• Samples• Contests• Cash Refunds• Premiums• Loyalty Programs• Delayed Payments• Combinations
The stage of the product life cycle and the nature of competition influence which alternatives to use.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
16-4 ©2004 Pearson Education Canada Inc.
Coupons Distributed
1997 1999 2000 2001
Source: Nielsen Promotional Services
Billions of Coupons
3.0 2.5 2.5 2.6
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
16-5 ©2004 Pearson Education Canada Inc.
Coupons Redeemed
1997 1999 2000 2001Source: Nielsen Promotional Services
Millions of Coupons
130 115 112 122
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
16-6 ©2004 Pearson Education Canada Inc.
Coupons Distributed by Media
Distribution Method 1999 2000 2001
FSI 52% 55% 55%
In-store 17% 17% 16%
In/On Package 16% 13% 12%
Direct Mail 8% 5% 5%
Magazine/Newspaper 2% 5% 6%
Charity 2% 2% 2%
Other 3% 3% 4%
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
16-7 ©2004 Pearson Education Canada Inc.
Coupon Strategies
Product-DeliveredCoupons
In-pack and on-pack coupons help achieve loyalty objectives.
Media-DeliveredCoupons
Mail, magazine, newspaper and online coupons achieve trial objectives.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
16-8 ©2004 Pearson Education Canada Inc.
Samples
An appropriate strategy for launching a new product or improving an existing product.
Perceived favourably by consumers
Many alternatives for delivery
Expensive
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
16-9 ©2004 Pearson Education Canada Inc.
Contests
An activity that generates short-term excitement.
SweepstakesSweepstakes
Instant WinsInstant Wins
Send in entries for a grand prize, other prizes.
Pre-seeded winning tickets from a fixed ticket universe.
Entry forms provide database information.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
16-10 ©2004 Pearson Education Canada Inc.
Premium Offers
An item offered free or at a bargain price with another product.
Attaching a sample size product
Free items inside a package
Fast food restaurant giveaways with meals
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
16-11 ©2004 Pearson Education Canada Inc.
Loyalty Programs
A bonus (reward) offered at point-of-sale for a customer’s patronage.
Canadian Tire Money
Shoppers Drug Mart Optimum Card
Air MilesCanadian Tire and Shoppers offer immediate gratification.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
16-12 ©2004 Pearson Education Canada Inc.
Trade Promotion
“Incentives offered to distributors to secure marketing support.”
MarketerMarketer DistributorDistributor ConsumerConsumer
PromotionObjectivesPromotionObjectives
• Secure listings• Increase volume• In-store display
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
16-13 ©2004 Pearson Education Canada Inc.
Trade Promotion Activities
•Trade Allowances•Performance Allowances•Cooperative Advertising•Display Material
•Trade Allowances•Performance Allowances•Cooperative Advertising•Display Material
When used together the impact is maximized.
•Dealer Premiums•Collateral Material •Trade Shows
•Dealer Premiums•Collateral Material •Trade Shows
For lead generation and personal selling situations.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
16-14 ©2004 Pearson Education Canada Inc.
Personal Selling
“Personalized communications between a seller and buyer in which the benefits of a product are presented in order to make a sale.”
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
16-15 ©2004 Pearson Education Canada Inc.
Roles of a Sales Rep
There’s more to selling…than selling!
Gather market intelligence
Solve customer’s problems
Locate and maintain customers
Follow-up service
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
16-16 ©2004 Pearson Education Canada Inc.
Types of Selling
Business-to-Business
Retail
Direct (In-home and telemarketing)
Online
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
16-17 ©2004 Pearson Education Canada Inc.
Steps in Selling Process
ProspectingProspecting Pre-approachPre-approach ApproachApproach
PresentationPresentation
HandlingObjections
HandlingObjections
ClosingClosingFollow-upFollow-up
7 Steps: simple in theory; difficult in practice.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
16-18 ©2004 Pearson Education Canada Inc.
The Future of Personal Selling
Selling is a team effort
CRM programs
Impact of technology
The nature of selling is changing rapidly.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
16-19 ©2004 Pearson Education Canada Inc.
Event Marketing
Event Marketing
“An integrated communications plan behind an event theme.”
Event Sponsorship
“Financial support of an event in return for advertising privileges.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
16-20 ©2004 Pearson Education Canada Inc.
Primary Types of Sponsorship
SportsSports EntertainmentEntertainment Culture/ArtsCulture/Arts
Sponsorship is a $9.5 billion business in North America. Sports is the largest segment attracting 70% of revenue.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
16-21 ©2004 Pearson Education Canada Inc.
Event and Sponsorship Strategies
An organization can invest a lot or a little. The benefits are the same but on a different level.
• Global• International• National• Regional • Local
• Global• International• National• Regional • Local
Companies like McDonald’s and Coca-Cola support International and local events.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
16-22 ©2004 Pearson Education Canada Inc.
Event Marketing Strategy
Exclusivity
Complements Other Promotional Activity
Targeting Ability
Image
Long-term benefit; short-term cost
The event should meet predetermined criteria.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
16-23 ©2004 Pearson Education Canada Inc.
Benefits of Sponsorship
Awareness / association with event
Perceived image with target market
New business
Media coverage
Sales increase in post-event period
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