02.01.2013 1 1 Chapter 16 Sales Promotion, and Public Relations 2 What is Sales Promotion ? Sales promotion is a mass communication technique that offers short-term incentives to encourage purchase or sales of a product or service. Offers Reasons to Buy Now. 3 Rapid Growth of Sales Promotion Sales promotion can take the form of consumer promotions, business promotions, trade promotions or sales force promotions. Rapid growth in the industry has been achieved because: Product managers are facing more pressure to increase their current sales, Companies face more competition, Advertising efficiency has declined, Consumers have become more deal oriented. 4 Sales Promotion Objectives Increase short-term sales or help build long-term market share. obtaining trial and purchase increasing consumption of established brand defending current customers Get retailers to: carry new items and more inventory, advertise products, give products more shelf space, and buy product ahead. In general, sales promotion should focus on consumer relationship building . 5 Sample Coupons Cash Refunds Price Packs Premiums Advertising Specialties Trial amount of a product Savings when purchasing specified products Refund of part of the purchase price Reduced prices marked on the label or package Goods offered free or low cost as an incentive to buy a product Articles imprinted with an advertiser’s name given as gifts Major Consumer Sales Promotion Tools Sample 6
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02.01.2013
1
1
Chapter 16
Sales Promotion, and
Public Relations
2
What is Sales Promotion ?
Sales promotion is a mass communication technique
that offers short-term incentives
to encourage purchase or sales of a product or service.
Offers Reasons to Buy Now.
3
Rapid Growth of Sales Promotion
Sales promotion can take the form of consumer
promotions, business promotions, trade promotions or sales
force promotions.
Rapid growth in the industry has been achieved because:
Product managers are facing more pressure to
increase their current sales,
Companies face more competition,
Advertising efficiency has declined,
Consumers have become more deal oriented.
4
Sales Promotion Objectives
Increase short-term sales or help build long-term market share. obtaining trial and purchase
increasing consumption of established brand
defending current customers
Get retailers to: carry new items and more inventory,
advertise products,
give products more shelf space, and
buy product ahead.
In general, sales promotion should focus on consumer relationship building.
5
Sample
Coupons
Cash Refunds
Price Packs
Premiums
Advertising Specialties
Trial amount of a product
Savings when purchasing specified products
Refund of part of the purchase price
Reduced prices marked on the label or package
Goods offered free or low cost as an incentive to buy a product
Articles imprinted with an advertiser’s name given as gifts
Major Consumer Sales Promotion Tools Sample
6
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Coupon
7 8
Price Packs
9
Premiums
10
Advertising Specialties
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Patronage Rewards
Point-of-Purchase
Contests
Sweepstakes
Game
Cash or other rewards for the use of a certain product
Displays and demonstrations that take place at the point of sale
Consumers submit an entry to be judged
Consumers submit their names for a drawing
Presents consumers with something every time they buy
Major Consumer Sales Promotion Tools
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Patronage Rewards
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15 16
Trade-Promotion Objectives
Persuade Retailers or Wholesalers to Carry a Brand
Give a Brand Shelf Space
Promote a Brand in Advertising
Push a Brand to Consumers
Major Trade Sales Promotion Tools
Trade-Promotion Tools
Discounts
Allowances
17
Business-Promotion Objectives
Generate Business Leads
Stimulate Purchases
Reward Customers
Motivate Salespeople
Business-Promotion Tools
Conventions
Trade Shows
Sales Contests
Major Business Sales Promotion Tools
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Decide on the Size of the Incentive
Set Conditions for Participation
Evaluate the Program
Determine How to Promote and Distribute the Promotion Program
Determine the Length of the Program
Developing the Sales Promotion Program
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What is Public Relations?
Public relations involves building good relations with the company’s various publics
by obtaining favorable publicity,
building up a good corporate image,
and handling or heading off unfavorable rumors, stories, and events.
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Press Relations or Agentry
Product Publicity
Public Affairs
Lobbying
Investor Relations
Development
Public Relations
Departments May
Perform Any of All
of the Following
Functions:
Major Public Relations Functions
21
News
Speeches
Special Events
Written Materials Audiovisual
Materials
Corporate Identity Materials
Public Service
Activities
Web Site
Major Public Relations Tools
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Setting Public Relations Objectives
Choosing the Public Relations Messages and Vehicles