S SALES PROMOTION THOMAS HILL BA 260 SUMMER 2012
S
SALES PROMOTIONTHOMAS HILL
BA 260SUMMER 2012
What is it?
One of 7 aspects of the promotional mix which targets or incentivizes consumers to buy your product or service
Advertising Personal selling Sales promotion Public relations Direct marketing Corporate image Sponsorship
The sales promotion is targeted towards the customer, sales staff and/or the company’s distribution channel or retailer
Usually a short-run tool used to stimulate demand for a certain product or service
Extremely effective and popular amongst most, if not all, major companies in the US Estimates state that sales promotion accounts for
$400 billion per annum The goal: immediate purchase
What can we do as a company that will drive people to want to buy our product or service immediately
Examples:
Free Samples Contests Premiums
Tradeshows Vacation Giveaways
Coupons Loyalty Marketing Programs
Two greatest effects:
Lowers the price of the good or service to increase demand
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 a reason to buy
Benefits to sales promotions:
A lot cheaper and easier to measure than advertising: Take any major sporting event for example–getting
the necessary airtime to promote your product can cost millions
It’s difficult to objectively measure the impact of many advertising campaigns
Whereas with sales promotions, marketers know the exact number of coupons redeemed, contest entries, free samples given, etc.
Types of Consumers and Goals of Sales Promotion
Type of Buyer
Loyal Customers
Competitor’sCustomers
Brand Switchers
Price Buyers
Desired Results • Reinforce behavior• Increase consumption• Change purchase timing
• Break loyalty• Persuade to switch
• Persuade to buy your brand more often
• Appeal with low prices
• Supply added value
Sales PromotionExamples
• Loyalty marketing• Bonus packs
• Sampling• Sweepstakes, contests, premiums
• Price-lowering promotion
• Trade deals
• Coupons, price-offpackages, refunds
• Trade deals
**Maj-Britt Kimm Chapter 18 Powerpoint slide #8**
“Once marketers are able to understand the dynamics occurring within their product category and have determined the particular consumers and consumer behavior they want to influence, they can go about selecting promotional tools to achieve these goals.” Lamb et. al, 2011.
Some Contemporary Examples
Premiums
Premiums continued..
Loyalty Marketing Programs
Contests and Sweepstakes
Sampling