Ch. 15 Sales, Promotion, POS and Support Media

Sales Promotion

The use of incentive techniques that create a perception of greater brand value among consumers, the trade, and business buyers.

Consumer-Market Sales Promotion

Induce household consumers to purchase a firm's brand rather than a competitor's.

Trade-Market Sales Promotion

Motivate distributors, wholesalers, and retailers to stock and feature a firm's brand in their store.

Business-Market Sales Promotion

Cultivate buyers in organizations or corporations who make purchase decisions.

Sales Promotion vs. Advertising (Time)

Sales Promotion elicits an immediate purchase, while Advertising is designed for long-term brand awareness.

Sales Promotion vs. Advertising (Incentive)

Sales Promotion provides an "extra incentive" for action, whereas Advertising provides a "reason" to buy.

Coupon

Entitles a buyer to a designated reduction in price for a product or service.

Price-Off Deal

Offers a consumer cents or dollars off the merchandise at the Point of Purchase through specially marked packages.

Premiums

Items offered free, or at a reduced price, with the purchase of another item.

Free Premium

An item that provides a gift at no cost, such as a sample in a magazine or a toy in a cereal box.

Self-Liquidating Premium

Requires a consumer to pay most of the cost of the item received as a premium.

Contest

Requires consumers to compete for prizes based on skill or ability.

Sweepstakes

A promotion in which winners are determined purely by chance.

Sampling

A sales promotion technique designed to provide a consumer with an opportunity to use a brand on a trial basis.

In-Store Sampling

Providing samples to consumers at the retail location, popular for food and cosmetics.

Mail Sampling

Delivering samples directly to homes through the postal service.

Trial Offers

Used for more expensive items, where the consumer tries the product for a limited period for free.

Rebate

A money-back offer requiring a buyer to mail in a form to the manufacturer.

Frequency (Loyalty) Programs

Offers cardholders discounts or free products for repeat patronage.

Push Strategy

Sales promotion directed at the trade to help push a brand into the distribution channel.

Trade Allowances

Monetary incentives offered to retailers to stock or feature a product.

Slotting Fees

Direct cash payments made to retailers to induce them to stock a manufacturer's product.

Bill-Back Allowances

Monetary incentives provided to retailers for featuring a brand in advertising or in-store displays.

Off-Invoice Allowance

A price reduction offered to retailers on a per-case basis if ordered within a specific time window.

Trade Shows

Events where several related products from many manufacturers are displayed to exhibitors and buyers.

Point-of-Purchase (P-O-P) Advertising

Materials used in the retail setting to attract shoppers' attention to a brand.

Short-Term P-O-P

Displays and materials intended to be used for 6 months or less.

Permanent Long-Term P-O-P

P-O-P displays intended for use for more than 6 months.

Support Media

Media used to reinforce or supplement a message being delivered via some other media vehicle.

Outdoor Advertising

Includes billboards, posters, and digital displays seen outside the home.

Out-of-Home Media

Various venues including transit, aerial, and cinema advertising that reach local audiences.

Transit Advertising

Ads appearing on subways, buses, buildings, and stadiums.

Aerial Advertising

Involves airplanes pulling banners, skywriting, or blimps.

Cinema Advertising

Ads that run before movies at the theater or appear off-screen within the theater.

Directory Advertising

Includes Yellow Pages and similar listings that help consumers find where to buy.

Packaging

The container or wrapping for a product

Promotional Benefit of Packaging

Helps create brand awareness and attract attention to induce examination.

Perception of Value

The color, design, and shape of a package that affects consumer quality perceptions.

Sales Promotion Growth

Caused by demand for greater accountability and short-term orientation in corporations.

Media Clutter

A reason for sales promotion growth, as advertisers look for ways to break through the volume of traditional ads