Chapter 16 Sales Promotion

Advertising & Promotion

sales promotion

Marketing activities that provide extra value or incentives to the sales force, distributors, or the ultimate consumer and can stimulate immediate sales.

consumer-oriented sales promotion

Sales promotion techniques that are targeted to the ultimate consumer such as coupons, samples, contests, rebates, sweepstakes, and premium offers.

trade-oriented sales promotion

A sales promotion designed to motivate distributors and retailers to carry a product and make an extra effort to promote or “push” it to their customers.

Reasons for the increase and importance of sales promotion

• The growing power of retailers

• Declining Brand loyalty

• Increased Promotional sensitivity

• Brandy Proliferation

• Short Term focus 

• Increased Accountability 

• Competition

• The growth of digital marketing

Consumer Franchise Building(CFB) promotions

activities that communicate distinctive brand attributes and contribute to the development and reinforcement of brand identity.

NonFranchise- Building(non FB) promotions

designed to accelerate the purchase decision process and generate an immediate increase in sales.

Sampling

a variety of procedures whereby consumers are given some quantity of the product for no charge to induce trial.

Coupons

Oldest widely used sales promotion tool can help loyal customers who are money conscious get the products at a good price.

Objectives of trade Oriented Sales promotion

• Obtain Distribution for new products 

• Maintain trade support for established brands 

• Encourage retailers to display established 

• Build retail inventories 

Push money

Cash payments made directly to the resellers or wholesalers sales force to encourage them to promote and sell a manufacturers product

Trade allowance

A discount or deal offered to retailers or wholesalers to encourage them to stock promote or display the manufacturers products 

account-specific marketing

Development of customized promotional programs for individual retail accounts by marketers.

Types of trade oriented promotions 

• Contests and incentives

• Trade allowance

• Displays and point of purchase materials 

• Sales training programs 

• Trade shows

• Cooperative Advertising

Ingredient sponsored cooperative advertising

supported by raw materials manufacturers, its objective is to help establish end products that include the companies materials or ingredients. 

Vertical cooperative advertising

in which a manufacturer pays for a portion of the advertising a retailer runs to promote the manufacturer's product and its availability in the retailer's place of business.