Download Understanding Sales Promotion: Techniques, Tools, and Advantages and more Lecture notes Marketing in PDF only on Docsity! 11/19/2012 1 Sales Promotion Sales Promotion? a key ingredient in marketing campaigns, consists of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade (kolter and keller 2008:514) Whereas advertising offers a reason to buy, sales promotion offers an incentive to buy. Sales Promotion 20 - 4 Demand-stimulating devices designed to supplement advertising and facilitate personal selling. Sales promotions include such things as coupons, in-store displays, premiums, trade shows, in-store demonstrations, and contests. The target for these activities may be middlemen, end users, or the producer’s own salesforce. Advantages of Sales Promotion20 - 5 It can produce short-term results. Competitors are using sales promotions. Sales promotions are attractive to price-conscious consumers. Can enhance/facilitate retail salesmanship which is often of low quality. Key Reasons for Sales Promotion20 - 6 Stimulating end-user demand. Sampling program for new/improved product Improving the marketing performance of middlemen and salespeople. Sell more, win a holiday trip. Supplementing advertising and facilitating personal selling. Displays, promotional giveaways 11/19/2012 2 Sales Promotions tools for consumer promotion • (samples, coupons, cash refund offers, prices off, premiums, prizes, patronage rewards, free trials, warranties, tie-in promotions, cross-promotions, point-of-purchase displays, and demonstrations); trade promotion • (prices off, advertising and display allowances, and free goods); business and sales- force promotion • (trade shows and conventions, contests for sales reps, and specialty advertising). Sales promotions in markets of high brand similarity can produce a high sales response in the short run but little permanent gain in brand preference over the longer term. In markets of high brand dissimilarity, they may be able to alter market shares permanently. Reebok vs reebok@sportwarehouse Promotions induce consumers to tty new products and lead to more varied retail formats, such as everyday low pricing and promotional pricing Service marketers also employ sales promotions to attract new customers and establish loyalty. Managing Sales Promotion 20 - 10 Select from wide range of techniques, depending on your objectives Select promotional devices based on: Nature of target audience Your promotional objectives: Push vs. Pull. Cost of device-- sampling can get costly. Current economic conditions-- coupons, rebates work best in recessionary period. Evaluating Sales Promotion: Much easier than with advertising. Usually clear start, finish, goal. Consumer promotion tools Consumer Promotion tools Samples: Offer of a free amount of a product or service delivered door-to-door, sent in the mail, picked up in a store, attached to another product, or featured in an advertising offer Coupons: Certificates entitling the bearer to a stated saving on the purchase of a specific product: mailed, enclosed in other products or attached to them, or inserted in magazine and newspaper ads.
