Download Sales Promotions

Integrated Marketing Communications:,
PR, Publicity, and Sales Promotions
Jeremy Kees, Ph.D.
Sales Promotions
• 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
– Customer Oriented
– Trade Oriented
Why Sales Promotions?
• Increased Promotional Sensitivity
– Declining Brand Loyalty
– Response to Competition (viscous cycle)
• Brand Proliferation
• Fragmentation of Markets
• Pressures for Short-Term Performance
– Increased Accountability
– Advertising Inefficiency
Consumer-Oriented Promotions
• Coupons
Consumer-Oriented Promotions
• Refunds
– Similar to Rebates
• Samples
• Bonus Packs
• Premiums
Consumer-Oriented Promotions
• Contests
• Sweepstakes
Consumer-Oriented Promotions
• Specialty Advertising
– Peanut Chews Opening Night T-Shirt
Consumer-Oriented Promotions
• Event Marketing
– Becoming part of a personally relevant moment in
consumers’ lives
– Sponsorships are perhaps the most prevalent/popular
form of event marketing
– Example: Bryant Park and the Simpsons
• Free ice skating (skate rentals)
• Ned Flanders' hot chocolate
• Simpsons Sprinkalicious donuts
• "Duff & D'oh!Nuts" ice cream
• Empire State Building of shining “Simpsons”
yellow
Trade-Oriented Promotions
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Trade Allowances
Point-of-Purchase Displays
Trade Shows
Dealer Incentives
And finally…
• Marketers’ response to the DVR / TiVo
revaluation…
• Product placement
– Some examples
• Apprentice / Survivor
• The Office (1)
– We now see it in…
• Movies
• TV programming
• Video games
Group Exercise
• Is product placement a useful tool for
marketers?
– If so, under what circumstances
• Are there any ethical considerations?
– For instance, some countries not permit product
placements in domestic made films.
Marketing Public Relations (MPR)
• The firm’s communications and
relationships with its various
publics
• Includes a variety of programs
to promote or protect a
company’s image or individual
products
Corporate Ads – Boeing
VSB
MPR Functions
• Building Marketplace Excitement
– PS3
• Creating Advertising News
– Super Bowl Ads
• Substitute for Advertising
• Providing Value-Added Customer
Service
– Butterball
Advantages of MPR
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Credibility
Cost
Avoidance of Clutter
Image Building
Publicity
…. nonpersonal stimulation of demand for
a good, service, place, idea, person, or
organization by unpaid placement of
significant news regarding the product
in a print or broadcast medium
Sprint Fires Customers
Really, a subset of the MPR effort.
Advantages of Publicity
• Credibility (even more than public
relations)
• News Value
Disadvantages??
Personal Selling
…. interpersonal influence process
involving a seller’s promotional
presentation conducted on a person-toperson basis with the buyer
– Oldest and most traditional form of “marketing”
– Traditionally a negative stereotype (unfortunately)
– Today, we see an emphasis on “relationship selling”
• Emphasis on LTV of customers
• Constant building/fostering of relationships
Today’s Salesperson…
• A highly-trained professional
• Takes a customer-oriented approach in
order to satisfy the long-term needs of
both the customer and the selling firm
• Problem solvers
– Account managers
– Know customers inside and out so that the company
can adapt to customer needs
Huge $$ Potential (if you’re good)
The Sales Process
Sales Force Decisions
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Objectives
Strategy
Structure
Size
Compensation