Download VER

Chapter 17
Sales Promotion, Point-of-Purchase
Advertising, and Support Media
1
© 2009 South-Western, a part of Cengage Learning
PPT 17-1
Part Five: Integrated Brand
Promotion
 We have considered the Process, Planning,
Preparation, and Placement of advertising and
IBP in the first Four Parts of the book
 Now we take a detailed look at the full range of
IBP tools available to the advertiser
 Each of these IBP tools has a unique capability
to influence audience perception of a brand
2
PPT 17-2
Sales Promotion--Defined
“Using incentives to create a
perception of greater brand value”
 Consumer Market sales promotion
– Induce household consumers to purchase a firm’s
brand
 Trade-Market sales promotion
– Motivate distributors, wholesalers, and retailers to stock
and feature a brand
 Business Market sales promotion
– Cultivate buyers in large corporations who make
purchase decisions
3
PPT 17- 3
Sales Promotion Examples
Coupons
Brand placements
Contests
Gift Cards
Allowances
Sweepstakes
Incentives
Sampling
Price-off deals
Premiums
Loyalty Programs
Trade Shows
Point of Purchase Displays
4
PPT 17- 4
Sales Promotion vs.
Advertising

Short term demand vs. long term demand

Encourages brand switching vs. brand loyalty

Induces trial use vs. encourage repeat purchase

Promotes price vs. image

Immediate results vs. long term effects

Measurable results vs. difficult to measure
5
PPT 17- 5
Importance of Sales
Promotion
 $300 billion in 2008
 Growth rate: 4-8 percent
 Reasons for growth:
–
–
–
–
–
–
Demand for accountability
Short-term orientation
Consumer response to promotions
Proliferation of brands
Increased power of retailers
Media clutter
6
PPT 17- 6
Objectives for ConsumerMarket Sales Promotion
1. Stimulate trial purchase
2. Stimulate repeat purchases
3. Stimulate larger purchases
4. Introduce a new brand
5. Combat or disrupt competitors
6. Contribute to IBP
7
PPT 17- 7
Consumer-Market Sales
Promotion Techniques
1. Coupons
2. Price-off deals
3. Premiums
4. Contests/sweeps
5. Samples & trials
6. Phone gift cards
7. Brand placements 8. Rebates
9. Frequency programs
10.Event sponsorship
8
PPT 17- 8
Coupons
 Entitles a buyer to a price reduction
for a product or service
 Advantages
– Give a discount to price sensitive consumer while
selling product at full price to others
– Induce brand switching
– Timing and distribution can be controlled
– Stimulates repeat purchases
– Gets regular users to trade up within a brand
array
9
PPT 17- 9
Ad in Context Example
Coupons are
the most
widely used
form of
consumer
sales
promotion.
PPT 17-10
10
Coupons
 Disadvantages
– Time of redemption cannot be
controlled
– No way to prevent current customers
from redeeming coupons
– Coupon programs require costly
administration
– Fraud is a serious, chronic problem
11
PPT 17- 11
Price-Off Deals
 Offers consumer reduced price at
point of purchase through specially
marked packages
 Advantages
– Controllable by manufacturer
– Can effect positive price comparisons
– Consumers believe it increases value
of a known brand
 Disadvantage
– Retailers believe it creates inventory
and pricing problems
12
PPT 17- 12
Premiums and Advertising
Specialties
 Premiums: free or at a reduced
price with another purchase
 Free premiums provide item at no
cost
 Self-liquidating premiums require
consumers to pay most of the
cost of the item
 Advertising specialties:
– A message placed on a free, useful
item
13
PPT 17- 13
Ad in Context Example
Premiums attract
attention to a brand and
offer the consumer
something for free.
PPT 17- 14
14
Contests and Sweepstakes
 Contests: consumers compete for prizes
based on skill or ability.
 Sweepstakes: winners picked by chance
 Both create excitement and interest
 But . . .
– Legal and regulatory requirements are
complex
– Consumers may focus on the game rather
than the brand
– Difficult to get an IBP message across in a
game
15
PPT 17- 15
Samples and Trial Offers
 Sampling: Giving consumer an
opportunity to use a brand on a trial basis
with little or no risk
 Types of sampling
– In-store (Costco)
– Door-to-door
– Mail
– Newspaper
– On-package
– Mobile (on-site)
 Trial offers
– Used for more expensive items
– Consumer tries product for a fixed time
16
PPT 17- 16
Phone and Gift Cards
 Manufacturers offer either for free
or for purchase debit cards
– with phone time
– or preset spending limits
 Examples include offers from
Starbucks, Barnes & Noble, and
The Gap
17
PPT 17- 17
Rebates
 Money back offer requiring the buyer to
mail a request for money back from the
manufacturer
 Often tied to multiple purchases
 Many consumers fail to bother sending
in the rebate request form
18
PPT 17- 18
Frequency Programs
 Also known as continuity
programs
 Offers customers discounts or
free products for repeat
patronage
 Common in airline, hotel, and
restaurant businesses
19
PPT 17- 19
Objectives for Promotions in
the Trade Market
 Objectives: Uses a “push” strategy:
Push the product into the
distribution channel to the
consumer:
– Obtain initial distribution
– Increase order size
– Encourage cooperation with
consumer market sales promotions
– Increase store traffic
20
PPT 17- 20
Trade-Market Sales
Promotion Techniques
 Incentives: Push money
 Allowances: Merchandise allowances, slotting fees, billback allowances, off-invoice allowances
 Sales Training Programs
 Cooperative (Co-Op) Advertising
21
PPT 17- 21
Business Market Sales
Promotion Techniques
 Trade Shows
 Business gifts
 Premiums and advertising specialties
 Trial offers
 Frequency programs
22
PPT 17- 22
Ad in Context Example
Trial offers are very
effective in the business
market. Why?
PPT 17- 23
23
Risks of Sales Promotion
 Create a price orientation
 Borrow from future sales
 Alienate loyal customers
 Time and expense
 Legal considerations
24
PPT 17- 24
Point of Purchase (P-O-P)
Advertising
 Definition
– Materials used in the retail setting to attract shoppers’
attention to a brand, to convey primary product benefits, or
highlight pricing information.
– Displays may feature “price-off” deals as well.
 Objectives for Point-of-Purchase Advertising
–
–
–
–
Draw consumers’ attention to a brand in the retail setting.
Maintain purchase loyalty among brand loyal users.
Stimulate increased or varied usage of the brand.
Stimulate trial use by users of competitive brands.
25
PPT 17- 25
P-O-P Advertising and the
Trade and Business Markets
 Product displays and information sheets encourage
retailers to support one distributor or manufacturer’s
brand over another.
 P-O-P promotions can help win precious shelf space
and exposure in a retail setting.
 A P-O-P display should be designed to draw attention
to a brand, increase turnover, and possibly distribute
coupons or sweepstakes entry forms.
 To combat losing business to online shopping,
retailers are trying to enliven the retail environment,
and point-of-purchase displays are one strategy.
26
PPT 17- 26
Support Media
 Purpose: To reinforce or extend a message
being delivered through other media
– Signs, billboards, posters
– Transit
– Aerial
– Specialty
– Directory
27
PPT 17-27
Outdoor Signage and
Billboards
 Advantages
 Disadvantages
– Wide local
exposure
– Captivating
– Around-the-clock
exposure
– Address an
immediate need or
desire
– Message limits
– Location affects
impact
– Relatively expensive
– Criticized by
environmental
groups
28
PPT 17-28
Transit Ads
 Transit Ads
–
–
–
–
Urban environments
Demographic segmentation
Timely to purchase
Build brand awareness
29
PPT 17-29
Ad in Context Example
Transit ads
can reach a
target
audience in
well defined
geographic
areas.
PPT 17-30
30
Aerial Ads
 Aerial Ads
– Blimps increasingly
common
– Common at sporting
events
– Skies are getting
crowded!
– Networks are in
control
31
PPT 17-31
Directory Advertising
 Advantages
– High acceptance
– High availability
– Final link to
purchase
 Disadvantages
– Too many
directories
– Long lead times
– Limited creativity
 New: CD-ROM and Webbased directories
32
PPT 17-32
Ad in Context Example
Web based
directories
offer
convenience
and speed.
PPT 17-33
33
Packaging
 Promotional Benefits of Packaging to the
Advertiser:
– The package carries the brand name and logo
– The package can communicate “value”
– The package can communicate “image” and
“quality”
34
PPT 17-34
Ad in Context Example
Packaging
highlights
the brand
name,
quality
and image.
35
PPT 17-35
When Support Media are
More than Support Media
 Guerrilla Marketing—”Stunt” promotions
 Viral campaigns—Using influencers
(Chapter 20)
 Special Events—Creating visibility and
“affinity” for a brand among a highly select
target group
36
PPT 17-36