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Part 5
Principles: IMC and Total Communication
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What are the current trends and practices in planning
promotions?
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How are various consumer promotions used?
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What are the types and purposes of trade promotions?
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How do multiplatform promotions—sponsorships and
events, loyalty programs, and partnership programs—
work?
How are promotions used strategically in marketing in
terms of brand building, integration, and
effectiveness?
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Sales promotion: increasing the
value of its product or brand by
offering an extra incentive to
purchase it.
Designed to encourage action.
Sales promotion is primarily
designed to motivate people to act
by offering incentives.
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The Promotion Marketing Association (PMA) defines
sales promotion as:
“The media and non-media marketing pressure applied
for a predetermined, limited period of time at the
level of consumer, retailer, or wholesaler in order to
stimulate trial, increase consumer demand, or
improve product availability.”
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Accountability
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Managers are under pressure for short-term profits.
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Promotions cost less and deliver tangible results.
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Evaluation is easy and quick because there is usually
an immediate response.
It’s easier to compute return on investment (ROI).
This is known as payout planning.
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To see how sales promotion can generate positive ROI,
go to:
www.moonfruit.com
Here, the Moonfruit company gave away 10 MacBook Pros as part
of a birthday celebration. Participants were required to send out
a creative Tweet. The idea exploded on Twitter and generated
massive publicity for the company.
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Media shifts
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Traditional media costs have escalated to the
point where alternative media must be
considered.
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Promotions cost less and deliver tangible results.
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Global incentive programs have increased
dramatically.
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Marketplace changes
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Consumer behavior: shoppers are more likely to switch brands.
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Pricing: consumers expect coupons, sales, price promotions.
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Market share: increased switching leads to increased market
share.
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Parity products: promotions can become a tie-breaker in
consumer decision making.
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The power of the retailer: dominant retailers such as Safeway
and Wal-Mart demand promotional incentives.
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Promotional Big Ideas
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The Big Idea is just as important for sales
promotion as it is for advertising.
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In many cases, the promotion is part of a bigger
IMC campaign.
The challenge is to come up with exciting,
interesting promotional ideas that are involving
and capture the attention of the target market.
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1.
Consumer
2.
Trade
3.
Sales Force
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Price Deals
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Temporary price reduction, sale price, or even
freebies.
1.
2.
3.
4.
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Cents-off deal
Price-pack deals
Bonus packs
Banded packs
Freebies can be a killer if the company doesn’t
adequately predict consumer response!
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The Billings “Trailhead” campaign
used weekly drawings with the
winners receiving caps, as well as
dinner and two nights at the Crowne
Plaza Hotel for the grand prize
winner.
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Refunds and Rebates
Marketers offer to return a certain amount of
money to the consumer who purchases the product,
or a coupon to encourage repeat use.
Sampling
Allowing the consumer to try the product or service.
Examples: in-store, mailed, dentist office, or
newspaper.
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Premiums
A premium is a tangible reward for a particular act.
It works by adding value to the product.
There are four variations:
Store premiums: given at retail site
In-pack premiums: inserted in the package
On-pack premiums: attached to package
Container premiums: the package is the premium
1.
2.
3.
4.
A self-liquidator premium requires that a payment
be mailed with proof of purchase.
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◦
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Coupons
Provide a discount on
the price of the
product.
◦ Retailer: redeemable
only at their outlet.
◦ Manufacturer:
redeemable at any
outlet carrying the
product.
Cellfire is a company that sends
digital coupons via text messages
and loyalty cards.
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Contests and sweepstakes
◦ Create excitement by promising “something for nothing”
and offering impressive prizes.
◦ Contests are based on skill or ability.
◦ Sweepstakes are based on luck.
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Specialties
◦ Presents the brand’s name on something that is given
away as a reminder.
◦ Examples: key chains, pens, calendars, tote bags, coffee
mugs.
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Promotional media
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These can include:
◦ Print
◦ Broadcast
◦ Online
Frontier Airlines “favorite animal” contest used the Internet to
increase online purchase of flights.
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Promotional campaigns
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Special promotions are usually approached as a
campaign because they involve a variety of media
and reach many stakeholders.
For an example, check out the “The Inside Story:
The Intersection of the Movie and Promotion
Industries” in this chapter.
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Awareness
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Trial
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Maintain or increase market share
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Brand reminder
◦ The first step in consumer decision making.
◦ Get the right people involved with the product through
sampling, price deals, coupons, and rebates.
◦ The idea is to convince people to switch.
◦ Price deals work with low-loyalty products.
◦ Characters associate the brand with the character.
◦ Remind customers of positive experience with ad copy,
specialty items, and thank-you gifts.
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These kits were sent by Kuni
Automotive to the smart car
company to win dealerships in
three cities.
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Trade refers to all involved
in the channel of
distribution including
buyers, brokers,
distributors, wholesalers,
and others.
Usually directed at
distribution channel
members. This is known
as channel marketing.
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Retail (dealer) kits
◦ Materials that support retailer’s selling efforts or help
representatives make sales calls.
◦ They could contain product spec sheets, or ad slicks.
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Trade incentives and deals
◦ A financial reward for purchasing a certain amount of
product or supporting a promotion.
◦ Includes special displays, extra purchases, superior store
locations, more local promotion.
◦ Retailers get special discounts, free goods, gifts, cash, and
advertising allowances.
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Contests
◦ Advertisers can develop contests and sweepstakes to
motivate resellers.
◦ Contests are far more common than sweepstakes because
they can be more closely tied to product.
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Point-of-purchase promotions
◦ Manufacturers design and distribute displays to retailers to
draw attention to their products.
◦ Examples: racks, display cartons, banners, signs, moving
parts, lights, action.
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Trade Shows and Exhibits
Companies in the same industry gather to present
and sell merchandise and demonstrate products.
Nintendo launched
its Wii game with
demonstrations at
entertainment and
video game trade
shows.
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The two primary roles for a trade promotion:
1. Stimulate in-store merchandising or other trade support.
2. Create excitement among those responsible for selling the
product.
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Trade promotions are also used to:
◦ Manipulate wholesalers’ and retailers’ inventory levels.
◦ Expand product distribution to new geographic areas or
classes of trade.
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Demand: push-and-pull strategies
 Pull strategies: creating or increasing customer
demand so product is “pulled” through the channel.
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Push strategies: give channel members reasons to
carry products or give them better shelf space so
product is “pushed” through the channel.
Common push strategy incentives:
Bonuses
Buying allowances
Co-op advertising
Dealer loader
Advertising allowances
Display allowance
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Attention
◦ PoP displays get attention and stimulate impulse purchases.
◦ PoPs can also complement other promotional campaigns.
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Motivation
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Information
◦ Contests, trade deals, and other incentives motivate
trade/channel members to make sales.
◦ Trade show displays give information about products, allow
trade buyers to gather and compare products.
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
Some promotions cross over to other areas of
marketing and blur the lines between promotion,
advertising, and public relations.
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Sponsorships
Event marketing
Loyalty programs
Co-marketing or partnership promotions
Let’s take a look at each one…
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Sponsorships
Occur when companies support a sporting event,
concert, or charity, either financially or by donating
supplies and services.
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Companies undertake sponsorships to build brand
associations and increase the perceived value of
the brand in the consumer’s mind.
As a class:
Read and discuss “A Matter of Practice: Advertising
Through Sports” to learn about the growth of
sports-related promotions.
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Event marketing
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Here, marketers link a brand to an event.
Examples:
◦ The Jose Cuervo beach volleyball tournament
◦ Wii Fit Plus Experience Game with Target Stores
◦ The Super Bowl, the granddaddy of all events
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Ambush marketing refers to promotional stunts at
events by companies that are not official sponsors.
Other promotional support might include:
◦ Blimps
◦ Balloons
◦ Inflatables
◦ Skywriting airplanes
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To help promote the
opening of the movie
Spider-Man, inflatables
like this one were placed
along buildings in major
cities.
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Also called continuity or frequency programs.
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Designed to increase customer retention.
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Frequent flyer programs, TGI Friday’s “Frequent
Fridays”
These programs also capture information to use for
more targeted promotions and advertising.
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Comarketing involves manufacturers developing
marketing communication programs with their
main retail accounts, instead of for them.
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Cobranding occurs when two companies come
together to offer a product.
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For example, American Airlines put its logo on a
Citibank Visa card.
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With licensing, one company gives another company
the right to use its legally protected trademarks and
logos on products and in advertising or promotion.
Tie-ins and cross-promotions occur when two
companies are displayed, advertised, or promoted
together to multiply impact.
As a class:
Recall Billings, Montana/Pepsi “Trailhead” rebranding campaign
from this chapter. What were its key elements?
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To introduce a new product.
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To create brand awareness.
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To build a brand over time.
◦ Create affinity between brands and buyers.
◦ Create brand involvement through positive
associations.
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Advertising
Promotion
•
• Creates immediate action.
• Added value strategies rely
on rational appeals; impulse
appeals use emotion.
• Adds tangible value to
product or service.
• Contributes greatly to shortterm profitability.
•
•
•
Creates a brand image
over time.
Relies on emotional
appeals.
Adds tangible value to
product or service
through image.
Contributes moderately
to short-term
profitability.
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Effectiveness is measured by sales volume,
response rates, and redemption (coupons, refunds,
rebates) rates.
Payout planning seeks to produce promotions that
increase sales and profits.
Promotions can deliver sales but they must be well
planned and executed in order to enhance the
brand’s reputation.
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In Chapter 18, we will:
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Wrap up our discussion of IMC.
Introduce various specialized areas of marketing
communication.
Reinforce the idea that all the tools presented
thus far must work together to create a
consistent and coherent brand image.
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“Consumers Vote Frontier the Winner”
 Frontier’s “Denver’s Favorite Animal” campaign proved
to be a winner.
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Fans engaged in the democratic process in a mock
election, posting more than 4,000 entries.
Web traffic was up more than 50 percent over the
same period in the previous year.
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“Consumers Vote Frontier the Winner”
Key lessons:
 To reach the marketing and campaign objectives,
advertisers must be willing to take risks.
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Sales promotions must be consistent with the brand’s
personality, and deliver on brand promise.
As a class: What others can you think of?
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