Download Ch16

Sales Promotion
“Activity that provides special incentives
to bring about immediate action from
consumers, distributors, and an
organization’s sales force.”
16-1
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
Consumer Promotion
“Incentives offered consumers to prompt extra
brand sales.”
Marketer
Promotion
Objectives
16-2
Distributor
Consumer
•Trial
purchase
•Brand loyalty
•Multiple purchase
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
Consumer Promotion Activities
•
•
•
•
•
•
•
•
16-3
Coupons
Samples
Contests
Cash Refunds
Premiums
Loyalty Programs
Delayed Payments
Combinations
The stage of the product
life cycle and the nature
of competition influence
which alternatives to use.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
Coupons Distributed
Billions of Coupons
3.0
2.5
2.5
2.6
1997
1999
2000
2001
Source: Nielsen Promotional Services
16-4
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
Coupons Redeemed
Millions of Coupons
130
115
112
122
1997
1999
2000
2001
Source: Nielsen Promotional Services
16-5
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
Coupons Distributed by Media
16-6
Distribution Method
1999
2000
2001
FSI
In-store
In/On Package
Direct Mail
52%
17%
16%
8%
55%
17%
13%
5%
55%
16%
12%
5%
Magazine/Newspaper
Charity
Other
2%
2%
3%
5%
2%
3%
6%
2%
4%
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
Coupon Strategies
16-7
Product-Delivered
Coupons
In-pack and on-pack
coupons help achieve
loyalty objectives.
Media-Delivered
Coupons
Mail, magazine,
newspaper and online
coupons achieve trial
objectives.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
Samples
An appropriate strategy for launching a
new product or improving an existing
product.
 Perceived favourably by consumers
16-8

Many alternatives for delivery

Expensive
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
Contests
An activity that generates short-term excitement.
Sweepstakes
Send in entries for a
grand prize, other
prizes.
Instant Wins
Pre-seeded winning
tickets from a fixed
ticket universe.
Entry forms provide database information.
16-9
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
Premium Offers
An item offered free or at a bargain price
with another product.
Attaching
16-10
a sample size product
Free
items inside a package
Fast
food restaurant giveaways with meals
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
Loyalty Programs
A bonus (reward) offered at point-of-sale
for a customer’s patronage.

Canadian Tire Money

Shoppers Drug Mart Optimum Card

Air Miles
Canadian Tire and Shoppers offer immediate
gratification.
16-11
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
Trade Promotion
“Incentives offered to distributors to secure
marketing support.”
Marketer
Promotion
Objectives
16-12
Distributor
Consumer
Secure listings
• Increase volume
• In-store display
•
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
Trade Promotion Activities
•Trade Allowances
•Performance Allowances
•Cooperative Advertising
•Display Material
When used together the
impact is maximized.
•Dealer Premiums
•Collateral Material
•Trade Shows
For lead generation and
personal selling
situations.
16-13
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
Personal Selling
“Personalized communications between
a seller and buyer in which the benefits
of a product are presented in order to
make a sale.”
16-14
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
Roles of a Sales Rep
There’s more to selling…than selling!
 Gather market intelligence
16-15

Solve customer’s problems

Locate and maintain customers

Follow-up service
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
Types of Selling
 Business-to-Business
 Retail
 Direct (In-home and telemarketing)
 Online
16-16
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
Steps in Selling Process
Prospecting
Pre-approach
7 Steps: simple in
theory; difficult in
practice.
Follow-up
16-17
Closing
Approach
Presentation
Handling
Objections
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
The Future of Personal Selling
The nature of selling is changing rapidly.

16-18
Selling is a team effort

CRM programs

Impact of technology
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
Event Marketing
Event Marketing
“An integrated communications plan behind an event
theme.”
Event Sponsorship
“Financial support of an event in return for advertising
privileges.
16-19
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
Primary Types of Sponsorship
Sports
Entertainment
Culture/Arts
Sponsorship is a $9.5 billion business in
North America. Sports is the largest segment
attracting 70% of revenue.
16-20
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
Event and Sponsorship Strategies
An organization can invest a lot or a little. The
benefits are the same but on a different level.
• Global
• International
• National
• Regional
• Local
16-21
Companies like McDonald’s
and Coca-Cola support
International and local
events.
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
Event Marketing Strategy
The event should meet predetermined
criteria.
 Exclusivity
16-22

Complements Other Promotional Activity

Targeting Ability

Image

Long-term benefit; short-term cost
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.
Benefits of Sponsorship
 Awareness / association with event
16-23

Perceived image with target market

New business

Media coverage

Sales increase in post-event period
Canadian Marketing in Action, 6th ed. Keith J. Tuckwell
©2004 Pearson Education Canada Inc.