Download Canadian Advertising in Action

Canadian Advertising
in Action
Chapter 13
Sales Promotion
13.1
© 2006 Pearson Education Canada Inc.
Learning Objectives
 Identify roles of consumer & trade
promotion activities in the marketing
communications process
 Outline consumer & trade promotion
activities
 Assess strategies for integrating sales
promotion into the marketing
communications mix
13.2
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Sales Promotion
Activity that provides special
incentives to bring about immediate
response from:
• consumers,
• distributors,
• organization’s sales force.
13.3
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Promotion Strategy
Pull
Marketer
Wholesaler
Retailer
Consumer
Marketer
Wholesaler
Retailer
Consumer
Push
13.4
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Consumer Promotion
Pulls the product through the channel
Marketer
Distributors
Consumers
Objectives:
• Trial purchase
• Brand loyalty
• Multiple purchase
13.5
© 2006 Pearson Education Canada Inc.
action item
• Read the ‘action’ item on page 404 in
the text and discuss the role of each of the
following:
• Kraft
• Crayola
• YTV
• Visit YTV’s website for more contest
information.
13.6
© 2006 Pearson Education Canada Inc.
Consumer Promotion
Activities
 Coupons
 Free Samples
 Contests
 Cash Refunds
 Premiums
 Loyalty Programs
 Delayed Payment Incentives
13.7
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Coupon Distribution
13.8
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Methods of Coupon
Distribution
Coupons are distributed four basic ways:
 Product
 Media
 Point-of-Purchase
 Electronically
13.9
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Coupon Redemption by
Media
13.10
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Free Samples
Free product in a trial or regular size,
effective for achieving trial purchase.
 In-store samples most common, plus:
• Cross-sampling
• Co-operative direct mail
• Event sampling
• Sample packs
13.11
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Contests
Contests create temporary
excitement for a brand.
 Sweepstakes
 Instant Wins
Successful contests have significant media advertising
support.
13.12
© 2006 Pearson Education Canada Inc.
Cash Refunds
Money returned directly to the consumer
by the manufacturer.
 Encourage loyalty and multiple
purchases
 Slippage commonly occurs
 Successful refund offers require strong
P-O-P support
13.13
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Premiums
An item offered free or at a bargain price
when a product is purchased. It is usually
offered three ways.
1. Mail-in
2. In/On Pack
3. Coupon Offer at P-O-P
13.14
© 2006 Pearson Education Canada Inc.
Loyalty Programs
A frequent buyer program offers consumers
a bonus, such as points or “play money.”
 Canadian Tire Money
 Club Z at Zellers and Bay
 Shoppers Drug Mart’s Optimum Card
The goal is to encourage loyalty through
repeat purchases.
13.15
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Trade Promotion
Pushes the product through the channel
Marketer
Distributors
Consumers
Objectives:
• Secure listings
• Build sales volume
• Secure merchandising support
13.16
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Trade Promotion
Strategies
• Trade Allowance
• Performance Allowance
• Co-operative Advertising Allowance
• Retail In-Ad Coupons
• Dealer Premiums
13.17
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Trade Promotion
Strategies
• Collateral Material
• Dealer Display Material (P-O-P)
• Trade Shows
13.18
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Budget Allocations by
Activity
Trade
Promotion
50% 77%
Advertising
Consumer
Promotion
25% 12%
U.S.
24% 11%
Canada
Source: Nielsen Promotional Services
13.19
© 2006 Pearson Education Canada Inc.
Consumer vs Trade
Promotion
In the packaged goods market there has been
a steady shift toward trade promotion, largely
due to:
 Media Fragmentation
 Demand for accountability
 Buying Power Concentration
13.20
© 2006 Pearson Education Canada Inc.
Integrating Promotion
Strategies
Promotion strategies must be integrated with
other marketing communications activities.
Strategic decisions must consider:
• The frequency of promotions
• Relationships between product and
promotion
• Creative strategies
• Media strategies
13.21
© 2006 Pearson Education Canada Inc.