o What is sales promotion?
§ A direct inducement that offers an extra value or incentive for the product to the sales force, distributers or ultimate consumer with the primary objective of creating an immediate sale.
Ø Sales Promotion – Trade
o Why is it growing?
§ Growing power of retailers, declining brand loyalty, increased promotional sensitivity.
§ Brand proliferation, fragmented consumer markets, short-term focus of marketers
§ Increased accountability, competition, clutter
§ Negative impact of sales promotions
· Fewer dollars to build brand equity
· Encourages consumers to purchase on the basis of price
· Detracts from the value of the brand
· Promotional Objectives
o Communicate distinctive brand attributes
o Develop and reinforce brand identity
o Build long-term brand preference
· Techniques and Practices
o Frequency programs promote repeat purchase
o Sweepstakes & contests build equity, increase involvement
o Premium offers that reinforce brand image & brand equity
o Accelerate the purchase decision process
o Generate an immediate sales increase
o Do not identify unique brand features
o Do not contribute to brand identity or image
o What is the distribution channel/channel marketing?
· Samples, coupons, premiums
· Contests/sweepstakes, refunds/rebates, bonus packs
· Price-off deals, frequency programs, event marketing
· Contests/incentives, trade allowances, POP displays
· Sales training programs, trade shows, cooperative advertising
o Specific trade promotion objectives & types
· Obtain distribution for new products
· Maintain support for established brands
· Encourage display of products
· Build retail inventories
· POP Displays, sales training, trade shows
· Contests, incentives, co-op advertising
· Trade allowances
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