MARKETING COMMUNICATIONS PROJEC
viena1992
chapter12_sales_promotions.pptxCopyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall
12
Chapter Twelve
Sales Promotions
12-1
Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall
Coupons
323 billion distributed only…
3 billion redeemed (0.93%)
Coupon usage
78% of households use
64% willing to switch brands
12-2
Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall
Influencing Brand Purchases
Sampling 7.78
Word-of-mouth 7.18
Coupons 5.91
Advertising 5.61
Contests 1.24
On a scale of 1 to 10, the following are the top five influences on the brand purchased by a consumer.
Source: The Second Annual Survey of Consumer Preferences for Product Sampling, Santella & Associates (Http://www.santella.com/marketing.htm).
12-3
Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall
Print media (90%)
FSI (88%)
Direct mail
On- or in-package
In-store
Sampling
Scanner-delivered
Cross-ruffing
Response offer
Internet
Fax
Sales staff
F I G U R E 1 2 . 3
Methods of Distributing Coupons
12-4
Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall
Coupon Redemption Rates
Instant redeemable 39.3%
Bounce-back 17.2%
Instant redeemable – cross ruff 17.1%
Electronic shelf 10.2%
Electronic checkout 7.8%
In-pack 5.8%
On-pack 4.7%
Direct mail 3.5%
Handout 3.1%
Free-standing inserts 1.3%
Type of coupon Percent Redeemed
Source: Santella & Associates
12-5
Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall
Types of Premiums
Free-in-the-mail
In- or on-package
Store or manufacturer
Self-liquidating
12-6
Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall
Contests and Sweepstakes
Contests – require activity, skill
Can require purchase to enter
Some states illegal
Sweepstakes – random chance
Must publish odds of winning
Cannot require purchase
12-7
Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall
In-store distribution
Direct sampling
Response sampling
Cross-ruff sampling
Media sampling
Professional sampling
Selective sampling
F I G U R E 1 2 . 6
Types of Sampling
12-8
Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall
Price-Offs
Temporary price reduction
Stimulating sales
Brand switching
Stockpiling
12-9
Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall
Trade Promotions
12-10
Account for 70% of marketing budget
Often 2nd largest expense
Account for 17.4% of gross sales
For Manufacturers
Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall
Off-invoice allowance
Price discount
35% of all trade dollars
Slotting fees
Exit fees
F I G U R E 12 . 10
Trade Allowances
12-11
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Trade Allowance Complications
Failure to pass allowances on to retail customers
Only occurs 52% of the time
Retailers like only one brand on-deal at a time
Forward buying
Diversion
12-12
Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall
Trade Contests
Used to achieve sales targets
Funds known as “spiff money”
Rewards can be prizes or cash
Some organizations do not allow trade contests because of possible conflict of interests
12-13
Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall
Cooperative Advertising
Manufacturer pays part of retailer’s ad costs
Retailer must follow specific guidelines
No competing brands
Retailers accrue monies
Amount is based on sales
Allows retailers to expand advertising
Manufacturers gain exposure in local markets
12-14
Copyright © 2010 by Pearson Education, Inc. publishing as Prentice Hall
Trade Shows
Manufacturers (sellers)
Display merchandise
Seek prospects
12-15
Retailers (buyers)
Compare merchandise
Seek vendors
Business-to-Business
