Promotional Mix
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Transcript of Promotional Mix
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PROMOTIONAL MIX
Sales Promotion: Represents all marketing activities used to promote sales outside of personal selling, advertising, and PR. Increase salesAcquire customersCreate a positive business or corporate image
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SALES PROMOTIONS V. ADVERTISING
Advertising positions a product or service so that it looks better to a consumer compared to its competition
Sales Promotions include a variety of strategies designed to offer purchasers an extra incentive to buy.
Why use sales promotions? To increase sales in a short time. To introduce a new product on the market
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SALES PROMOTIONS Sales promotions are Incentives that encourage
customers to buy products or services Broken down into Trade Promotions & Consumer
Promotions
Trade promotions are sales promotion activities designed to get support for a product from a manufacturer, wholesaler, & retailer.
Trade promotions focus on businesses selling to other businesses
A lot of money is spent on promoting your product to other businesses versus the actually consumer
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TRADE PROMOTIONS
Types of Trade Promotions that exist include:Promotional AllowancesCooperative AdvertisingSlotting AllowancesSales Force PromotionsTrade Shows & ConventionsDealer Loaders
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TRADE PROMOTIONS: PROMOTIONAL ALLOWANCE Promotional Allowance: Funds given by a manufacturer to a middleman or retailer for promoting its product.
For example, a household products company gives a grocery chain a promotional allowance for placing their new detergent in a special display at the end of the aisle.
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TRADE PROMOTIONS Dealer Loaders-Gift offered to
a retailer by a manufacturer as a bonus for purchasing the manufacturer's merchandise.
Usually something the retailer gets to keep after promotion ends
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Cooperative Advertising:
A manufacturer supports the retailer by helping to pay for the cost of advertising a product locally.
• Example Walgreens receives money from companies like Pepsi in order for their circular to be placed in the local newspapers like the Charlotte Observer
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TRADE PROMOTIONS: SLOTTING ALLOWANCES Slotting Allowance: A one-time payment by a manufacturer or vendor to a retailer in order to ensure shelf space in the retailer's store(s) or in its warehouses.
Endcap sales 500% greater
Front Counter Sales 1000% greater
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SALES PROMOTIONS
Sales Force Allowance: Awards given to dealers and
employees who successfully meet or exceed a sales quota.
Awards range from cash prizes, to merchandise,
or travel awards.
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SALES PROMOTIONS
Trade Shows & Conventions:
Allow companies to showcase a particular line of product.
Introduce new products Encourage increased sales of
existing products Gain support
Many companies invest millions of dollars in their display booths.
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SALES PROMOTIONS: CONSUMER PROMOTIONS
Consumer Promotions: Sales strategies that encourage customers and prospects to buy a product or service.
Support advertising, personal selling, & PR efforts.
Include promotional tactics such as distributing coupons, premiums, product samples, loyalty programs, & product placement.
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SALES PROMOTIONS: CONSUMER
Coupons: Certificates that entitle customers to cash discounts on goods and services.
Stores that accept coupons send them to the manufacturers’ headquarters or to a clearinghouse to be sorted and passed along to redemption centers.
The centers in turn reimburse the stores for the face value of each coupon plus a handling charge of about $.08.
The redemption center then bills the manufacturer for the amount they pay.
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CONSUMER PROMOTIONS
Rebates-like coupons, offer value to purchasers typically by lowering product price.
Rebates often request the purchaser to submit personal data in order to obtain rebate.
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CONSUMER PROMOTIONS
Free Standing Inserts:Advertising brochure, card, or leaflet inserted in a newspaper or magazine, usually to serve as a reply coupon or discount voucher.
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CONSUMER PROMOTION
Promotional Pricing: A reduction on the selling price of a product
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CONSUMER SALES PROMOTIONS
Trade-In allow consumers to obtain lower prices by exchanging something the customer possess, such as an older product that the new purchase will replace.
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CONSUMER PROMOTIONS Demonstrations-promotional
technique whereby the use of a product is demonstrated in a retail outlet.
The in-store demonstration is used most often in large department stores, supermarkets, or mass-merchandise outlets that exhibits a heavy consumer-traffic pattern.
Often, manufacturers will offer product discounts to dealers who will do in-store demonstrations.
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CONSUMER PROMOTIONS
Premiums: Low cost items given to consumers at a discount or for free.
Designed to increase sales by building product loyalty, & attracting new customers.
Should create an immediate need for the customer to buy
The 3 most common types of consumer premiums are factory packs, traffic builders, & coupon plans.
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CONSUMER SALES PROMOTIONS
A traffic builder is a low cost premium that a
company gives away to customers for attending
an event
Factory packs are free gifts placed in product packages.
Coupon Plans are ongoing programs that
offer a variety of premiums in exchange for labels or coupons.
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CONSUMER SALES PROMOTIONS
Sponsorships:
Companies pay a fee for the right to promote itself & its products or services at or
on a set location.
The locations can be a physical site (stadium), an event (concert), a group (car
racing team), or a person (golfer).
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CONSUMER SALES PROMOTIONS
Loyalty Marketing Programs
Frequent Buyer ProgramReward customers for patronizing
company
Airlines: Frequent Flyer Programs
T.G.I. Fridays: Gold Points Card
Hotel: Stay 2 Nights, Get 3rd Free
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CONSUMER SALES PROMOTION
Product Placement
A consumer promotion that involves using a brand-name product in a movie, television
show, sporting event, or music video.
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CONSUMER SALES PROMOTIONS Incentive
High priced items earned through giveaways, sweepstakes, & contests
Prizes are usually cash prizes, cars, or vacations
Contests: Consumers usually have to do something to win
Sweepstakes: Game of chance to win
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CONSUMER SALES PROMOTIONS
Product Sample:
Free sample of the product
Can be sent through the mail or given in person
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CONSUMER PROMOTIONS
Personal Appearance:
Someone of interest to the target market is paid to make an appearance supporting a product Author Sports figure Celebrity
Generates foot traffic to store or mall
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CONSUMER SALES PROMOTIONS
Point-of-Purchase Displays
Displays designed primarily by
manufacturers to hold and display their
products
Promote impulse purchases
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ASSIGNMENT Create five types of sales or consumer promotions for any product or service you wish All promotions must be original No copy & paste
You can draw out your designs or use a computer
Examples: Create a coupon for a product that interests you Draw a FactoryPack Create a flyer of a concert or event that is being sponsored Do a video or take a picture where product placement is being used
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EXAMPLE OF A COUPON
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EXAMPLE OF A CONCERT FLYER WITH SPONSORSHIP