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PERSONAL SELLING ADVERTISING PUBLICITY SALES PROMOTION Sales Promotion
Sales Promotion Importance  ,[object Object],[object Object],[object Object],[object Object]
Sales Promotion ,[object Object],[object Object],[object Object],[object Object],[object Object],Definition: any activity or material used as a direct inducement to purchase
Sales Promotion  Methods for Consumers Contests, games & sweepstakes Product sampling, demonstrations Rebates, cents-off- Coupons, refunds
Sales Promotion  Methods for Consumers Multiple purchase offers, Frequent-user incentives P-O-P material Product placements/tie-ins Premiums
Classifying Types of Sales Promotion Promotional pricing Non-price promotions Sampling ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Rebates: A Consumer Information Source ,[object Object],[object Object],[object Object],Pepsi offers a $5 rebate on the Home Alone video
Rebates are often effective at changing purchase probabilities, even for big-ticket items
Coupons, too, can be effective at getting consumers to purchase specific products
Number of Coupons Redeemed Per (International) Household in 1992
Snapple ‘Yard Sale’ Refreshes  Sales Drive Source:  Direct Mktg News, 2004 ,[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Sales Promotion  Methods for the Trade
Trade Shows Maintain relationship Transmit messages to key accounts Remedy problems Add-on sales Selling objectives Non-selling objectives Current customers Potential customers Maintain image Test products Gather competitive intelligence Widen exposure Contact prospects Determine needs Transmit messages Commit to call back or sale Contact prospects Foster image building Test products Gather competitive intelligence
Proportion of Promotional Expenditures Trade sales promotion Consumer sales promotion Advertising
Sales Promotion,  Pro and Con ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A Benefit Congruency Framework of Sales Promotion Effectiveness JrlMktg,Oct.2000 Are monetary savings the only explanation for consumer response to sales promotions? If not, how do the different consumer benefits of sales promotion influence its effectiveness? Savings  Quality Convenience  Value expression Exploration  Entertainment  Six Benefits
Sales Promotions Benefit Matrix   Low Low High High Utilitarian   Hedonic Free Gifts Positioning Map * Coupons *  *Price Reductions Rebates * Sweepstakes Free Product Offers *  *
Study #4:  Design and Procedure
Study #4, Conclusions ,[object Object],[object Object],[object Object],[object Object],[object Object]
Study #5: Benefit Congruency Effect Design and Procedure
Study #5, Conclusions  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Discussion of Studies 4 and 5
Role of The Promotion Mix ,[object Object],[object Object],[object Object]

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Personal Sell Pt4 Sales Promo 20 Dec04 N24

  • 1. PERSONAL SELLING ADVERTISING PUBLICITY SALES PROMOTION Sales Promotion
  • 2.
  • 3.
  • 4. Sales Promotion Methods for Consumers Contests, games & sweepstakes Product sampling, demonstrations Rebates, cents-off- Coupons, refunds
  • 5. Sales Promotion Methods for Consumers Multiple purchase offers, Frequent-user incentives P-O-P material Product placements/tie-ins Premiums
  • 6.
  • 7.
  • 8. Rebates are often effective at changing purchase probabilities, even for big-ticket items
  • 9. Coupons, too, can be effective at getting consumers to purchase specific products
  • 10. Number of Coupons Redeemed Per (International) Household in 1992
  • 11.
  • 12.
  • 13. Trade Shows Maintain relationship Transmit messages to key accounts Remedy problems Add-on sales Selling objectives Non-selling objectives Current customers Potential customers Maintain image Test products Gather competitive intelligence Widen exposure Contact prospects Determine needs Transmit messages Commit to call back or sale Contact prospects Foster image building Test products Gather competitive intelligence
  • 14. Proportion of Promotional Expenditures Trade sales promotion Consumer sales promotion Advertising
  • 15.
  • 16. A Benefit Congruency Framework of Sales Promotion Effectiveness JrlMktg,Oct.2000 Are monetary savings the only explanation for consumer response to sales promotions? If not, how do the different consumer benefits of sales promotion influence its effectiveness? Savings Quality Convenience Value expression Exploration Entertainment Six Benefits
  • 17. Sales Promotions Benefit Matrix Low Low High High Utilitarian Hedonic Free Gifts Positioning Map * Coupons * *Price Reductions Rebates * Sweepstakes Free Product Offers * *
  • 18. Study #4: Design and Procedure
  • 19.
  • 20. Study #5: Benefit Congruency Effect Design and Procedure
  • 21.
  • 22.