12

CC3118-Advertising & Promotion

Week 13

Chapter 12

Sales Special offers

12-1

12

1 .

2 .

3.

some.

5.

6.

Sales Special offers

Learning Goals

Understand the big difference between transact promotions and consumer marketing promotions in product sales promotions.

Take a look at various types of consumer special offers.

Recognize the key relationship among trade marketing promotions programs plus the other parts of the promotions blend.

Utilize trade promotions tools to build good ties with members in the marketing funnel.

Be aware of the goals, advantages, and disadvantages for every promotions software that can be used in marketing an organization or product.

Tie customer promotions with trade promotions and other elements of the offers mix after which match these to the overall IMC program.

12-2

FIGURE

12. 1

Types of Consumer Promotions

•

•

•

•

•

•

•

Coupons

Payments

Contests and sweepstakes

Repayments and rebates

Sampling

Bonus packs

Price-offs

12-3

Coupon codes

•

•

•

•

•

one eighty eight billion printed

1 . 6 billion redeemed (0. 85%)

Average benefit was $1. 41

Personal savings of $2. 25 billion

Coupon use

• 80% of homeowners use

• 2/3 ready to switch brands

12-4

FIGURE

12. 3

Methods of Releasing Coupons

• Print mass media

• FSI (Free Ranking

Insert)

• Direct mail

• On- or perhaps in-package

• In-store

• Scanner-delivered

• Digital promotion

• Employee delivered

12-5

A voucher accompanies this kind of informational Platinum Bond ad.

12-6

Types of Coupons

• Quick redemption

• Lead to trial purchases

• Bounce-back

• Encourages do it again purchases

• Scanner-delivered

• Encourages company switching

12-7

Disadvantages of Coupons

• Reduced earnings

• 80 percent used by company

preference customers

12-8

Types of Premiums

•

•

•

•

Free-in-the-mail

In- or on-package

Store or manufacturer

Self-liquidating

12-9

NUMBER

12. a few

Keys to Successful High quality Programs

• Match the premium to the target market

• Carefully pick the premium

• Avoid trends, try pertaining to exclusivity

• Pick a high grade reinforce the firm's item and

graphic

• Combine the high quality with other IMC tools

• Especially advertising and PUT displays

• Don't anticipate premiums to enhance short-term income

12-10

Contests and Contest

• Competitions

• Need activity, skill

• Can easily require order to enter

• Some states illegal

• Sweepstakes – random probability

• Must publish odds of winning

• Cannot need purchase

• Can get into as many times as desired

12-11

Refunds and Rebates

• Refunds – soft items

• Rebates – hard goods

• Hassle to redeem – long waiting

time

• Now expected by consumers

12-12

PHYSIQUE 12. six

Types of Sampling

•

•

•

•

•

•

•

In-store circulation

Direct sampling

Response testing

Cross-ruff sampling

Media sample

Professional sample

Selective testing

12-13

Benefit Packs

• Extra product in unique package

• Typical reward

• twenty percent to100% percent

• Most popular

• 30% bonus

12-14

FIGURE

12. 7

Reasons for Using Benefit Packs

•

•

•

•

•

•

Boost usage of an item

Match or preempt competition

Stockpile the merchandise

Develop buyer loyalty

Attract new users

Encourage company switching

12-15

Price-Offs

Short-term price decrease

12-16

Price-Offs

• Great things about price-offs

•

•

•

•

•

Excellent to get stimulating sales

Entice trial purchases

Lower financial risk

Encourage company switching

Motivate stockpiling

• Problems with price-off

• Adverse impact on revenue

• Promotes greater price sensitivity

• Potential unfavorable impact on brand image

12-17

Trade Offers

Trade Allowances

Trade Bonuses

Trade

Promotions

Trade Shows

Transact Contests

12-18

Trade Allowances

• Economical incentives to channel users

• Off-invoice allowances

•

•

•

•

•

Discount

Encourages order by channel people

Account for 35% of all operate dollars

Merchants reluctant to acquire...