Pride/Hughes/Kapoor Business, 10th Edition
Audio Review Transcript
Chapter 15 Developing Integrated Marketing Communications
7. Describe sales promotion objectives and methods
The third component of the promotion mix is sales promotion, the activities or materials that are direct inducements to customers or salespersons. Generally, the objectives of sales promotion are to draw new customers, to encourage trial purchases of a new product, to invigorate sales of a mature brand, to boost sales to current customers, to reinforce advertising, to increase traffic in retail stores, to steady irregular sales patterns, to build up reseller inventories, to neutralize competitive promotional efforts, and to improve shelf space and displays. They accomplish this by using one or more of the several promotional methods available to them. Most of these methods or techniques are either consumer sales promotion methods that they are designed to attract consumers to particular retail stores and motivate them to purchase certain new or established products; or trade sales promotion methods, which are designed to encourage wholesalers and retailers to stock and actively promote a manufacturer’s product.
Marketers may use one or more of several promotional methods. A rebate is a return of part of the purchase price of a product. A coupon reduces the retail price of a particular item by a stated amount at the time of purchase. A sample is a free product given to customers to encourage trial and purchase. A premium is a gift that a producer offers the customer in return for buying its product. A frequent-user incentive is a program developed to reward customers who engage in repeat or frequent purchases. A point-of-purchase display is promotional material placed within a retail store. It may hold merchandise or inform customers about the features of the product and encourage them to buy it. A trade show is an industry-wide exhibit at which many sellers display their products. A buying allowance is a temporary price reduction to resellers for purchasing specified quantities of a product. Finally, cooperative advertising is an arrangement whereby a manufacturer agrees to pay a certain amount of the retailer’s media cost for advertising the manufacturer’s product. (LO 7 ends)