PROMOTION

By:

DR. SHIRLEY C. EJE

Professor

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Promotion

• the element in an organization’s marketing mix that serves to inform, persuade, and reminds the market of a product and/or organization selling it, in hopes of influencing the recipients feelings, beliefs, or behavior.

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Chpt 13 in the Marketing 106 course Copyright, Professor W.T.G. Richardson, Seneca College

Relationship between Advertising and the Product Life Cycle

Not mentioned in your textbook

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Informing

• people have to know about it, in order to buy it

Advertising that seeks to develop demand through presenting factual information on the attributes of a product or service.

Tends to be used in promoting NEW products.

Use in the Introductory Stage of PLC

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PersuadingPersuading

• when competition offers similar product, you have to “persuade” them to try yours

Advertising that emphasizes using words and/or images to try to create an image for a product and to influence attitudes about it.

Used by Coke and Pepsi re: lifestyle ads.

Used after the Introductory Stage of the PLC

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RemindingReminding

• when new competition comes along, you have to “remind” customers of your greater experience, advantages etc.

Advertising whose goal is to reinforce previous promotional activity by keeping the product’s or service’s name in front of the public.

Used in the Maturity Period and the Decline Stage of the PLC.

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• Pushing through the promotion channelPushing through the promotion channel

ProducerProducer - - personal selling 2 wholesaler retailer personal selling 2 wholesaler retailer customercustomer

Promotion techniques usedPromotion techniques used

• run ads in trade magazines to make wholesalers aware of the run ads in trade magazines to make wholesalers aware of the productproduct

• provide incentives to retailers to carry the item provide incentives to retailers to carry the item “… free case of drinks “… free case of drinks with each 2 cases it buys…” page 466with each 2 cases it buys…” page 466

• run contests for salespeople to win prizes for selling the run contests for salespeople to win prizes for selling the productproduct

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• Pulling through the promotion channelPulling through the promotion channel

ProducerProducer - - personal selling 2 wholesaler retailer personal selling 2 wholesaler retailer customercustomer

Promotion techniques usedPromotion techniques used

• run TV commercials so customers directly learn about the run TV commercials so customers directly learn about the product - then they go to the store and ask for it, or call around product - then they go to the store and ask for it, or call around to find out where it is soldto find out where it is sold

• give free samples to potential customersgive free samples to potential customers

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• Pulling through the promotion channelPulling through the promotion channel

ProducerProducer - - personal selling 2 wholesaler retailer personal selling 2 wholesaler retailer customercustomer

Sometimes you do “pulling” when the Middlemen Sometimes you do “pulling” when the Middlemen cannot be pushed, that is they already have a cannot be pushed, that is they already have a competitors product, so the way to get Middlemen to competitors product, so the way to get Middlemen to WANT to carry the product, is to have customers ask WANT to carry the product, is to have customers ask for it. for it.

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Promotional methods:

•Personal Selling

•Advertising

•Sales Promotion

•Public Relation

•Publicity

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Personal Selling

• direct communication between seller and buyer

• face2face contact

•Usually used to sell industrial goods and services

•Also used to sell some expensive consumer items, eg. Cars, computer systems

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Advertising

• communicating with large numbers of potential customers

• “non”-personal selling

• used when the target market is large and dispersed

•any paid form of nonpersonal communication eg. Techniques include billboard ads and TV commercials

•Advertising is a form of Mass Selling

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Sales Promotion

• a demand-stimulating activity designed to supplement advertising and facilitate personal selling.

•it is paid by a sponsor

•involves an incentive to encourage a purchase

•Example: contests, trade shows, in-store displays, rebates, samples, premiums, discounts and coupons.

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Public Relation

• it encompasses a wide variety of communication efforts to contribute to generally favorable attitudes and opinions toward an organization and its products.

•this includes newsletter, annual reports, lobbying, and sponsorship of charitable or civic events.

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The The generation of awarenessgeneration of awareness about a product about a product beyond regular advertising methods.beyond regular advertising methods.

Usually less costly than advertising because Usually less costly than advertising because sometimes the message is spread for free by sometimes the message is spread for free by a newspaper article or TV story.a newspaper article or TV story.

PublicityPublicity

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Examples of Publicity

• famous person photographed using your product

• your product mentioned in National News in a positive way

• your product featured in a movie

• TV commentary about aspects of your product trade magazines carrying a storyeg. Road and Track doing a feature on the new Landrover

PublicityPublicity

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Publicity can be negative

eg. If a famous movie star gets electrocuted using your product, this can cause people to NOT want to buy it - this would be a major problems

eg. If your product is sabotaged - this could include tampering with medical products ie. Tylenol

eg. If there are negative rumours about the ingredients in your product

eg. If there are negative ingredients about the moral aspects of your company

PublicityPublicity

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Promotion PeoplePromotion People

• Sales ManagersSales Managers

• Advertising ManagersAdvertising Managers

• Sales Promotion ManagersSales Promotion Managers

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Promotion PeoplePromotion People

Sales ManagersSales Managers

• Are concerned with managing Are concerned with managing personal sellingpersonal selling

• In small companies this person also In small companies this person also does the advertising and sales does the advertising and sales promotionpromotion

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Promotion PeoplePromotion PeopleAdvertising ManagersAdvertising Managers

• They manage the mass selling activitiesThey manage the mass selling activities

• They chose the company to make the They chose the company to make the commercialscommercials

• Pick the billboard signs etc.Pick the billboard signs etc.

• If the company is big enough they hire an If the company is big enough they hire an outside agencyoutside agency

• They may also do publicity as wellThey may also do publicity as well

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Promotion PeoplePromotion People

Sales Promotion ManagersSales Promotion Managers

• They manage the Sales Promotion They manage the Sales Promotion activitiesactivities

• They decide about in-store coupons, They decide about in-store coupons, prizes, contests etc.prizes, contests etc.

• They spend a lot of time visiting the retail They spend a lot of time visiting the retail outlets where the product is soldoutlets where the product is sold

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Potential Mail RecipientsPotential Mail Recipients

Once your name is on a list for a newspaper Once your name is on a list for a newspaper subscription, your name and address can subscription, your name and address can be “sold” to another company who will mail be “sold” to another company who will mail you information to try and convince you to you information to try and convince you to buy their product.buy their product.

Buying and selling lists (databases) of such Buying and selling lists (databases) of such names is big business.names is big business.

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Comparison of Direct Marketing and General AdvertisingComparison of Direct Marketing and General Advertising

Direct MarketingDirect Marketing General AdvertisingGeneral Advertising

Selling to individuals. Customers areSelling to individuals. Customers are Mass selling. Buyers identified as broadMass selling. Buyers identified as broadoften identifiable by name, address, andoften identifiable by name, address, and groups sharing common demographic andgroups sharing common demographic andpurchase behaviour.purchase behaviour. psychographic characteristics.psychographic characteristics.

Products have added value or service.Products have added value or service. Product benefits do not always includeProduct benefits do not always includeDistribution is important product benefit.Distribution is important product benefit. convenient distribution channels.convenient distribution channels.

The medium is the marketplace.The medium is the marketplace. Retail outlet is the marketplace.Retail outlet is the marketplace.

Marketer controls product until delivery.Marketer controls product until delivery. Marketer may lose control as productMarketer may lose control as productenters distribution channel.enters distribution channel.

Advertising used to motivate anAdvertising used to motivate an Advertising used for cumulative effectAdvertising used for cumulative effectimmediate order or inquiry.immediate order or inquiry. over time to build image, awareness,over time to build image, awareness,

loyalty, benefit recall. Purchase actionloyalty, benefit recall. Purchase actiondeferred.deferred.

Repetition used within ad.Repetition used within ad. Repetition used over time.Repetition used over time.

Consumers feel high perceived risk – Consumers feel high perceived risk – Consumers feel less risk – have directConsumers feel less risk – have directproduct brought unseen. Recourse isproduct brought unseen. Recourse is contact with the product and directcontact with the product and directdistant.distant. recourse.recourse.

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Adoption ProcessAdoption Process

• InnovatorsInnovators

• Early Adopters Early Adopters - sales people concentrate their - sales people concentrate their efforts hereefforts here

• Early majorityEarly majority

• Late majorityLate majority

• Laggards, or nonadoptersLaggards, or nonadopters

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Setting the promotion Setting the promotion budgetbudget

Most common method is based on using Most common method is based on using past percentagespast percentages- that is to say,,,,- that is to say,,,,

If you sold $ 1,000,000 and you spent 20% If you sold $ 1,000,000 and you spent 20% on advertising, which = $200,000on advertising, which = $200,000

then,then,

if you spend $400,000 you should sell $2 if you spend $400,000 you should sell $2 million!million!

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Setting the promotion Setting the promotion budgetbudget

Other methods - used in real worldOther methods - used in real world

• Matching what competition spendsMatching what competition spends

• Based on what is required to get number Based on what is required to get number of customers that will meet corporate of customers that will meet corporate objectives - objectives - called the Task Methodcalled the Task Method- sometimes stated as a % of sales- sometimes stated as a % of sales

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• Personal sellingPersonal selling: interpersonal : interpersonal influence process involving a seller’s influence process involving a seller’s promotional presentation conducted promotional presentation conducted on a person-to-person basis with the on a person-to-person basis with the buyerbuyer

• ““A salesman is someone who sells A salesman is someone who sells goods that won’t come back to goods that won’t come back to customers who will.” (Anonymous)customers who will.” (Anonymous)

The Evolution of Personal The Evolution of Personal SellingSelling

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• Has been a standard business activity for Has been a standard business activity for thousands of yearsthousands of years

• Early peddlers sold goods they Early peddlers sold goods they manufactured or imported . . . viewed manufactured or imported . . . viewed selling as a secondary activityselling as a secondary activity

• In 18th century America, peddlers sold In 18th century America, peddlers sold directly to farmers and settlers in the directly to farmers and settlers in the WestWest

• In the 19th century, drummers sold to In the 19th century, drummers sold to both consumers and intermediaries both consumers and intermediaries sometimes using questionable practices sometimes using questionable practices and built negative stereotypes which and built negative stereotypes which persist today persist today

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• Today’s salesperson is usually a highly-trained Today’s salesperson is usually a highly-trained professionalprofessional

• Sales professionals take a customer-oriented Sales professionals take a customer-oriented approach employing truthful, nonmanipulative approach employing truthful, nonmanipulative tactics in order to satisfy the long-term needs of tactics in order to satisfy the long-term needs of both the customer and the selling firmboth the customer and the selling firm

• Today’s professional salespeople are problem Today’s professional salespeople are problem solvers who seek to develop long-term solvers who seek to develop long-term relationships with customersrelationships with customers

Slide 32Promotion• Factor affecting the importance of Factor affecting the importance of

personal selling in the promotional mixpersonal selling in the promotional mixVariable Conditions That Favor

Personal SellingConditions That Favor Advertising

Consumer

Product

Geographically concentrated

Relatively low numbers

Expensive

Technically complex

Custom made

Special handling requirementsTransactions frequently involve trade-ins

Geographically dispersed

Relatively high numbers

Inexpensive

Simple to understand

StandardizedNo special handling requirementsTransactions seldom involve trade-ins

Price Relatively high Relatively low

Channels Relatively short Relatively long

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The Four Sales ChannelsThe Four Sales Channels

• Personal selling occurs through Personal selling occurs through several types of communication several types of communication channels including these four: channels including these four: – Over-the-CounterOver-the-Counter

– Field SellingField Selling

– TelemarketingTelemarketing

– Inside SellingInside Selling

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• Over-the-CounterOver-the-Counter: personal : personal selling conducted in retail and selling conducted in retail and some wholesale locations in which some wholesale locations in which customers come to the seller’ customers come to the seller’ place of businessplace of business

• Field sellingField selling: sales presentations : sales presentations made at prospective customers’ made at prospective customers’ homes or businesses on a face-to-homes or businesses on a face-to-face basisface basis

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• TelemarketingTelemarketing: promotional : promotional presentation involving the use of the presentation involving the use of the telephone on an telephone on an outboundoutbound basis by basis by salespeople or on an salespeople or on an inboundinbound basis basis by customers who initiate calls to by customers who initiate calls to obtain information and place ordersobtain information and place orders

• Inside SellingInside Selling: performing the : performing the functions of field selling but avoiding functions of field selling but avoiding travel-related expenses by relying on travel-related expenses by relying on phone, mail, and electronic commerce phone, mail, and electronic commerce to provide sales and product service to provide sales and product service for customers on a continuing basisfor customers on a continuing basis

Slide 36Promotion• Integrating the Various Selling Integrating the Various Selling ChannelsChannels

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Trends in Personal SellingTrends in Personal Selling• Relationship sellingRelationship selling: regular contacts : regular contacts

over an extended period to establish a over an extended period to establish a sustained seller-buyer relationshipsustained seller-buyer relationship

• Consultative sellingConsultative selling: meeting : meeting customer needs by listing to them, customer needs by listing to them, understanding -- and caring about -- their understanding -- and caring about -- their problems, paying attention to details, problems, paying attention to details, and following through after the saleand following through after the sale– Cross-sellingCross-selling

Slide 38Promotion• Buyers prefer to do business with Buyers prefer to do business with

salespeople who:salespeople who:– Orchestrate events and bring to bear whatever Orchestrate events and bring to bear whatever

resources are necessary resources are necessary to satisfy the customerto satisfy the customer

– Provide counseling to the customer based on in-Provide counseling to the customer based on in-depth knowledge of the product, the market, depth knowledge of the product, the market, and the customer’s needsand the customer’s needs

– Solve problems extremely proficiently to ensure Solve problems extremely proficiently to ensure satisfactory customer service over extended satisfactory customer service over extended time periodstime periods

– Demonstrate high ethical standards and Demonstrate high ethical standards and communicate honestly at all timescommunicate honestly at all times

– Willingly advocate the customer’s cause within Willingly advocate the customer’s cause within the selling organizationthe selling organization

– Create imaginative arrangements to meet Create imaginative arrangements to meet buyers’ needsbuyers’ needs

– Arrive well-prepared for sales callsArrive well-prepared for sales calls

Slide 39Promotion• Team SellingTeam Selling: combination of : combination of

salespeople with specialists from other salespeople with specialists from other functional areas to promote a productfunctional areas to promote a product– Virtual sales teamVirtual sales team

• Sales Force AutomationSales Force Automation (SFA): (SFA): applications of computer and other applications of computer and other technologies to make the sales function technologies to make the sales function more efficient and competitivemore efficient and competitive– Benefits include improved effectiveness Benefits include improved effectiveness

due to improved access to information, due to improved access to information, lower costs, improved product launches, lower costs, improved product launches, and attentive customer serviceand attentive customer service

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Sales TasksSales Tasks

• Three basic sales tasks can be Three basic sales tasks can be identified:identified:– Order ProcessingOrder Processing

– Creative SellingCreative Selling

– Missionary salesMissionary sales

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• Order ProcessingOrder Processing: selling, mostly at the : selling, mostly at the wholesale and retail levels, that involves wholesale and retail levels, that involves identifying customer needs, pointing them identifying customer needs, pointing them out to customers, and completing ordersout to customers, and completing orders

• Creative SellingCreative Selling: personal selling involving : personal selling involving situations in which a considerable degree of situations in which a considerable degree of analytical decision making on the buyer’s analytical decision making on the buyer’s part results in the need for skillful proposals part results in the need for skillful proposals of solutions for the customer’s needsof solutions for the customer’s needs

• Missionary salesMissionary sales: indirect type of selling in : indirect type of selling in which specialized salespeople promote the which specialized salespeople promote the firm’s goodwill among indirect customers, firm’s goodwill among indirect customers, often by assisting customers in product useoften by assisting customers in product use

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The Sales ProcessThe Sales Process• The AIDA Concept and the Personal Selling ProcessThe AIDA Concept and the Personal Selling Process

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• ProspectingProspecting: personal-selling : personal-selling function of identifying potential function of identifying potential customerscustomers

• QualifyingQualifying: determining that a : determining that a prospect has the needs, income, and prospect has the needs, income, and purchase authority necessary for purchase authority necessary for being a potential customerbeing a potential customer

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• ApproachApproach: salesperson’s initial contact : salesperson’s initial contact with a prospective customerwith a prospective customer

– Precall PlanningPrecall Planning: use of information : use of information collected during the prospecting and collected during the prospecting and qualifying stages of the sales process and qualifying stages of the sales process and during previous contacts with the prospect to during previous contacts with the prospect to tailor the approach and presentation to tailor the approach and presentation to match the customer’s needsmatch the customer’s needs

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• PresentationPresentation: describing a product’s : describing a product’s major features and relating them to a major features and relating them to a customer’s problems or needscustomer’s problems or needs

• DemonstrationDemonstration allows the customer allows the customer to experience a good or serviceto experience a good or service

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• Handling ObjectionsHandling Objections: expressions : expressions of sales resistance by the prospectof sales resistance by the prospect– Example: A customer’s “I don't like the Example: A customer’s “I don't like the

color” is probably their way of asking color” is probably their way of asking what other colors are availablewhat other colors are available

– Objections are reasonable and Objections are reasonable and professional salespeople are prepared professional salespeople are prepared to handle them appropriatelyto handle them appropriately

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• ClosingClosing: stages of personal selling : stages of personal selling where the salesperson asks the where the salesperson asks the customer to make a purchase customer to make a purchase decisiondecision

• Follow-upFollow-up: postsales activities that : postsales activities that often determine whether an individual often determine whether an individual who has made a recent purchase will who has made a recent purchase will become a repeat customerbecome a repeat customer– Helps build mutually beneficial long-term Helps build mutually beneficial long-term

relationshipsrelationships

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Managing the Sales EffortManaging the Sales Effort

• Sales managementSales management: Activities of : Activities of planning, organizing, staffing, planning, organizing, staffing, motivating compensating, and motivating compensating, and evaluating and controlling a sales evaluating and controlling a sales force to ensure its effectivenessforce to ensure its effectiveness

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• Recruitment and SelectionRecruitment and Selection– One of the sales manager’s greatest One of the sales manager’s greatest

challengeschallenges

– Careful selection is important for two Careful selection is important for two reasons:reasons:• Substantial costs involvedSubstantial costs involved

• Mistakes are costly and detrimental to Mistakes are costly and detrimental to customer relations and sales-force customer relations and sales-force performanceperformance

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• TrainingTraining– Principal methods used are on-Principal methods used are on-

the-job training, individual the-job training, individual instruction, in-house classes, and instruction, in-house classes, and external seminarsexternal seminars

– Popular training techniques Popular training techniques include instructional include instructional videotapes/DVDs, lectures, roll-videotapes/DVDs, lectures, roll-playing exercises, slides, films, playing exercises, slides, films, and interactive computer and interactive computer programsprograms

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• OrganizationOrganization

– General organizational alignment may General organizational alignment may be based on geography, products, types be based on geography, products, types of customers, or some combination of of customers, or some combination of these factorsthese factors

– National accounts organizationNational accounts organization: : organizational arrangement that assigns organizational arrangement that assigns sales teams to a firm’s largest accountssales teams to a firm’s largest accounts

Slide 52Promotion• Basic approaches to organizing the sales forceBasic approaches to organizing the sales force

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• SupervisionSupervision– Span of controlSpan of control: the number of sales : the number of sales

representatives who report to the first representatives who report to the first level of sales managementlevel of sales management

– Optimal span of control is affected by Optimal span of control is affected by such factors as complexity work activities such factors as complexity work activities being performed, ability of the individual being performed, ability of the individual sales manager, degree of sales manager, degree of interdependence among individual interdependence among individual salespersons, and the extent of training salespersons, and the extent of training each salesperson receiveseach salesperson receives

Slide 54Promotion• MotivationMotivation

– Efforts to motivate salespeople usually Efforts to motivate salespeople usually take the form of the briefings, information take the form of the briefings, information sharing, and both psychological and sharing, and both psychological and financial encouragementfinancial encouragement

– Psychological encouragement includes Psychological encouragement includes appeals to emotional needs, recognition, appeals to emotional needs, recognition, and peer acceptanceand peer acceptance

– Financial encouragement includes Financial encouragement includes monetary rewards and fringe benefits such monetary rewards and fringe benefits such as club memberships and sales contest as club memberships and sales contest awardsawards

– Expectancy theoryExpectancy theory

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• CompensationCompensation– CommissionCommission: incentive compensation : incentive compensation

directly related to the sales or profits directly related to the sales or profits achieved by a salespersonachieved by a salesperson

– SalarySalary: fixed compensation payments : fixed compensation payments made periodically to an employeemade periodically to an employee

Slide 56Promotion• Evaluation and ControlEvaluation and Control

– Sales quotasSales quotas: level of expected sales for : level of expected sales for territory, product, customer, or salesperson territory, product, customer, or salesperson against which actual results are comparedagainst which actual results are compared

– Other measures such as customer Other measures such as customer satisfaction, profit contribution, share of satisfaction, profit contribution, share of product-category sales, and customer product-category sales, and customer retentionretention

– Another way to categorize a salesperson’s Another way to categorize a salesperson’s strong points:strong points:• Task, or technical abilityTask, or technical ability

• Process, or sequence of work flowProcess, or sequence of work flow

• Goal, or end results (output) of sales Goal, or end results (output) of sales performanceperformance

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Ethical Issues in SalesEthical Issues in Sales• Promotional activities, including Promotional activities, including

personal sales, raise many ethical personal sales, raise many ethical questionsquestions

• Sales managers can foster a corporate Sales managers can foster a corporate culture for an ethical sales environment:culture for an ethical sales environment:– Employees understand what is expected of Employees understand what is expected of

themthem

– Open communication exists between Open communication exists between employees and managersemployees and managers

– Management leads by exampleManagement leads by example

– Employees are proud of and loyal to their Employees are proud of and loyal to their organizationorganization

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Sales PromotionSales Promotion• Marketing activities other than personal Marketing activities other than personal

selling, advertising, and publicity that selling, advertising, and publicity that stimulate consumer purchasing and dealer stimulate consumer purchasing and dealer effectiveness; includes displays, trade effectiveness; includes displays, trade shows and expositions, demonstrations shows and expositions, demonstrations and various non-recurrent selling effortsand various non-recurrent selling efforts– Consumer-Oriented PromotionsConsumer-Oriented Promotions

– Trade-Oriented PromotionsTrade-Oriented Promotions

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• Consumer-Oriented Promotions Consumer-Oriented Promotions – Coupons and RefundsCoupons and Refunds

• CouponsCoupons offer discounts on the offer discounts on the purchase price. Nearly $5 billion purchase price. Nearly $5 billion redeemed annuallyredeemed annually

– Free-standing insertsFree-standing inserts (FSIs) in Sunday (FSIs) in Sunday newspapers account for about 75 percent of newspapers account for about 75 percent of all couponall coupon

• RefundsRefunds offer cash back to consumers offer cash back to consumers with proof of purchasing one or more with proof of purchasing one or more productsproducts

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– Samples, Bonus Packs, and Samples, Bonus Packs, and PremiumsPremiums• SamplingSampling refers to the free distribution of refers to the free distribution of

a product in an attempt to obtain future a product in an attempt to obtain future sales. “Try it, you'll like it.”sales. “Try it, you'll like it.”

• A A bonus packbonus pack is a specially packaged is a specially packaged item that gives the purchaser a larger item that gives the purchaser a larger quantity at the regular price.quantity at the regular price.

• PremiumsPremiums are items given free or at a are items given free or at a reduced cost with the purchases of other reduced cost with the purchases of other productsproducts

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– Contests and SweepstakesContests and Sweepstakes• ContestsContests require entrants to solve require entrants to solve

problems or write essays -- they may problems or write essays -- they may also require proofs of purchasealso require proofs of purchase

• SweepstakesSweepstakes select winners by select winners by chance -- no product purchase is chance -- no product purchase is necessarynecessary

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– Specialty AdvertisingSpecialty Advertising• Sales promotion technique that places Sales promotion technique that places

the advertiser's name, address, and the advertiser's name, address, and advertising message on useful articles advertising message on useful articles that are then distributed to target that are then distributed to target marketsmarkets

• More than $8 billion worth of specialty More than $8 billion worth of specialty advertising items are given out annuallyadvertising items are given out annually

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• Trade-Oriented PromotionsTrade-Oriented PromotionsSales promotion that appeals to Sales promotion that appeals to marketing intermediaries rather marketing intermediaries rather than to consumersthan to consumers– Trade allowancesTrade allowances: deals offered to : deals offered to

wholesalers and retailers for wholesalers and retailers for purchasing or promoting specific purchasing or promoting specific productsproducts

– Point-of-purchase (POP) Point-of-purchase (POP) advertisingadvertising: a display or other : a display or other promotion located near the site of promotion located near the site of the actual buying decisionthe actual buying decision

Slide 64Promotion– Trade showsTrade shows: vendors’ displays and the : vendors’ displays and the

demonstrations at sites often organized demonstrations at sites often organized by industry trade associations, perhaps by industry trade associations, perhaps as part of these association’s annual as part of these association’s annual meetings or conventions.meetings or conventions.

– Dealer incentives, contest, and Dealer incentives, contest, and training programstraining programs are run by the are run by the manufacturers to induce retailers and manufacturers to induce retailers and their salespeople to increase sales and their salespeople to increase sales and to promote product to promote product • Push moneyPush money is an incentive that gives is an incentive that gives

retail salespeople cash rewards for every retail salespeople cash rewards for every unit of a product they sellunit of a product they sell

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• Measuring Sales Promotion Measuring Sales Promotion EffectivenessEffectiveness– Since many sales promotions result in Since many sales promotions result in

direct consumer responses, marketers direct consumer responses, marketers can relatively easily track their can relatively easily track their effectivenesseffectiveness

– As with other methods, marketers must As with other methods, marketers must weigh the cost against the benefitsweigh the cost against the benefits

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• Ethics in Sales PromotionEthics in Sales Promotion– Sales promotions provide opportunities Sales promotions provide opportunities

for unscrupulous companies to take for unscrupulous companies to take advantage of consumersadvantage of consumers

– Trade allowances, particularly slotting Trade allowances, particularly slotting allowances, have been criticized for years allowances, have been criticized for years as a form of briberyas a form of bribery

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ACTIVITIES:ACTIVITIES:

• Assume you are marketing a new perfume scent Assume you are marketing a new perfume scent for men and women. Briefly describe the roles for men and women. Briefly describe the roles you would assign to advertising, personal selling, you would assign to advertising, personal selling, sales promotion and publicity in your promotional sales promotion and publicity in your promotional campaign.campaign.

• A promotional campaign is a coordinated series A promotional campaign is a coordinated series of promotional efforts built around a single theme of promotional efforts built around a single theme and designed to reach a predetermined goal. For and designed to reach a predetermined goal. For recruiting new student, describe the promotional recruiting new student, describe the promotional tools that you will used.tools that you will used.

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THE ENDTHE END