Unit13.SalesPromotionSalesPromotionSalespromotioncoversaninfinitearrayofactivatestocreateshort-termsales.Inrecentyears,salespromotionandadvertisinghavebeenincreasinglyusedinanintegratedefforttobuildbrandloyaltyandlong-termsalesandcreateanincentivetopushtheconsumertowardanimmediatepurchase(salespromotion).Despitethefactthatadvertisingandsalespromotionarebeingusedtogetherinanunitedefforttoincreaseprofitability,itiscriticalthatwenotblurthefactthatadvertisingandsalespromotionaredifferentintermsofexecutionandobjectives.MajorFormsofSalesPromotionSalespromotionhasbecomearoutineformostproductmanufacturersasadvertising.Itisestimatedthatover95percentoffirmsmarketingconsumerproductsusesomeofsalespromotioneachyear.Seenextchart4SampleCouponsPoint-of–purchase(POP)displaySweepstakesContestsTradeshows&ExhibitionsTrialamountofaproductSavingswhenpurchasingspecifiedproductsDisplayofproductsonspotConsumerssubmittheirnamesforadrawingConsumerssubmitanentrytobejudgedOrganizedexhibitionsinspecificindustriestoshowcasenewproducts.,etc.MajorFormsof

ConsumerSalesPromotionPOINT-OF-PURCHSEADVERTISINGPoint-of–purchase(POP)displaydatedtotheearliestshopkeeperswhoprobablyplacedacrudesignonsomeslow-movingmerchandise.However,fromitshumblebeginningspoint-of–purchasehasbecomeoneofthemostprevalentandfastest-growingsegmentsofsalespromotion.POPhasflourishedintheself-servicemarketingenvironmentofthepastdecade.Asoneadvertisingexecutivepointedout,POPisthelastthreefeetofthemarketingmix,wherecustomer,theproduct,andthedollarscometogether.Thevarietyandcreativityofdisplaysofferasuitablemeansofpromotingalmostanyproduct.POPcontinuestoaddnewin-storeoptions.Inaddition,POPiscontinuallybeingcombinedwithotherformsofsalespromotionsuchassamplingandin-storecouponing.ThePOPindustryisalsomovingintoelectronic,interactive,andbroadcastmedia.Forexample,POPRadioproductsliveradioformattailoredtospecificretailersandtheircustomers,andanumberofcompaniesareofferingshoppingcartvideoandelectronicbulletinboards.NotonlyaretheseinnovationsinPOPinterestinginthemselves,buttheypointupconeagainthatadvertising,promotion,andmarketingareonestopsandtheotherbegins.Ratherthantryingtodecideinwhatcategoryatechniquebelongs,managersarebecomingmoreconcernedwithusingwhatevertechniqueswork.

COUPONS

SinceC.W.Postissuedthefirstcouponin1885,goodforonecentoffaboxofGrapeNutsFlakes,theyhavebecomethemostpopularformofsalespromotion.Itisestimatedthatsome300billioncouponswillbeissuedeachyearintheU.S.A.Manufacturersandretailersannuallydistributealmost1,500couponsforeverypersonintheUnitedStates.Intermsofusageandpopularity,couponsarewithoutquestionthemostfamiliarformofsalespromotion.

Anumberofin-storecouponingmethodsarebeingused.Amongthemthemorepopulararedistributionofcouponbooksinthestoreornewspaperinsertsinracksforstorepatrons.Inaddition,manyadvertisershavemovedtoin-packandon-packcoupons(somewithimmediateredemption).Thedangerofon-packcouponsisthatyoumaybereachingonlycustomerswhowouldhavepurchasedtheproductinanycase,anddoingsoatareducedprofit.Manymarketersfearthatcustomersviewcouponsasanexpectedpricereductionandoftensubstitutethebestcouponsforbrandloyalty.Tomany,couponsrepresentthebestexampleofthedangerofsalespromotionreplacingbrandequity.SamplingWehaveemphasizedthroughthetextthat,regardlessofthequalityoftheadvertisingandpromotion,ultimatelytheproductmustsellitself.Thisisthephilosophybehindproductsampling.Samplingisthefreedistributionofaproducttoaprospectmarket.Itvirtuallyguaranteesthatconsumerswillgiveaproductaninitialtrial.However,itisthemostexpensiveformofsalespromotionandisusedtoeitherintroduceanewproductorpenetratenewmarketswithanestablishedone.Thesuccessofsamplingisdemonstratedbythefactthatapproximately90percentofcompaniesusesamplingandcurrentlyinvest13percentoftotalconsumerpromotionalbudgetinthetechnique.Samplingandotherformsofin-storepromotionshavedrivenconsumerpromotionalbudgetspastthoseoftraditionalconsumermediaadvertising.Thepopularityofsamplingisdirectlyrelatedtotheabilityofmanufacturerstoidentifyandreachspecifictargetsegments.Samplinghasbecomemoresophisticatedthanjusthangingmini-boxesofdetergentondoorknobs.Marketersareputtingtrial-sizepackagesinconsumer’shandsthoughtargetedgiveawayprogramswithretailers,atunexpectedplaceslikeairplaneandtheatersaswellasspecialevents.However,manufacturersarefindingitincreasinglynecessarytobalancethepositivefeaturesofsamplingwiththeneedforminimalwasteofcirculation.SWEEPSTAKESANDCONTESTSThegoalofsalespromotionistogainimmediatesalesandconsumerinvolvement.Aprimarytechniquetoaccomplishboththesegoalsaresweepstakesandcontests.Whilethestrategiesofbothareoftensimilar,therearesignificantdifferencesinthetwotypespromotions.Sweepstakesaremuchmorepopularthancontestsandarebasedsolelyonchance.Contest,ontheotherhand,mustcontainsomeelementofskill,forexample,writingajingleorcompletingapuzzle.SweepstakesSweepstakesusuallydependonsomeformofrandomdrawing,butmanysweepstakesuseacontinuityformat,suchashavingconsumersfindbottlecapsthatspelloutwordofphrase.ThePrimaryadvantageofsweepstakesisthattherulesarerelativelysimpleandthereislittleornojudgmentinvolvedinchoosingwinners.Inaddition,itispossibletohaveso-calledinstantwinners,whichheightenstheanticipationandconsumerinvolvement.Fast-foodchainsareamongtheprimaryusersofinstantwinners.

OneProblemfacedbysweepstakesisthatsomanycompanieshaveusedthemovertheyearsthattheyarelosingsomeoftheirnovelty.Inaddition,mostconsumersknowthattheoddsofwinningasignificantprizeareoverwhelmingandconsequentlydon’tbothertoenter.Finally,sweepstakespromotionshavelostsomeoftheirglamourincomparisontothestate-runlotteriesofferingmillionsofdollarsinprizes.Anotherpotentialdrawbacksofsweepstakesisthattheproductbecomessecondarytothegame.Manycontestsandsweepstakesareoftenenteredbyprofessionalgameplayerswhohavenointerestintheproductandwillnotbecomeregularusersoncethecontestorsweepstakesiscompleted.Ontheotherhand,amajorsweepstakesmaygenerateagreatdealofpublicitybeyondthepaidadvertisingusedtopromoteit.ContestsAsmentionedearlier,contestsarenotnearlyaspopularassweepstakes.Advertisersconductroughlyfivetimesasmanysweepstakesascontests.Sincecontestscallforsomeelementofskill,theremustbeaplanforjudgingandmakingcertainalllegalrequirementshavebeenmet.Thetypicalcontestsisalsomuchmoreexpensivethanasweepstakes.Whenmillionsofentriesareanticipated,eventhesmallestoverlookeddetailcanbeanightmareforthecontestsponsor.Anotherlimitationofthecontestsisthetimerequiredofparticipants.Themajorityofconsumersarenotgoingtodevotethetimenecessarytocompleteacontest.Therefore,iftheintentofthepromotionistogainmaximuminterestandparticipation,asweepstakeswillprobablybebettersuitedtotheobjective.Ontheotherhand,acleverlydevisedcontestthatcomplementstheproductandappealstotheskillsofprimeprospectscanbeextremelybeneficialandmoreefficientthanasweepstakes.TRADESHOWSANDEXHIBITSTherearefewindustriesthatdon’tsponsorsomeformsoftradeshowsandexhibits.Tradeshows-----fromboatmanufacturerstohospitalsuppliers-----havebecomeahugebusiness.Tradeexhibitsarenecessaryinmanyindustriestomaintaincompetitiveparity,buttheyarealsoaveryexpensivemeansofreachingcustomers.Tofullyutilizethestrengthsoftradeshows,manufacturersmustdomorethanjustshowup.Successfultrade-showparticipationdemandsthatparticipantsengageinexpensivepre–andpostplanning.TradeshowsdifferfromvirtuallyeveryotherformofpromotionInfact,theyareahybridbetweenbusiness-to-businessadvertisingandpersonalselling.Tradeshowsoffercompaniesanumberofadvantagesinadditiontothesaleanddemonstrationofproducts:Theyofferface-to-facecontactwithprescreenedprospects.Theyallowcompaniestomaintainpersonalrelationshipwithsmallandmid-sizedcustomerswhomightnotbevisitedonaregularbasisbesalespeople.Anewcompanycanusetradeshowtocreateaviablecustomerbaseinarelativelyshortperiodoftime.Astutetradeshowparticipantsusethemtogaininformationabouttheirproductsandmarketingtechniquestouseinthefuture.Theprimaryfailingofmostunsuccessfultradeexhibitsislackofafocusandobjective.Atradeshowmissionhastomirrorwhattheaudienceislookingforineducationalterms.Likemostofthepromotionaltechniqueswehavediscussedinthistext,tradeshowsareanimportantcomplementtomediaadvertising.Themoreconsumersknowaboutyourproductandthehighernamerecognitionyourbrandenjoys,thegreaterthechancesthattradeshowparticipantswillstopbyyourbooth.Therelationshipbetweentradeshowsandadvertisingismostapparentfromthenumberofbusinesspublicationsgettingintothemarket,bothasexhibitorsandsponsors.Infact,businesspublicationsarebecomingprimarysupportersoftradeshows.Tradeshowsprovideavalue-addedserviceforadvertisersthatarealreadyusingapublicationaswellasprovidingaforumforsolicitationofnewadvertisers.Showsareasourceofadditionalprofitsformostpublishers.23ReviewofKeyTermsandConceptsdirectmarketing:Directmarketingisamarketingtechniqueadoptedbyabusinessforobtainingadirectresponsefromtheconsumers.直銷targetsegment：Atargetsegmentisaseparategroupofcustomersthathasbeenchosenbyabusinessasthetargetmarketforpenetration.Customersinthissegmenthavesimilarityinsomeaspectssuchasages,sexorincome.目標(biāo)客戶細(xì)分.24marketingcommunication:Marketingcommunicationreferstoanintegratedapproachofcommunicatingwithconsumersthroughdifferenttypesofmedia.營(yíng)銷傳播Salespromotion:SalesPromotionisamasscommunicationtechniquethatoffersshort-termincentivestoencouragepurchaseorsalesofaproductorservice.targetsegment:Atargetsegmentisaseparategroupofcustomersthathasbeenchosenbyabusinessasthetargetmarketforpenetration.Customersinthissegmenthavesimilarityinsomeaspectssuchasages,sexorincome.目標(biāo)客戶細(xì)分.25marketingcommunication:Marketingcommunicationreferstoanintegratedapproachofcommunicatingwithconsumersthroughdifferenttypesofmedia.營(yíng)銷傳播Salespromotion:SalesPromotionisamasscommunicationtechniquethatoffersshort-termincentivestoencouragepurchaseorsalesofaproductorservice.26mediaadvertising:Advertisingspublishedonanyformsofmediaarecalledmediaadvertising.Itisthemajorformofadvertisingusedbybusinessesinadvertisingproducts.媒體廣告targetedgive-awayprogram:Itisaprogramdesignedfordistributingfreesamplestocustomerswhohavebeencarefullychosenasthetargettoreach.向目標(biāo)客戶贈(zèng)送免費(fèi)樣品計(jì)劃DiscussionandReviewQuestions1.Whatarethemajordifferencesbetweensalespromotionandadvertising?2.Howdoyoudefinethetermsalespromotionwithyourownwords?3.Givesomeexamplestoillustratethemajorformsofsalespromotionyouhaveexperiencedinyoudailylife.4.Whatarethemajorfunctionsofsalespromotion?5.Whatroledoyouthinkthatsalespromotionplaysinacompany’smarketingeffort?6.Whatfactorsshouldbetakenintoconsiderationwhenparticipatingatradeshoworanexhibition?7.Howdoyouunderstandthestatement:“POPisthelastthreefeetofthemarketingmix.”8.Whypersonalsellingisstillavitalpartofthemarketingcommunicationstrategiesemployedbysomeorganizat