MKT 230 1st Edition Lecture 21 Outline of Last Lecture I. AdvertisingII. Advertising AppropriationIII. Media PlanIV. Creating Advertising MessagesV. Executing Ad CampaignsVI. Public RelationsOutline of Current Lecture – Chapter 19I. Sales PromotionII. CouponsIII. Trade Sales PromotionCurrent Lecture – Monday, April 20, 2015I. Sales Promotion- 4 elements to the promotion mixo Personal sellingo Public relationso Advertisingo Sales Promotion- Sales promotion – activity and/or material that acts as an inducement to resellers orsalespeople to sell a product or to consumers to buy it- It is used more heavily now than evero Heightened concerns about valueo Retailers demanding greater promotional effortso Declining in brand loyalty means sales promotions are more effective- Short-term resultsII. Coupons – written temporary price reduction, most widely used promotional techniqueThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.- In 2012 the CPC distributed 305 billion coupons- In 2012 the CPC had 2.9 billion redeemed coupons- The average coupon expiration time in 2012 was 9.3 weeks- The average face value of redeemed coupons was $1.53- Advantages of couponso Get people in the storeo Brand awarenesso Rewards userso Win back former userso Encourage large quantitieso E-coupons and low cost with targeting and data-gathering capabilitieso Move inventory- Disadvantages of couponso Many go unusedo Fraudo Lowers per unit profito Can decrease demando Customers wont buy without coupons- Other promotional effortso Cents-off – buyers pay a certain amount lesso Money refunds – customers are mailed a specific amount of money with a proof-of-purchaseo Rebates – customer sent a specific amount of moneyo Frequent user incentivesManufacturerManufacturerCoupon DistributorCoupon DistributorThe ShopperThe ShopperStoreStoreCoupon ClearinghouseCoupon ClearinghouseReportsReportsPaymentsPaymentso Point of purchase materials – signs, window displays, counter prices designed to attract customerso Demos – show customers how product workso Free Samples – stimulate trial of producto Premiums – items offered as bonus for purchaseo Consumer contests and games – compete for prizes based on chance or analytic skillsIII. Trade Sales Promotions – persuade wholesalers and retailers to carry and aggressively market a producer’s product- Trade Allowances o Buying Allowance – temporary price reduction to resellers purchasing set quantitieso Buy-Back Allowance – money for each unit resellers buys after promotional deal
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