New version page

FSU ADV 3008 - PRICE INCENTIVE SALES PROMOTION

Upgrade to remove ads

This preview shows page 1-2-3 out of 8 pages.

Save
View Full Document
Premium Document
Do you want full access? Go Premium and unlock all 8 pages.
Access to all documents
Download any document
Ad free experience
Premium Document
Do you want full access? Go Premium and unlock all 8 pages.
Access to all documents
Download any document
Ad free experience
Premium Document
Do you want full access? Go Premium and unlock all 8 pages.
Access to all documents
Download any document
Ad free experience

Upgrade to remove ads
Unformatted text preview:

PRICE INCENTIVE SALES PROMOTION Integrated Marketing Communications (IMC): A management concept designed to make all aspects of marketing communication work together as a unified force ● Advertising, Sales Promotions, Public Relations Sales Promotion: A direct inducement which offers an extra value or incentive for the product to the sales force, distributors, or the final consumer, with the primary objective of creating an immediate sale ● Incentive to behave in a certain way-- think of it as a legal bribe: short term behavior oriented ● Advertising vs Sales Promotion: ○ Advertising: creates an image over time, relies on emotional appeals, advertising appeals to the heart (sales promotion appeals to the wallet), contributes somewhat to profitability, adds intangible value to a brand ● Sales Promotion vs Advertising: ○ Sales Promotion: creates immediate action, relies on rational appeals, contributes greatly to short term profitability, adds a tangible value to the product ● Coordinating Promotions: awareness before promotion, the two tools should speak with one voice (they should have the same overall message) Behavioral Learning: ● Future behavior is determined by reinforcement accompanying past behavior ● Promotional tools act as reinforcers along with product performance to increase the probability of repeat purchase-- ex:coupon helps to reinforce the purchase decisions. BUT if you do not like the product, you’re not going to buy it Shaping: The process of learning a complex behavior by learning a series of successive approximations of the final behavior-- you’re trying to shape consumer behavior ● Errors in Implementation: Improper fading & overuse of promotional incentives-- people are never going to pay full retail price because they’ve never had to pay that much because of coupons Price-Oriented Promotional Tools: ● Samples: product given to consumer free of charge, opportunity to try the product before making a purchase-- increases credibility ○ Eliminates financial risk & eliminates inconvenience ○ Effective when: (don’t have to have all four) ■ brand is clearly superior to the competition: ex: Coke vs Pepsi ■ Product comes in limited varieties ■ Purchase cycle is short-- ex: soft drinks ■ Attitudes or behaviors must be created or changed ex: convince men that coke zero isn’t going to taste like a diet drink. ● Coupons: Certificates presented to a dealer that give the bearer a stated savings on the purchase of a particular product, likely users are current users of the product ○ Retains current users -- not always as loyal as companies want us to be○ encourages brand switching-- one brand of greek yogurt over the other ○ Increases in-home inventory-- how much of a product you have in your home. Coupon gets you to buy 10 greek yogurts instead of 1, which increases your purchase cycle, therefore keeps you from brand switching ● Money Refunds/Rebates: Buy a product, mail in proof of purchase, refund sent at a later date ○ Redemption Problems: Delay of reinforcement (want to save $50 now instead of getting it later), effort required ADDED VALUE SALES PROMOTION Added Value Promotions: product is sold at full price,consumers get more for their $$, Doesn’t reduce price/value ratio ● Premium: An extra item offered at a low price or free as an extra incentive to purchase ○ Objectives: ■ Encourage brand switching ■ Trade up to larger size ■ Increase repeat purchase ■ Put a long term message in front of the consumer ○ Methods of Distribution: In package, in store, package itself , mail, online ● Sweepstakes: A game where participants have an equal chance of winning a prize, but make no payment to enter-- increase engagement & increase awareness ● Lottery: sweepstakes with a charge to enter, illegal in most situations, donations from non-profit organizations ● Contest: Winners are selected on the basis of the skill of their entry, charge to enter Promotions to Retailers: More $$ spent than on consumer promotions ● Objectives: ○ Retail objective to push the product vs pull product ○ Maintain or increase distribution ○ Maintain or expand shelf space ○ Preempt competition--when you get more, someone else is getting less ○ Influence consumer purchase patterns ● Types of Retail Promotions: ○ Buying allowances: temporary price reductions; from manufacturer to retailer (done behind the scenes) ○ Advertising allowances (Co-operative Advertising) : Payments made by the manufacturer to the retailer to fund the retailer’s advertising of the product ○ Contests ○ Sweepstakes ○ Point of Purchase (P.O.P): Promotional materials placed at the point of purchase ■ POP Objectives:● Increase consumer learning ● Increase purchase behavior-- impulse purchases ● Low cost production & Implementation-- ● Ease of evaluation ■ Good POP for Retailers ● Monetary incentive ● Tied to other items ● Easy to set up PUBLIC RELATIONS: PR is not free advertising-- a management function that formulates and executes a program of action to earn the understanding and goodwill of its publics Differences between advertising & PR: ● Advertising: goal is to inform, persuade and remind target to buy specific brands or products-- major advertising cost = media time & space, more control over message ● PR: goal = Develop understanding & goodwill, favorable attitudes-- PR is more credible--major PR cost = non-media, less control over message Interest: ● Advertising = editorial interest not very important, personnel more likely to have a business background ● PR -- critical to success-- personnel more likely to have a journalism background Advertising & PR Similarities: stimulate interest in a target, research based situation analysis, specific objectives, detailed knowledge of media Reasons to Use PR: ● Relatively inexpensive (compared to advertising) ● cuts through advertising clutter/noise ● highly credible ● opportunity to reach different people and develop new sales leads ● difficult to reach some publics with advertising Corporate Image Advertising: An umbrella category of advertising that if for the benefit of the overall company image rather than for individual products ● Corporate image advertising relationships to PR: share the same objectives as PR (goodwill & understanding), but paid time and space generates control over message/media ● Corporate image & Product


View Full Document
Download PRICE INCENTIVE SALES PROMOTION
Our administrator received your request to download this document. We will send you the file to your email shortly.
Loading Unlocking...
Login

Join to view PRICE INCENTIVE SALES PROMOTION and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view PRICE INCENTIVE SALES PROMOTION 2 2 and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?