Advertising, Sales Promotion, and Public Relations

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Sales Promotionand Public Relations
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Objectives
1. Define and state the objectives of sales
promotion. 2. Discuss the most common forms of
consumer sales promotion. 3. List the most
common forms of trade sales promotion. 4. Discu
ss the role of public relations in the
promotional mix.
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Sales Promotion ? Provides Incentive

• Sales promotion consists of a diverse collection
  of incentive tools, mostly short term, designed
  to stimulate quicker or greater purchases of
  particular products or services by consumers or
  the trade.

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Increasing Importance of Sales Promotion

• Number of brands has increased
• Competitors use promotions frequently
• Many brands are seen as similar
• Consumers are more price-oriented
• The trade has demanded more deals from
  manufacturers
• Advertising efficiency has declined

Increasing Promotion Clutter
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Sales Promotion
Objectives of Sales Promotion
Immediate Purchase
Increase Trial
Boost consumer inventory
Encourage repurchase
Increase ad effectiveness
Encourage brand switching
Encourage brand loyalty
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Sales Promotion
Sales Promotion Targets
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Tools for Consumer Sales Promotion
Popular Tools for Consumer Sales Promotion
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Consumers Sales Promotion Goals
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Tools for Trade Sales Promotion
Unique Tools for Trade Sales Promotion
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Why use trade promotion tools?

• To persuade the retailer or wholesaler to carry
  the brand
• Prices off, allowances, free goods or slotting
  allowances
• To persuade the retailer or wholesaler to carry
  more units than the normal amount
• Volume allowances trade will work harder when
  they are loaded with manufacturers product
• Induce retailers to promote the brand
• Featuring, display and price reductions
• Stimulate retailers to push the product
• Push money, sales aids, sales contests
• Insist on proof of performance

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Consumer vs. Trade promotions
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Price vs. Added-Value Promotions

• Types of sales promotion may enhance brand image
• Pine-Sol ran a Pine-Sol in Pine Valley
  sweepstakes
• Association of ordinary cleaning agent with stars
• Toro Snow Insurance 50 to each Sept. buyer if
  it didnt snow before January.
• Häagen-Dazs ran cents-off sales promotion Sweet
  Charity where price savings would be contributed
  to support public TV

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Public Relations
A public is any group that has an actual or
potential interest in or impact on a
companys ability to achieve its objectives
Public Relations (PR) involves a variety
of programs designed to promote or protect a
companys image or its individual products.
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Functions of Public Relations
Press Relations
Corporate Communication
Public Affairs
Lobbying
Employee and Investor Relations
Crisis Management
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Major Public Relations Tools
Tools Used By PR Professionals