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Related Flashcards
Related Topics
Cards In This Set
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Cooperative Advertising
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Horizontal cooperative advertising, ingredient-sponsored coop advertising, vertical cooperative advertising
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Horizontal cooperative advertising
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Advertising sponsored by a group of retailers or other organizations providing products or services to the market
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Ingredient-sponsored cooperative advertising
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Supported by raw materials manufacturers to help establish end products that include the company's materials
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Vertical cooperative advertising
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Manufacturer pays for a portion of the advertising a retailer runs to promote the availability of the manufacturer's product in the retailers place of business
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How has the sales promotion agency role shifted?
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More involved in developing an integrated promotional strategy, holds a position similar to the ad agency, more accountable for results, continuing strategy, one-full-service firm, agency team contact, creates strategy
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Traditional sales promotional agency role
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Created tactics, do single project, hired for specialty, single agency contact, inferior to ad agency, indirect accountability
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The Sales Promotion Trap Part (1)
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1.Us and C cut back on promotions which yields higher profit margins for everyone. 2. We maintain promotions while C cut back which increases market share, assuming market is promotion sensitive and the promotion leads to differentiation
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The Sales Promotion Trap Part (2)
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3. We cut back promotions while C maintain promotions which results in other firms increasing market share 4. We and competitors maintain promotions which keeps market share constant but results in lower profits for everyone "Classic promo trap"
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What is the sales promotion trap?
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The dilemma that companies can get into when several competitors use consumer-oriented promotions extensively
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Sales Promotion definition:
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A direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale
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Three important aspects of sales promotion
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Extra incentive to buy, tool to speed up sales, targeted to different parties
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Sales promotion can be broken into two major categories:
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Consumer-oriented, trade-oriented
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Consumer-oriented sales promotion vehicles(push strategy)
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Samples, coupons, premiums, contests/sweepstakes, refunds/rebates, bonus packs, price-off deals, loyalty programs, event marketing
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Trade-oriented sales promotion vehicles (pull strategy)
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Contests, dealer incentives, trade allowances, point of purchase displays, training programs, trade shows, cooperative advertising
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Reasons for increase in sales promotion
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Growing power of retailers, declining brand loyalty, increased promotional sensitivity, brand proliferation, fragmentation of consumer markets, short-term focus of marketers, increase accountability, competition, clutter
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