naveen chahal

1. Sales Promotion, Adervertising
and Distribution Channel

2. What is Sales Promotion?
 Various techniques to enhance brand value
 Integrated activity: Ad/PR/Marketing
 Increasing brand value for:
 Consumers
 Consumer sales promotion
 Retailers
 Trade-market sales promotion

3. Major Sales Promotion Tools
 Coupons
 Price-off deals
 Premiums
 Contests/sweepstakes
 Samples/trial offers
 Product placement
 Refunds
 Rebates
 Frequency programs

4. Major Sales Promotion Tools
 Point-of-purchase displays
 Incentives
 Allowances
 Trade shows
 Cooperative advertising

5. Coupons
 Advantages:
 Some consumer respond to price incentives
 Coupon users are likely brand switchers
 Manufacturer controls timing of drop
 Repeat—coupon chain build brand loyalty
 Induce users to try upscale model
 Disadvantages:
 Current users use coupons, reducing profits
 High cost of administering coupon program
 Fraudulent use of coupons
 False redemption by consumers and retailers

6. Price-off & Premiums
 10-25% price reduction incentive
 Comes out of manufacturer’s pocket
 Regular users often stock up on product
 Products offered free as premium
 Products inserted inside other products
 Free Printer with laptop purchase
 Products exchanged for proof of purchase
 Might be an additional amount of same product

7. Contests and Sweepstakes
 Contest: consumers compete based on skill
 Sweepstakes: winner selected by chance
 Scratch-off cards, McD’s Monopoly game
 Problems:
 High cost of administration/prizes
 Regulations and restrictions
 Consumer focus on the game over the product

8. Sampling and Trial Offers
 Useful for new products
 Existing products with weak market shares in
specific geographic areas
 Types of Sampling:
 In-store sampling
 Door-to-door — newspaper insertion
 Mail sampling — targeted zip codes
 On-package sampling — shampoo to conditioner
 Mobile sampling — Weinermobile
 Trial offers — free for a limited time

9. Product Placement
 Products inserted into movies and TV
 Started with Reese’s Pieces in ET
 Firms specialize in product placements
 Reality TV, Sitcoms, Film, Sports

10. Frequency Programs
 Frequent flyer programs
 Loyal customer rewards
 To induce brand loyalty
 To increase sales volume
 Similar to rebates
 Money returned after purchase
 Can induce multiple purchases

11. Objectives for Consumer Sales
Promotion
 Stimulating trial purchase
 E.g., Free trial product / Coupons
 Stimulating repeat purchases
 E.g., Frequent flyer / Hotel rewards programs
 Stimulating larger purchases
 E.g., Two-for-one price reduction
 Introducing a new brand
 E.g., Trials inserted into newspapers
 Combating competitor’s strategy
 Discount response to competitor’s product launch

12. P.O.P. Displays and Incentives
 Drawing attention to product on shelf
 May also include:
 coupons and sweepstakes forms
 Increases sales for retailers
 Awards of travel certificates, gifts, cash
bonuses for reaching sales targets
 Motivating the sales force at P.O.P.

13. Allowances
 Merchandise allowances
 Free product
 Can reward retailer for featuring display
 Slotting fees: direct cash to stock item

14. Trade Shows
 Related products from different
manufacturers
 Impressing retailers and consumers with the latest
product developments
 Tech - Consumer Electronics Show
 Automobiles - NAIAS - Detroit

15. Sales-training Programs
 Manufacturer provides training
 Helps retail sales force
 Complex products like computers
 Demonstrational videos and brochures

16. ADVERTISING

17. Advertising
Advertising is any paid form of nonpersonal
presentation and promotion of ideas,goods,or
services by an identified sponsor.

18. The 5 Ms of Advertising

19. Advertising objective
 A specific communication task to be
accomplished with a specific target audience
during a specific period of time.

20. Advertising Objectives
 Informative advertising
 Persuasive advertising
 Reminder advertising

21. Advertising strategy
1.Creating the advertising message
 Message strategy
 Message execution
2.Selecting advertising media
 Deciding on reach ,Frequency, and Impact
 Choosing among major media types
 Selecting specific media vehicles
 decide on media timing

22. DISTRIBUTION CHANNEL

23. Distribution Channels
 A set of interdependent organizations
(intermediaries) involved in the process of
making a product or service available for use
or consumption.

24. Nature and Importance of Distribution
Channels
 Distribution channels is the circulatory system of a
hospitality company.
 Competition, a global marketplace, electronic distribution
techniques have increased the importance of distribution.
 In the global economic market, companies should create
innovative ways to approach to new and existing markets

25. Distribution Channel Functions
 Information: gathering and distributing marketing research and
intelligence information about the marketing environment.
 Promotion: developing and spreading persuasive communications
about an offer
 Contact: finding and communicating with prospective buyers
 Matching: shaping and fitting the offer to the buyer’s needs, including
such activities as manufacturing, grading, assembling, and packaging.

26. Number of Channel Levels
Channel Level - Each Layer of Marketing Intermediaries that Perform Some
Work in Bringing the Product and its Ownership Closer to the Final Buyer.
0-level channel
Producer Consumer
1-level channel
Producer Retailer → Consumer
2-level channel
Producer → Wholesaler Retailer → Consumer
3-level channel
Producer → Wholesaler → Jobber → Retailer → Consumer

27. THANKS