Chapter 5 Advertising and Sales Promotion
Chapter 5 Advertising and Sales Promotion
WHILE ADVERTISING PRESENTS A REASON TO BUY A PRODUCT, SALES PROMOTION OFFERS A SHORT-
TERM INCENTIVE TO PURCHASE. SALES PROMOTION OFTEN ATTRACT BRAND SWITCHERS (THOSE WHO
ARE NOT LOYAL TO A SPECIFIC BRAND) WHO ARE LOOKING PRIMARILY FOR LOW PRICE AND GOOD
VALUE.
ADVERTISING
PUBLICITY
PUBLIC RELATIONS ACTIVITIES
SPECIAL SALES EVENTS
WINDOW DISPLAY
PRODUCT AND PROMOTIONAL MATERIAL DISPLAY
PROMOTIONAL PROGRAMS (PREMIUM AWARDS AND CONTESTS
REBATE- an amount of money that a manufacturer or store pays back to customers when they
buy something
DISCOUNTS- a reduction made from a regular or list price
REFUNDS- a sum of money that is returned to a person, usually because they paid too much or
are unhappy with a product or service
GIFTS- offering the shopper some gift item given the purchase of a certain number of products
QUANTITY DEAL-a pricing strategy where a seller offers a lower price per unit to customers who
purchase a larger quantity of a product or service
SAMPLES-in which a small amount of a product that is for sale is given to consumers to try.
Samples encourage trial and an increased awareness of the product.
CONTEST- create engaging challenges on social media or get people engaged with your brand for
a chance to win a freebie or a massive discount on your products
PREMIUM- prizes, gifts, or other special offers received when a consumer purchases a product
LUCKY DRAW- the customers of a particular product are offered gifts on a fixed date and the
winners are decided by the draw of lots
INSTANT DRAWS- a customer is asked to scratch a card on the purchase of a product and the
name of the product is inscribed thereupon which is immediately offered to the customer as a
gift.
KEEP EXISTING CUSTOMERS- can be geared toward keeping existing customers, especially if a
new competitor is opening nearby.
INVENTORY CLEARANCE- a special promotion can help you clear inventory to make room for
seasonal or new merchandise.
REACHING NEW MARKET- a promotion can be a way to reach a new segment of the market
NEW PRODUCT LAUNCH- a sales promotion can help you introduce a new product to the
marketplace
INCREASED BRAND AWARENESS- a sales promotion can help increase awareness of your brand,
which can ultimately lead to additional sales
Advertising uses multiple means to inform and educate consumers about a company’s goods and
services. Promotional strategies can include things such as coupons, discounts and loyalty incentives.
PROMOTIONAL STRATEGY
BRANDING
SOCIAL MEDIA
WEBSITES
SPECIAL EVENTS
DIRECT MARKETING
BROCHURES AND NEWSLETTER
ADVERTISING AND PR
PERSONAL SELLING
PROMOTION ADVERTISING- is one of several advertising tools used to attract interest in a product or
service line by offering consumers some additional incentive to make a purchase.
BRAND ESTABLISHMENT
PRIMARY MARKET GROWTH
CUSTOMER LOYALTY
COMBATTING THE COMPETITION
NEW MARKETS
PROBLEMS
All the three parties of the marketing mechanism namely manufacturers, middlemen, and the
consumers are beniffitted by this short-term technique of sale promotion.