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HKJC College(HRM)
12

CC3118-Advertising & Promotion
Week 13

Chapter Twelve
Sales Promotions
12-1

12
1.
2.
3.
4.
5.

6.

Sales Promotions
Learning Objectives

Understand the difference between trade promotions and consumer promotions in sales promotions.
Examine various types of consumer promotions.
Recognize the important relationship between trade promotions programs and the other parts of the promotions mix.
Utilize trade promotions tools to build strong ties with members of the marketing channel.
Be aware of the goals, advantages, and disadvantages for each promotions program that can be used in marketing a company or product. Tie consumer promotions with trade promotions and other elements of the promotions mix and then match them to the overall IMC program. 12-2

FIGURE

12 . 1

Types of Consumer Promotions









Coupons
Premiums
Contests and sweepstakes
Refunds and rebates
Sampling
Bonus packs
Price-offs
12-3

Coupons






188 billion printed
1.6 billion redeemed (0.85%)
Average value was $1.41
Savings of $2.25 billion
Coupon usage
• 80% of households use
• 2/3 willing to switch brands

12-4

FIGURE

12.3

Methods of Distributing Coupons

• Print media
• FSI (Free Standing
Insert)
• Direct mail
• On- or in-package
• In-store
• Scanner-delivered

• Digital coupon
• Employee delivered
12-5

A coupon accompanies this informational Gold Bond advertisement.

12-6

Types of Coupons
• Instant redemption
• Lead to trial purchases

• Bounce-back
• Encourages repeat purchases

• Scanner-delivered
• Encourages brand switching

12-7

Disadvantages of Coupons
• Reduced revenues
• 80% used by brand preference consumers

12-8

Types of Premiums





Free-in-the-mail
In- or on-package
Store or manufacturer
Self-liquidating

12-9

FIGURE

12.5

Keys to Successful Premium Programs
• Match the premium to the target market

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