Marketing_Management_14th_Edition-min

522 PART 7 COMMUNICATING VALUE
Reflecting changes in consumer
behavior, digital coupons such as
these, available at Coupons.com,
have grown in importance.
managers are often at odds over trade promotion. The sales force says local retailers will not keep
the company’s products on the shelf unless they receive more trade promotion money, whereas
brand managers want to spend their limited funds on consumer promotion and advertising.
Manufacturers face several challenges in managing trade promotions. First, they often find it difficult
to police retailers to make sure they are doing what they agreed to do. Manufacturers increasingly
insist on proof of performance before paying any allowances. Second, some retailers are doing forward
buying—that is, buying a greater quantity during the deal period than they can immediately sell.
Retailers might respond to a 10 percent-off-case allowance by buying a 12-week or longer supply. The
manufacturer must then schedule more production than planned and bear the costs of extra work
shifts and overtime. Third, some retailers are diverting, buying more cases than needed in a region
where the manufacturer offers a deal and shipping the surplus to their stores in nondeal regions.
Manufacturers handle forward buying and diverting by limiting the amount they will sell at a discount,
or by producing and delivering less than the full order in an effort to smooth production. 65
Ultimately, many manufacturers feel trade promotion has become a nightmare. It contains layers
of deals, is complex to administer, and often leads to lost revenues.
SELECTING BUSINESS AND SALES FORCE PROMOTION TOOLS Companies
spend billions of dollars on business and sales force promotion tools (see Table 18.5) to gather
leads, impress and reward customers, and motivate the sales force. 66 They typically develop budgets
for tools that remain fairly constant from year to year. For many new businesses that want to make
a splash to a targeted audience, especially in the B2B world, trade shows are an important tool, but
the cost per contact is the highest of all communication options.
DEVELOPING THE PROGRAM In planning sales promotion programs, marketers are
increasingly blending several media into a total campaign concept, such as the following awardwinning
promotion. 67
Oreo Double
Stuf Promotion
Oreo Double Stuf Promotion Winner of the Promotional
Marketing Association’s Super Reggie award for best integrated marketing program of 2008,
Kraft’s Oreo Double Stuf Racing League promotion cleverly capitalized on the images of professional
athlete siblings. In its teaser launch ad, NFL star quarterback brothers Peyton and Eli