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Belch: Advertising and
Promotion, Sixth Edition
V. Developing the
Integrated Marketing
Communications Program
on sales promotion to encourage consumers to try these brands. In Chapter
4, we saw how sales promotion techniques can be used as part of the
shaping process to lead the consumer from initial trial to repeat purchase
at full price. Marketers are relying more on samples, coupons, rebates,
premiums, and other innovative promotional tools to achieve trial usage
of their new brands and encourage repeat purchase (Exhibit 16-4).
Promotions are also important in getting retailers to allocate some of
their precious shelf space to new brands. The competition for shelf space
for new products in stores is enormous. Supermarkets carry an average of
30,000 products (compared with 13,067 in 1982). Retailers favor new
brands with strong sales promotion support that will bring in more customers
and boost their sales and profits. Many retailers require special
discounts or allowances from manufacturers just to handle a new product.
These slotting fees or allowances, which are discussed later in the chapter,
can make it expensive for a manufacturer to introduce a new product.
16. Sales Promotion © The McGraw−Hill
Companies, 2003
Fragmentation of the Consumer Market As the consumer
market becomes more fragmented and traditional massmedia–based
advertising less effective, marketers are turning to more
segmented, highly targeted approaches. Many companies are tailoring
their promotional efforts to specific regional markets. Sales promotion
tools have become one of the primary vehicles for doing this, through programs tied
into local flavor, themes, or events. For example, fast-food restaurants and take-out
pizza chains such as Domino’s spent a high percentage of their marketing budget on
local tie-ins and promotions designed to build traffic and generate sales from their
trade areas. 16
A number of marketers are also using sales promotion techniques to target ethnic
markets. For example, Sears targets the Hispanic market by hosting grassroots events
at stores and tie-ins with local festivals. Sears also develops other promotions targeted
specifically at the Hispanic community. For example, the “Los Heroes De Mi Vida”
contest shown in Exhibit 16-5 invited young people of Hispanic heritage to submit an
essay to honor a person who has had a positive influence on their lives. Diversity Perspective
16-1 discusses how a number of companies are using sales promotion tools to
target the African-American market.
Marketers are also shifting more of their promotional efforts to direct marketing,
which often includes some form of sales promotion incentive. Many marketers use
information they get from premium offers, trackable coupons, rebates, and sweepstakes
Exhibit 16-4 Sales
promotion tools such as
coupons are often used to
encourage trial of a new
brand
Exhibit 16-5 Sears targets
the Hispanic market with
this promotion
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Chapter Sixteen Sales Promotion