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Belch: Advertising and
Promotion, Sixth Edition
V. Developing the
Integrated Marketing
Communications Program
16. Sales Promotion © The McGraw−Hill
Companies, 2003
ence and help the company achieve the ultimate goal of full-price purchases that do not
depend on a promotional offer.
For years, franchise or image building was viewed as the exclusive realm of advertising,
and sales promotion was used only to generate short-term sales increases. But
now marketers are recognizing the image-building potential of sales promotion and
paying attention to its CFB value. Surveys have found that nearly 90 percent of senior
marketing executives believe consumer promotions can help build brand equity while
nearly 60 percent think trade promotions can contribute. 25 Marketers recognize that the
value of sales promotion extends well beyond quick-fix tactics such as price-off deals.
Most sales promotion agencies recognize the importance of developing consumer and
trade promotions that can help build brand equity. For example, Exhibit 16-7 shows an
ad for Ryan Partnership that stresses how the agency develops trade promotions that
help build brand equity.
Companies can use sales promotion techniques in a number of ways to contribute to
franchise building. Rather than using a one-time offer, many companies are developing
frequency programs that encourage repeat purchases and long-term patronage.
Many credit cards have loyalty programs where consumers earn bonus points every
time they use their card to charge a purchase. These points can then be redeemed for
various items. Most airlines and many hotel chains offer frequent-flyer or guest programs
to encourage repeat patronage. Many retail stores have also begun using frequency
programs to build loyalty and encourage repeat purchases. 26
Companies can also use sales promotion to contribute
to franchise building by developing an offer
consistent with the image of the brand. An example
of a successful consumer brand-building promotion
is the Search for 2000 Uses Sweepstakes promotion
for WD-40, shown in Exhibit 16-8. The
WD-40 Company positions its brand as the leading
multipurpose problem solver that cleans, protects,
penetrates, lubricates, and displaces moisture like
no other product on earth. The marketing strategy
for WD-40 is to continually promote the myriad of
uses for the product. The Search for 2000 Uses
Sweepstakes, which was launched to coincide with
the new millennium, asked consumers to suggest
their use for WD-40 in order to be entered for a
chance to win various prizes such as WD-40 can
radios, T-shirts, and baseball caps and a grand prize
of $10,000 in company stock. The sweepstakes
Exhibit 16-7 This
promotion agency ad
stresses the importance of
using trade promotions to
build brand equity
Exhibit 16-8 WD-40’s
Search for 2000 Uses
Sweepstakes is an excellent
example of a consumer
brand-building promotion
521
Chapter Sixteen Sales Promotion