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Part Five Developing the Integrated Marketing Communications Program
Belch: Advertising and
Promotion, Sixth Edition
V. Developing the
Integrated Marketing
Communications Program
16. Sales Promotion © The McGraw−Hill
Companies, 2003
Figure 16-5 Consumer-oriented sales promotion tools for various marketing objectives
Consumer Reward
Incentive
Immediate
Delayed
Induce trial
• Sampling
• Instant coupons
• In-store coupons
• In-store rebates
• Media- and maildelivered
coupons
• Mail-in refunds and
rebates
• Free mail-in premiums
• Scanner- and Internetdelivered
coupons
Marketing Objective
Customer
retention/loading
• Price-off deals
• Bonus packs
• In- and on-package
free premiums
• Loyalty programs
• In- and on-package
coupons
• Mail-in refunds and
rebates
• Loyalty programs
Support IMC program/
build brand equity
• Events
• In- and on-package
free premiums
• Self-liquidating
premiums
• Free mail-in premiums
• Contests and
sweepstakes
• Loyalty programs
evaluate sales promotion tools in terms of their ability to accomplish specific objectives
and consider whether the impact of the promotion will be immediate or delayed.
The chart in Figure 16-5 outlines which sales promotion tools can be used to accomplish
various objectives of marketers and identifies whether the extra incentive or
reward is immediate or delayed. 52
It should be noted that in Figure 16-3 some of the sales promotion techniques are
listed more than once because they can be used to accomplish more than one objective.
For example, loyalty programs can be used to retain customers by providing both
immediate and delayed rewards. Shoppers who belong to loyalty programs sponsored
by supermarkets and receive discounts every time they make a purchase are receiving
immediate rewards that are designed to retain them as customers. Some loyalty promotions
such as frequency programs used by airlines, car rental companies, and hotels
offer delayed rewards by requiring that users accumulate points to reach a certain level
or status before the points can be redeemed. Loyalty programs can also be used by
marketers to help build brand equity. For example, when an airline or car rental company
sends its frequent users upgrade certificates, the practice helps build relationships
with these customers and thus contributes to brand equity.
While marketers use consumer-oriented sales promotions to provide current and/or
potential customers with an extra incentive, they also use these promotions as part of
their marketing program to leverage trade support. Retailers are more likely to stock a
brand, purchase extra quantities, or provide additional support such as end-aisle displays
when they know a manufacturer is running a promotion during a designated
period. The development of promotional programs targeted toward the trade is a very
important part of the marketing process and is discussed in the next section.
Trade-Oriented Sales Promotion
Objectives of Trade-
Oriented Sales Promotion
Like consumer-oriented promotions, sales promotion programs targeted to the trade
should be based on well-defined objectives and measurable goals and a consideration
of what the marketer wants to accomplish. Typical objectives for promotions targeted
to marketing intermediaries such as wholesalers and retailers include obtaining distribution
and support for new products, maintaining support for established brands,
encouraging retailers to display established brands, and building retail inventories.
Obtain Distribution for New Products Trade promotions are often used
to encourage retailers to give shelf space to new products. Manufacturers recognize
that only a limited amount of shelf space is available in supermarkets, drugstores, and
other major retail outlets. Thus, they provide retailers with financial incentives to