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Belch: Advertising and
Promotion, Sixth Edition
V. Developing the
Integrated Marketing
Communications Program
Summary
For many years, advertising was
the major promotional mix
element for most consumerproduct
companies. Over the past
decade, however, marketers have
been allocating more of their promotional
dollars to sales promotion.
There has been a steady
increase in the use of sales promotion
techniques to influence consumers’
purchase behavior. The
growing power of retailers, erosion
of brand loyalty, increase in
consumers’ sensitivity to
promotions, increase in new product
introductions, fragmentation
of the consumer market, shortterm
focus of marketing and
brand managers, and increase in
advertising clutter are some of the
reasons for this increase.
Sales promotions can be characterized
as either franchise building
or nonfranchise building. The
former contribute to the long-term
development and reinforcement of
brand identity and image; the lat-
Key Terms
sales promotion, 513
consumer-oriented sales
promotion, 513
trade-oriented sales
promotion, 513
account-specific
marketing, 519
consumer franchisebuilding
(CFB)
promotions, 520
nonfranchise-building
(non-FB) promotions,
522
16. Sales Promotion © The McGraw−Hill
Companies, 2003
ter are designed to accelerate the
purchase process and generate
immediate increases in sales.
Sales promotion techniques can
be classified as either trade- or
consumer-oriented. A number of
consumer-oriented sales promotion
techniques were examined in
this chapter, including sampling,
couponing, premiums, contests
and sweepstakes, rebates and
refunds, bonus packs, price-off
deals, frequency programs, and
event marketing. The characteristics
of these promotional tools
were examined, along with their
advantages and limitations.
Various trade-oriented promotions
were also examined, including
trade contests and incentives,
trade allowances, displays and
point-of-purchase materials, sales
training programs, trade shows,
and cooperative advertising.
Advertising and sales promotion
should be viewed not as separate
activities but rather as complemen-
sampling, 526
bounce-back coupon, 533
cross-ruff coupon, 533
instant coupon, 533
in-store couponing, 534
premium, 535
self-liquidating
premiums, 536
contest, 537
sweepstakes, 537
game, 537
refund, 540
bonus packs, 541
price-off deal, 541
frequency programs, 541
event marketing, 543
event sponsorship, 543
push money, 546
trade allowance, 547
off-invoice allowance, 547
slotting allowance, 547
failure fees, 548
forward buying, 549
diverting, 549
everyday low pricing
(EDLP), 549
tary tools. When planned and executed
properly, advertising and
sales promotion can produce a synergistic
effect that is greater than
the response generated from either
promotional mix element alone. To
accomplish this, marketers must
coordinate budgets, advertising
and promotional themes, media
scheduling and timing, and target
audiences.
Sales promotion abuse can result
when marketers become too dependent
on the use of sales promotion
techniques and sacrifice long-term
brand position and image for shortterm
sales increases. Many industries
experience sales promotion
traps when a number of competitors
use promotions extensively and it
becomes difficult for any single
firm to cut back on promotion without
risking a loss in sales. Overuse
of sales promotion tools can lower
profit margins and threaten the
image and even the viability of a
brand.
planograms, 551
trade show, 551
cooperative advertising,
552
horizontal cooperative
advertising, 552
ingredient-sponsored
cooperative
advertising, 552
vertical cooperative
advertising, 552
sales promotion trap,
557
559