MKTG1501 Lecture Notes - Lecture 9: Direct Marketing, Sales Promotion, Personal Selling
MKTG1501 Lecture 9 – Sales Promotion and Personal Selling
*Sales promotion
- is the act of influencing consumer perception and behaviour to build market
share and sales that reinforce brand image
- consist of incentive tools to stimulate a greater purchase (have to decide the
size of the incentive)
- the tools ae usually short-term
- the objective of sales promotion is to promote the product’s positioning and
include a selling message along with the deal (trial purchase, repeat purchase,
larger purchase, luring away from competitors’ product, to hold reward and
loyal customers)
The main tools falling into this category:
1. Samples: free or discounted goods designed to get customer to try product
2. Redeemable coupons: coupons that can be redeemed by customer for free
or discounted goods
3. Cash-back offers: sash given as reward for purchasing the product
4. Cent-off deals or price packs: temporary price discounts
5. Premium offers: goods offered free of charge or at a discount on top of
purchase
6. Advertising specialities: giveaways with advertisers branding on e.g. key
rings, caps, mugs
7. Patronage rewards: cash or merchandise for loyal customers e.g. frequent
flyer points
8. Point-of-purchase (POP) promotions: in-store promotions usually paid for
by supplier e.g. end of isle displays
9. Contests and games of chance and skill: promotion events based on some
form of competition
*The purpose of sales promotion
- to attract the new consumer (new triers) --- fall into 3 categories: non-user,
loyal user of another brand, brand switchers
- to reward the brand-loyal customer
- to reduce the time between purchases
- to turn light user into medium or heavy users
- to regain past purchasers who stops buying
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Mktg1501 lecture 9 sales promotion and personal selling. Is the act of influencing consumer perception and behaviour to build market share and sales that reinforce brand image. Consist of incentive tools to stimulate a greater purchase (have to decide the size of the incentive) The objective of sales promotion is to promote the product"s positioning and include a selling message along with the deal (trial purchase, repeat purchase, larger purchase, luring away from competitors" product, to hold reward and loyal customers) To attract the new consumer (new triers) --- fall into 3 categories: non-user, loyal user of another brand, brand switchers. To turn light user into medium or heavy users. To regain past purchasers who stops buying. Salespeople are involved in two-way personal communication with consumers (for building long-term relationship with them and explaining the benefits of the product in more detail) They did the investigation to people who looks positive on the street and their store.
