[精选]Week18消费者导向的销售19204.pptx

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1、Types of Consumer-Oriented&Trade-Oriented Sales Promotions Part 2MKT3150Adv&Sales PromotionWeek 18Part 2Sampling&CouponingChapter ObjectivesAppreciate the objectives of consumer-oriented sales promotions.Recognize that many forms of promotions perform different objectives for marketers.Know the role

2、 of sampling,the forms of sampling,and the trends in sampling practice.Be aware of the role of couponing,the types of coupons,and the developments in couponing practice.Understand the coupon redemption process and misredemption.Appreciate the role of promotion agencies.2010 South-Western,a part of C

3、engage Learning.All rights reserved.164Why Use Consumer Promotions?PromotionsAccomplish goals that advertising by itself cannotInduce consumers to buy now rather than laterEncourage the buying of one brand rather than a competitorEncourage consumers to buy more,and more frequently 2010 South-Western

4、,a part of Cengage Learning.All rights reserved.165Brand Management ObjectivesBrand ManagementIs often directed at influencing consumer behaviour rather than initiating trade or sales-force actionObjectives are:Generating purchase trial and retrial(new customers)Encouraging repeat purchases(early cu

5、stomer loyalty)Reinforcing brand images(on-going customer loyalty)Consumer Rewards 2010 South-Western,a part of Cengage Learning.All rights reserved.167Consumer Rewards 1/3Utilitarian(Functional)Benefits of RewardsObtaining monetary savings(e.g.,when using coupons)Reducing search and decision costs(

6、e.g.,by availing of a promotional offer,consumers do not have to think about other alternatives)Obtaining improved product quality made possible by a price reduction that allows consumers to buy superior brands they might not otherwise purchase.2010 South-Western,a part of Cengage Learning.All right

7、s reserved.168Consumer Rewards 2/3Hedonic(pleasure)Benefits of RewardsAccomplishing a sense of being a wise shopper when taking advantage of sales promotionsAchieving a need for stimulation and variety when trying a brand that might not purchased if it were not for an attractive promotionObtaining e

8、ntertainment value when,for example,the consumer competes in a promotional contest or participates in a sweepstakes 2010 South-Western,a part of Cengage Learning.All rights reserved.169Consumer Rewards 3/3Other RewardsConsumer promotions perform an informational function by influencing consumer beli

9、efs about a brandExample:buy a Mercedes-Benz model 500SL and get a genuine TomTom GPS system free!Timing of RewardsAn immediate reward delivers monetary savings or some other form of benefit as soon as the consumer performs a marketer-specified behaviourDelayed rewards are those that follow the desi

10、red behaviour by a period of days,weeks,or even longer?Immediate or delayed reward?Product samples immediateOn-pack coupons delayedContests delayed(usually)Bonus packs immediateOnline coupons delayedFree-with-purchase premiums delayedShelf-delivered coupons immediate 2010 South-Western,a part of Cen

11、gage Learning.All rights reserved.1612Major Consumer-Oriented PromotionsTable 16.1 2010 South-Western,a part of Cengage Learning.All rights reserved.1613Notes on Table 16.1The classification of promotional tools is necessarily simplifiedPromotions are capable of accomplishing more than a single obje

12、ctiveManufacturers use consumer-oriented sales also to leverage trade supportCoupons and premiums achieve different objectives depending on the specific form of delivery vehicle SamplingAny method used to deliver an actual-or trial-sized product to consumers 2010 South-Western,a part of Cengage Lear

13、ning.All rights reserved.1615SamplingWhy Sampling Is EffectiveIt gives consumers an opportunity to experience a new brand personallyIt allows an active,hands-on interaction rather than a passive encounter,as is the case with the receipt of promotional techniques such as couponsIt is almost a necessi

14、ty when introducing truly new products that can afford this form of promotion 2010 South-Western,a part of Cengage Learning.All rights reserved.1616Sampling Methods and Media 1/2Direct MailDirect Mail Mailed directly to households targeted by Mailed directly to households targeted by demographic cha

15、racteristics or demographic characteristics or geodemographicsgeodemographicsNewspapers Newspapers and Magazinesand Magazines Samples included in magazines and Samples included in magazines and newspapers represent cost-efficient forms of newspapers represent cost-efficient forms of sampling for rea

16、ching a mass audiencesampling for reaching a mass audienceDoor-to-Door Door-to-Door DistributionDistribution Allows considerable targeting and has Allows considerable targeting and has advantages of lower cost and short lead times advantages of lower cost and short lead times between a sampling requ

17、est and when the between a sampling request and when the samples are delivered to targeted households samples are delivered to targeted households On-or In-pack On-or In-pack SamplingSampling Uses the package of another product to serve Uses the package of another product to serve as the sample carr

18、ieras the sample carrierSampling Methods and Media 2/2High-TrafficHigh-TrafficLocationsLocations Shopping centers,movie theaters,airports,Shopping centers,movie theaters,airports,and special events offer valuable forums for and special events offer valuable forums for sample distributionsample distr

19、ibutionIn-Store In-Store SamplingSampling Providing samples in grocery stores and Providing samples in grocery stores and other retail outlets for trial while consumers other retail outlets for trial while consumers are shoppingare shoppingSampling at Sampling at Unique Unique VenuesVenues Choosing

20、unique locations for sampling Choosing unique locations for sampling products appropriate for people at a certain products appropriate for people at a certain stage of life,referred to as cstage of life,referred to as change-point hange-point samplingsamplingInternet Internet SamplingSampling Distri

21、buting samples online through the Distributing samples online through the services of companies that specialize in services of companies that specialize in online sample deliveryonline sample deliveryHow would you promote this?2010 South-Western,a part of Cengage Learning.All rights reserved.1619Sam

22、pling Charmin via a Fleet of Tractor TrailersFigure 16.1 2010 South-Western,a part of Cengage Learning.All rights reserved.1620Major Sampling PracticesTargeting rather thanmass distributingsamplesUsing innovativedistribution methodswhere appropriateUndertaking efforts tomeasure samplingsreturn on in

23、vestmentPrudent Sampling Practices 2010 South-Western,a part of Cengage Learning.All rights reserved.1621Calculating the ROI for a Sampling InvestmentTable 16.2Step 1:Determine the total cost of sampling,which includes the cost of the sample goods plus the costs of distributionmailing,door-to-door d

24、istribution,and so on.Assume,for example,that the cost of distributing a trial-sized unit is$0.60 and that 15,000,000 units are distributed;hence,the total cost is$9 million.Step 2:Calculate the profit per unit by determining the average number of annual uses of the product and multiplying this by t

25、he per-unit profit.Assume,for example,that on average six units of the sampled product are purchased per year and that the profit per unit is$1.Thus,each user promises the company a profit potential of$6 when they become users of the sampled brand.Step 3:Calculate the number of converters needed for

26、 the sampling program to break even.(Converters are individuals who after sampling a brand become users.)Given the cost of the sampling program($9 million)and the profit potential per user($6),the number of conversions needed in this case to break even is 1,500,000(i.e.,$9 million divided by$6).This

27、 number represents a 10 percent conversion rate just to break even(i.e.,1,500,000 divided by 15,000,000).Step 4:Determine the effectiveness of the sampling.For a sampling to be successful,the conversion rate must exceed the break-even rate with gains in the 10 to 16 percent range.In this case,this w

28、ould mean a minimum of 1,650,000 people must become users after trying the sampled brand(i.e.,1,500,000 times 1.1)to justify the sampling cost and yield a reasonable profit from the sampling investment.2010 South-Western,a part of Cengage Learning.All rights reserved.1622When Should Sampling Be Used

29、?1.When the new or improved brand is demonstrably superior or has distinct relative advantages2.When an innovative product concept is difficult to communicate by advertising alone3.When promotional budgets can afford to generate consumer trial quickly 2010 South-Western,a part of Cengage Learning.Al

30、l rights reserved.1623Sampling Challenges and ProblemsExpensive to implementMishandling of mailing by distributorsDistribution to the wrong marketIn-or on-package samples fail to capture current non-consumersDistribution does not reach sufficient numbers of consumers to justify its expenseMisuse of

31、samples by customersSubject to mail pilferage CouponingA promotional device that rewards consumers for purchasing the coupon-offering brand by providing money-off savings-Also known as VOUCHERS-2010 South-Western,a part of Cengage Learning.All rights reserved.1625Illustration of Money-Off Coupon Off

32、ersFigure 16.2 2010 South-Western,a part of Cengage Learning.All rights reserved.1626Coupon Distribution Methods 2010 South-Western,a part of Cengage Learning.All rights reserved.1627Full Coupon CostTable 16.31.Face value$1.002.Distribution and postage cost0.403.Handling charge0.084.Consumer fraud(m

33、isredemption)cost0.075.Internal preparation and processing cost0.026.Redemption cost0.02Total Cost$1.59 2010 South-Western,a part of Cengage Learning.All rights reserved.1628 Couponing(contd)Is Couponing Profitable?Most coupons are redeemed by current brand usersHouseholds most likely to redeem coup

34、ons are also the most likely to buy the brand in the first placeCompanies have to offer coupons to prevent losing consumers to other brands that do offer coupons 2010 South-Western,a part of Cengage Learning.All rights reserved.1629Point-of-Purchase CouponingInstantly Redeemable CouponsShelf-Deliver

35、ed CouponsScanner-Delivered CouponsPoint-of-Purchase Coupons 2010 South-Western,a part of Cengage Learning.All rights reserved.1630Mail-and Media-Delivered CouponsMail-Delivered Mail-Delivered CouponsCoupons Have 95%household penetration rateHave 95%household penetration rate Have highest redemption

36、 rate of all mass-delivered Have highest redemption rate of all mass-delivered coupons(3.5%)coupons(3.5%)Increase the amount of product purchasesIncrease the amount of product purchases Are relatively expensiveAre relatively expensive Are Inefficient and expensive for brands enjoying a Are Inefficie

37、nt and expensive for brands enjoying a high market sharehigh market shareFSIs and Other FSIs and Other Media-Delivered Media-Delivered CouponsCoupons 88%of all coupons distributed via Sunday newspaper 88%of all coupons distributed via Sunday newspaper freestanding insertsfreestanding inserts Provide

38、 broad exposureProvide broad exposure Are relatively cheaperAre relatively cheaper Serve both reminder and advertising functionsServe both reminder and advertising functions Redemption rate is very lowRedemption rate is very low Dont generate much trade interestDont generate much trade interest Susc

39、eptible to misredemptionSusceptible to misredemption 2010 South-Western,a part of Cengage Learning.All rights reserved.1631In-and On-Pack CouponsAre Included either in or on the products packageCannot be removed at the point of purchase;its for next purchaseMay use a coupon to promote one brand by a

40、nother brand(crossruffing)Have bounce-back valueHave no distribution costsHave higher redemption ratesOffer delayed value to consumersDont reach nonusers of the carrying brand 2010 South-Western,a part of Cengage Learning.All rights reserved.1632Online Couponing Are distributed by many Internet site

41、sAllows consumers to print their own coupons,at no additional cost to the advertiserHas potential for fraud in that criminals can alter their printed couponsCan be distributed through consumers telephone(wireless connection)2010 South-Western,a part of Cengage Learning.All rights reserved.1633Coupon

42、 Redemption and Misredemption ProcessFigure 16.3 2010 South-Western,a part of Cengage Learning.All rights reserved.1634MisredemptionConsequences of MisredemptionThe 3 to 4 percent misredemption rate represents millions in losses by manufacturersParticipants in MisredemptionConsumersClerks Store mana

43、gementShady clearinghousesProfessional misredeemers 2010 South-Western,a part of Cengage Learning.All rights reserved.1635The Role of Promotion AgenciesUseful LinksUseful ReferencesMarketing Communications(5th Ed.),by Chris Fill,FT/Prentice-Hall,UK 2009The Sales Promotion Handbook,by Chris Brown,Kog

44、an Page Limited,London 1999Sales Promotion:How to create,implement and integrate campaigns that really work,by Julian Cummins&Roddy Mullin,Kogan Page Limited,London 2002Integrated Marketing communications:Advertising and Promotion,by Terrence A.Shimp,South-Western,2010(Intl Edition)Next Week Week 19

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