This presentation discusses both forms of sales promotion strategies-customer oriented and trade oriented. The difference between advertising and sales promotion is descibed in details. Different types of consumer oriented strategies like sampling,coupon, contests, refunds,premiums,sweepstakes,loyalty programs,event management are discussed. Various trade oriented sales promotion startegies like contests and Dealer Incentives, trade allowances, Point of Purchase Displays,Training Programs, Trade Shows, Cooperative Advertising are discussed.

1. Sales Promotion Sponsorships and Promotion Deals with Major Sports First Sponsorship Deal with IllieNastase in 1972 First Track and Field Endorser Steve Prefontaine

2. Nike Endorsers All

3. and Mike Since 1984

4. Air Jordan Simply called Jordans First released in 1985 New Designs Annually Many styles, colour schemes

5. Air Jordan I Air Jordan I…Released 1985 Considered breakthrough in basketball shoe design and colourways Banned by NBA, MJ fined $ 5,000 1994: Retroed in 2 different colorways 2011: Most reproduced…90 colorways

6. Air Jordan II Released in 1986

7. Air Jordan X 10 th Anniversary of Air Jordan 1993: First retirement from NBA Accompishments inscribed on sole “Comeback sneaker” Different colour in different cities Retro’d in 2005 Air Jordan 10(X) to be released in 2012

8. Air Jordan XXII Released in 2007 Inspired by the R 22 Raptor Fighter Jet

9. Air Jordan XXII

10. Air Jordan XXII Special Editions First Special Ed: Feb 17 –MJ’s Birthday….Authentic Jordan brand basketball leather Second Special Ed: Omega Model : commemorates 6 th NBA Championship

11. Air Jordan 2011 Endorsed by Dwyane Wade Interchangeable Insoles Red for Power Blue for Quickness

12. Air Jordan….Large Secondary Market eBay Sneaker Conventions Consignment Stores

15. Sole Control, Philadelphia Air Jordan Retro Flint $275 Air Jordan Retro 13 Playoff $250

16. Jordans……Many Classes OG Retro Retro+ PE Samples

17. Sales Promotion Direct Inducement Extra Value/Incentive Primary Objective: Creating an immediate sale

18. eCoupons from Pizza Hut

19. Price Reduction….from P & G Price Reduced by Rs. 18 Price Reduced by Rs. 20

20. Price Reduction…..HUL reacts Price Reduced by 22%

21. Superstar Photo Contest

22. Sweepstakes from Log in at www.lufthansa.com and buy ticket Fill up sweepstakes form Winner: Two tickets to any European destination

23. Money back Refund MC Gold,Titanium and Platinum Cardholders :30% Moneyback Offer MC Standard Cardholders: 15% Moneyback Jet, Kingfisher and IA

24. Money Back Refund

25. Something Extra

26. Free Sampling

27. Premiums Toys, Collectibles,Souvenirs, Household Products Linked to a Product Often requires Proof of Purchase Sometimes, shipping charges borne by customer

28. The First Premium 1910: Prize for customer purchasing 2 packages of cereals 2.5 Million Books in 23 years

29. The Difference in Appeal Advertising To the Mind and Emotions Give consumers a reason to buy Sales Promotion More to the wallet Incentive to purchase a brand

30. Trade Incentives Marketing Intermediaries Financial Incentive Trade Contest

31. An Acceleration Tool Speed Up Sales Processes Maximize Sales Volume Limited-Time Offers

32. An Ideal Sales Promotion Program Gets customers who have not responded Rarely ideal

33. Types of Sales Promotion Activities

34. Consumer-Oriented Promotions

35. Trade Oriented Promotions

36. Difference in Strategy Consumer Oriented Promotions Promotional Pull Strategy Encourage Consumers to purchase a brand Create Demand Stores patronage Trade-Oriented Promotions Motivate Intermediaries to carry a product Extra Effort

37. Objective of Consumer Oriented Program Trial and Repurchase

38. Objective of Consumer Oriented program Increasing Consumption of an established brand New uses New users

39. The Pepsi Challenge

40. The Starbucks Via Challenge

42. Targeting a Specific Market Segment

44. Criteria for an Effective Sampling Program Products of low unit value Divisible Purchase Cycle Relatively Short

45. Benefits and Limitations of Sampling Risk Free way to try Direct Experience with the brand Must have unique benefit Sometimes benefits difficult to gauge immediately

46. Sampling Methods….Door to Door Expensive Can be cost effective Along with Newspapers Newspaper Polybags

47. Sampling Methods…Through Mail Small lightweight nonperishable products Control of Distribution Specific Market Areas Postal restrictions, increasing rates

48. In-Store Sampling Increasingly popular Esp Food Products Often with coupon Can be expensive

49. On-package Sampling Sample attached to another product Very cost effective for multiproduct firm Limited audience Multiple carrier brands

50. Event Sampling Total sense of the brand In stores, concerts,sporting events and other places

51. The World’s Premier Whisky Tasting Show 16 Countries around the globe Whisky MasterClass Whisky Live Stage Whisky Bottling

52. WhiskyLive Snippets

53. Couponing Ticket or Document Exchanged for financial discount or rebate Customarily issued my manufacturers of consumer goods Also by Retailers

54. Coupons

55. Advantages of Coupons Offer price reduction to price sensitive customers No reliance on retailer Reduces perceived risk

57. Low Redemption Rates

61. Instant Coupons Instant Coupon Terminals in Shanghai

62. In-Store Couponing

63. Coupon Machines

64. Benefits of Coupon Machines Ready-to-buy customers Increase brand awareness Generate Impulse Buying Encourage Product Trial

65. Catalina Coupons Printed at Cash Registers Two varieties: * For specific products * ONYO

66. Premiums Offer of a Pdt/ Service free or low price Extra Incentive

67. Free Premiums Small gifts in product package Sent to customers who mail request with POP High Impulse value Extra Incentive

68. Limitations of Premiums High Cost Factor Risk of Poor Premium Restrictions from regulatory agencies

69. Happy Meals MacDonald’s: World’s largest Toymaker Movie Tie-in Deals

71. Born in 1979

72. Circus-wagon themed

73. Cheeseburger or Hamburger Option, French Fries,Cookies,soft drink

75. Disney Happy Meals

76. Ty’s Teenie Beanie Babies Introduced in 1997 Wildly popular 100 Million in 1997

77. David Bracken 10,000 McDonalds collectibles 4,500 Happy Meal Toys

79. Create Interest in brand

81. Difference between contests and sweepstakes Contests Compete for prize or money Basis of Skills or Ability Judging, Criteria Purchase Incentive: POP or Store Visit Sweepstakes Purely on Chance No POP

82. Contests from

83. Rules of the Game Register Once Unique Contest User ID and P/w Need WindowsLive/MS Passport ID New User: Bonus Credits Credit Points: Everytime you play

84. Building Up the Excitement Monthly Leaderboards

85. Sweepstakes Easier to enter Easier and Less Expensive to Adminster Costs are predictable Insurable Advantage of Fixed Costs

86. Very popular Annual sweepstakes Special Bonus Entry: Free and by invitation Every entry equal chance Winner Randomly selected Independently Audited Rs. 1 Cr of prize money

87. Refunds/Rebates Part of Purchase Price POP Customers usually very responsive

88. Auto Mfgrs offers rebates in India July 2011: Car sales slows Limited Period Rs. 1.7 Lakh Rebate on the Honda Jazz Rebates of upto Rs. 50,000

89. Bonus Packs Extra Amounts Regular Price Larger Containers Extra Units

90. Bonus Packs

92. Specially marked price packs

95. Travel

96. Hospitality

98. Marriott Rewards Program Hotels: Earn for every stay Earn upto 10 points or 2 Air Miles for every US $ spent

99. Marriott Rewards Program Airlines 30 Airlines Loyalty Programs

100. Marriott Rewards Program Shopping 10 points Per $ purchased SkyMall: Home & Living, health and wellness, apparel, electronics ShopMyWayMall FTD.com: Flowers and Gifts

101. Marriott Rewards Program 500 Points with every car rental Upto 20,000 points

102. Marriott Rewards Program Marriott Rewards® Refer a Friend Rewarding Events

103. Event Marketing Linking a company/brand Event Themed Activity Creating Experience Promoting a Product or Service

104. The 747-8 Rollout

105. Agency EA Obj: Unveil the 747-8 Key Stakeholders Highlight Innovative Features Positioning

106. Agency EA…The Solution Powerful and inspiring reveal All aspects: Event concept and logistics video production Graphics on site staffing vendor management Entertainment

107. The Reveal More than 10,000 Employees,Industry VIPs, and the Press watched in awe International Buzz….MSNBC, The Today Show, USA Today, WSJ,Chicago Tribune

108. Event Sponsorship