Promotions

24Apr09

Channel Strategies Promotions:

Push Strategy: directing promotional mix to channel members to gain their cooperation in ordering and stocking the product: use primarily personal, direct selling, and trade promotions

Disadv: intermediaries may not want to stock up

 Pull Strategy: direct promotional mix at ultimate consumers, direct-to-consumer promotions, rebates, etc;.  consumers ask retailers for the product, who then orders it from wholesalers – demand stimulation works upward thru the channel

Consumer response to  promotions (Hierarchy of Effects):

1.  Awareness
2.  Interest
3.  Evaluation
4.  Trial
5.  Adoption

Setting Promotion Objectives:

1. Percentage of Sales
2. Competitive Parity
3. All-you-can-Afford Budgeting
4. Objective and Task Budgeting

Sales Promotion – a mass communication technique that offers short-term incentives to encourage purchase or sales of a product or service.

Consumer Promotions – rebates, coupons, deals, free-samples, point-of-purchase display, contests, sweekstakes; any sales promotions that reaches consumers directly.

Trade Promotions – trade allowances, merchandise, case, financial allowance, quantity discounts, co-operative advertising; promotions given to channel intermediaries

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