tài liệu truyền thông - chap15 - bán hàng khuyến mãi và vai trò của promotio thương mại

© 2010 South-Western, a part of Cengage Learning
All rights reserved.
PowerPoint Presentation by Charlie Cook
The University of West Alabama
Eighth Edition
Sales Promotion and the Role
of Trade Promotions
CHAPTER
15
1. Understand the nature and purpose of sales
promotions.
2. Know the factors that account for the increased
investment in promotions, especially those that are
trade oriented.
3. Recognize the tasks that promotions can and cannot
accomplish.
4. Appreciate the objectives of trade-oriented
promotions and the factors critical to building a
successful trade promotion program.
Chapter Objectives
After reading this chapter you should be able to:
© 2010 South-Western, a part of Cengage Learning. All rights reserved. 15–2
5. Comprehend the various forms of trade allowances
and the reasons for their use.
6. Be aware of forward buying and diverting and how
these practices emerge from manufacturers’ use of
off-invoice allowances.
7. Appreciate the role of everyday low pricing (EDLP)
and pay-for-performance programs as means of
reducing forward buying and diverting.
8. Understand nine empirical generalizations about

promotions
Chapter Objectives (cont’d)
After reading this chapter you should be able to:
© 2010 South-Western, a part of Cengage Learning. All rights reserved. 15–3
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 15–4
The Nature of Sales Promotion
The Nature of Sales Promotion
•
Sales Promotion
Sales Promotion

Is any incentive that is additional to the basic
Is any incentive that is additional to the basic
benefits provided by the brand and
benefits provided by the brand and
temporarily
temporarily


changes its perceived price or value
changes its perceived price or value

Is
Is
short-term oriented
short-term oriented
and capable of influencing
and capable of influencing

behavior because it offers buyers superior value
behavior because it offers buyers superior value
and can make them feel better
and can make them feel better
about the buying experience
about the buying experience
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 15–5
The Nature of Sales Promotion (cont’d)
The Nature of Sales Promotion (cont’d)
•
Purposes of Sales Promotion
Purposes of Sales Promotion

To induce the trade (wholesalers and
To induce the trade (wholesalers and
retailers) or consumers to buy a brand
retailers) or consumers to buy a brand

To encourage the manufacturer’s sales
To encourage the manufacturer’s sales
force to sell a brand aggressively
force to sell a brand aggressively

To encourage immediate, desired
To encourage immediate, desired
shopping and purchasing behaviors
shopping and purchasing behaviors
from their consumers

from their consumers

To encourage people to increase their
To encourage people to increase their
donations to nonprofits now rather than
donations to nonprofits now rather than
later
later
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reserved. 15–6
Brand-Level Promotion Targets
Figure 15.1
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reserved. 15–7
Increased Budgetary Allocations
Increased Budgetary Allocations
to Promotions
to Promotions
•
Advertising Spending
Advertising Spending

Advertising expenditures have declined in recent
Advertising expenditures have declined in recent
years while promotion spending has increased
years while promotion spending has increased
•
Push Strategy

Push Strategy

Using promotional efforts to push product through the
Using promotional efforts to push product through the
selling chain
selling chain
•
Pull Strategy
Pull Strategy

Using consumer advertising to pull product through
Using consumer advertising to pull product through
the channel of distribution
the channel of distribution
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reserved. 15–8
Push and Pull Strategies
Table 15.1
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Developments Underlying the Growth in Promotions
Table 15.2
•
Shift in manufacturer versus retailer balance of power
•
Increased brand parity and price sensitivity
•
Reduced brand loyalty

•
Splintered mass market and reduced media
effectiveness
•
Emphasis on short-term results in corporate reward
structures
•
Increase in responsiveness of consumers to promotion
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reserved. 15–10
A Consequence of the Increase:
A Consequence of the Increase:
New Accounting Rules
New Accounting Rules
•
Financial Accounting Standards Board (FASB)
Financial Accounting Standards Board (FASB)
Emerging Issues Task Force
Emerging Issues Task Force

Regulations EITF 00-14 and 00-25 require that price
Regulations EITF 00-14 and 00-25 require that price
discount sales promotion
discount sales promotion
—
—
including those directed to
including those directed to
retailers and consumers

retailers and consumers
—
—
must be treated as
must be treated as
reductions in sales revenue.
reductions in sales revenue.

Adherence to the new rules will cut reported net sales
Adherence to the new rules will cut reported net sales
for CPG companies by 8.5% on average.
for CPG companies by 8.5% on average.
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reserved. 15–11
Illustration of “Old” and “New” Accounting Procedure
Table 15.3
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reserved. 15–12
Tasks That Promotions Can and Cannot Accomplish
Table 15.4
Sales Promotions Can
•
Stimulate sales force enthusiasm for a new, improved, or mature product
•
Invigorate sales of a mature brand
•
Facilitate the introduction of new products to the trade
•

Increase on- and off-shelf merchandising space
•
Neutralize competitive advertising and sales promotions
•
Obtain trial purchases from consumers
•
Hold current users by encouraging repeat purchases
•
Increase product usage by loading consumers
•
Preempt competition by loading consumers
•
Reinforce advertising
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reserved. 15–13
Tasks That Promotions Can and Cannot Accomplish (cont’d)
Table 15.4
Sales Promotions Cannot
•
Compensate for a poorly trained sales force or for a lack of advertising
•
Give the trade or consumers any compelling long-term reason to continue
purchasing a brand
•
Permanently stop an established brand’s declining sales trend or change
the basic nonacceptance of an undesired product
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 15–14

The Role of Trade Promotions
The Role of Trade Promotions
•
Trade Promotions’ Scope and Objectives
Trade Promotions’ Scope and Objectives
1.
1.
Introducing new or revised products
Introducing new or revised products
2.
2.
Increasing distribution of new packages or sizes
Increasing distribution of new packages or sizes
3.
3.
Building retail inventories
Building retail inventories
4.
4.
Maintaining or increasing manufacturer’s share of shelf space
Maintaining or increasing manufacturer’s share of shelf space
5.
5.
Obtaining displays outside normal shelf locations
Obtaining displays outside normal shelf locations
6.
6.
Reducing excess inventories and increasing turnover
Reducing excess inventories and increasing turnover
7.

7.
Achieving product features in retailers’ advertisements
Achieving product features in retailers’ advertisements
8.
8.
Countering competitive activity
Countering competitive activity
9.
9.
Selling as much as possible to final consumers
Selling as much as possible to final consumers
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reserved. 15–15
Ingredients for a Successful
Ingredients for a Successful
Trade Promotion Program
Trade Promotion Program
Correct
Timing
Financial
Incentive
Improved
Retailer
Performance
Quick
Results
Minimize
Retailer’s Effort
and Cost

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reserved. 15–16
Illustration of Forward Buying and Diverting
Table 15.5
1. In preparation for a huge promotional event in 2009 surrounding the Cinco de Mayo
celebration of Mexican independence on May 5, Beauty Products Inc.—a hypothetical
manufacturer of personal-care products—extends an off-invoice offer to grocery
chains in the Los Angeles area. This promotion is a 15 percent off-invoice allowance
on all orders placed for SynActive shampoo (a hypothetical brand) during the week
beginning April 3, 2009, and extending through the week beginning April 24, 2009.
2. Assume that FB&D Supermarkets of Los Angeles (a hypothetical chain) orders 15,000
cases of SynActive—many more cases than it typically would sell in its own stores
during any four-week period. Beauty Products Inc. has offered the 15 percent off-
invoice allowance to FB&D Supermarkets with the expectation that FB&D will reduce
SynActive’s retail price to consumers by as much as 15 percent during the week of
Cinco de Mayo festivities.
3. FB&D sells at the discounted price only 3,000 of the 15,000 cases purchased. (The
remaining cases include some that are forward bought and some that will be diverted.)
4. FB&D resells 5,000 cases of SynActive to Opportunistic Food Brokers—a company
that services grocery retailers throughout the West. (This is the practice of diverting.)
5. FB&D later sells the remaining 7,000 cases of SynActive to shoppers in its own stores
but at the regular, full price. (These 7,000 cases represent forward buys.)
© 2010 South-Western, a part of
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reserved. 15–17
Trade Allowances
Trade Allowances
•
Trade Allowances

Trade Allowances

Are used because manufacturers hope to increase
Are used because manufacturers hope to increase
purchases of the manufacturer’s brand by
purchases of the manufacturer’s brand by
wholesalers and/or retailers
wholesalers and/or retailers

Augment consumers’ purchases of the
Augment consumers’ purchases of the
manufacturers’ brand from retailers
manufacturers’ brand from retailers

Foster the expectation that retailers will pass along
Foster the expectation that retailers will pass along
their savings to consumers
their savings to consumers
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Trade Allowances (cont’d)
Trade Allowances (cont’d)
Off-Invoice
Allowances
Bill-Back
Allowances
Slotting and
Deslotting
Allowances

Major Forms of
Trade Allowances
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Major Forms of Trade Allowances
Major Forms of Trade Allowances
Off-Invoice
Off-Invoice
Allowances
Allowances
•
Most frequently used form
Most frequently used form
•
Deals offered to trade that permit wholesalers and
Deals offered to trade that permit wholesalers and
retailers to deduct a fixed amount from the invoice
retailers to deduct a fixed amount from the invoice
•
Retailers may not pass along discounts to consumers
Retailers may not pass along discounts to consumers
Bill-Back
Bill-Back
Allowances
Allowances
•
Retailers receive allowances for featuring the
Retailers receive allowances for featuring the
manufacturer’s brand in advertisements or for providing

manufacturer’s brand in advertisements or for providing
special displays
special displays
Slotting
Slotting
Allowances
Allowances
•
Fees that manufacturers pay retailers for access to the
Fees that manufacturers pay retailers for access to the
slot, or location
slot, or location
•
Fees paid by a manufacturer to get its new brand
Fees paid by a manufacturer to get its new brand
accepted by retailers
accepted by retailers
—a
—a
form of bribery? or legitimate
form of bribery? or legitimate
cost of doing business?
cost of doing business?
Exit Fees
Exit Fees
(Deslotting
(Deslotting
Allowances)
Allowances)
•

If brand does not meet an average weekly sales
If brand does not meet an average weekly sales
volume, the retailer can assess a deslotting charge for
volume, the retailer can assess a deslotting charge for
removing the item from its distribution center,
removing the item from its distribution center,
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Undesirable Consequences of Off-Invoice
Undesirable Consequences of Off-Invoice
Allowances: Forward Buying and Diverting
Allowances: Forward Buying and Diverting
Forward
Forward
Buying
Buying
•
Retailers purchase enough products on deal to carry them
Retailers purchase enough products on deal to carry them
over until the manufacturer’s next regularly scheduled deal
over until the manufacturer’s next regularly scheduled deal
•
Retailers’ savings from forward buying often are not passed
Retailers’ savings from forward buying often are not passed
on to consumers
on to consumers
•
Actions leads to increased distribution costs
Actions leads to increased distribution costs

•
Manufacturers experience reduced margins due to price
Manufacturers experience reduced margins due to price
discounts
discounts
Diverting
Diverting •
Occurs when a manufacturer restricts a deal to a limited
Occurs when a manufacturer restricts a deal to a limited
geographical area
geographical area
•
Retailers buy large quantities at the deal price and then
Retailers buy large quantities at the deal price and then
resell the excess quantities in other geographical areas
resell the excess quantities in other geographical areas
•
Product quality potentially suffers due to delays and serious
Product quality potentially suffers due to delays and serious
problem could result from product tampering
problem could result from product tampering
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Efforts to Rectify
Efforts to Rectify
Trade Promotion Problems
Trade Promotion Problems
Everyday Low
Pricing (EDLP)

Pay-for-
Performance
Account-Specific
Marketing
Reducing the
Negative Effects of
Trade Allowances
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Trade Promotion Activities
Trade Promotion Activities
Everyday Low Pricing
Everyday Low Pricing
(EDLP) or Value Pricing
(EDLP) or Value Pricing
•
When a retailer charges the same price for
When a retailer charges the same price for
a particular brand day in and day out
a particular brand day in and day out
EDLP(M)
EDLP(M)
•
A form of pricing whereby a manufacturer
A form of pricing whereby a manufacturer
charges retailers the same price for a
charges retailers the same price for a
particular brand day in and day out.
particular brand day in and day out.

Pay-for-Performance
Pay-for-Performance
Programs
Programs
•
Reward retailers for selling the brands
Reward retailers for selling the brands
supported with trade allowances rather
supported with trade allowances rather
than merely buying these brands.
than merely buying these brands.
•
Produce win-win-win situations
Produce win-win-win situations
•
Provide incentives to the retailer only for
Provide incentives to the retailer only for
the items that are sold to consumers
the items that are sold to consumers
during the agreed-upon time period
during the agreed-upon time period
•
Benefit all parties: consumers, retailers,
Benefit all parties: consumers, retailers,
and manufacturers
and manufacturers
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Scanning Agents

Scanning Agents
•
Activities that scanning agents profit from:
Activities that scanning agents profit from:

Collecting scanner data from retailers
Collecting scanner data from retailers

Verifying the amount of product movement that meets
Verifying the amount of product movement that meets
the manufacturer’s promotional requirements and
the manufacturer’s promotional requirements and
warrants compensation
warrants compensation

Paying the retailer
Paying the retailer

Collecting funds from the manufacturer along with a
Collecting funds from the manufacturer along with a
commission for services rendered
commission for services rendered
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Trade Promotion Activities (cont’d)
Trade Promotion Activities (cont’d)
Account-Specific
Account-Specific
Marketing

Marketing
(Co-Marketing)
(Co-Marketing)
•
Creates promotional and advertising
Creates promotional and advertising
activities that a manufacturer customizes to
activities that a manufacturer customizes to
specific retail accounts
specific retail accounts
—l
—l
ocal radio tie-in
ocal radio tie-in
advertising, loyalty programs
advertising, loyalty programs
•
Relatively recent innovation
Relatively recent innovation
•
Requires much effort and can be costly
Requires much effort and can be costly
•
The future of this practice is uncertain
The future of this practice is uncertain
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Nine Empirical Generalizations about Promotions
Table 15.6

1. Temporary retail price reductions substantially increase sales.
2. The greater the frequency of deals, the lower the height of the deal spike.
3. The frequency of deals changes the consumer’s reference price.
4. Retailers pass through less than 100 percent of trade deals.
5. Higher-market-share brands are less deal elastic.
6. Advertised promotions can result in increased store traffic.
7. Feature advertising and displays operate synergistically to influence sales
of discounted brands.
8. Promotions in one product category affect sales of brands in
complementary and competitive categories.
9. The effects of promoting higher- and lower-quality brands are asymmetric.