tài liệu truyền thông - chap17 - phí bảo hiểm và chương trình khuyến mãi khác

© 2010 South-Western, a part of Cengage Learning
All rights reserved.
PowerPoint Presentation by Charlie Cook
The University of West Alabama
Eighth Edition
Premiums and
Other Promotions
CHAPTER
17
1. Understand the role of premiums, the types of
premiums, and the developments in premium
practice.
2. Recognize the role of price-off promotions and bonus
packages.
3. Be aware of the role of rebates and refund offers.
4. Know the differences among sweepstakes, contests,
and games, and the reasons for using each form of
promotion.
5. Understand the role of continuity promotions.
Chapter Objectives
After reading this chapter you should be able to:
© 2010 South-Western, a part of Cengage Learning. All rights reserved. 17–2
6. Appreciate retailer-driven promotions.
7. Evaluate the potential effectiveness of sales
promotion ideas, and appraise the effectiveness of
completed promotional programs.
Chapter Objectives (cont’d)
After reading this chapter you should be able to:
© 2010 South-Western, a part of Cengage Learning. All rights reserved. 17–3
© 2010 South-Western, a part of
Cengage Learning. All rights

reserved. 17–4
Premiums
Premiums
•
Premiums
Premiums

Are articles of merchandise or services offered as a
Are articles of merchandise or services offered as a
gift to induce action by consumers, retailers, and the
gift to induce action by consumers, retailers, and the
sales force
sales force

Represent versatile promotional tools that generate
Represent versatile promotional tools that generate
trial purchases, encourage repeat purchasing, and
trial purchases, encourage repeat purchasing, and
reinforce brand images
reinforce brand images

Are provide to increase consumer brand loyalty and
Are provide to increase consumer brand loyalty and
to motivate new purchases
to motivate new purchases
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 17–5
Major Consumer-Oriented Promotions
Table 17.1

© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 17–6
Premiums
Premiums
Free-with-
Free-with-
Purchase
Purchase
Premiums
Premiums
•
Delayed reward to consumers primarily
Delayed reward to consumers primarily
designed to generate trial purchases
designed to generate trial purchases
•
Perceived value of a premium item, or gift,
Perceived value of a premium item, or gift,
depends on the value of brand offering gift
depends on the value of brand offering gift
Mail-In Offers
Mail-In Offers
•
Delayed reward to consumers primarily
Delayed reward to consumers primarily
designed to generate trial purchases.
designed to generate trial purchases.
•
Few consumers exposed to free mail-in offers

Few consumers exposed to free mail-in offers
take advantage of the opportunities
take advantage of the opportunities
In-, On-, and
In-, On-, and
Near-Pack
Near-Pack
Premiums
Premiums
•
Offer a free item of immediate value inside or
Offer a free item of immediate value inside or
attached
attached
•
Provide the retail trade with premium item that
Provide the retail trade with premium item that
retailers then give to consumers
retailers then give to consumers
•
Are less expensive due to no additional
Are less expensive due to no additional
packaging
packaging
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Cengage Learning. All rights
reserved. 17–7
Illustration
of a Mail-in
Premium

Figure 17.1
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Cengage Learning. All rights
reserved. 17–8
Premiums
Premiums
“
“
Buy X, Get 1
Buy X, Get 1
Free” Offers
Free” Offers
•
Represents an immediate reward to
Represents an immediate reward to
consumers, and, for manufacturers
consumers, and, for manufacturers
•
Rewards a brand’s loyal customers or
Rewards a brand’s loyal customers or
encourages trial from purchasers of
encourages trial from purchasers of
competitive brands who are willing
competitive brands who are willing
to switch in order to save money
to switch in order to save money
Self Liquidating
Self Liquidating
•
Consumer mails in proof-of-purchase with

Consumer mails in proof-of-purchase with
sufficient money to receive the premium item
sufficient money to receive the premium item
•
Premium should be appealing and represent
Premium should be appealing and represent
a value
a value
Phone Cards
Phone Cards
•
Repeat-purchasing objective
Repeat-purchasing objective
•
Delayed reward
Delayed reward
•
Preset amount of calling time
Preset amount of calling time
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 17–9
What Makes a Good Premium Offer?
What Makes a Good Premium Offer?
•
Attractive Premiums
Attractive Premiums

The choice of premium object and delivery method
The choice of premium object and delivery method

based on an explicit detailing of what is to be
based on an explicit detailing of what is to be
accomplished
accomplished

Premium items must be compatible with the brand’s
Premium items must be compatible with the brand’s
image and appropriate for the target market
image and appropriate for the target market
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 17–10
Price-Offs
Price-Offs
•
Price-Offs’ Marketing Objectives:
Price-Offs’ Marketing Objectives:

To reward present brand users
To reward present brand users

To get consumers to purchase larger quantities than
To get consumers to purchase larger quantities than
normal
normal

To establish repeat purchases
To establish repeat purchases

To ensure promotion dollars reach consumers

To ensure promotion dollars reach consumers

To obtain off-shelf display space
To obtain off-shelf display space

To provide the sales force with incentives
To provide the sales force with incentives
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 17–11
Price-Offs (cont’d)
Price-Offs (cont’d)
•
Federal Trade Commission (FTC)
Federal Trade Commission (FTC)
Price-Off Regulations
Price-Off Regulations

Price-off labels can only used on distributed brands
Price-off labels can only used on distributed brands
with established retail prices
with established retail prices

Limit to three price-off labels per year per brand size
Limit to three price-off labels per year per brand size

Required hiatus period (at least 30 days) between
Required hiatus period (at least 30 days) between
price-off promotions
price-off promotions


No more than 50% of annual volume from promotion
No more than 50% of annual volume from promotion

Manufacturer must provide display materials
Manufacturer must provide display materials

Dealer required to show regular and promotion prices
Dealer required to show regular and promotion prices
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 17–12
Bonus Packs
Bonus Packs
•
Bonus Packs
Bonus Packs

Are extra quantities of a product that are offered for
Are extra quantities of a product that are offered for
the same price
the same price

Offer an alternative to price-off deals
Offer an alternative to price-off deals

Will be purchased by regular customers who would
Will be purchased by regular customers who would
have purchased the brand anyway
have purchased the brand anyway


Load current users; thereby removing them from the
Load current users; thereby removing them from the
market
market
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 17–13
Games
Games
•
Promotional Games
Promotional Games

Provide an instant reward
Provide an instant reward

Create excitement, stimulate brand interest, and
Create excitement, stimulate brand interest, and
reinforce brand loyalty
reinforce brand loyalty

Must avoid snafus that threaten consumer confidence
Must avoid snafus that threaten consumer confidence
in the security of game operations and the integrity of
in the security of game operations and the integrity of
game outcomes
game outcomes
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Cengage Learning. All rights

reserved. 17–14
Rebates and Refunds
Rebates and Refunds
•
Rebate (also Refund)
Rebate (also Refund)

Refers to the practice in which manufacturers give
Refers to the practice in which manufacturers give
cash discounts or reimbursements to consumers who
cash discounts or reimbursements to consumers who
submit proofs of purchase
submit proofs of purchase

Offers consumers delayed rather than immediate
Offers consumers delayed rather than immediate
value, since the consumer must wait to receive the
value, since the consumer must wait to receive the
reimbursement
reimbursement

That goes unredeemed is a “phantom rebate”
That goes unredeemed is a “phantom rebate”

Can attract switchers from competitive brands who
Can attract switchers from competitive brands who
avail themselves of attractive discount offers
avail themselves of attractive discount offers
© 2010 South-Western, a part of
Cengage Learning. All rights

reserved. 17–15
Illustration of a
Rebate Offer
Figure 17.2
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 17–16
Rebate Fraud
Rebate Fraud
Manufacturers
Retailers
Consumers
Sources of
Rebate Fraud
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Cengage Learning. All rights
reserved. 17–17
Sweepstakes
Sweepstakes
•
Sweepstakes (Sweeps)
Sweepstakes (Sweeps)

A promotion in which winners are determined purely
A promotion in which winners are determined purely
on the basis of chance
on the basis of chance
—
—
proofs of purchase cannot

proofs of purchase cannot
be required as a condition for entry
be required as a condition for entry
•
Sweepstakes as a Promotional Tool
Sweepstakes as a Promotional Tool

Are relatively inexpensive and simple to execute
Are relatively inexpensive and simple to execute

Reinforce brand positioning and image
Reinforce brand positioning and image

Attract attention to advertisements
Attract attention to advertisements

Promote increase brand distribution at retail
Promote increase brand distribution at retail

Foster sales force enthusiasm
Foster sales force enthusiasm

Can reach special groups
Can reach special groups
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 17–18
Illustration of a
Sweepstakes
Offer

Figure 17.3
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 17–19
Illustration
of another
Sweepstakes
Offer
Figure 17.4
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Cengage Learning. All rights
reserved. 17–20
Contests
Contests
•
Contests
Contests

A promotion in which participants must act according
A promotion in which participants must act according
to the rules of the contest and may or may not be
to the rules of the contest and may or may not be
required to submit proofs-of-purchase
required to submit proofs-of-purchase
•
Online Sweeps and Contests
Online Sweeps and Contests

Are growing in importance
Are growing in importance


Direct consumers to register online to participate in
Direct consumers to register online to participate in
sweeps or contests
sweeps or contests

Create brand awareness, build consumer interaction
Create brand awareness, build consumer interaction
with a brand, and enable expansion of a brand’s opt-
with a brand, and enable expansion of a brand’s opt-
in e-mail database
in e-mail database
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 17–21
Illustration of a
Promotional
Contest
Figure 17.5
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 17–22
Continuity Promotions
Continuity Promotions
•
Continuity Promotions
Continuity Promotions


Reward consumers’ repeat purchasing behaviors
Reward consumers’ repeat purchasing behaviors

Loyalty programs
Loyalty programs

Point programs
Point programs

Serve to cement a long-term relationship with the
Serve to cement a long-term relationship with the
consumer
consumer
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Cengage Learning. All rights
reserved. 17–23
Overlay and Tie-In Promotions
Overlay and Tie-In Promotions
•
Overlay (Combination) Program
Overlay (Combination) Program

Is the simultaneous use of
Is the simultaneous use of
multiple
multiple
promotion tools to
promotion tools to
promote a brand or to promote brands
promote a brand or to promote brands

cooperatively
cooperatively


from different firms
from different firms

Printed coupon with an mail-in entry contest form
Printed coupon with an mail-in entry contest form

Increases the likelihood that consumers will attend a
Increases the likelihood that consumers will attend a
promotional message that cuts through clutter
promotional message that cuts through clutter
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 17–24
Overlay and Tie-In Promotions (cont’d)
Overlay and Tie-In Promotions (cont’d)
•
Tie-in (Group) Promotion
Tie-in (Group) Promotion

Is the simultaneous promotion of multiple brands in a
Is the simultaneous promotion of multiple brands in a
single
single
intracompany or intercompany (joint)
intracompany or intercompany (joint)
promotional effort

promotional effort

Branded pizza and branded soft drink combination offers
Branded pizza and branded soft drink combination offers

Is cost-effective, but lead time is lengthened
Is cost-effective, but lead time is lengthened

Should reinforce partners’ images of each other
Should reinforce partners’ images of each other
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Cengage Learning. All rights
reserved. 17–25
Illustration of an Intracompany Tie-In
Figure 17.6