Week18消費(fèi)者導(dǎo)向的銷售1

1、Types of Consumer-Oriented & Trade-Oriented Sales Promotions Part 2MKT3150Adv & Sales PromotionWeek 181Part 2Sampling & Couponing2Chapter ObjectivesAppreciate the objectives of consumer-oriented sales promotions.Recognize that many forms of promotions perform different objectives for marketers.Know

2、the role 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.3Why Use Consumer

3、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 frequentlyBrand Management ObjectivesBrand ManagementIs often directed at influencin

4、g consumer behaviour rather than initiating trade or sales-force actionObjectives are:Generating purchase trial and retrial (new customers)Encouraging repeat purchases (early customer loyalty)Reinforcing brand images (on-going customer loyalty)Consumer Rewards6Consumer Rewards 1/3Utilitarian (Functi

5、onal) Benefits of RewardsObtaining monetary savings (e.g., when using coupons)Reducing search and decision costs (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 consum

6、ers to buy superior brands they might not otherwise purchase.Consumer 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 i

7、t were not for an attractive promotionObtaining entertainment value when, for example, the consumer competes in a promotional contest or participates in a sweepstakesConsumer Rewards 3/3Other RewardsConsumer promotions perform an informational function by influencing consumer beliefs about a brandEx

8、ample: 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 desired behaviour by a

9、 period of days, weeks, or even longer10? Immediate or delayed reward ?Product samples immediateOn-pack coupons delayedContests delayed (usually)Bonus packs immediateOnline coupons delayedFree-with-purchase premiums delayedShelf-delivered coupons immediate11Major Consumer-Oriented PromotionsTable 16

10、.1Notes on Table 16.1The classification of promotional tools is necessarily simplifiedPromotions are capable of accomplishing more than a single objectiveManufacturers use consumer-oriented sales also to leverage trade supportCoupons and premiums achieve different objectives depending on the specifi

11、c form of delivery vehicle SamplingAny method used to deliver an actual- or trial-sized product to consumers14SamplingWhy 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 ca

12、se with the receipt of promotional techniques such as couponsIt is almost a necessity when introducing truly new products that can afford this form of promotionSampling Methods and Media 1/2Direct MailMailed directly to households targeted by demographic characteristics or geodemographicsNewspapers

13、and MagazinesSamples included in magazines and newspapers represent cost-efficient forms of sampling for reaching a mass audienceDoor-to-Door DistributionAllows considerable targeting and has advantages of lower cost and short lead times between a sampling request and when the samples are delivered

14、to targeted households On- or In-pack SamplingUses the package of another product to serve as the sample carrierSampling Methods and Media 2/2High-TrafficLocationsShopping centers, movie theaters, airports, and special events offer valuable forums for sample distributionIn-Store SamplingProviding sa

15、mples in grocery stores and other retail outlets for trial while consumers are shoppingSampling at Unique VenuesChoosing unique locations for sampling products appropriate for people at a certain stage of life, referred to as change-point samplingInternet SamplingDistributing samples online through

16、the services of companies that specialize in online sample delivery17How would you promote this?18Sampling Charmin via a Fleet of Tractor TrailersFigure 16.1Major Sampling PracticesTargeting rather thanmass distributingsamplesUsing innovativedistribution methodswhere appropriateUndertaking efforts t

17、omeasure samplingsreturn on investmentPrudent Sampling PracticesCalculating 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 distribution, and so on. Assume, for exa

18、mple, 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 the per-unit profit. Assume, for

19、 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 the sampling program to

20、 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 number repres

21、ents 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 would mea

22、n 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.When Should Sampling Be Used?When the new or improved brand is demonstrably superior or has distinct re

23、lative advantagesWhen an innovative product concept is difficult to communicate by advertising aloneWhen promotional budgets can afford to generate consumer trial quicklySampling Challenges and ProblemsExpensive to implementMishandling of mailing by distributorsDistribution to the wrong marketIn- or

24、 on-package samples fail to capture current non-consumersDistribution does not reach sufficient numbers of consumers to justify its expenseMisuse of samples by customersSubject to mail pilferage CouponingA promotional device that rewards consumers for purchasing the coupon-offering brand by providin

25、g money-off savings- Also known as VOUCHERS -24Illustration of Money-Off Coupon OffersFigure 16.2Coupon Distribution MethodsFreestanding Inserts (FSIs)Handouts in storesDirect MailMagazinesNewspapersIn- and On-PackageInternetFull Coupon CostTable 16.3Face value$1.00Distribution and postage cost0.40H

26、andling charge0.08Consumer fraud (misredemption) cost0.07Internal preparation and processing cost0.02Redemption cost0.02Total Cost$1.59 Couponing (contd)Is Couponing Profitable?Most coupons are redeemed by current brand usersHouseholds most likely to redeem coupons are also the most likely to buy th

27、e brand in the first placeCompanies have to offer coupons to prevent losing consumers to other brands that do offer couponsPoint-of-Purchase CouponingInstantly Redeemable CouponsShelf-Delivered CouponsScanner-Delivered CouponsPoint-of-Purchase CouponsMail- and Media-Delivered CouponsMail-Delivered C

28、ouponsHave 95% household penetration rateHave highest redemption rate of all mass-delivered coupons (3.5%)Increase the amount of product purchasesAre relatively expensiveAre Inefficient and expensive for brands enjoying a high market shareFSIs and Other Media-Delivered Coupons88% of all coupons dist

29、ributed via Sunday newspaper freestanding insertsProvide broad exposureAre relatively cheaperServe both reminder and advertising functionsRedemption rate is very lowDont generate much trade interestSusceptible to misredemptionIn- and On-Pack CouponsAre Included either in or on the products packageCa

30、nnot be removed at the point of purchase; its for next purchaseMay use a coupon to promote one brand by another brand (crossruffing)Have bounce-back valueHave no distribution costsHave higher redemption ratesOffer delayed value to consumersDont reach nonusers of the carrying brandOnline Couponing Ar

31、e distributed by many Internet sitesAllows 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)Coupon Redemption and Misredemption ProcessFigure 16.3MisredemptionConsequences of MisredemptionThe 3 to 4 percent misredemption rate represents millions in losses by manufacturersParticipants in MisredemptionConsumersCler