What are three sales promotion strategies? Compare and contrast the
three strategies and use one product to illustrate each strategy.
Compare and contrast which strategies would be appropriate with each of
the four major types of selling (trade, retail, telemarketing, and
e-marketing). Incorporate concepts and examples from this week’s lecture
in your post. Must be at least 350 words and APA.See the attached Lectre notes.Lecture notes
Marketing venues used to be so traditional: we had three network channels, outdoor billboards,
newspapers, magazines, and a few radio stations located in each market. Not true for today!
Todays marketer has to select from the traditional venues along with dozens of cable channels,
satellite radio, and the Internet. The Internet alone adds selections such as smartphones, tablets,
and social media. What is a marketer to do? How does a marketer begin to select a venue that has
the highest probability of reaching the organizations potential customers on a limited budget?
Todays marketers have embraced a new method of communication; along with the traditional
venues, marketers now also use alternative marketing tactics such as buzz marketing, guerrilla
marketing, product placements and branded entertainment, and lifestyle marketing (Clow &
Baack, 2012, p. 258). Sometimes this is called tradigital marketing because the marketing
strategy is a combination of traditional and digital venues. How does a marketer select a venue?
Marketers will use the venue believed offers the highest probability of reaching their targeted
market segments.
Our text does a very good job of describing buzz marketing, guerrilla marketing, product
placements and branded entertainment, and lifestyle marketing. Buzz marketing is just like wordof-mouth marketing, except it has a far greater reach because of the Internet. Get people talking
about your product. Get people telling their friends about your product. Finally, get the people to
blog via social media about your product. Do you see how such word-of-mouth marketing
travels around the globe? And . . . how much does this cost the organization? Nothing.
Word-of-mouth marketing continues to be the most influential marketing tool. Erik Qualman
(2013) stated we have moved from word-of-mouth to literally world-of-mouth marketing all
because of the Internets reach (p. 1). While guerrilla marketing and the other alternative
marketing venues have an excellent chance of reaching the desired targeted market segment,
nothing competes with the effectiveness of the world-of-mouth. Below is a discussion of
consumer promotions, sales promotion strategies, and trade promotions.
Consumer Promotions
Consumer promotions are all around us in the form of coupons, percent-off discounts, free trials
and samples, buy one get one free deals, rebates, premiums, ad specialties, and contests and
sweepstakes (Kokemuller, para. 1). Although they are used to increase the sale of a product,
their effectiveness in attracting new, long-term customers is usually the end goal. See this
example of a consumer promotion done right with the target market in mind:
Consumer promotions are the incentives directed to the end user (you). The end user could also
be a business who consumes the product and does not resell the product. Organizations invest a
significant amount of resources into sales promotion strategies that are designed to attract and
engage the consumer to buy.
Sales Promotion Strategies
Sales promotions are activities that encourage buying on a short-term basis (Ogden & Ogden,
2014). Given this activity is implemented in hopes of increasing sales, what could possibly go
wrong? Who does not enjoy increased sales? Table 6.1 (Ogden & Ogden, 2014) in our text lists
the advantages and the disadvantages of sales promotions. Immediate sales are terrific and easy
to measure, but those immediate sales are short term. The sales promotion may encourage the
consumer to buy, but the company may be teaching their customers to wait for sales before
buying. Finally, those sales promotions may dilute the brand equity of a product line and
negatively impact its image. The Coach brand has been positioned as a luxury retailer for highend purses and accessories. Coach products historically were purchased at high-end retailers;
however, the company changed its strategy and began selling their products at factory outlets
where consumers were given substantial additional discounts from the 50\% pricing already in
place (Trefis Team, 2014). While Coach was able to bring in customers who do not typically
purchase high-end luxury items, the organization’s overall project margin decreased as a result of
the sales promotional strategy. Coach’s core audience has migrated to other high-end
competitors such as Michael Kors and Kate Spade. Coach now plans to close 70 stores in North
America (Trefis Team).
Trade Promotions
Unlike consumer promotions, trade promotions are used by the manufacturer or other members
of the distribution channel to encourage the sale of an item that will eventually be resold (Clow
& Baack, 2012). Trade promotions are business-to-business. A terrific venue for trade
promotions would be a trade show. Trade shows are international, national, and local. One trade
show is the Oklahoma Restaurant Association. Another local trade show is for the oil and gas
industry held in Oklahoma City. Many vendors will set up a booth in hopes of meeting the
decision makers of the restaurants. Sometimes this is the only way to get in front of senior
managers or owners. The people who attend the trade show are somewhat relaxed because they
are away from their business and the day-to-day operations issues. Vendors who sell food will
hand out samples, and other vendors will hand out trinkets – it can be a very festive, happy
environment. Vendors will offer a discount on the purchase of equipment or waive an installation
charge. Trade shows are a very effective way to meet decision makers and potential customers!
Forbes School of Business Faculty
References:
Clow, K. E., & Baack, D. (2012). Integrated advertising, promotion, and marketing
communications (5th ed.). Upper Saddle River, NJ: Pearson Education, Inc.
Forbes (Mar. 23, 2011). Groupons second chance [Video file]. Retrieved from
Kokemuller, N. (n.d.). Consumer and trade promotions as marketing strategies. AZ Central.
Retrieved from http://yourbusiness.azcentral.com/consumer-trade-p…
Ogden, J. R., & Ogden, D. T. (2014). Utilizing a strategic marketing approach to managing
marketing communications. San Diego, CA: Bridgepoint Education, Inc.
Qualman, E. (2013). Socialnomics. Hoboken, NJ: John Wiley & Sons.
Trevis Team. (2014, July 1). Can Coach rebuild its brand image with new promotional
strategies? Forbes. Retrieved from http://www.forbes.com/sites/greatspeculations/2014…
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