CHAPTER OBJECTIVESAfter reading this chapter. ),oj should be able to answer the following questions:

0 What types of trade promotions can help push products onto retailers' shelves and eventually to end use 0 What concerns exist for manufacturers considering trade promotions programs? 0 What issues complicate international sales promotions programs?

at one of your favorite words is your own name," he said with a smile. Miller continued, "When you come to our ballpark, we are going to know your name." In truth, Jay Miller is talking about two ballparks, one in Corpus Christi, Texas, and the other in Round Rock, Te game over 72 home dates each summer. This ranks among the top franchises at the Double-A level of professional base-

fans, and the entire organization. In a city with a large Hispanic community, the term la familia clearly applies. The Hooks are a family that hosts a large number of guests at

thrives on consumer promotions. For fans, numerous discounts and giveaways are part of the scene. In 2010, the Hooks staged over 30 promotional nights. The free gifts included bobbleheads, baseball card sets, duffle

ce of "awesome customer servi ce." At a Hooks game, everyone from park?ing attendants to the ticket takers to the ushers and concessions peibumiel focuses on friendly, first-name care. Miller and Ryan routinely circu?late through the stands to ming

e allowed on the field prior to the game. Many times disadvantaged children, Littie Leaguers, and others are paired with a player to go on the field as the game is about to begin to stand during the national anthem. Other attendees participate in the "Dizzy Bat R Reid Ryan n Sanders Baseball, results from promoting a summer-long experi?ence rather than a single event. Instead of focusing on wins and losses or even on players, the enjoyment of attending a series of games in a low-cost, f amily friendly environment

n summer evening with family and (,lends creates a iong?lasting impression. The Hooks' advertising tagline, "Catch a Memory-Hooks g ase -all," expresses this feeling.

profes?sional baseball for over 24 years. He has been named "Executive of the Year" on more than one occasion. He proudly reports that sales of memo?rabilia for the Hooks are higher than the majority of minor league teams, an indication of the strong loya

sponsors place adver?tising on the scoreboard, field. walls, and other places. Special corporate box seats are available for entertaining clients and reward?ing employees. Various business organizations are featured on the vi deo bo ar d a nd o n it e

329

importance of brand and image building. In a marketplace where a w;de variety of summertime activi?ties are possible, they emphasize the goal of being top-of-mind, or the family's first choice. A stadium full of happy customers for every home game provides all the evidence they need that their approach is working." EE

EE

E Coupons 330 E Premiums E Contests and sweepstakes E Refunds and rebates EE Price-offs '41FIGURE 12.1 Types of Consumer Promotions E

PART 4 IMC Promotional Tools

CHAPTER 12 Sales Promotions 331

SamplingBonus packs

E

Jay Miller

are the differences between consumer nromotions and trade promotions?

ial, was about S5 million. In exchange, Denny's earned somethinu monev alone cannot buy; a powerful positive public relations blitz. The promotion garnered as much as $50 million in free, positive media news cover?age. The company

key activities. This chapter describes sales promotions pro g rams. Sales promotions consist of all of the incentives offered to customers and channel members to encourage product purchases. Consumer promotions are aimed at those who actually use the prod?uct, or end users. They may be individuals or households. Another end user may be a business that consumes the product, and the item is not resold to another bu 1.6 billion were redeemed- The eventual resale. Trade promotions provided to other firnis help billion in savings for consumers, or ng channel to purchase goods for0.85 percent redemption rate represents approximately $2-25 push products through to retailers. about $ 1.41 per coupon _4 Nearly 80 percent of all U.S. households use coupons, and almost two ncouraged customers, businesses, and the distribution channel to forns on price. Recently, however, that view has changed. Many company leaders recognize that promo?tions can differentiate a brand from the competition, which cycle, promotions are typically designed to match advertising and other efforts focused on brand awareness, creating opportunities for trial purchases and stimulating additional purchases. Later, the goal often shifts to strengthen eestanding made to sales promotions programs in international markets are also described. djustmentsinserb (FSIs), which are sheets of coupons distributed in newspapers, primari ly on Sunday. FSTs represent almost 90 percent of all coupons distributed. The percentage has been steadily declining as con?sumers switch

Never,24.6%

AwaM20.7%

'4 FIGURE 12.2 Percentage of Consumers Who Use Coupons

Rarely, 17.0%

Somellimer, 37.7%P G T p 1 7 . W 5 AON 20041. PP. 23-29.

Is

- r-

Ho

k'cowm cw - 4 -

ates the interest and excitement that brings the consuer into the store. Marketers then use other tactics. In addition to leading to the final decision to buy an item, consumer promotions programs can be Mghly effective in generatin

JJZFIGURE 12.3 Methods of Distributing Coupons

PART 4

IM( Pr

-

omotional Tools

CHAPTER 12 Sales Promotions 333

full price doe., not make sense. Nlanuracturer,. however, argue that these consumers may be willing to stock up on the item, which means they do not buy from the competition. In essence, manufacturers recognize that these brand-pre

is not redeemed. Third. FSIs encourage consumers to purchase brands on the next trip to the store. Consume; are more likely to purchase a couponed brand and remember

the name when

they redeem a coupon, which helps mo

ice

nto mobile devices. or transfer them to a loyalty card. Retail stores, including JCPenne%. Kroger. and Safeway, feature technologies that allow consumers to redeem coupons from cell phones. CVS Pharmacy lets customers scan aS

BE