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On Sales Promo Campaigns

February 22nd 2008 08:02
By definition, sales promo is "a device aimed at generating active consumer response within a short period of time" (Blattberg and Neslin, 1990). Sales promo is like other marketing mix such as product sampling, price-off, contest, coupons, and some others . Only sales promo is more often use by marketers than say placement or packaging. One reason relates to sales promo's multiplicity and variety of forms. The multiplicity came from sales promos character as a limited period marketing mix element.

Lehman and Winer (2002) have a good list of sales promo targeted according to consumer responses. The authors partitioned their list and distinguished between sales promo "for short-run and transactional perposes" and those "for long-run and relationship building purposes." Here is the list :

A) Promos for short-run, transactional purposes.
Target response = "to get current consumers to buy more."
Appropriate sales promo = volume discount, value packages.

Target response = "to grt current consumer to be more loyal."
Appropriate sales promo = frequent buyer programs, premiums, pack-in coupons.

Target response = "to get current consumers to buy now."
Appropriate sales promo = rebates, coupons.

Target response = "to get non-user consumers and/or competitors' consumers to try your
brand."
Appropriate sales promo = sampling trial pack sizes.

B) Promos for long-run, relationship building purposes.

a.) Target response = "to enhance brand awareness and recall."
Appropriate sales promo = sweepstakes, contest.

b.) Target response = "to enhance image."
Appropriate sales promo = sponsorships, scholarships.

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