Objectives of ConsumerOriented Sales Promotion

As the use of sales promotion techniques continues to increase, companies must consider what they hope to accomplish through their consumer promotions and how they interact with other promotional activities such as advertising, direct marketing, and personal selling. When marketers implement sales promotion programs without considering their long-term cumulative effect on the brand's image and position in the marketplace, they often do little more than create short-term spikes in the sales curve.

Not all sales promotion activities are designed to achieve the same objectives. As with any promotional mix element, marketers must plan consumer promotions by conducting a situation analysis and determining sales promotion's specific role in the integrated marketing communications program. They must decide what the promotion is designed to accomplish and to whom it should be targeted. Setting clearly defined objectives and measurable goals for their sales promotion programs forces managers to think beyond the short-term sales fix (although this can be one goal).

While the basic goal of most consumer-oriented sales promotion programs is to induce purchase of a brand, the marketer may have a number of different objectives for both new and established brands—for example, obtaining trial and repurchase, increasing consumption of an established brand, defending current customers, targeting a specific market segment, or enhancing advertising and marketing efforts.

Obtaining Trial and Repurchase One of the most important uses of sales promotion techniques is to encourage consumers to try a new product or service. While thousands of new products are introduced to the market every year, as many as 90 percent of them fail within the first year. Many of these failures are due to the fact that the new product or brand lacks the promotional support needed either to encourage initial trial by enough consumers or to induce enough of those trying the brand to repurchase it. Many new brands are merely new versions of an existing product without unique benefits, so advertising alone cannot induce trial. Sales promotion tools have become an important part of new brand introduction strategies; the level of initial trial can be increased through techniques such as sampling, couponing, and refund offers.

The success of a new brand depends not only on getting initial trial but also on inducing a reasonable percentage of people who try the brand to repurchase it and establish ongoing purchase patterns. Promotional incentives such as coupons or refund offers are often included with a sample to encourage repeat purchase after trial. For example, when Lever Brothers introduced its Lever 2000 brand of bar soap, it distributed millions of free samples along with a 75-cent coupon. The samples allowed consumers to try the new soap, while the coupon provided an incentive to purchase it.

Increasing Consumption of an Established Brand Many marketing managers are responsible for established brands competing in mature markets, against established competitors, where consumer purchase patterns are often well set. Awareness of an established brand is generally high as a result of cumulative advertising effects, and many consumers have probably tried the brand. These factors can create a challenging situation for the brand manager. Sales promotion can generate some new interest in an established brand to help increase sales or defend market share against competitors.

Marketers attempt to increase sales for an established brand in several ways, and sales promotion can play an important role in each. One way to increase product consumption is by identifying new uses for the brand. Sales promotion tools like recipe books or calendars that show various ways of using the product often can accomplish this. One of the best examples of a brand that has found new uses is Arm & Hammer baking soda. Exhibit 16-9 shows a clever freestanding insert (FSI) that promotes the brand's new fridge-freezer pack, which absorbs more odors in refrigerators and freezers.

Another strategy for increasing sales of an established brand is to use promotions that attract nonusers of the product category or users of a competing brand. Attracting nonusers of the product category can be very difficult, as consumers may not see a need for the product. Sales promotions can appeal to nonusers by providing them with an extra incentive to try the product, but a more common strategy for increasing sales of an established brand is to attract consumers who use a competing brand. This can be done by giving them an incentive to switch, such as a coupon, premium offer, bonus pack, or price deal. Marketers can also get users of a competitor to try their brand through sampling or other types of promotional programs.

One of the most successful promotions ever used to attract users of a competing brand was the Pepsi Challenge. In this campaign, Pepsi took on its archrival, industry leader Coca-Cola, in a hard-hitting comparative promotion that challenged consumers to taste the two brands in blind taste tests (Exhibit 16-10). The Pepsi Challenge promotion included national and local advertising, couponing, and trade support as part of a fully integrated promotional program. The campaign was used from 1975 to the early 80s and was instrumental in helping Pepsi move ahead of Coke to become the market share leader in supermarket sales. In response Coke launched a variety of counterattacks, including the controversial decision to change its formula and launch New Coke in 1986. Pepsi brought back the promotion in 2000 to recruit a new generation of brand

Exhibit 16-10 The Pepsi Challenge was a very successful promotion for attracting users of a competing brand

Exhibit 16-9 Arm &

Hammer used this FSI to promote a specific use for the product

Exhibit 16-10 The Pepsi Challenge was a very successful promotion for attracting users of a competing brand

ANNCR: All across America people are taking the Pepsi Challenge. In California here's what they are saying.

TRACY KUERBIS: Pepsi really is the better drink.

DAVE JOHNSON: I've proven to myself now that I like Pepsi better.

ANNCR: Nationwide more people prefer the taste of Pepsi over Coca-Cola.

CHERIE BOOTH: I think today's test was very honest.

DAVE: Pepsi has a better product and that's probably why they are running a test like this because it's obvious how many people over here have picked Pepsi.

SUZANNE MACK: Being able to compare the two, I'd pick Pepsi.

CHERIE: If someone offered me either or, I choose the Pepsi.

ANNCR: What will you say? Take the Pepsi Challenge and find out.

Continue reading here: Using Contests to Build Brand Equity

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Readers' Questions

  • christian
    What is the purpose of secondary product promotion?
    4 months ago
  • The purpose of secondary product promotion is to increase awareness, generate interest, and drive sales of supplementary or complementary products or services that are related to the main product or service being promoted. It aims to enhance the overall customer experience, upsell or cross-sell additional offerings, and ultimately maximize revenue and customer satisfaction.
    • markus
      Which of the following sales promotion strategies is used to encourage and reward repeat purchases?
      6 months ago
    • The sales promotion strategy used to encourage and reward repeat purchases is: Loyalty Programs or Customer Rewards Programs
      • Milen Negassi
        What is the purpose of sales promotions?
        6 months ago
      • The purpose of sales promotions is to stimulate immediate customer demand and boost sales of a product or service. It is a marketing strategy that offers incentives or rewards to consumers with the intention of encouraging them to make a purchase, try a product, or remain loyal to a brand. Sales promotions help create awareness, generate interest, and create a sense of urgency among potential customers. They can also be used to differentiate a product from its competitors, increase customer loyalty, promote new products, clear out excess inventory, or increase overall sales during specific periods.
        • urbano
          What are the two main marketer objectives for app promotion?
          1 year ago
          1. Increase Brand Visibility: App promotion initiatives help to create awareness about the app and the associated brand. It enables potential users to become aware of the app, helping to increase brand visibility.
          2. Increase App Downloads: App promotion assists in increasing app downloads, providing marketers with an opportunity to convert potential users into app users. It is essential to drive downloads as this impacts the overall success of the app.
          • isumbras
            Is a form of consumeroriented promotion techniques.?
            1 year ago
          • Yes, consumer-oriented promotion techniques focus on reaching and attracting consumers to purchase products or services. This can be done through various strategies such as advertising, discounts, loyalty programs, social media campaigns, and product demonstrations, among others.
            • nea
              What is a form of consumer oriented promotion technique?
              1 year ago
            • A form of consumer oriented promotion technique is loyalty programs, in which customers can earn points, discounts, or rewards for repeat purchases.
              • anna
                What is a form of consumer oriented promotion techniques?
                1 year ago
              • Loyalty programs, sweepstakes, discounts, coupons, and referral programs are all examples of consumer-oriented promotion techniques.
                • alexandra
                  What is a consumer oriented sales promotion techniques?
                  1 year ago
                • Consumer-oriented sales promotion techniques are marketing efforts that focus on providing direct value to the consumer. Examples include coupons, discounts, loyalty/reward programs, contests, sweepstakes, rebates, sample offers and free trials. These techniques are intended to drive immediate sales and increase customer loyalty.
                  • bercilac
                    Which of the following is a consumeroriented sales promotion technique?
                    1 year ago
                  • Couponing.
                    • lindsay mckeever
                      Is a consumer oriented sales promotion technique?
                      1 year ago
                    • Contest
                      • carmelo
                        What is the element of consumer oriented sales promotion?
                        1 year ago
                      • The elements of consumer-oriented sales promotion include: coupons, rebates, samples, giveaways, loyalty programs, point-of-purchase displays, contests, and sweepstakes.
                        • MAGGIE
                          Which sales promotion goal would dave likely set for the university stores?
                          1 year ago
                        • Dave likely set a goal to increase sales, increase customer loyalty, build brand awareness, increase repeat purchases, or increase foot traffic to the store.
                          • vittoria
                            Which of the following is a customeroriented sales promotion technique?
                            1 year ago
                          • Point-of-purchase discounts
                            • shishay
                              What is objective of customer orented sales promotion?
                              1 year ago
                            • The objective of customer-oriented sales promotion is to encourage customers to purchase a product or service by offering them incentives such as discounts, coupons, and free samples. This type of promotion is designed to increase sales and create a loyal customer base.
                              • leonardo
                                What are the evaluating tecniques of consumer oriented sales promotion?
                                1 year ago
                              • There are several techniques used to evaluate consumer-oriented sales promotions. Some of the common ones include:
                                1. Sales volume analysis: This involves the analysis of sales data before, during, and after the promotion to determine the impact of the promotion on sales volume. It helps to understand if the promotion was successful in driving increased sales.
                                2. Return on investment (ROI): This technique measures the monetary return generated as a result of the promotion. It compares the promotional costs to the sales generated and calculates the ROI percentage. A higher ROI indicates a successful promotion.
                                3. Surveys and customer feedback: Conducting surveys or gathering customer feedback helps to gauge the perception and satisfaction of consumers regarding the promotion. It provides insights into whether the promotion was well-received and if it influenced consumer behavior.
                                4. Coupon redemption rate: This evaluates the effectiveness of coupon-based promotions by measuring the redemption rate of the coupons distributed. A higher redemption rate indicates a greater impact on consumer purchasing behavior.
                                5. Repeat purchase analysis: This method assesses if the promotion resulted in increased customer loyalty and repeat purchases. By tracking repeat purchase patterns of customers who participated in the promotion, it helps to determine the long-term impact of the promotion on consumer behavior.
                                6. Social media engagement: Monitoring social media platforms for engagement metrics such as likes, shares, and comments can provide insights into the reach and effectiveness of a consumer-oriented sales promotion. It helps to evaluate the level of consumer interest and involvement generated by the promotion.
                                7. Market research studies: Conducting market research studies, such as focus groups or product testing, can provide qualitative feedback on consumer attitudes, preferences, and the impact of the promotion on their buying decisions.
                                8. These techniques can be used individually or in combination to evaluate the success and effectiveness of consumer-oriented sales promotions.
                                • Maik
                                  What is consumeroriented sales promotions FOR A NEW PRODUCT?
                                  1 year ago
                                • Consumer-oriented sales promotions for a new product involve special offers, discounts, contests, and giveaways to encourage consumers to purchase and trial the product. For example, a company may offer a buy-one-get-one promotion, a coupon code for a discount, or a contest to win a free product as a way to create excitement and generate interest in the new product. These kinds of promotions can be run through traditional advertising, social media platforms, or even through direct mail.
                                  • susanne
                                    Which company uses consumer oriented marketting?
                                    1 year ago
                                  • Most companies use consumer-oriented marketing in some form or another. Examples include Apple, Coca-Cola, McDonald's, Adidas, and Amazon.
                                    • conan
                                      What is consumer oriented sale promotion?
                                      1 year ago
                                    • Consumer-oriented sales promotion is a type of marketing strategy aimed at directly boosting sales by providing incentives to consumers. This can include discounts, coupons, contests, doorbusters, in-store events, and other types of activities designed to entice customers to purchase products or services.
                                      • cristian
                                        What are the brand management objectives for the consumer oriented promotions?
                                        1 year ago
                                        1. Increasing brand awareness
                                        2. Growing the customer base
                                        3. Enhancing customer loyalty
                                        4. Boosting sales and market share
                                        5. Driving repeat purchases
                                        6. Supporting other marketing activities
                                        7. Building customer relationships
                                        8. Enhancing public image and reputation
                                        9. Building brand advocates.
                                        • berilac
                                          What is consumer oriented sales promotion means?
                                          1 year ago
                                        • Consumer Oriented Sales Promotion is a type of promotional activity that directly influences consumers to purchase a product or service. This may include discounts, coupons, free samples, rewards programs, sweepstakes, contests and other incentives that encourage customers to purchase items. It is an effective way to increase sales and brand recognition.
                                          • Michael
                                            What is customer oriented sales promotion?
                                            1 year ago
                                          • Customer oriented sales promotion is a marketing strategy that focuses on providing customers with value and enhancing their overall experience with a product or service. This includes offering discounts, promotional deals, or special rewards for purchases, as well as providing extra services or incentives like free shipping, loyalty programs, or personalized services to encourage customers to purchase from a business.
                                            • TESFALEM
                                              What is consumer oriented marketing?
                                              1 year ago
                                            • Consumer oriented marketing is a type of marketing strategy that focuses on creating products, services and communication strategies that are targeted at meeting the needs and desires of the customer. This type of marketing strategy is designed to create a positive customer experience while utilizing effective marketing tactics and engaging customers on an emotional level. It is focused on the customer's viewpoint, rather than the seller's, and is designed to build a positive relationship and promote loyalty.
                                              • dian
                                                What could be the sales promotion objectives for consumer oriented goods and services Discuss?
                                                1 year ago
                                              • The primary objectives of sales promotion for consumer oriented goods and services include increasing awareness and trial, enhancing brand loyalty, generating additional sales, and creating a competitive edge. Additional objectives might include improving product visibility in retail outlets, creating word-of-mouth marketing, and increasing the perceived value of the goods or services. Sales promotions for consumer-oriented goods and services should be designed to drive the desired outcomes, whether it be increased sales volume, increased market share, or increased customer loyalty.
                                                • abbie mitchell
                                                  What could be the sales promotion objectives for consumer oriented goods and services?
                                                  1 year ago
                                                  1. Increase customer loyalty and engagement.
                                                  2. Drive consumer awareness and trial of new products and services.
                                                  3. Generate short-term revenue and market share gains.
                                                  4. Enhance brand recognition and visibility.
                                                  5. Create a positive consumer sentiment and perception of the brand.
                                                  6. Maximize overall sales volume and profits.
                                                  7. Strengthen relationships with existing customers and acquire new ones.
                                                  8. Achieve a desirable return on investment (ROI).
                                                  • Medhanit
                                                    What are the objectives of consumer oriented sales promotion?
                                                    1 year ago
                                                    1. To increase brand and product awareness.
                                                    2. To attract new customers.
                                                    3. To increase product sales.
                                                    4. To stimulate repeat purchases.
                                                    5. To increase overall customer loyalty.
                                                    6. To create a competitive advantage in the marketplace.
                                                    7. To build relationships with customers.
                                                    8. To increase customer engagement.
                                                    9. To boost customer satisfaction.
                                                    10. To provide an incentive to purchase.