Chapter 3

Adve rt is ing a nd
Sa le s Promot ion
Noranita Abdullah
 Le a rning Obje ct ive s
3.0 Advertising and Sales Promotion
3.1 Construct advertising
3.1.1 Describe the definition of advertising
3.1.2 Explain the advertising objectives
3.1.3 Recognize the types of advertising media
3.2 Construct sales promotion
3.2.1 Define sales promotion
3.2.2 Describe the types of sales promotion activities
3.2.3 Construct the objectives of sales promotions
De finit ion of a dve rt is ing
Any form of paid, non-personal presentation or
communication aimed at a target group with
the aim of promoting, introducing and
increasing or selling a product, service or idea
by an identified sponsor.
 The a dve rt is ing obje ct ive s

To inform To pe rs ua de To re m ind
Advertising that keeps a
Advertising makes Any advertisement must company’s brand fresh in
consumers aware of new be persuasive in nature, the consumer’s memory.
products, informs them attracting consumers This objective is relevant
about specific brands and towards the brand. for well-established
educates them about Effective advertising companies. These types
particular product persuades customers to of advertisements try to
features and benefits. try advertised products. remind the consumers of
the brand existence.
 Type s of a dve rt is ing me dia

01 Print Me dia 02 Broa dca s t Me dia 03 Online Me dia

04 Out door Me dia 05 Mobile Me dia 06 Spe cia lt y Me dia

1. Print Me dia
Include different types of newspaper
advertisements, magazine advertisements,
periodicals, trade journals, brochures, flyers, etc.
Magazines and newspapers have been
advertising media for many years despite the
competition from broadcast media.
Magazines are targeted, provide good detail and
excellent graphics, and have long shelf-life.
2 . Broa dca s t Me dia
Broadcasting is the distribution of audio or
video content to a dispersed audience via any
electronic mass communication medium.
Broadcast media describe the traditional form
of media that includes television and radio.
Broadcast advertising has until recently been
the most dominant way to reach a large number
of consumers.
3. Online Me dia
Advertisement via the internet.
Internet advertising is becoming more and more
important. Especially young people spend less
time watching TV and more time on the
internet.
The internet has the advantage of being
available to people around the world at all
times.
4 . Out door Me dia
Outdoor media appeals to be more exposed as
it reaches a broad and diverse market, its
exposure frequency is very high and the ability
to be customized to local marketing needs.
Posters and signs may be displayed in public
places, on buildings, and alongside highways.
Also known as out-of-home (OOH) advertising.
This is a broad term that describes any type of
advertising that reaches consumers when they
are away from home.
5 . Mobile Me dia
Mobile media devices include smartphones,
tablets, and other handheld portable devices.
They allow users to access the internet and send
or receive information from almost anywhere
with a signal.
Many businesses and product manufacturers
use mobile devices to advertise products and
services and build business brands.
6 . Spe cia lt y Me dia
Relatively permanent promotional messages
printed on small, handy items such as bags,
given away as gifts to serve as reminders.
Specialty advertising is different from product
samples, which are free products that you sell,
as the free items simply provide the medium for
the delivery of your brand message.
De finit ion Sa le s Promot ion
Marketing activities that provide added value or short-term
incentives for a specific period of time to sales force,
distributors, or consumers to stimulate them to make
immediate purchases.
Type s of Sa le s Promot ion Act ivit ie s

Cons ume r-orie nt e d promot ions

Tra de -orie nt e d promot ions

Sa le s force promot ions a ct ivit ie s

Type s of Sa le s Promot ion Act ivit ie s

Cons ume r-orie nt e d promot ions

Consumer-oriented promotion refers to promotional activities

carried out to encourage end consumers to purchase and use the
company's products or services. These end users will be offered
free samples, coupons, gifts, discounts, contests, etc
Type s of Sa le s Promot ion Act ivit ie s

Tra de -orie nt e d promot ions

Trade-oriented promotion refers to giving incentives to wholesalers

and retailers so that they increase the amount of distribution and
sales of the company's products and services. They will be offered
discounts, free items, cash prizes, sales contests, etc.
 Type s of Sa le s Promot ion Act ivit ie s
Cons um e r-orie nt e d Tra de -orie nt e d
prom ot ions prom ot ions

Samples
Contest/dealers' incentives
Coupons
Trade allowance
Premiums
Point-of-purchase displays
Contests/sweepstakes
Training programs
Refunds/rebates
Trade-shows
Bonus packs
Cooperative advertising
Price-offs
Loyalty programs
Event marketing
 Cons ume r-orie nt e d
promot ions a ct ivit ie s
 Cons ume r-orie nt e d promot ions a ct ivit ie s

Samples

● Sampling involves a variety of procedures whereby consumers are given some

quantity of product for no charge to induce trial.

● Might be delivered door-to-door, sent in the mail, picked up in a store, found in

another product, or featured in an advertising offer.
Cons ume r-orie nt e d promot ions a ct ivit ie s

Samples

Door-to-door sampling Sampling through the mail

Cons ume r-orie nt e d promot ions a ct ivit ie s

Samples

In-store sampling On-package sampling

Cons ume r-orie nt e d promot ions a ct ivit ie s

Samples

Event sampling
 Cons ume r-orie nt e d promot ions a ct ivit ie s

Coupon

● Coupons are legal certificates offered by manufacturers and retailers to

consumers with discounts on goods or services when they are redeemed.

● Coupons are legal certificates offered by manufacturers and retailers such as

Domino’s Pizza.

● The coupon will grant specified savings to their customer when presented for
redemption at the point of purchase.
Cons ume r-orie nt e d promot ions a ct ivit ie s

Coupon

Bounce -
In/on pack coupon
back coupons
Cons ume r-orie nt e d promot ions a ct ivit ie s

Coupon

Instant coupon
 Cons ume r-orie nt e d promot ions a ct ivit ie s

Premiums

● A premium is tangible compensation that is given as an incentive for performing a

particular act usually buying a product.

● The premium may be given for free or may be offered to consumers for a
significantly reduced price.

● A with-pack premium accompanies the product inside (in-pack) or on (on-pack) the

package.
Cons ume r-orie nt e d promot ions a ct ivit ie s

Premium

Free premium Self-liquidating premiums

 Cons ume r-orie nt e d promot ions a ct ivit ie s

Contest/Sweepstakes/Prizes

● Prizes: offers of the chance to win cash, trips, or merchandise as a result of

purchasing something.

● A contests require entrants to perform a task or demonstrate a skill that is judged

in order to be deemed a winner.

● A sweepstakes calls for consumers to submit their names in a drawing. A game

presents consumers with something every time they buy, which might or might
not help them win a prize.
Cons ume r-orie nt e d promot ions a ct ivit ie s

Contest/sweepstakes/Prizes
 Cons ume r-orie nt e d promot ions a ct ivit ie s

Cash Refund/Rebates

● Provide a price reduction after the purchase rather than at the retail shop.

● The consumers send a specified “proof of purchase” to the manufacturer, who

refunds part of the purchase price by mail.
Cons ume r-orie nt e d promot ions a ct ivit ie s

Cash refund/rebates
 Cons ume r-orie nt e d promot ions a ct ivit ie s

Price Pack/Bonus Packs

● These offer consumers savings off the regular price of a product.

● They can take the form of a reduced-priced pack, which is a single package sold at
a reduced price, or a banded pack, which is two related products banded together.
Cons ume r-orie nt e d promot ions a ct ivit ie s

Price Pack/Bonus Packs

 Cons ume r-orie nt e d promot ions a ct ivit ie s

Price-offs

● Price reduction for consumers. Usually, the reduction is done starting from 10% up
to 25% of the original price.
 Cons ume r-orie nt e d promot ions a ct ivit ie s
Loyalty program

● Continuity programs retain brand users over a long time period by offering
ongoing motivation or incentives.

● The salon can offer membership card to their customers and encourage the
consumers keep buying visiting the salon in order to get the premium in the
future.
Cons ume r-orie nt e d promot ions a ct ivit ie s
Loyalty program
 Cons ume r-orie nt e d promot ions a ct ivit ie s

Event Marketing

● Company linked to an event or where theme activity is developed to create an

experience and promote the product to consumers.

● Marketers often do event marketing by associating their product with some

popular activity such as sporting events, concerts, fair, and festival.
Cons ume r-orie nt e d promot ions a ct ivit ie s
Event Marketing
 Tra de -orie nt e d
promot ions a ct ivit ie s
 Tra de -orie nt e d promot ions a ct ivit ie s
Contest/Incentives

● Manufacturers may initiate contests or special incentive programs to stimulate

greater effort and support from retailer management or sales personnel.

● Manufacturers often sponsor contests for retailers and use prizes such as trips
and valuable merchandise as rewards for meeting sales quotes or goals.
Tra de -orie nt e d promot ions a ct ivit ie s
Contest/Incentives
 Tra de -orie nt e d promot ions a ct ivit ie s
Trade allowances

● This is a discount or deal offered to retailers or wholesalers to encourage them to

stock, promote, or display the manufacturer’s product.

● Trade allowance consists of buying allowances promotional allowances and slotting

allowances.

● Buying allowances: Discounts offered during a set period.

● Promotional allowances: Discounts offered during the promotional season.
● Slotting allowances: Payments paid by manufacturers to supermarket chains for
shelf space for new product placement.
Tra de -orie nt e d promot ions a ct ivit ie s
Trade allowances
 Tra de -orie nt e d promot ions a ct ivit ie s
Display and point-of-purchase Material (P.O.P)

● P.O.P displays are an important promotional tool because they can help the
manufacturer obtain more effective in-store merchandising of products.

● It is not limited to grocery or convenience stores and P.O.P displays are also
important to companies to distribute their products through other types of retail
outlets such as home improvement.

● A point-of-purchase (POP) display is a marketing or advertising material placed

next to the merchandise it is promoting. These items are usually found in the
payment area or where the purchase decision is made.
Tra de -orie nt e d promot ions a ct ivit ie s
Display and point-of-purchase Material (P.O.P)
 Tra de -orie nt e d promot ions a ct ivit ie s
Sales Training Program

● Many products sold at the retail level require knowledgeable salespeople who can
provide consumers with information about the features, benefits and advantages
of various brands and models.

● Manufacturers may conduct classes or training sessions that retail personnel can
attend to increase their knowledge of a product or a product line.
Tra de -orie nt e d promot ions a ct ivit ie s
Sales Training Program
 Tra de -orie nt e d promot ions a ct ivit ie s
Trade-shows

● An event that brings together manufacturers in certain industries to showcase

their company's products.
 Tra de -orie nt e d promot ions a ct ivit ie s
Cooperative advertising

● An agreement between a manufacturer and a distributor to share advertising costs

for the manufacturer's brand.

https://seller.shopee.com.my/edu/article/2745
Sa le s force promot ions
a ct ivit ie s
 Sa le s force promot ions a ct ivit ie s
Company sales
Sales force contests force/dealers' sales meetings

The competition between the Sales meetings are held to

sales force is held to motivate introduce new products, state
them to keep trying to company policies, explain
increase the company's sales promotional campaigns, etc.
and profits. Various attractive It aims to convey information
gift offers will be given such continuously to the sales
as cash gifts, vacation force.
packages, etc.
 Sa le s force promot ions a ct ivit ie s

Sales brochures Supportive materials

Brochures are usually Supporting materials are

prepared when a product has needed to provide information
a variety of models, colors, to customers during sales
styles, features, etc. It aims to presentations. It includes
explain the product's function product samples.
to the sales force.
The obje ct ive s of s a le s
promot ions
Cons ume rs

01 Encourage bulk purchases.

02 Creating trials among non-users and

encouraging purchases.

03
Encourage repeat purchases among
consumers.

Attract consumers to switch brands from

04 competitors' brands to the company's
brand.
Re t a ile rs

01 Persuading retailers to increase inventory

levels.

02 Creates brand loyalty among retailers.

03
Increase the number of distributors of
the company's products.

04 Motivate distribution channel members.

Sa le s Force

01 Encourage new product support.

02 Increase sales and profits.

03 Increase the number of prospects.

04 Stimulate seasonal sales.

THANK YOU
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