Slide 1

Slide 2 Promotional Strategy Chapter 16: Sales Promotion Part 3. Slide 3 Promotional Strategy Chapter 16: Sales Promotion Part 4: Trade Promotion Slide 4 Trade Promotion Reasons for trade promotion. Slide 5 Everyday Low Pricing (EDLP) vs. Hi-Low Pricing. ===========Regular price============ ===========Discount price=========== Slide 6 Everyday Low Pricing (EDLP) vs. Hi-Low Pricing. ===========Regular price============ ===========Discount price=========== Slide 7 Everyday Low Pricing (EDLP) vs. Hi-Low Pricing. ===========Regular price============ ===========Discount price=========== Slide 8 Everyday Low Pricing (EDLP) vs. Hi-Low Pricing. ===========Regular price============ ===========Discount price=========== Slide 9 Everyday Low Pricing (EDLP) vs. Hi-Low Pricing. ===========Regular price============ ===========Discount price=========== Slide 10 Everyday Low Pricing (EDLP) vs. Hi-Low Pricing. ===========Regular price============ ----------------------EDLP------------------------- ===========Discount price=========== Slide 11 Percentage of Promotions Vehicles Used by Package Goods Manufacturers 0% 25% 50% 75% 100% Money back offers/other refunds Couponing consumer directCents-off promotions Couponing in retailers' ads Couponing in store Sampling new products Sampling established products Premium offersElectronic retail promotionsSweepstakesInternet promotionsContests Prepricing on package Other Slide 12 43% 35% 29% 25% 24% 20% 12% 11% 8% 7% 2%Gum Candy Carbonated Beverages Adult Cold Remedies Pet Food Coffee Sanitary Protection Deodorants Liquid Detergents Ready-to-Eat Cereal Disposable Diapers Percent of sales made with coupons for various products Slide 13 Arm & Hammer uses a promotion offer to encourage new uses of its product Source: Courtesy Church & Dwight Co., Inc. Slide 14 Contests can be used to build brand equity Slide 15 Samples are often distributed with local newspapers Slide 16 Gerber developed a sweepstakes in conjunction with a loyalty program Source: Courtesy Gerber Products Company. Slide 17 End of Part 3