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c
Internal reasons
Top management is more conducive to
spending on promotions
Line managers under greater pressure to
achieve targets
Justification of expenditure is easy
ïxternal reasons
Increase in number of brands
Consumer is more price savvy
Greater pressure from trade to liquidate
stocks
Add effectiveness declining owing to rising
costs, media clutter and legal constraints
c is a push strategy
cince it is at the last point where the
consumer is often at the point of buying, the
additional incentive makes a last ditch effort
to convert the customer on to the
incentivised brand
c is of two types
Trade
Consumer
Trade promotion
Liquidating heavy inventories
ersuade retailers to carry stock, carry more
than usual stock, promote brand franchise
Consumer promotion
ctimulate purchase
Induce trial
Create new users
Increase repurchase from occasional
customers
Reward loyal customers
_orms of trade promotion
Bulk discounts
_ree materials
Display windows
chelf hiring
Lucky draws
µMystery¶ customer
Redistribution incentives
chop salesmen incentives
_orms of consumer promotion
_ree samples
_ree gifts
Coupons
In-packs
rice packs
rice-offs
cweepstakes
Bundling offers
Vc spurs action because they are
supposed to run for a limited time´