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evaluate sales promotion tools in terms of their ability to accomplish specific objectives and consider whether the impact of the promotion will be immediate or delayed. The chart in Figure 16-5 outlines which sales promotion tools can be used to accomplish various objectives of marketers and identifies whether the extra incentive or reward is immediate or delayed.52

It should be noted that in Figure 16-3 some of the sales promotion techniques are listed more than once because they can be used to accomplish more than one objective. For example, loyalty programs can be used to retain customers by providing both immediate and delayed rewards. Shoppers who belong to loyalty programs sponsored by supermarkets and receive discounts every time they make a purchase are receiving immediate rewards that are designed to retain them as customers. Some loyalty promotions such as frequency programs used by airlines, car rental companies, and hotels offer delayed rewards by requiring that users accumulate points to reach a certain level or status before the points can be redeemed. Loyalty programs can also be used by marketers to help build brand equity. For example, when an airline or car rental company sends its frequent users upgrade certificates, the practice helps build relationships with these customers and thus contributes to brand equity.

While marketers use consumer-oriented sales promotions to provide current and/or potential customers with an extra incentive, they also use these promotions as part of their marketing program to leverage trade support. Retailers are more likely to stock a brand, purchase extra quantities, or provide additional support such as end-aisle displays when they know a manufacturer is running a promotion during a designated period. The development of promotional programs targeted toward the trade is a very important part of the marketing process and is discussed in the next section.

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Destroying Adwords

Destroying Adwords

Adwords or Pay Per Click advertising is essentially the 21st century equivalent of direct marketing, allowing advertisers to test ideas in hours rather than months. Learn more about Google Adwords and PPC advertising.

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