Sales promotion 479
Perhaps the most significant development for
the future of sales promotion is the develop-
ment of on-line promotions such as
‘e-coupons’. These can turn a formerly ‘passive’
form of sales promotion, the coupon, into
something targeted and interactive. Marketers
using e-coupons on websites can use registra-
tion information and information from tracking
consumers’ progress through websites to iden-
tify consumers’ interests. Collected data can
then be used to target consumers with future
offers more precisely (Bednarz and Bergiel,
2001). Although e-coupons are a reasonably
small proportion of the total couponing market,
they are growing rapidly and have a far better
average redemption rate, of over 56 per cent
compared to 1.2 per cent for Sunday paper free
standing insert coupons. The Internet allows
e-commerce companies like Amazon and
CDNow to offer customers regular and custom-
ized discount promotions, on-line loyalty
schemes, customized e-mail information ser-
vices based on customer tastes, and numerous
information services to reduce perceived pur-
chase risk. Another interesting development is
that the Internet is allowing consumers to share
information about promotions. A number of
websites have been set up to collect and
disseminate on-line coupons or offers, and to
provide information on competitions and other
forms of in-store promotion.
The other major trend in sales promotion is
an increase in the levels of creativity being
applied to promotions. In competitions, new
ways to engage customers are being developed.
Unilever launched an on-pack game called
‘Wash and Win’ on All and Wisk detergents
printed using AquaPlay, a device employing a
special membrane that reveals information
when it gets wet. Consumers threw the game-
piece in with their laundry to find out if they
won a washer/dryer or a year’s supply of
detergent. Similarly in promoting an oral
hygiene product for dogs, Friskies Petcare used
a competition entry which the dog had to lick
to reveal whether its owner had won a prize.
Sampling programmes today are not just about
handing out free samples, but are increasingly
interwoven with events, or become events in
themselves. Bass tried to improve the position-
ing of its Worthington beer brand in relation to
younger drinkers through a ‘mini-drama’ acted
out at style bars, in which customers who were
drawn into the storyline and called the phone
number of one of the ‘characters’ were rewar-
ded with a text message entitling them to two
free bottles at the bar.Summary – the changing concept of sales promotion
For many years a widespread view of promo-
tions was as short-term, tactical tools, often
added into the marketing mix of struggling
FMCG brands to boost sales. This attitude was
summed up in the assertion by Ken Roman of
Ogilvy & Mather, that promotions rentcustom-
ers while product benefits (and by implication
their communication through advertising) own
customers.
Much of the early academic research into
promotions produced very critical appraisals of
their effectiveness (e.g. Dodson et al., 1978;
Doob et al., 1969). The implication was that
practitioners were foolish to invest so much
time and money in them. However, such
research was flawed by a concentration on
price-based promotions, by ignoring the indi-
rect effects of promotions, and by taking a very
narrow view of consumer response. The diffi-
culties experienced by P&G and their strategy
of reducing reliance on promotions suggests
that it is marketing academics that have the
most to learn about promotions and their
effectiveness. More recent research into promo-
tions demonstrates that: They can boost a brand’s sales, awareness
levels and image (Aaker, 1991).
They are effective in encouraging switching
between brands, product categories and
retailers (Walters, 1991).