Basic Marketing: A Global Managerial Approach

(Nandana) #1

Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e



  1. Advertising and Sales
    Promotion


Text © The McGraw−Hill
Companies, 2002

Advertising and Sales Promotion 475

There are many different types of sales promotion, but what type is appropriate
depends on the situation and objectives. For example, Exhibit 16-6 shows some pos-
sible ways that a short-term promotion might affect sales. The sales pattern in the
graph on the left might occur if Hellmann’s issues coupons to help clear its excess
mayonnaise inventory. Some consumers might buy earlier to take advantage of the
coupon, but unless they use extra mayonnaise their next purchase will be delayed.
In the center graph, kids might convince parents to eat more Big Macs while
McDonald’s has a Star Wars promotion, but when it ends things go back to nor-
mal. The graph on the right shows a Burger King marketer’s dream come true: free
samples of a new style of french fries quickly pull in new customers who like what
they try and keep coming back after the promotion ends. This is also the kind of
long-term result that is the aim of effective advertising.

Sales promotion involves so many different types of activities that it is difficult to
estimate accurately how much is spent in total. There is general consensus, however,
that the total spending on sales promotion exceeds spending on advertising. Companies

Sales promotion
objectives and
situation should
influence decision

Sales promotion
spending has grown in
mature markets

Sony’s interactive kiosk provides
special in-store sales promotion
support for memory sticks used
by portable electronic devices like
the new MS Walkman.

Unit sales

Time Time Time

Period of
promotion

Period of
promotion

Period of
promotion

Unit sales Unit sales

Sales temporarily increase, then
decrease, then return to regular level

Sales temporarily increase and
then return to regular level

Sales increase and then
remain at higher level

Exhibit 16-6 Some Possible Effects of a Sales Promotion on Sales
Free download pdf