376 CHAPTER 12 BRAND ACTIVATIONpromotions. In a 2011 online survey of more than 25 000 Internet respondents across 51
countries, only 9% appeared to have taken no particular actions to save on household expenses
as compared with the year before. Th e most popular actions undertaken by the other respond-
ents were looking out for sales, using coupons, shopping at value retailers and looking for large
value packs ( Figure 12.2 ).^8
Th e majority of buying decisions take place within the retail outlet. An increasing number
of product or brand purchasing decisions are essentially impulse-buying decisions. Since
communications eff orts are most eff ective at the time and place when and where the con-
sumer makes his or her decision, in-store communications elements and incentives become
more attractive tools of persuasion.
Companies are becoming increasingly short-term oriented. However, the eff ects of tradi-
tional advertising campaigns only become visible in the long run. Product managers who
want to see immediate results from their communications eff orts will therefore be tempted to
use promotion tools rather than long-term thematic advertising campaigns. Moreover, also
management appears to stimulate the use of sales promotions at fi scal quarter ends to boost
earnings in order to meet key benchmarks. Research shows that the quarterly net income can
be boosted up to 5% depending on the depth and the duration of the promotion, although it
comes at a cost in the following period of about 7.5% of quarterly net income.^9 Th e result of
a promotion campaign can be more easily measured than that of an advertising campaign.
Advertising is oft en aimed at obtaining intermediate eff ects, such as awareness and favour-
able attitudes, eventually leading to increased sales. Promotions are aimed at an immediate
behavioural response, which can be readily measured. Th e immediate availability of results
for most product managers is a very welcome characteristic of promotions. Finally, distribution
channels are becoming increasingly powerful. Many brands are jostling for shelf space and, as
a result, retailers are in a position to decide which brands will obtain shelf space under which
conditions. Oft en, promotional tools are used to persuade the trade channel. Furthermore, the
distribution channel is taking an increasing part of the promotional activity of manufacturers.Objectives and target groups of sales promotions
Based on the initiator of the promotions and the chosen target groups, several types of pro-
motions can be distinguished ( Figure 12.3 ). Th e initiator of the promotions can be either the
manufacturer or the retailer. Promotions can be aimed at three types of audiences: distributors,
the sales force and the end-consumer. Normally, retailers only promote to end-consumers,
whereas manufacturers can target their eff orts at all three target groups. Th is results in four
types of promotions:
z consumer promotions by manufacturers;
z consumer promotions by retailers;Figure 12.2 Saving strategies adopted worldwide by households in response to the crisis
Source : from Shopping and saving strategies around the world, The Nielsen Company (2011), http://www.nielsen.com/content/
corporate/us/en/insights/reports-downloads/2011/global-shopping-survey-oct-2011.html.M12_PELS3221_05_SE_C12.indd 376M12_PELS3221_05_SE_C12.indd 376 5/6/13 2:58 PM5/6/13 2:58 PM