The Marketing Book 5th Edition

468 The Marketing Book

Table 18.2 Recent trends and expenditure in US sales promotions

Promotion type 2000 expenditure

($ billions)

Comments

Premium

incentives

26.9 Split between incentives for the salesforce (33%), dealers (31%),

customers (23%) and non-sales employees (13%). Key trends

are towards greater use of the Internet, and more distinctive

incentives such as adventure trips or Quaker’s 102 Dalmatians

battery operated ‘barking’ spoons.

Point of

purchase

17 Growth of 18%, much of it from use away from traditional

FMCG markets. Fastest growth was in financial services. POP

displays linking to a brand’s sporting, movie or charity were

highly successful, boosting sales by 65% on average.

Ad specialties 16.3 Refers to promotional items (logoed hats, T-shirts, pens,

mousemats). Key users are in financial services, information

technology and healthcare.

Sponsorship 8.7 Grew 14.5%, dominated by major sporting events and major

brands such as Anheuser-Busch GM and Coca-Cola. Music

tours and minority sports also attracted sponsorship growth.

Couponing 6.9 Coupon spending in the US dropped around 1% and

redemption rates declined by more than 4%. Economic gloom

may lift redemption rates. On-line and in-store coupons

continue to grow.

Games,

competitions

and specialty

printing

7.6 Competitions saw 9% market growth. Trends towards fewer but

larger promotions, and ‘cool’ and unique prizes such as concert

tickets, private parties and celebrity dates. Other promotional

printing declined slightly due to growth in Internet promotions.

Promotional

licensing

5.8 Continues to grow steadily each year. Dominated by tie-ups

between a handful of ‘blockbuster’ movies and fast food, soft

drinks and toys.

Product

sampling

1.2 Sampling is increasingly event orientated and active. One million

scoops of Ben & Jerry’s ‘Homemade’ were served in ‘guerrilla’

visits to offices in 13 cities.

Interactive 1.8 Despite the bursting of the dot-com bubble, Internet-based

promotion spending rose 40% during 2000. Key trends were

greater integration of on-line promotions with overall

communications strategy.

In-store

services

0.9 32% of US retail market operates a loyalty card scheme and

70% of shoppers belong to at least one. Increasing use of smart

cards and purchase kiosks.