Consumer Oriented & Trade Oriented Sales Promotional Items

CONSUMER-ORIENTED Sales Promotional Items

Example of an effective promotional tool:

Direct Mailing of Bounce Back Coupons

This objective of this consumer-oriented promotion is to increase new customer by offering them a free haircut and a reward for their loyal customers with a discounted haircut. The free hair cut for new first time clients is a trial. The loyalty program here is for their regulars, as their haircuts are usually $16.00, so this is a price off deal of $4.00 discount to defend their existing customers from other salons from taking them or reduce the likely hood of switching brands. The reason I believe this is an effective promotional tool for this company is because this company has already been established and everyone likes something for free and at a discounted price. Four dollars is a big discount, one can go and buy a meal with $4 at McDonalds.

Example of an ineffective promotional tool:

Direct Mailing of Free Sampling Gift Cards

The objective of this $10.00 gift card is to bring consumers into the store to buy something for that $10.00, but hoping they will purchase more once they see the selection in that store. Kohl wants to increase consumption, establish brand, defend or maintain their customers, target the segments that likes getting something for free, enhance their IMC efforts, and to obtain trail and purchase within the store. This is a form of sampling, they give a relatively low gift card to induce consumer to come and shop in the store and it is only valid April 13, 2011 through April 23, 2011. This is a good way to measure how effective the direct mail piece is. I say it is ineffective because most consumers know that the $10.00 gift card will not be able to get them something they want inside Kohl’s because most of their products cost more than $10.00 so most of the time people will just throw it away.

TRADE-ORIENTED Sales Promotional Items

Example of effective promotional tool:

Old El Paso Manufacturer Product Display

I believe this display to be an effective promotional tool because they had a provided the retailer with a very large display. This was very large and took up the whole aisle. The fact that they offer other food product such as tomatoes and list an affordable price as well as the huge sign that said, “make tonight taco night” it caught my attention whether I want to see it or not. And since everything to make taco is in that display it is easy to get all that I need to make taco. I would purchase Old El Paso product as well as the fresh tomatoes and avocado. This is very effective way to move their product because they provide the retailer with great advertising support.

Example of ineffective promotional tool:

Wisk’s Point-of-Purchase Display Material

I believe this to be an ineffective promotional tool because even if it had a point of purchase coupon of “$2.00 off with coupon inside” on the bottle it was in the usual aisle of laundry detergent. I had to go out of my way to find this one and since this isn’t a very popular brand nor is it affordable I doubt it will be as effective as the manufacturer had hope for. But then again, any promotional tool works better than none especially for brands that are not as popular and has to compete with other more popular brand. In my opinion Wisk did not provide enough supporting display advertisement for their products and this promotional display.