Sales Promotion

Tom Hess
The Hess-Klein Group, Inc.	
225 West 34th Street	
Suite 820	
New York, NY 10122	
212-643-9789
Fax# 212-629-6324
hkgroup@escape.com
http://www.hkgroup.com/

Background
Thomas R. Hess is the Executive Vice President of The Hess-Klein Group, also known
as the The HK Group, which is a full service promotional marketing agency in midtown
Manhattan. The HK Group has capabilities in strategic planning, creative development
and production, direct mail and promotional research. Founded in 1988, The HK Group
handles a diversity of accounts in industries including, liquor, financial services,
food, pharmaceuticals, and travel. 

Comments
Tom Hess From HK Group spoke about conventional sales promotion. Remember web
mavens that only a small percentage of any advertisers budget is devoted to the web.
Tom presented two products and how HK developed such promotional tools as sweepstakes,
contents, event sponsorships, product tie-ins, window signs, counter displays, coupons
and free standing inserts. 

A good web site will enhance conventional promotional efforts, integrate the message
and deliver critical mass. These efficiencies deliver a business building proposition.

MARKETING A PRODUCT

What is Sales Promotion?

Exposure of a clients message in a medium that is 100% owned by the 
client.
Working with clients to determine the strategies they need to drive 
product sales.
Using promotional tools such as:
- Sweepstakes	
- Bonus Packs
­ Contests	
- Window Signs
­ Event Sponsorships	
- Counter Displays
­ Product Tie-ins	
- Coupons
­ Direct Mail	
- Free Standing Inserts

Sales Promotion Tactics & Mediums

Sweepstakes - a game of chance where the particpants just need to 
enter in order to have a chance of winning
Contests - a competition involving some form of skill in which winners 
are determined by judging the best entry
Premiums - additional merhandise offered as an incentive to perform a 
specified service
Event Sponsorship - linking a product with an existing event which 
gives the product immediate excitement through a high visibility event 
and a brand idenity
Tie-Ins - a partnership of two products to be sold/obtained/allotted 
together to boost sales and recognition of both products.
Coupons/Free Standing Inserts - a coupon is a discount good towards 
the purchase of the intended product. An FSI, printed like an 
advertisment, is inserted, usually in a newspaper and carries the 
coupon..
Point-of-Sale  Material- an attractive display designed to earn the 
product valuable shelf or floor space
Sampling - generating consumer purchase by allowing them to inspect 
and try a product for themselves
Direct Mail- targeting a specifc consumer audience  through household 
mailings

How an Idea Becomes a Finished Product

Meet with client to reach an understanding of the character of the brand
	Creative objectives for the brand 
	Define what promotional strategies would best benefit the brand
	Work with these strategies to produce rough creative concepts for the 
	brand
	Fine tune creative concepts with client
	Produce final product 
	Distribute to markets

Promotions At Work- TheraFlu

	Direct Marketing- previous customers of TheraFlu under the name 
	neoCitran were targeted to be recipients of coupons for the ³new² 
	product
	FSI Coupon - gave consumers an incentive to try this new cold remedy
	In-pack Refund - coupon within TheraFlu packaging encouraged 
	continuity of the brand
	Sampling Program- gave consumers a trial size of TheraFlu and a coupon 
	for next purchase
	Point-of-purchase Display - provided dealers with a re-usable display 
	to display TheraFlu in a prominant store area- even after promotional 
	period is over
	Television Advertising - introductional ads to alert consumers of the 
	new product and gain brand recognition
	Professional (Physician) Program - brand  important doctor 
	recommendations with added distribution of TheraFlu samples containing a 
	coupon

Promotions On The Web-TheraFlu

	FSI Coupon - Interested consumers can download a TheraFlu coupon 
	directly from the WWW, saving Sandoz Pharmaceuticals printing and 
	distribution cost
	In-pack Web Flag- announcement within TheraFlu packaging encourages 
	consumer to visit web site for more great offers (i.e. coupon) for 
	TheraFlu
	Sampling Progam- additional samples can be sent out via request from 
	WWW site to boost consumer trial
	Point-of purchase Display - alerts customer of TheraFlu web site and 
	the additional information that could be found there regarding the 
	product.
	Television Advertising - drives web traffic by advertising site 
	address
	Web Tie-ins - TheraFlu could link to another related site, for 
	example, Kleenex
	Direct Marketing - Vistors to the TheraFlu web site could be compiled 
	into a database for future offers and discounts encouraging continuity

Promotions At Work-Beefeater Gin

	Direct Marketing -consumers invited to join ³Club Beefeater² complete 
	with recipes, coupons and premiums (where legal)
	Beefeater Checks- good for money -off drinks and bottle purchases of 
	Beefeater Gin 
	On-Premise (bar, restaurant) Premiums - glasses, tee-shirts, and 
	squeeze bottles were free with purchase of specified Beefeater products 
	to drive sales
	On-premise POP Signage - posters, table tents, gallon dispensers,and  
	trays promote Beefeater as ³The Summer Gin²
	Tie-ins- Beefeater teams up with Ocean Spray Cranberry to provide 
	coupons and recipes for summer drinks
	Off-Premise (liquor stores) Premiums - mail in offers for gallon 
	dispenser,and tee-shirts drive sales and provide customer database
	Off-premise POP Signage- case card displays Beefeater attractively 
	while gaining floor space and encouraging purchase with special recipes 
	and price spots.
	Local Event Sponsoship - Beefeater Lemoneater Team participates in 
	Lemoneater races, handing out Beefeater checks.

Promotions On The Web-Beefeater Gin

	Direct Marketing - direct mail could encourage visits to join ³Club 
	Beefeater²  - via the WWW. 
	Beefeater Coupons - could be available on-line for money off purchases 
	at bars and liquor stores
	POP Signage (on-and-off premise) - promos  ³Club Beefeater² web site 
	as a ³virtual mail order catalog² for Beefeater premiums, like 
	tee-shirts, squeeze bottles, etc. driving visits to site
	Tie-ins - Beefeater teams up with Ocean Spray Cranberry on the WWW. 
	Tie-ins between the sites include cross-couponing, a recipe page, and 
	e-mail-in offers.
	Local Site Sponsorship - Beefeater can sponsor a ³summer² site on the 
	web, i.e. a water-skiing or vacation page
	On-line contests- such as ³name the drink² can help build customer 
	database