Transcript Sales Promotions

SALES
PROMOTION
SALES PROMOTIONS
Sales Promotions : incentives that
encourage customers to buy products and
services
Can be used to….
Encourage customers to try a new product
Build awareness and brand loyalty
Increase purchases by current customers
TYPES OF SALES PROMOTIONS
 Trade Promotions : sales promotion activities designed
to get support for a product from manufacturers,
wholesalers, and retailers
 More money is actually spent on promoting to businesses than
to consumers
 Consumer Promotions : sales strategies that encourage
customers and prospect to buy a product or service
 Support advertising, personal selling, and public relations efforts
TYPES OF TRADE PROMOTIONS
 Promotional Allowances – cash payments or discounts given by
manufacturers to wholesalers or retailers for performing
activities to encourage sales
 Cooperative Advertising - a manufacturer supports the retailer by
helping to pay for the cost of advertising its product locally
 Slotting Allowances - a cash premium paid by a manufacturer to
a retailer to help the retailer cover the cost of placing the
manufacturer’s product on the shelves
 Sales Force Promotions - awards given to dealers and employees
who successfully meet or exceed a sales quota
 Trade Shows and Conventions - showcase that show off a
particular line of products
TYPES OF CONSUMER
PROMOTIONS
 Coupons – certificates that entitle customers to cash
discounts on goods or services
 Premiums – low-cost items given to consumers at a
discount or for free – they are designed to increase
sales by building product loyalty
 Deals – short-term price reductions that are marked
directly on the label or package
MORE CONSUMER
PROMOTIONS
 Incentives – higher priced products earned and given
away through contests, sweepstakes and rebates
 Product Samples – a free trail size of a product sent
through the mail, distributed door to door, or given
away at retail stores – mostly used to introduce new
products
 Promotional Tie-Ins – (cross-promotion) sales
promotional arrangements between one or more
retailers or manufacturer
EVEN MORE CONSUMER
PROMOTIONS
• Sponsorship – companies pay a fee to promote its
products at or on a set location
• Product Placement – consumer promotion that -involves
using a brand-name product in a movie, TV show, or
sporting event
• Loyalty Marketing Programs – (frequent buyer programs)
reward customers for patronizing a company
• Point-of-purchase Displays – displays designed primarily by
manufacturers to hold and display their products – usually
located at the cash register , check out, or high traffic
areas
CLASS ACTIVITY
• Create 2 Sales Promotions for the School Store
– Be creative
– Be detailed
– List/create a prototype/sample advertisement
– Email completed activity to [email protected]
• Consider the following:
– Spring sports just started
– New merchandise arriving
– Freshmen Expo on March 29th
– Students need motivation to buy items this time of year