Presentation on theme: "With your table: – Brainstorm and list some of the types of promotions you encounter: Discounts, coupons, gifts, free offers, etc. 1.How do these affect."— Presentation transcript:
With your table: – Brainstorm and list some of the types of promotions you encounter: Discounts, coupons, gifts, free offers, etc. 1.How do these affect your buying decision? 2.How does the promotion affect your feelings toward the business? 3.Would you be likely to buy from that business without a promotion? *Be prepared to discuss with the class!*
What You Will Learn The characteristics of sales promotion The concept of trade promotions The different kinds of consumer sales promotions
Sales Promotion Incentives that encourage customers to buy products or services.
Trade Promotions – Designed to gain manufacturers, wholesalers, and retailers support for a product
Consumer Sales Promotions – designed to encourage customers to buy a product
Promotion Activity With a partner, create a poster for your method of promotion. Make sure you include the name, definition, type of promotion, and some sort of example (picture or words) You will have 20 minutes to finish before sharing with the class
Type: Trade Promotion Promotional Allowances – a cash payment or discounts given by manufacturers to wholesalers or retailers for performing activities to encourage sales.
Type: Trade Promotion Cooperative Advertising – A manufacturer supports the retailer by helping to pay for the cost of advertising its product locally.
Type: Trade Promotion Slotting Allowances – a cash premium paid for placing a product on a retailers shelves
Type: Trade Promotion Sales Force Promotions – awards given to managers and employees who successfully meet or exceed a sales quota.
Type: Trade Promotion Trade Shows and Conventions - An exhibition for companies in a specific industry to showcase and demonstrate their new products and services.
Type: Consumer Promotion Coupons – certificates that entitle customers to cash discounts on goods or services.
Type: Consumer Promotion Premiums – low-cost items given to consumers at a discount or for free – Should: – be low-cost – provide added value – negate the target audiences price issue – effectively differentiate the product from the competition – create an immediate need to buy