2*Be prepared to discuss with the class!* With your table:Brainstorm and list some of the types of promotions you encounter:Discounts, coupons, gifts, free offers, etc.How do these affect your buying decision?How does the promotion affect your feelings toward the business?Would you be likely to buy from that business without a promotion?*Be prepared to discuss with the class!*
3What You Will Learn The characteristics of sales promotion The concept of trade promotionsThe different kinds of consumer sales promotions
4Incentives that encourage customers to buy products or services. Sales PromotionIncentives that encourage customers to buy products or services.
5Trade Promotions – Designed to gain manufacturers’, wholesalers’, and retailers’ support for a product
6Consumer Sales Promotions – designed to encourage customers to buy a product
7Promotion ActivityWith 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
8Type: Trade PromotionPromotional Allowances – a cash payment or discounts given by manufacturers to wholesalers or retailers for performing activities to encourage sales.
9Type: Trade PromotionCooperative Advertising – A manufacturer supports the retailer by helping to pay for the cost of advertising its product locally.
10Type: Trade PromotionSlotting Allowances – a cash premium paid for placing a product on a retailer’s shelves
11Type: Trade PromotionSales Force Promotions – awards given to managers and employees who successfully meet or exceed a sales quota.
12Type: Trade PromotionTrade Shows and Conventions - An exhibition for companies in a specific industry to showcase and demonstrate their new products and services.
13Type: Consumer Promotion Coupons – certificates that entitle customers to cash discounts on goods or services.
14Type: Consumer Promotion Premiums – low-cost items given to consumers at a discount or for free – Should:be low-costprovide added valuenegate the target audience’s price issueeffectively differentiate the product from the competitioncreate an immediate need to buy