2 Sales promotion is…All the communications or activities used to stimulate sales other than advertising, public relations or personal selling communications or activitiesFor example: “Try your key” contest to bring people in to look at a new car model
3 A trade promotion is…Designed to create support from manufacturers, wholesalers, and retailers for a productPromotional allowancesSlotting allowancesSales force promotionsTrade shows and conventions
4 Trade promotions …Promotional allowances: Discounts or cash payments given to wholesalers or retailers who stock large quantities and encourage sales of a product.A cereal manufacturer may offer a retailer ten cents per case promotional allowance to put towards local promotions if they purchase a certain volume of the product.Slotting allowances: Cash premiums paid to retailers to help with the cost of restocking a new product. These premiums are also used to secure the best location for the products on shelves.An end-cap on a grocery aisle provides higher visibility to Doritos.
5 Trade promotions are…Sales force promotions: Awards given to dealers and salespeople who meet or exceed their sales quota.A company may give a salesperson a cash bonus if they meet sales goals.Trade shows and conventions: Designed to showcase a manufacturer’s products.Ued to introduce new products, encourage sales of existing products, and meet contacts.
6 A consumer promotion is… Designed to increase sales of a productCouponsPremiumsDealsIncentivesProduct samplesSponsorshipPromotional tie-insProduct placementLoyalty marketing programsPoint-of-purchase displays
7 Consumer PromotionsCoupons: Certificates that provide cash discounts, or money off, on a good or service.Domino’s offers a coupon for “Buy one 1-topping pizza and get a second one for half off”.Premiums: Inexpensive items given away at a discount or for free. Premiums are used to establish product loyalty and attract new customers.Free gifts with purchase or an ongoing coupon plan.
8 Consumer PromotionsDeals: Packages that offer similar products together for a temporary price break.A shampoo and conditioner set sold together for a slightly lower price than if purchased separately.Incentives: Contests, games, sweepstakes, or rebates used to create increased sales and excitement about a product.McDonald’s uses their monopoly game to encourage customers to purchase more product.
9 Consumer PromotionsProduct samples: Free trial sizes of a product given out to potential customers. Product samples are very helpful in promoting new products as they encourage people to try a new product without the risk of buying it.A package of Crest toothpaste includes a free sample Scope mouthwash.
10 Consumer promotion Sponsorship: A company pays for the right to promote itself and its products at a location or event.DuPont sponsors a NASCAR racing team.Promotional tie-ins (also called cross-promotion and cross-selling campaigns): Activities between two companies who combine efforts and resources to create additional sales for each other.An ice cream retailer offers discounts to customers who come in after a movie and present a ticket stub.
11 Consumer promotionProduct placement: Involves using a brand-name product in a TV show, movie, or commercial, etc.Warner Brothers featured America Online in its movie “You’ve Got Mail.”Loyalty marketing programs (also called frequent buyer programs): Designed to reward customers for continued patronage.Many airlines offer frequent flyer miles to customers.Point-of-purchase displays: Placed in high-traffic areas of stores and are designed to encourage impulse purchases.Drink coolers at check-out lines in grocery stores