Presentation on theme: "4.04Exemplify sales promotions. Sales promotion is… All the communications or activities used to stimulate sales other than advertising, public relations."— Presentation transcript:
4.04Exemplify sales promotions
Sales promotion is… All the communications or activities used to stimulate sales other than advertising, public relations or personal selling communications or activities For example: “Try your key” contest to bring people in to look at a new car model
A trade promotion is… Designed to create support from manufacturers, wholesalers, and retailers for a product Promotional allowances Slotting allowances Sales force promotions Trade shows and conventions
A consumer promotion is… Designed to increase sales of a product Coupons Rebates Premiums Deals Incentives Product samples
A consumer promotion is… (con’t) Sponsorship Promotional tie-ins (also called cross-promotion and cross- selling campaigns)
A consumer promotion is… (con’t) Product placement Loyalty marketing programs (also called frequent buyer programs) Point-of-purchase displays Contests, Sweepstakes, and Games
4.04Exemplify sales promotions Push or Pull
Push or Pull Promotion Strategy A “push” promotional strategy makes use of a company's sales force and trade promotion activities. The producer promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers. example offering subsidies on the cell phones to encourage retailers to sell higher volumes.
Push or Pull Promotion Strategy A “pull” selling strategy is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product. If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers.
6.05Exemplify public relations
Public relations is… Used by a business to build and maintain a positive image about a company and its products Positive = Increased sales Negative = Decreased sales
A news release is… An announcement detailing newsworthy information about a company or a product
Publicity is… Using media to bring newsworthy information to the public’s attention Advantages Free! Disadvantages Little control