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 hvandyke@lcps.org 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