1. Intro to Marketing Mr. Bernstein Sales Promotions November 1, 2013

2. Intro to Marketing Mr. Bernstein Promotions 2 Promotional Elements Advertising Publicity Sales Promotions Personal Selling

3. Intro to Marketing Mr. Bernstein Sales Promotion Definitions Any marketing activity that is not Advertising, Personal Selling or Publicity Incentives that directly encourage customers to buy Buy a new product Build product or firm awareness Increase purchases in short term Reward loyalty Expand product lineup 3

4. Intro to Marketing Mr. Bernstein Sales Promotion: Push and Pull Sales Promotion directed at the distribution channel: Push Sales Promotion directed at the consumers: Pull 4

5. Intro to Marketing Mr. Bernstein Sales Promotion Limitations Must be consistent with overall Promotional Mix objectives Must balance short-term sales goals with long term reputation and brand image goals Cannot shift consumer focus off product quality P and make price the primary P attribute 5

6. Intro to Marketing Mr. Bernstein Sales Promotion Techniques: Push Focus generally on next intermediary in the distribution channel Objective is to incentivize wholesalers and retailers to promote your products more aggressively Helpful when product does not have strong brand identity with consumers 6

7. Intro to Marketing Mr. Bernstein Sales Promotion Techniques: Push Examples: Allowances and Discounts Support for Merchandising Cooperative Advertising Trade Shows & Conventions (Personal Selling) Training of Sales Staff 7

8. Intro to Marketing Mr. Bernstein Sales Promotion Techniques: Pull Giveaways – Caps, keychains, posters, etc…everyone loves a freebie Displays – POP displays get consumers to buy items they didnt know they desired Premiums – Bundling with a bonus product Discounts – Volume based Contests/Sweepstakes – collect customer information 8

9. Intro to Marketing Mr. Bernstein Sales Promotion Techniques: Pull Coupons - 75% are redeemed by customers loyal anyway Product demos - Labor costs can be high Frequent User Incentives - Helps collect user information Free Samples – Useful in early stages of product lifecycle Refunds/Rebates – Generally perceived as complex, not well received, but still common in automotive and tech Financing Deals – Below-market interest rates 9