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*Be prepared to discuss with the class!*

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Presentation on theme: "*Be prepared to discuss with the class!*"— Presentation transcript:


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!*

3 What You Will Learn The characteristics of sales promotion
The concept of trade promotions The different kinds of consumer sales promotions

4 Incentives that encourage customers to buy products or services.
Sales Promotion Incentives that encourage customers to buy products or services.

5 Trade Promotions – Designed to gain manufacturers’, wholesalers’, and retailers’ support for a product

6 Consumer Sales Promotions – designed to encourage customers to buy a product

7 Promotion Activity With 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 

8 Type: Trade Promotion Promotional Allowances – a cash payment or discounts given by manufacturers to wholesalers or retailers for performing activities to encourage sales.

9 Type: Trade Promotion Cooperative Advertising – A manufacturer supports the retailer by helping to pay for the cost of advertising its product locally.

10 Type: Trade Promotion Slotting Allowances – a cash premium paid for placing a product on a retailer’s shelves

11 Type: Trade Promotion Sales Force Promotions – awards given to managers and employees who successfully meet or exceed a sales quota.

12 Type: Trade Promotion Trade Shows and Conventions - An exhibition for companies in a specific industry to showcase and demonstrate their new products and services.

13 Type: Consumer Promotion
Coupons – certificates that entitle customers to cash discounts on goods or services.

14 Type: Consumer Promotion
Premiums – low-cost items given to consumers at a discount or for free – Should: be low-cost provide added value negate the target audience’s price issue effectively differentiate the product from the competition create an immediate need to buy

15 Type: Consumer Promotion - Premium
Factory packs (in-packs) – free gifts placed in product packages

16 Type: Consumer Promotion - Premium
Traffic builders – pen, calendar, key-chain given free for visiting or attending event

17 Type: Consumer Promotion - Premium
Coupon plans – ongoing program offering a premium in exchange for labels, coupons or other tokens from one or more purchases.

18 Type: Consumer Promotion
Incentives – generally higher-priced products earned and given through contests, sweepstakes, and rebates

19 Type: Consumer Promotion - Incentive
Contests – activities that require demonstration of a skill Sweepstakes – game of chance

20 Type: Consumer Promotion - Incentive
Rebates – discounts offered to customers who purchase

21 Type: Consumer Promotion Product Samples -
Free, trial-size sample Distributed through mail, door-to-door, or at a retail or trade show Especially important with new products

22 Sponsorship - The sponsoring company pays a fee for the right to promote itself and its products or services at or on a set location

23 Promotional Tie-In - Involves arrangements between one or more retailers or manufacturers.

24 Product Placement - Featuring a product at a special event, on television, or in the movies

25 Loyalty Marketing Programs
Frequent buyer programs Reward customers for making multiple purchases

26 Point-of-Purchase Displays - Placed in high-traffic areas and promote impulse purchases.

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