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6.04 Exemplify sales promotions

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1 6.04 Exemplify sales promotions

2 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

3 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

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 product Coupons Premiums Deals Incentives Product samples Sponsorship Promotional tie-ins Product placement Loyalty marketing programs Point-of-purchase displays

7 Consumer Promotions Coupons: 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 Promotions Deals: 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 Promotions Product 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 promotion Product 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

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