4.01 B – Promotion Notes
A. Summarize the purpose of visual merchandising.
1. Visual merchandising: Includes all the physical elements used to present an
image of the business to the customer. Designed to create interest and
encourage customers to make purchases.
2. Display: All the visual and artistic elements used to present a product to the
customer. Displays are an element of visual merchandising.
B. Summarize elements of visual merchandising.
1. Storefront: The exterior design of the store, including the logo, sign, entrance,
and landscaping.
2. Store layout: The way floor space is allocated for selling, storage, personnel,
and customers.
3. Store interior: The decorations, lighting, furniture, fixtures, and signs used to
create a store’s image.
4. Interior displays: Ways products are presented to customers.
a. Architectural displays: Show customers how merchandise would look in their
home or office. For example, furniture stores set up a small living room in the
show room featuring a couch and loveseat arrangement.
b. Store decorations: Signs or props are used to enhance displays. Often these
are seasonal or holiday-inspired.
c. Open displays: Set up on tables and shelves and are best for merchandise
that customers can handle and examine without the help of a salesperson.
For example, groceries on shelves.
d. Closed displays: Best for merchandise that is fragile or requires a lot of
security. Customers can view, but not handle, the merchandise. For
example, jewelry is locked in a glass case.
e. Point-of-purchase displays: Encourages impulse purchasing. These are
often used for new products and are placed near registers.
C. Summarize the steps in display design.
1. Selecting merchandise.
a. Choose products that are appealing and representative of the current season.
b. For example, select ski equipment for a display in the winter.
2. Selecting the display.
a. Choose a display type appropriate for the product.
b. For example, clothes are best displayed on hanging racks.
3. Manipulating artistic elements of displays.
a. Line: Directs how the customer should view the presentation. For example,
curving lines might suggest freedom or movement.
b. Color: Colors should contrast with the background so they enhance the
products on display. Colors should be chosen carefully to create an image.
For example, bright red and yellow colors may be used to create a feeling of
excitement.
c. Shape: Physical appearance or outline of a display. For example, cans
might be stacked in a pyramid, or triangle, shape.
d. Texture: The way the display’s surfaces look when together. Visual interest
is created by contrasting smooth and rough surfaces. For example, jewelry
displayed on velvet.
e. Proportion: Props and signs should not overpower merchandise. For
example, small signs should be used near small merchandise, while larger
signs should be used for larger merchandise.
f. Balance: Formal balance is symmetrical and places items of the same size
together. Informal balance is asymmetrical and uses many different sizes.
For example, displaying candles of many different heights on a table would
provide informal balance.
g. Motion: Brought to the display by using motorized fixtures or props. For
example, a department store uses a motorized Santa Claus character to add
movement to a Christmas-themed display.
h. Lighting: Displays with proper lighting are more attractive. Colored lighting
creates a sense of drama. For example, very bright lighting would be used to
make jewelry look more attractive.
4. Evaluating completed displays.
a. Displays should be evaluated based on how well they appeal to customers,
enhance the company image, and promote the product in a positive way.
b. The creativity, theme, and neatness of the display should be evaluated as
well.
D. Explain display maintenance techniques.
1. Methods to properly maintain displays include:
a. Clean and dust as needed.
b. Replace any missing or broken items caused by customers.
c. Fold and/or restack any items that have been handled.
d. Organize and restock items frequently.
2. Properly maintained displays contribute to products’ and business’ positive
image.
E. Summarize the purpose of sales promotions.
1. Sales promotions: All the communications or activities used to stimulate sales
other than advertising, public relations or personal selling communications or
activities.
2. Sales promotions are incentives to encourage the trial and the purchase of a
product. For example, coupons are often used to get customers to try new
products at a cheaper price.
3. Sales promotions can also be used to create awareness of new products and
customer loyalty. For example, a car dealership might hold a “try your key”
contest to bring people out to look at a new car model.
F. Classify types of sales promotions.
1. Trade promotions: Designed to create support from manufacturers, wholesalers,
and retailers for a product.
a. Promotional allowances: Discounts or cash payments given to wholesalers or
retailers who stock large quantities and encourage sales of a product. For
example, 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.
b. 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. For example, an end-cap on a grocery
aisle provides higher visibility to Doritos.
c. Sales force promotions: Awards given to dealers and salespeople who meet
or exceed their sales quota. For example, a company may give a
salesperson a cash bonus if they meet sales goals.
d. Trade shows and conventions: Designed to showcase a manufacturer’s
products. Trade shows are used to introduce new products, encourage sales
of existing products, and meet contacts.
2. Consumer promotions: Activities designed to increase sales of a product.
a. Coupons: Certificates that provide cash discounts, or money off, on a good
or service. For example, Domino’s offers a coupon for “Buy one 1-topping
pizza and get a second one for half off”.
b. Premiums: Inexpensive items given away at a discount or for free.
Premiums are used to establish product loyalty and attract new customers.
For example, free gifts with purchase or an ongoing coupon plan.
c. Deals: Packages that offer similar products together for a temporary price
break. For example, a shampoo and conditioner set sold together for a
slightly lower price than if purchased separately.
d. Incentives: Contests, games, sweepstakes, or rebates used to create
increased sales and excitement about a product. For example, McDonald’s
uses their monopoly game to encourage customers to purchase more
product.
e. 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. For
example, a package of Crest toothpaste includes a free sample Scope
mouthwash.
f. Sponsorship: A company pays for the right to promote itself and its products
at a location or event. For example, DuPont sponsors a NASCAR racing
team.
g. 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. For example, an ice
cream retailer offers discounts to customers who come in after a movie and
present a ticket stub.
h. Product placement: Involves using a brand-name product in a TV show,
movie, or commercial, etc. For example, Warner Brothers featured America
Online in its movie “You’ve Got Mail.”
i. Loyalty marketing programs (also called frequent buyer programs): Designed
to reward customers for continued patronage. For example, many airlines
offer frequent flyer miles to customers.
j. Point-of-purchase displays: Placed in high-traffic areas of stores and are
designed to encourage impulse purchases. For example, drink coolers at
check-out lines in grocery stores.