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
cash payments or discounts given by
manufacturers to wholesalers or retailers for performing
activities to encourage sales

Promotional Allowances –

Cooperative Advertising - a

Slotting Allowances - a

Sales Force Promotions -

Trade Shows and Conventions -
manufacturer supports the retailer by
helping to pay for the cost of advertising its product locally
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
awards given to dealers and employees
who successfully meet or exceed a sales quota
line of products
showcase that show off a particular
TYPES OF CONSUMER
PROMOTIONS




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
Incentives – higher priced products earned and
given away through contests, sweepstakes
and rebates
Coupons –
MORE CONSUMER PROMOTIONS




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
Sponsorship – companies pay a fee to promote its
products at or on a set location
Promotional Tie-Ins – (cross-promotion) sales
promotional arrangements between one or
more retailers or manufacturer
Product Placement – consumer promotion that involves using a brand-name product in a
movie, TV show, or sporting event
Product Samples –
EVEN MORE CONSUMER PROMOTIONS

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

Consider the upcoming Winter Sale on Dec 15