Ms. Smith Trade promotions Consumer promotions Trade promotions are 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! 1. 2. 3. 4. 5. Promotional Allowances: cash payments or discounts given by manufacturers to wholesalers. Cooperative Advertising: manufacturer helps pay for the cost of advertising. Example Slotting Allowances: cash premium paid by a manufacturer to a retailer to help cover the costs of placing the manufacturer’s product on shelves. Sales Force Promotions: awards given to employees who successfully meet or exceed a sales quota. Trade Shows & Conventions: showcase a particular line of products. Types of Trade Promotions Consumers promotions are sales strategies that encourage customers and prospects to buy a product or service. Support advertising, personal selling, and public relations efforts! 1. 2. 3. 4. Coupons: certificates that entitle customers to cash discounts on goods & services. Example Premiums: low-cost items given to consumers at a discount or for free; factory packs, traffic builders, and coupon plans. Example Deals: offer short-term price reductions that are marked directly on the label or package. Example Incentives: create customers excitement and increase sales; higher-priced products earned & given away through contests, sweepstakes, vacations, and rebates. Example 5. 6. 7. 8. 9. 10. 11. Product Samples: free trial size of a product. Example Sponsorship: sponsoring company pays a fee for the right to promote itself and its products or services on a set location; can be physical site, an event, or a person. Example Promotional Tie-Ins: partners combine their resources to conduct a promotion that will create additional sales for each partner. Example Product Placement: using a brand-name product in a movie, television show, or sporting event. Example Loyalty Marketing Programs: frequent buyer programs, reward its customers. Example Online Loyalty Marketing: same as above. Example Point-of-Purchase Displays: displays placed in high-traffic areas and promote impulse purchases. Example Consumer Sales Promotions Consumer Sales Promotions Consumer Sales Promotions Consumer Sales Promotions Consumer Sales Promotions Consumer Sales Promotions Consumer Sales Promotions Consumer Sales Promotions Consumer Sales Promotions Consumer Sales Promotions Consumer Sales Promotions