PROMOTIONAL MIX
 Sales Promotion: Represents all marketing activities
used to promote sales outside of personal selling,
advertising, and PR.
 Increase sales
 Acquire customers
 Create a positive business or corporate image
SALES PROMOTIONS V. ADVERTISING
 Advertising positions a product or service so that it looks better to a
consumer compared to its competition
 Sales Promotions include a variety of strategies designed to offer
purchasers an extra incentive to buy.
 Why use sales promotions?
 To increase sales in a short time.
 To introduce a new product on the market
SALES PROMOTIONS
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Sales promotions are Incentives that encourage customers to
buy products or services
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Broken down into Trade Promotions & Consumer Promotions
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Trade promotions are sales promotion activities designed to get
support for a product from a manufacturer, wholesaler, & retailer.

Trade promotions focus on businesses selling to other businesses
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A lot of money is spent on promoting your product to other businesses
versus the actually consumer
TRADE PROMOTIONS
 Types of Trade Promotions that exist include:
 Promotional Allowances
 Cooperative Advertising
 Slotting Allowances
 Sales Force Promotions
 Trade Shows & Conventions
 Dealer Loaders
TRADE PROMOTIONS:
PROMOTIONAL ALLOWANCE
 Promotional Allowance: Funds
given by a manufacturer to a
middleman or retailer for
promoting its product.
 For example, a household
products company gives a
grocery chain a promotional
allowance for placing their new
detergent in a special display at
the end of the aisle.
TRADE PROMOTIONS
 Dealer Loaders-Gift offered to a
retailer by a manufacturer as a bonus
for purchasing the manufacturer's
merchandise.
 Usually something the retailer gets to
keep after promotion ends
Cooperative Advertising:
A manufacturer supports the retailer by helping to pay for
the cost of advertising a product locally.
•
Example Walgreens receives money from companies
like Pepsi in order for their circular to be placed in the
local newspapers like the Charlotte Observer
TRADE PROMOTIONS: SLOTTING
ALLOWANCES
 Slotting Allowance: A one-time
payment by a manufacturer or
vendor to a retailer in order to
ensure shelf space in the
retailer's store(s) or in its
warehouses.
 Endcap sales 500% greater
 Front Counter Sales 1000%
greater
SALES PROMOTIONS
Sales Force Allowance:
Awards given to dealers and
employees who successfully
meet or exceed a sales quota.
Awards range from cash
prizes, to merchandise, or
travel awards.
SALES PROMOTIONS
Trade Shows & Conventions:
Allow companies to showcase a
particular line of product.
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Introduce new products
Encourage increased sales of
existing products
Gain support
Many companies invest
millions of dollars in their
display booths.
SALES PROMOTIONS:
CONSUMER PROMOTIONS

Consumer Promotions: Sales strategies that encourage
customers and prospects to buy a product or service.

Support advertising, personal selling, & PR efforts.

Include promotional tactics such as distributing coupons,
premiums, product samples, loyalty programs, & product
placement.
SALES PROMOTIONS: CONSUMER
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Coupons: Certificates that entitle customers
to cash discounts on goods and services.
Stores that accept coupons send them to the
manufacturers’ headquarters or to a clearinghouse to
be sorted and passed along to redemption centers.

The centers in turn reimburse the stores for the face
value of each coupon plus a handling charge of about
$.08.

The redemption center then bills the manufacturer for
the amount they pay.
CONSUMER PROMOTIONS
Rebates-like coupons, offer
value to purchasers typically by
lowering product price.
Rebates often request the
purchaser to submit personal
data in order to obtain rebate.
CONSUMER PROMOTIONS
Free Standing Inserts:
Advertising brochure, card,
or leaflet inserted in a
newspaper or magazine,
usually to serve as a reply
coupon or discount voucher.
CONSUMER PROMOTION
Promotional Pricing: A
reduction on the selling
price of a product
CONSUMER SALES PROMOTIONS
Trade-In allow consumers to
obtain lower prices by
exchanging something the
customer possess, such as an
older product that the new
purchase will replace.
CONSUMER PROMOTIONS
 Demonstrations-promotional
technique whereby the use of a
product is demonstrated in a retail
outlet.
 The in-store demonstration is used
most often in large department
stores, supermarkets, or massmerchandise outlets that exhibits a
heavy consumer-traffic pattern.
 Often, manufacturers will offer
product discounts to dealers who will
do in-store demonstrations.
CONSUMER PROMOTIONS

Premiums: Low cost items given to consumers at a discount
or for free.

Designed to increase sales by building product loyalty, & attracting
new customers.

Should create an immediate need for the customer to buy

The 3 most common types of consumer premiums are factory packs,
traffic builders, & coupon plans.
CONSUMER SALES PROMOTIONS
A traffic builder is a low cost
premium that a company gives
away to customers for
attending an event
Factory packs are free
gifts placed in product
packages.
Coupon Plans are ongoing
programs that offer a variety of
premiums in exchange for labels
or coupons.
CONSUMER SALES PROMOTIONS
Sponsorships:
Companies pay a fee for the right to
promote itself & its products or
services at or on a set location.
The locations can be a physical site
(stadium), an event (concert), a
group (car racing team), or a
person (golfer).
CONSUMER SALES PROMOTIONS
Loyalty Marketing Programs
Frequent Buyer Program
Reward customers for patronizing
company
Airlines: Frequent Flyer Programs
T.G.I. Fridays: Gold Points Card
Hotel: Stay 2 Nights, Get 3rd Free
CONSUMER SALES PROMOTION
Product Placement
A consumer promotion that involves
using a brand-name product in a
movie, television show, sporting
event, or music video.
CONSUMER SALES PROMOTIONS
 Incentive
 High priced items earned through
giveaways, sweepstakes, & contests
 Prizes are usually cash prizes, cars,
or vacations
 Contests: Consumers usually have
to do something to win
 Sweepstakes: Game of chance to
win
CONSUMER SALES PROMOTIONS
Product Sample:
Free sample of the product
Can be sent through the mail or
given in person
CONSUMER PROMOTIONS
 Personal Appearance:
 Someone of interest to the target
market is paid to make an appearance
supporting a product
 Author
 Sports figure
 Celebrity
 Generates foot traffic to store or mall
CONSUMER SALES PROMOTIONS
Point-of-Purchase Displays
Displays designed primarily by
manufacturers to hold and
display their products
Promote impulse purchases
ASSIGNMENT
 Create five types of sales or consumer promotions for any product or
service you wish
 All promotions must be original
 No copy & paste
 You can draw out your designs or use a computer
 Examples:
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Create a coupon for a product that interests you
Draw a FactoryPack
Create a flyer of a concert or event that is being sponsored
Do a video or take a picture where product placement is being used
EXAMPLE OF A COUPON
EXAMPLE OF A CONCERT FLYER WITH SPONSORSHIP