SALES PROMOTION

How have you been induced to buy merchandise?

Sales Promotion

Is short-term incentive to encourage buying

Its purpose is to increase demand and salesIt can be either trade- or consumer-oriented

Trade Promotions

Slotting AllowanceBuying AllowanceTrade Show/ConventionsSales Incentives

Slotting Allowance

Paid by manufacturer to retailer

Essentially buying shelving space in a store

Buying Allowance

Price DiscountUsually for buying in large quantities or

bulk

Trade Shows/Conventions

Introduces new productsPromotes good will with company

Sales Incentives

Awards given to employees for sales of a certain product

Can be in the form of contestsInsurance SalesDirect TVCan be cash, trip or other prizes

Consumer Sales Promotions

Premiums – coupons, factory packs, traffic builders and coupon plans

Incentives – Contests, Sweepstakes and rebatesProduct SamplesPromotional Tie-InsProduct PlacementVisual Merchandising and DisplaysLoyalty Marketing

Premiums

Low cost items given to consumers at a discount or for free

Designed to build product loyalty or attract new customers

Plan for low cost itemsProvide an added valueNegate the price issueDifferentiate products from the competitionCreate an immediate need

Coupons

Use coupons to introduct new productsEnhance sales of existing productsPlace on or inside packagesSent through regular mailFeatured on web sitePrinted in newspapers or magazines

Factory Packs

Free gives in other productsOften used in cerealsPrize in Cracker Jack

Traffic Builders

Giveaways at Grand OpeningsVisiting a new store or special eventFirst 100 customers . . .

Coupon Plans

OngoingPromote brand loyaltySend UPCs and get a free cookbook

Incentives

Usually higher pricedContestsSweepstakesRebates

Contests

Games or activities that require skillExamples

– Name a new product– Come up with an Advertising Slogan– Brittney’s project

Prizes awarded to winners

Sweepstakes

No purchase necessaryGame of chanceHope to increase your traffic flow and

sales

Rebates

Discounts by manufacturersWithin a given time period

Product Samples

Way to promote new products with no risk to the consumer

By mail, door-to-door or at storesDrug samples to doctors

Promotional Tie-Ins

Arrangement between manufacturersFor example:

– McDonald’s Happy Meal toys and– Disney movies

Product Placement

ExposureProduct recognition through special events,

television or moviesJames Bond – Rolex Watch and BMWCoke vs. PepsiIn movies ($$)

Visual Merchandising and Displays

Window, floor or counter displaysIn-store advertising

Loyalty Marketing

Frequent Flyer ProgramsPromotes loyaltyOffers consumers incentives not to buy

from the corporation.

Activity: Promotional Calendar

Prepare a promotional plan/calendar for a year for a product/service of your choice. Incorporate all four types of sales promotions!