promotion chapter 17. sec. 17.2 – types of promotion the characteristics of sales promotion the...
TRANSCRIPT
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Promotion
Chapter 17
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Sec. 17.2 – Types of Promotion
• The characteristics of sales promotion
• The concept of trade promotions
• The different kinds of consumer sales promotions
What you’ll learn
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Sales Promotion
Incentives that encourage customers to buy products or
services
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Trade Promotions – Designed to gain manufacturers’, wholesalers’, and retailers’ support for a product
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Types of Trade Promotions
• Promotional Allowances – a cash payment or discounts given by manufacturers to wholesalers or retailers for performing activities to encourage sales.
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Types of Trade Promotions
• Cooperative Advertising – A manufacturer supports the retailer by helping to pay for the cost of advertising its product locally.
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Types of Trade Promotions
• Slotting Allowances – a cash premium paid for placing a product on a retailer’s shelves
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Types of Trade Promotions
• Sales Force Promotions – awards given to managers and employees who successfully meet or exceed a sales quota.
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Types of Trade Promotions
• Trade Shows and Conventions
The Consumer Electronics Show is held annually in Las Vegas. Check it out by clicking on the image.
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Consumer Sales Promotions – designed to encourage customers to buy a product
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Types of Consumer Promotion
• Coupons – certificates that entitle customers to cash discounts on goods or services.
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Types of Consumer Promotion
• Premiums – low-cost items given to consumers at a discount or for free – Should:– be low-cost
– provide added value
– negate the target audience’s price issue
– effectively differentiate the product from the competition
– create an immediate need to buy
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Types of Premiums
• Factory packs (in-packs) – free gifts placed in product packages
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Types of Premiums
• Traffic builders – pen, calendar, key-chain given free for visiting or attending event
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Types of Premiums• Coupon plans – ongoing program
offering a premium in exchange for labels, coupons or other tokens from one or more purchases.
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Incentives – generally higher-priced products earned and given through contests, sweepstakes, and rebates• Contests – activities that require
demonstration of a skill
• Sweepstakes – game of chance
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Incentives
• Rebates – discounts offered to customers who purchase
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Product Samples
• Free, trial-size sample
• Distributed through mail, door-to-door, or at a retail or trade show
• Especially important with new products
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Sponsorship
• The sponsoring company pays a fee for the right to promote itself and its products or services at or on a set location
• May negotiate the right to use logos and names on retail products
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Promotional Tie-In
• Involves arrangements between one or more retailers or manufacturers.
Ex: McDonald’s and Fisher-Price Toys
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Product Placement• Featuring a product at a
special event, on television, or in the movies
Click on the “Pieces Icon” to learn about the history of
product placement.
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Loyalty Marketing Programs
• Frequent buyer programs
• Reward customers for making multiple purchases
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Point-of-Purchase Displays
• Placed in high-traffic areas and promote impulse purchases.