Chapter 17 Promotional Strategies and Concepts

17.2 Sales Promotion

Warm-up Activity

Monday

TURN IN HOMEWORK

Day 1

Warm-upExplain one way you have been affected

by sales promotion (one of the elements of the promotional mix).

Warm-up Activity

Tuesday-Warm-up Name and explain one type of

premium, which is a type of Consumer Promotion.

Warm-up

WednesdayHow are consumer buying decisions

influenced thru Sales Promotion?

Overview

Review17.2 Sales Promotion

Sales Promotion

Consumer Promotions Sales promotion efforts designed to encourage

customers to buy a product

Trade Promotions Sales promotion activities designed to gain

manufactures’, wholesalers, and retailers support for a product

Sales Promotion

Consumer Promotions Premiums Sponsorships Incentives Product Samples Loyalty Marketing Programs Product Placement Visual Merchandising and Displays

Consumer Promotions

Premiums Low-cost items given to consumers at a

discount or for free Coupons

• Certificates that entitle consumers to cash discounts on goods or services

Factory Packs• Free gifts placed on/in product packages

Consumer Promotions

Traffic Builders • Low cost items given to the consumer for visiting a new

store or attending an event. Coupon Plans

• Ongoing program offering a variety of items in exchange for labels, coupons or other tokens

Consumer Promotions

Sponsorships Promotion of a company associated with a

property

Consumer Promotions

Incentives Higher-priced products earned and given

through contests, sweepstakes and rebates

Consumer Promotions

Product Samples Free trail size of a product sent through the

mail, distributed door-to-door, or given away at retail stores or trade shows

Consumer Promotions

Loyalty Marketing Promotions Frequent buyer program that awards customer

for making multiple purchases

Consumer Promotions

Promotional Tie-ins Arrangement between two companies that

combine resources advertising and sales promotional activities to do a promotion that creates additional sales for each partner

Consumer Promotions

Product Placement Product recognition through special events,

television and movies

Consumer Promotions

Visual Merchandising and Displays Coordination of all physical elements in a place

of business so that it projects the right image to its customers

Sales Promotion

Consumer promotionsTrade promotions

Trade Promotions

Slotting AllowancesBuying AllowancesTrade Shows and ConventionsSales Incentives

Trade Promotions

Slotting Allowances Cash premium made by manufacturers to a

retail chain for the costs involved in placing a new product on its shelves

Trade Promotions

Buying Allowances Price discounts given by manufacturers to

wholesalers and retailers to encourage the purchase of a product

Trade Promotions

Sales Incentives Awards given to managers and employers who

successfully meet and exceed sales goals

Trade Promotions

Trade Shows and Conventions Events to provide opportunities to introduce

new products, increase sales of existing products, and gain continued company and product support

Agenda

ReviewGroup ActivityStart 17.3 Public RelationsWork on projects

DUE AT END OF PERIOD (in your project folder) – 1st part of group project

Group Activity

In your group, you will be given an index card with a situation. Name and explain one Sales Promotion activity you would do for that situation.

Must have: One recorder (you will turn this in - one copy per

group) One speaker Each group member must speak. You are given

an index card and you must contribute once and put that in the middle of the table

You have 10 minutes

References:

http://www.hersheys.com/reeses/coke600/lib/images/home/home_FINAL.jpg http://web500.us/wp-content/uploads/2009/04/canon-rebate2008.jpg http://popsci.typepad.com/photos/uncategorized/2007/05/31/coulton_contest_485.jpg http://forum.retailmenot.com/attachments/printable-coupons/694d1260334169-dick-s-sporting-go

ods-printable-coupon-december-2009-dsp10cp.jpg http://images.google.com/imgres?imgurl=http://www.mydickssportinggoods.com/images/

contact_dualcards.jpg&imgrefurl=http://www.mydickssportinggoods.com/contact.aspx&usg=__o1erezqzMkR4rHogI6xhg25raqA=&h=97&w=187&sz=13&hl=en&start=20&um=1&tbnid=0Y5nyL8W1TTdZM:&tbnh=53&tbnw=102&prev=/images%3Fq%3Ddicks%2Bsporting%2Bgoods%2Brewards%2Bcard%26hl%3Den%26rlz%3D1W1ADBR_en%26um%3D1

http://diterlizzi.com/blog/wp-content/uploads/2008/01/spiderwicklucky.jpg http://www.guadalupe-school.com/images/campbells.jpg http://www.markpascua.com/wp-content/nike-shoe-keychain.jpg http://images.thecarconnection.com/sml/office-depot-roush-jpg_100175490_s.jpg http://www.creativemag.com/images2003%5Crapidpepsihalloweenlobby.jpg http://sourcing.community.mfg.com/wp-content/uploads/2009/11/factory.png http://www.handystorefixtures.com/images/layouts/764/beauty3r.jpg http://www.angus7retirement.com/images/cash_stack.jpg http://www.babble.com/CS/blogs/strollerderby/vacation-travel.jpg http://www.referenceforbusiness.com/businesses/images/lab_0001_0003_0_img0193.jpg http://www.ptsoft.com/ennouncements/2005/MayJune/discount.gif http://hiinvent.com/news/mTradeShow_TheresaBass.jpg