Download 6.04 Exemplify sales promotions

4.04
Exemplify sales promotions
Sales promotion is…
• All the communications or
activities used to stimulate
sales other than advertising,
public relations or personal
selling communications or
activities
• For example: “Try your key”
contest to bring people in to
look at a new car model
A trade promotion is…
• Designed to create support from
manufacturers, wholesalers, and
retailers for a product
• Promotional allowances
• Slotting allowances
• Sales force promotions
• Trade shows and conventions
A consumer promotion is…
• Designed to increase sales of a
product
• Coupons
• Rebates
• Premiums
• Deals
• Incentives
• Product samples
A consumer promotion is… (con’t)
• Sponsorship
• Promotional tie-ins (also called
cross-promotion and crossselling campaigns)
A consumer promotion is… (con’t)
• Product placement
• Loyalty marketing programs
(also called frequent buyer
programs)
• Point-of-purchase displays
• Contests, Sweepstakes, and
Games
4.04
Exemplify sales promotions
Push or Pull
Push or Pull Promotion Strategy
• A “push” promotional strategy makes
use of a company's sales force and trade
promotion activities.
• The producer promotes the product to
wholesalers, the wholesalers promote it
to retailers, and the retailers promote it to
consumers.
• example offering subsidies on the cell
phones to encourage retailers to sell
higher volumes.
Push or Pull Promotion Strategy
• A “pull” selling strategy is one that
requires high spending on advertising
and consumer promotion to build up
consumer demand for a product.
• If the strategy is successful, consumers
will ask their retailers for the product,
the retailers will ask the wholesalers,
and the wholesalers will ask the
producers.
6.05
Exemplify public
relations
Public relations is…
• Used by a business to
build and maintain a
positive image about a
company and its
products
• Positive = Increased
sales
• Negative = Decreased
sales
A news release is…
• An announcement
detailing
newsworthy
information about a
company or a
product
Publicity is…
• Using media to bring newsworthy
information to the public’s attention
• Advantages
• Free!
• Disadvantages
• Little control