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Unit 6 Promotion Chapter 17 Promotional Concepts and Strategies Chapter 18 Visual Merchandising and Display Chapter 19 Advertising Chapter 20 Print Advertisements Chapter 17 Promotional Concepts and Strategies • Section 17.2 Types of Promotion Types of Promotion Key Terms sales promotions trade promotions consumer promotions coupons premiums incentives promotional tie-ins Objectives Define sales promotion Differentiate between trade & consumer promotions Explain the use of promotional tie-ins, trade sales promotions, and loyalty marketing programs Marketing Essentials Chapter 17, Section 17.2 Sales Promotion sales promotions All marketing activities--other than personal selling, advertising, and public relations-that are used to _____________ _____________ _____________ Sales promotions are _______________ that encourage customers to buy products or services. They can be used to: • Encourage customers to _______________ • Build _________________ • Increase purchases by _______ customers • Reward _____________ _____________ Marketing Essentials Chapter 17, Section 17.2 Sales Promotion – Two Types There are two main types of Sales Promotion: _________ Promotions _____________ Promotions Marketing Essentials Chapter 17, Section 17.2 Trade Promotions Trade promotions are sales promotion activities designed to get support for a product from: • • • More money is actually spent on promoting to ________________ than to ______________! Marketing Essentials Chapter 17, Section 17.2 Trade Promotions We are going to discuss 5 types of trade promotions, including: Promotional Allowances Cooperative Advertising Slotting Advertising Sales Force Promotions Trade Shows & Conventions Marketing Essentials Chapter 17, Section 17.2 Trade Promotions Promotional allowances represent ______ _________ or _________ given by ____________ to ___________ or ___________ for performing activities to encourage sales. Example: Cooperative advertising happens when a _______________ supports a ________ by helping to pay for the cost of ________ advertising. Marketing Essentials Chapter 17, Section 17.2 Trade Promotions A slotting allowance is a _______ __________ paid by a ______________ to a ____________ to help cover the costs of placing the product on the shelves. Per product, slotting allowance can range from: Marketing Essentials Chapter 17, Section 17.2 Trade Promotions Sales force promotions are ________ given to dealers and employees who successfully: Can be ______ bonus or prizes such as ____________ or _____. Trade shows and conventions ____________ a particular line of products. They provide businesses with opportunities to: • Introduce _______ products • Encourage ___________ sales of ___________ products • Meet customers and partners in the ____________ chain • Gain continued company and product ____________ Marketing Essentials Chapter 17, Section 17.2 Consumer Promotions Consumer promotions X are sales strategies that encourage ___________ and _________ to buy a product or service. Marketing Essentials Chapter 17, Section 17.2 Consumer Promotions We are going to discuss 10 types of consumer promotions, including: • Coupons • Premium • Deals • Incentives • Product samples • Sponsorships • Promotional tie-ins • Product placement • Loyalty marketing programs • Point-of-purchase displays Marketing Essentials Chapter 17, Section 17.2 Consumer Promotions - Coupons Coupons X are certificates that entitle customers to cash discounts on goods or services. They help to introduce new products, enhance sales of existing products, and encourage retailers to stock the advertised item. Notes about how coupons are handled by retailers: Marketing Essentials Chapter 17, Section 17.2 Consumer Promotions - Premiums Premiums are __________ items given to consumers at a __________ or for ______. They increase sales by building product __________ and _____________ new customers. The fundamental concept behind premium marketing is that people will be more __________ to buy a product when they are offered an added-value gift in exchange for their purchase. Three specific types of popular consumer premiums are: Marketing Essentials Chapter 17, Section 17.2 Consumer Promotions - Premiums Factory packs Free gifts placed in _______ packages This type of premium is especially popular with ______________ manufacturers. Marketing Essentials Chapter 17, Section 17.2 Consumer Promotions - Premiums Traffic Builders _____ ______ premiums given away to consumers for visiting a ____ ______ or for attending a _______ _________ Examples: pens, key chains, coffee mugs Marketing Essentials Chapter 17, Section 17.2 Consumer Promotions - Premiums Coupon Plans Ongoing programs offering a ________ of premiums in exchange for _______ or _________ obtained from a product or label Example: Marketing Essentials Chapter 17, Section 17.2 Consumer Promotions – Deals or Price Packs Deals or price packs offer short-term _______ __________ that are marked directly on the _________ or __________. Marketing Essentials Chapter 17, Section 17.2 Consumer Promotions - Incentives Incentives X are ________-priced products _________ or ________ _________ through: • Contests: Competitions based on a demonstrated _______ • Sweepstakes: Games of _________ • Rebates: ____________ offered if the item is purchased during a certain ____________ __________ Marketing Essentials Chapter 17, Section 17.2 Consumer Promotions – Product Samples Incentives X are ________-priced products _________ or ________ _________ through: • Contests: Competitions based on a demonstrated _______ • Sweepstakes: Games of _________ • Rebates: ____________ offered if the item is purchased during a certain ____________ __________ Marketing Essentials Chapter 17, Section 17.2 Consumer Promotions – Product Samples A Product sample is a ______ ______ _______ of a product sent through the mail, distributed door-to-door, or given away at retail stores and trade shows. Samples are especially important for ____ products. Samples are often used with detergents, toothpaste, shampoo, deodorant, and cologne. Also, drug manufactures often provide samples to doctors & dentists so they can let their patients try new products. Marketing Essentials Chapter 17, Section 17.2 Consumer Promotions – Sponsorship Sponsorship is an integral part of promotion. A sponsoring company pays a _____ for the ______ _______________________ at or on a set location, such as: • A physical site (such as a __________) • An event (such as a _____________) • A group (such as a ____________) • A person (such as a ____________) Sponsorship is a high-profile promotional medium. Therefore, deals must be able to withstand public and media __________. Marketing Essentials Chapter 17, Section 17.2 Consumer Promotions – Promotional tie-ins Promotional tie-ins are also known as _______________ and _____________ campaigns. These activities involve sales promotional arrangements between one or more retailers or manufacturers, producing mutually beneficial results. Example(s): Marketing Essentials Chapter 17, Section 17.2 Consumer Promotions – Product Placement Product placement is a consumer promotion that involves using a brand-name product in a ______, _________, _________ _________, or in a _____________for another product. Example: Do you remember the movie “You’ve Got Mail” Marketing Essentials Chapter 17, Section 17.2 Some of the most famous Product Placements Risky Business Back to the Future Demolition Man – You've Got Mail – Austin Powers Cast Away Men in Black II – Consumer Promotions – Loyalty Marketing Programs Loyalty marketing programs, also called _________ __________ programs, reward customers for ___________ a company. They offer consumers ___________ to continue to buy their products. (There are also online loyalty programs.) Marketing Essentials Chapter 17, Section 17.2 Consumer Promotions – Point-of-Purchase displays Point-of-purchase displays are displays designed primarily by ____________ to ____ & ________ their products. They are usually placed in ____________ areas and promote __________ purchases. Marketing Essentials Chapter 17, Section 17.2