Promotional Campaigns

Sales Promotions
• A direct inducement that offers an extra value or
incentive for the product to the sales force,
distributors, or the ultimate consumer with the
primary objective of creating an immediate sale.

• There are three important aspects of sales promotion:

– Extra incentive to buy—coupons, rebates, premium
provide
– Extra reason to buy
– Tool to speed up sales
 Sales Promotions
• Sales Promotions : incentives that encourage
customers to buy products and services
• Can be used to….Encourage customers to try a
new product
• Build awareness and brand loyalty
• Increase purchases by current customers
 TYPES OF SALES PROMOTIONS
• Trade Promotions : sales promotion activities designed
to get support for a product from manufacturers,
wholesalers, and retailers More money is actually
spent on promoting to businesses than to consumers
• Consumer Promotions : sales strategies that encourage
customers and prospect to buy a product or service
Support advertising, personal
selling, and public relations efforts
 TYPES OF TRADE PROMOTIONS
• Promotional Allowances – cash payments or discounts given by
manufacturers to wholesalers or retailers for performing
activities to encourage sales
• Cooperative Advertising - a manufacturer supports the retailer
by helping to pay for the cost of advertising its product locally
• Slotting Allowances - a cash premium paid by a manufacturer
to a retailer to help the retailer cover the cost of placing the
manufacturer’s product on the shelves
• Sales Force Promotions - awards given to dealers and
employees who successfully meet or exceed a sales quota
• Trade Shows and Conventions - showcase that show off a
particular line of products
Promotional Allowances
Cooperative Advertising
Cooperative Advertising
Slotting Allowances
Slotting Allowances
Sales Force Promotions
Trade Shows and Conventions
 TYPES OF CONSUMER PROMOTIONS

• Coupons – certificates that entitle customers

to cash discounts on goods or services
• Premiums – low-cost items given to
consumers at a discount or for free – they are
designed to increase sales by building product
loyalty
• Deals – short-term price reductions that are
marked directly on the label or package
 TYPES OF CONSUMER PROMOTIONS

• Incentives – higher priced products earned and given

away through contests, sweepstakes and rebates
• Product Samples – a free trail size of a product sent
through the mail, distributed door to door, or given
away at retail stores – mostly used to introduce new
products
• Promotional Tie-Ins – (cross-promotion) sales
promotional arrangements between one or more
retailers or manufacturer
 TYPES OF CONSUMER PROMOTIONS

• Sponsorship – companies pay a fee to promote its products

at or on a set location
• Product Placement – consumer promotion that -involves
using a brand-name product in a movie, TV show, or
sporting event
• Loyalty Marketing Programs – (frequent buyer programs)
reward customers for patronizing a company
• Point-of-purchase Displays – displays designed primarily by
manufacturers to hold and display their products – usually
located at the cash register , check out, or high traffic areas