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Explore the differences between advertising and sales promotion and understand how businesses use sales promotions to increase sales and introduce new products. Discover various types of consumer sales promotions and trade promotions.
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4.10 Promotional Channels used to Communicate with targeted audiences.
Discuss differences between advertising and sales promotion • Advertising positions a product or service against that of competitors to convey a brand message to consumers and to enhance its value in the consumer’s eyes. • Sales Promotions include a variety of strategies designed to off purchasers an extra incentive to buy.
Explain reasons that businesses use sales promotions • To increase sales in a short time. • To introduce a new product on the market
Types of Consumer Sales Promotion • Coupons-Offers purchasers price savings or other incentives when the coupon is redeemed at the time of purchase. • Free-standing insert- Advertising brochure, card, or leaflet inserted in a newspaper or magazine, usually to serve as a reply coupon or discount voucher.
Types of Consumer Sales Promotion • Rebates-like coupons, offer value to purchasers typically by lowering product price. Rebates often request the purchaser to submit personal data in order to obtain rebate.
Types of Consumer Sales Promotion • Promotional Pricing-A reduction on the selling price of a product.
Types of Consumer Sales Promotion • Trade-In allow consumers to obtain lower prices by exchanging something the customer possess, such as an older product that the new purchase will replace.
Types of Consumer Sales Promotion • Loyalty programs-designed to enhance brand loyalty by cultivating an ongoing relationship between a marketer and his customer.
Types of Consumer Sales Promotion • Sampling and Free Trials-gives customers the opportunity to experience products, often in small quantities or for a short time without purchasing the product.
Types of Consumer Sales Promotion • Free Products- Some promotional methods offer free products but with the condition that a purchase be made. EX. Buy one Get one FREE Premiums- A free item with the purchase of another item. EX. Buy a bottle of shampoo and get a free small bottle of conditioner.
Types of Consumer Sales Promotion • Contest-require the participant to do something, such as answer a question or write and essay to win a prize. • Sweepstakes-is a game of chance in order to win a prize.
Types of Consumer Sales Promotion • Demonstrations-promotional technique whereby the use of a product is demonstrated in a retail outlet. The in-store demonstration is used most often in large department stores, supermarkets, or mass-merchandise outlets that exhibits a heavy consumer-traffic pattern. Often, manufacturers will offer product discounts to dealers who will do in-store demonstrations.
Types of Consumer Sales Promotion • Personal appearance by someone of interest to the target market, such as an author, sports figure or celebrity, is another form of sales promotion capable of generating customers traffic to a physical location.
Trade Promotions • Point-of-sales displays-is a specialized form of sales promotion that is found near, on, or next to a checkout counter.
Trade Promotions • Advertising Support Programs-offering financial assistance in the form of advertising money. In certain cases the marketer will offer to pay the entire cost of advertising. • Co-op Advertising-marketers offers partial support funds.
Trade Promotions • Push money-Cash incentive paid by a manufacturer or distributors to the retailers to stock up on a product and display it prominently to stimulate its sales.
Trade Promotions • Promotional Products Products labeled with the company name that serve as reminders of the actual product. EX. Companies often hand out free calendars, coffee cups and pens that contain the product logo
Trade Promotions • Trade Shows-are organized events that bring both industry buyers and sellers together in one central location.
Types of Business-to-Business Sales Promotion • Trade Allowances-marketing techniques used to build demand at the middleman level as part of the trade marketing mix. Trade promotions include special pricing and sales incentives, discounted or free display fixtures, trade shows, demonstrations, and no-obligation gifts such as tickets to sporting events or novelties.
Types of Business-to-Business Sales Promotion • Dealer Loaders-Gift offered to a retailer by a manufacturer as a bonus for purchasing the manufacturer's merchandise.
