Promotional activity other than advertising, personal selling, and publicity which stimulates consumer purchases

Sales PromotionSales Promotion

•Contests•Coupons

•Demonstrations•Exhibits

•Fashion shows•Free samples•Trade shows

Examples of Sales Examples of Sales Promotion ActivitiesPromotion Activities

Objectives of Sale Promotion

1. Increase demand and stimulate sales

2. Inform customers about new and/or improved products

3. Create positive business image

Types of Sale Promotion

– Trade Promotion• Designed to promote to businesses instead of

consumers.

– Customers Sales Promotion• Designed to increase consumer desire to buy

products.

Examples of Trade Promotions

• Slotting allowances: Money paid by a manufacturer to the retailer for placing a product in the store, perhaps in a specific location.

• Buying allowance: Price discount given by a manufacturer to increase the desire of a wholesaler or retailer to purchase the product.

• Trade shows: Provide the manufacturer a place to introduce new items and to gain support for new and existing products.

• Sales incentive/contests: Awards given to salespersons for meeting or exceeding sales goals.

Designed to promote to businesses instead of consumers.

Examples of Consumer Sales Promotions

Designed to increase consumer desire to buy products.

• Premiums– Low cost items given to the consumer at a

discount or free. – Examples include coupons, free samples, and

redemptions.• Incentives

– Products earned through contests, sweepstakes, and rebates.

• Product samples– Trial size products generally sent through the

mail or distributed at the business at no cost to the consumer.

Examples of Consumer Sales Promotions

Designed to increase consumer desire to buy products.

• Promotional tie-ins– A strategy in which two or more businesses

combine promotional resources to increase sales.• Product placement

– Increasing product recognition by featuring the item in movie theaters, on TV, or at special events.

• Visual merchandising and display– Coordination of the physical elements of a

business (or a product) to project the desired image to consumer.

Advantages and Disadvantage of Sales Promotion

– ADVANTAGE• Stimulating sales and raising consumer

awareness of the product.

– DISADVANTAGES• Costs involved in promotion of image and

product.• Negative attitudes toward some activities,

such as coupons and rebates, because of expiration dates.