Chapter 17.2Types of Promotion

Sales Promotions

Are incentives that encourage buying› Build awareness› ↑ sales from current customers› Reward loyalty› Usually supported by advertising› Types:

1. Trade Promotions2. Consumer Promotions

Trade Promotions

Sales activities designed to get support for a product from manufacturers, wholesalers, retail

More $ is actually spent on promoting to businesses than consumers

Consumer Promotions

Sales strategies to get buyers to buy product or service

Types:› Coupons› Premium deals› Incentives› Product samples› Sponsorships› Promotional tie-ins› Product placement › Loyalty marketing programs› Point of purchase displays

Coupons

Certificates for cash discounts Stores accept & send them to a

manufacturer’s headquarters or clearing house to be sorted

Redemption centers reimburse stores for face value + charge a handling about 8¢ per coupon

Apps for your phone

Premiums Low cost items provided at discount or for FREE Build product loyalty Attract new customers “added value” 3 Types:

› Factory packs = free gifts placed in product packages (cereal)› Traffic builders= pens, key chains, coffee mugs @ store or

events› Coupon plans= ongoing programs (customer sends in soup

labels)

The House Boardshop

Product Samples

Free trial sizes Especially important in

promoting new products

Drug manufacturers to doctors and dentists

Sponsorship People, events,

groups, or a physical location

Promotional Tie-ins

Arrangements between 1 or more retailers or manufacturers

Both benefit from combing resources

Product Placement

Brand name products in movies, TV, sporting events, or in commercials for another product

Transformers

Loyalty Marketing/Frequent Buyer Programs

that reward customers for patronizing

Point-of-Purchase Displays Designed

primarily by manufacturers to display their products

Placed in ↑ traffic areas for in store advertising

Mini Quiz

DECA Role Play

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