Sales Promotion Overview

This set of flashcards covers key vocabulary terms related to sales promotion, exploring their definitions and implications in marketing.

Sales Promotion

A consumer or trade communications program of limited duration that adds value to a product.

Immediate Response

Promotional activity used to generate an immediate response from consumers.

Financial Promotions

Promotions that are value oriented, such as price reductions, free samples, and bonuses.

Emotionally Based Promotions

Promotions like contests and premiums that appeal to consumers' emotions.

Sampling

A method used to induce trial, typically effective for low-value, easily divisible products.

Rebate Offers

Programs where customers receive money back after purchasing a product.

Coupons

Discount offers for products aimed at encouraging new trials or repeat purchases.

Loyalty Programs

Frequent buyer programs that reward customers for repeat purchases.

Trade Promotions

Promotions aimed at channel members to gain distribution and support for products.

Point of Purchase (POP) Promotions

Merchandise displays used to promote products at the retail level.

Contests and Sweepstakes

Promotional events where individuals compete for prizes based on skill or luck.

Challenges with Sales Promotions

Issues such as reduced profit margins and increased price sensitivity among consumers.

Delayed Payment Incentives

Promotional offers that allow consumers to postpone payment for a period.

Trade Allowances

Price reductions on orders to encourage larger purchases from retailers.

Cooperative Advertising

Cost-sharing arrangements between manufacturers and retailers for advertising.