Promotion (9)

Promotion

Any form of communication a business uses to inform, persuade, or remind consumers about its products, services, or image.

Institutional Promotion

• Creating a favorable image for the overall company or brand (e.g., sustainability initiatives, community involvement).

Product Promotion

• Convincing customers to buy a specific good or service.

Advertising

Paid, non-personal communication (e.g., billboards, digital ads, TV commercials)

Personal Selling

 Direct, two-way interaction between a sales associate and a customer

Sales Promotion

 Short-term incentives to encourage quick purchases (e.g., coupons, BOGO deals, clearance sales).

Public Relations (PR) & Publicity

 Building goodwill through unpaid media coverage, press releases, or sponsorships.

Direct Marketing

Targeted promotional materials sent directly to individual consumers (e.g., email marketing, direct mail catalogs, SMS alerts).

Endcaps

• High-visibility displays at the ends of aisles designed to drive impulse buys.

Planogram

• A visual diagram detailing the precise layout and positioning of products on retail shelves.

Consumer Promotions

• Incentives offered directly to shoppers (e.g., loyalty point rewards, discount codes).

Trade Promotions

• Incentives provided by manufacturers to retailers/wholesalers (e.g., trade allowances, buying discounts, free display fixtures).

Push Strategy

•  "Pushing" product through the supply chain to retailers using trade discounts and personal selling.

Pull Strategy

• Directing promotion at end consumers to create demand that "pulls" the product through the retail distribution channel.

Slotting Allowance

• Payments made by manufacturers to retailers to secure shelf space for new products.

Promotional Allowance

 Financial support given by manufacturers to retailers for featured promotional placements in circulars or digital ads.

Incremental Sales & Lift

The percentage or dollar increase in sales volume directly generated by a specific promotional campaign compared to baseline sales.

Cannibalization Rate

The percentage of sales for a newly promoted or introduced item that comes at the direct expense of an existing, non-promoted item in the store's assortment.

Promotional ROI

Calculating the net profitability of a promotion