Sales promotion

Sales promotion

A direct inducement that offers extra incentives anywhere along the marketing route to enhance or accelerate the product’s movement from producer to consumer

Sales promotion

Normally involves a direct inducenment (money, prizes, extra products, gifts)

Why should marketers should use it?

It stimulates demand, measurable results, lessons rish of purchase, encourage brand switching, promotes price orientation

Consumer oriented

Techiques that are used to stimulate demand in the consumer/household market

Trade oriented

Techniques aimed at the distribution channels

Consumer-oriented

Pull

Trade-oriented

Push

Coupons

Legal certifcates offered by manufacturers and retailers that grant specified savings on selected products when presented for redemption at the point of purchase

Sampling

Offering consumers a free trial of the product hoping to convert them to habitual use

Premiums

A tangible reward recived for performing a particular act, such as purchasing a prodict or visiting the point of purchase

Contest

A promotion device in which a prize is awarded to an entrant judged to have qualifies by virtue of superior skill

Sweepstake

A form of sales promotion that offers prizes based on a chance drawing of entrant’s names

Rebate

The practice in which manufacturers give cash discounts or reimbursements to consumers who submit proof of purchase

Point of sale

A display designed by the manufacturer and distributed to retailers in order to promote a particular brand or line of products

Price discount

An inmediate reduction in the price for the purchaser

Continuity program / loyalty program

A program that requires the customer to continue purchasing the product or service in order to recieve a reward

Specialty advertising

Similar to premiums but the consumer does not need to purchase anyting in order to receive the speciality item

Celebrity endorsements

A well known person using their fame to promote a product, service, idea or person.

Cause-related marketing

The public association of a for-profit company with a non-profit organization, intended to promote the company’s product or service and to raise money for the nonprofit

Tie-in promotions

sales promotion tool that is combined with a product of another noncompeting marketer

Product placement

The sales promotion technique of getting a marketer’s brand featured in movies and television shows.

Negatives of SP 1

creating a price orientation with the consumer

Negatives of SP 2

Borrowing from future sales

Negatives of SP 3

Alienating customers

Negatives of SP 4

Time and Expense