4.04 Exemplify sales promotions

Sales promotion is…• All the communications or

activities used to stimulate sales other than advertising, public relations or personal selling communications or activities

• For example: “Try your key” contest to bring people in to look at a new car model

A trade promotion is…• Designed to create support from

manufacturers, wholesalers, and retailers for a product • Promotional allowances • Slotting allowances • Sales force promotions • Trade shows and conventions

A consumer promotion is…• Designed to increase sales of a

product • Coupons• Rebates • Premiums • Deals• Incentives • Product samples

A consumer promotion is… (con’t)• Sponsorship • Promotional tie-ins (also called

cross-promotion and cross-selling campaigns)

A consumer promotion is… (con’t)• Product placement • Loyalty marketing programs

(also called frequent buyer programs)

• Point-of-purchase displays• Contests, Sweepstakes, and

Games

4.04 Exemplify sales promotionsPush or Pull

Push or Pull Promotion Strategy• A “push” promotional strategy makes

use of a company's sales force and trade promotion activities.

• The producer promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers.

• example offering subsidies on the cell phones to encourage retailers to sell higher volumes.

Push or Pull Promotion Strategy• A “pull” selling strategy is one that

requires high spending on advertising and consumer promotion to build up consumer demand for a product.

• If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers.

http://vimeo.com/31490067

6.05 Exemplify public relations

Public relations is…

• Used by a business to build and maintain a positive image about a company and its products

• Positive = Increased sales

• Negative = Decreased sales

A news release is…

• An announcement detailing newsworthy information about a company or a product

Publicity is…

• Using media to bring newsworthy information to the public’s attention

• Advantages• Free!

• Disadvantages• Little control