Sales Promotion


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Sales Promotion

  1. 1. Chapter 17 Promotional Strategies and Concepts 17.2 Sales Promotion
  2. 2. Warm-up Activity <ul><li>Monday </li></ul><ul><li>TURN IN HOMEWORK </li></ul><ul><li>Day 1 </li></ul><ul><li>Warm-up </li></ul><ul><li>Explain one way you have been affected by sales promotion (one of the elements of the promotional mix). </li></ul>
  3. 3. Warm-up Activity <ul><li>Tuesday-Warm-up </li></ul><ul><li>Name and explain one type of premium, which is a type of Consumer Promotion. </li></ul>
  4. 4. Warm-up <ul><li>Wednesday </li></ul><ul><li>How are consumer buying decisions influenced thru Sales Promotion? </li></ul>
  5. 5. Overview <ul><li>Review </li></ul><ul><li>17.2 Sales Promotion </li></ul>
  6. 6. Sales Promotion <ul><li>Consumer Promotions </li></ul><ul><ul><li>Sales promotion efforts designed to encourage customers to buy a product </li></ul></ul><ul><li>Trade Promotions </li></ul><ul><ul><li>Sales promotion activities designed to gain manufactures’, wholesalers, and retailers support for a product </li></ul></ul>
  7. 7. Sales Promotion <ul><li>Consumer Promotions </li></ul><ul><ul><li>Premiums </li></ul></ul><ul><ul><li>Sponsorships </li></ul></ul><ul><ul><li>Incentives </li></ul></ul><ul><ul><li>Product Samples </li></ul></ul><ul><ul><li>Loyalty Marketing Programs </li></ul></ul><ul><ul><li>Product Placement </li></ul></ul><ul><ul><li>Visual Merchandising and Displays </li></ul></ul>
  8. 8. Consumer Promotions <ul><li>Premiums </li></ul><ul><ul><li>Low-cost items given to consumers at a discount or for free </li></ul></ul><ul><ul><ul><li>Coupons </li></ul></ul></ul><ul><ul><ul><ul><li>Certificates that entitle consumers to cash discounts on goods or services </li></ul></ul></ul></ul><ul><ul><ul><li>Factory Packs </li></ul></ul></ul><ul><ul><ul><ul><li>Free gifts placed on/in product packages </li></ul></ul></ul></ul>
  9. 9. Consumer Promotions <ul><ul><ul><li>Traffic Builders </li></ul></ul></ul><ul><ul><ul><ul><li>Low cost items given to the consumer for visiting a new store or attending an event. </li></ul></ul></ul></ul><ul><ul><ul><li>Coupon Plans </li></ul></ul></ul><ul><ul><ul><ul><li>Ongoing program offering a variety of items in exchange for labels, coupons or other tokens </li></ul></ul></ul></ul>
  10. 10. Consumer Promotions <ul><li>Sponsorships </li></ul><ul><ul><li>Promotion of a company associated with a property </li></ul></ul>
  11. 11. Consumer Promotions <ul><li>Incentives </li></ul><ul><ul><li>Higher-priced products earned and given through contests, sweepstakes and rebates </li></ul></ul>
  12. 12. Consumer Promotions <ul><li>Product Samples </li></ul><ul><ul><li>Free trail size of a product sent through the mail, distributed door-to-door, or given away at retail stores or trade shows </li></ul></ul>
  13. 13. Consumer Promotions <ul><li>Loyalty Marketing Promotions </li></ul><ul><ul><li>Frequent buyer program that awards customer for making multiple purchases </li></ul></ul>
  14. 14. Consumer Promotions <ul><li>Promotional Tie-ins </li></ul><ul><ul><li>Arrangement between two companies that combine resources advertising and sales promotional activities to do a promotion that creates additional sales for each partner </li></ul></ul>
  15. 15. Consumer Promotions <ul><li>Product Placement </li></ul><ul><ul><li>Product recognition through special events, television and movies </li></ul></ul>
  16. 16. Consumer Promotions <ul><li>Visual Merchandising and Displays </li></ul><ul><ul><li>Coordination of all physical elements in a place of business so that it projects the right image to its customers </li></ul></ul>
  17. 17. Sales Promotion <ul><li>Consumer promotions </li></ul><ul><li>Trade promotions </li></ul>
  18. 18. Trade Promotions <ul><li>Slotting Allowances </li></ul><ul><li>Buying Allowances </li></ul><ul><li>Trade Shows and Conventions </li></ul><ul><li>Sales Incentives </li></ul>
  19. 19. Trade Promotions <ul><li>Slotting Allowances </li></ul><ul><ul><li>Cash premium made by manufacturers to a retail chain for the costs involved in placing a new product on its shelves </li></ul></ul>
  20. 20. Trade Promotions <ul><li>Buying Allowances </li></ul><ul><ul><li>Price discounts given by manufacturers to wholesalers and retailers to encourage the purchase of a product </li></ul></ul>
  21. 21. Trade Promotions <ul><li>Sales Incentives </li></ul><ul><ul><li>Awards given to managers and employers who successfully meet and exceed sales goals </li></ul></ul>
  22. 22. Trade Promotions <ul><li>Trade Shows and Conventions </li></ul><ul><ul><li>Events to provide opportunities to introduce new products, increase sales of existing products, and gain continued company and product support </li></ul></ul>
  23. 23. Agenda <ul><li>Review </li></ul><ul><li>Group Activity </li></ul><ul><li>Start 17.3 Public Relations </li></ul><ul><li>Work on projects </li></ul><ul><li>DUE AT END OF PERIOD (in your project folder) – 1 st part of group project </li></ul>
  24. 24. Group Activity <ul><li>In your group, you will be given an index card with a situation. Name and explain one Sales Promotion activity you would do for that situation. </li></ul><ul><li>Must have: </li></ul><ul><li>One recorder (you will turn this in - one copy per group) </li></ul><ul><li>One speaker </li></ul><ul><li>Each group member must speak. You are given an index card and you must contribute once and put that in the middle of the table </li></ul><ul><li>You have 10 minutes </li></ul>
  25. 25. References: <ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul>