chapter 17.2
TRANSCRIPT
Chapter 17.2Types of Promotion
Sales Promotions
Are incentives that encourage buying› Build awareness› ↑ sales from current customers› Reward loyalty› Usually supported by advertising› Types:
1. Trade Promotions2. Consumer Promotions
Trade Promotions
Sales activities designed to get support for a product from manufacturers, wholesalers, retail
More $ is actually spent on promoting to businesses than consumers
Consumer Promotions
Sales strategies to get buyers to buy product or service
Types:› Coupons› Premium deals› Incentives› Product samples› Sponsorships› Promotional tie-ins› Product placement › Loyalty marketing programs› Point of purchase displays
Coupons
Certificates for cash discounts Stores accept & send them to a
manufacturer’s headquarters or clearing house to be sorted
Redemption centers reimburse stores for face value + charge a handling about 8¢ per coupon
Apps for your phone
Premiums Low cost items provided at discount or for FREE Build product loyalty Attract new customers “added value” 3 Types:
› Factory packs = free gifts placed in product packages (cereal)› Traffic builders= pens, key chains, coffee mugs @ store or
events› Coupon plans= ongoing programs (customer sends in soup
labels)
The House Boardshop
Product Samples
Free trial sizes Especially important in
promoting new products
Drug manufacturers to doctors and dentists
Sponsorship People, events,
groups, or a physical location
Promotional Tie-ins
Arrangements between 1 or more retailers or manufacturers
Both benefit from combing resources
Product Placement
Brand name products in movies, TV, sporting events, or in commercials for another product
Transformers
Loyalty Marketing/Frequent Buyer Programs
that reward customers for patronizing
Point-of-Purchase Displays Designed
primarily by manufacturers to display their products
Placed in ↑ traffic areas for in store advertising
Mini Quiz
DECA Role Play
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