Promotion Promotion is any attempt to sell a product Promotion is associated with advertising but is much more than just advertising We will be looking at different sales promotions including coupons, contests, premiums, samples, and special events

Coupons Coupons offer consumers money off the price of a product Canadian consumers are exposed to more than 1200 coupons a year. However most coupons end up in the trash The redemption rate is the percentage of coupons that consumers actually use. The average redemption rate of a coupon is 5%

Contests Contests are often put on by businesses to promote their products and increase sales By law, business must organize contests so that anyone can enter (“no purchase required” in the contest rules) However business can make it easier for paying customers to enter their contests Contests also must require people either to demonstrate a skill or to answer a skill testing question to get the prize if they won

Premiums Premiums are giveaways – something a consumer gets free with the purchase of a product To establish brand recognition, these free products usually carry the company’s logo Customer Loyalty Cards – are often issued to customers so that after certain amount of purchases the consumer is entitles to a free product.

Samples Samples encourage brand trial. Usually, samples are small “trail” sizes of the product being promoted Often samples are sent door to door in the mail. Other times companies hire product sampling businesses to set up booths in supermarkets or shopping centers One down side to this is that the cost of sampling is high

Special Event Companies sometimes put on Special Events to attract customers and increase product sales The main purpose of special events is to excite consumers, encourage their participation, and ultimately get them to buy the product. Consumers are more likely to buy if they are having fun

Exit Slip For the remainder of the class search the internet for examples of the different promotion activities we talked about Find an examples of each of the following, describe the promotional method specific to each example, and write about why it is effective: Coupons Contests Premiums Samples Special Events Marked out of 10