Ms. Smith

 Trade promotions  Consumer promotions

 Trade promotions are sales promotion activities designed to get support for a product from manufacturers, wholesalers, and retailers.  More money is actually spent on promoting to businesses than to consumers!

1. Promotional Allowances: cash payments or discounts given by manufacturers to wholesalers. 2. Cooperative Advertising: manufacturer helps pay for the cost of advertising. ExampleExample 3. Slotting Allowances: cash premium paid by a manufacturer to a retailer to help cover the costs of placing the manufacturer’s product on shelves. 4. Sales Force Promotions: awards given to employees who successfully meet or exceed a sales quota. 5. Trade Shows & Conventions: showcase a particular line of products.

Types of Trade Promotions

 Consumers promotions are sales strategies that encourage customers and prospects to buy a product or service.  Support advertising, personal selling, and public relations efforts!

1. Coupons: certificates that entitle customers to cash discounts on goods & services. ExampleExample 2. Premiums: low-cost items given to consumers at a discount or for free; factory packs, traffic builders, and coupon plans. Example Example 3. Deals: offer short-term price reductions that are marked directly on the label or package. ExampleExample 4. Incentives: create customers excitement and increase sales; higher-priced products earned & given away through contests, sweepstakes, vacations, and rebates. ExampleExample

5. Product Samples: free trial size of a product. ExampleExample 6. Sponsorship: sponsoring company pays a fee for the right to promote itself and its products or services on a set location; can be physical site, an event, or a person. ExampleExample 7. Promotional Tie-Ins: partners combine their resources to conduct a promotion that will create additional sales for each partner. ExampleExample 8. Product Placement: using a brand-name product in a movie, television show, or sporting event. ExampleExample 9. Loyalty Marketing Programs: frequent buyer programs, reward its customers. ExampleExample 10. Online Loyalty Marketing: same as above. ExampleExample 11. Point-of-Purchase Displays: displays placed in high-traffic areas and promote impulse purchases. ExampleExample

Consumer Sales Promotions