1. Copyright © Cengage Learning. All rights reserved Sales Promotion Activities or materials that are direct inducements to customers or salespersons Objectives –To draw new customers –To encourage trial of a new product –To invigorate the sales of a mature brand –To boost sales to current customers –To reinforce advertising –To increase traffic in retail stores –To steady irregular sales patterns –To build up reseller inventories –To neutralize competitive promotional efforts –To improve shelf space and displays 15 | 1

2. Copyright © Cengage Learning. All rights reserved Sales Promotion Methods Consumer sales promotion method –Designed to attract consumers to particular retail stores and to motivate them to purchase certain new or established products Trade sales promotion method –Designed to encourage wholesalers and retailers to stock and actively promote a manufacturer’s product Factors influencing the choice of sales promotion method –Objectives of the sales promotional effort –Product characteristics –Target market profile –Distribution channels –Availability of resellers –Competitive and regulatory forces in the environment 15 | 2

3. Copyright © Cengage Learning. All rights reserved Sales Promotion Methods (cont’d) Rebate –A return of part of the purchase price of a product Coupon –Reducing the purchase price of a particular item by a stated amount at the time of purchase Sample –A free product given to customers to encourage trial Premium –A gift a producer offers to a customer in return for buying its product Frequent-user incentives –A program that rewards customers who engage in repeat (frequent) purchases 15 | 3

4. Copyright © Cengage Learning. All rights reserved Sales Promotion Methods (cont’d) Point-of-purchase displays –Promotional material in the retail store designed to inform customers and encourage purchases Trade shows –Industry-wide exhibits at which many sellers display their products Buying allowance –A temporary price reduction to resellers for purchasing specified quantities of a product Cooperative advertising –A manufacturer agrees to pay a certain amount of the retailer’s media cost for advertising the manufacturer’s product 15 | 4