1. Sales Promotion What is SALES PROMOTION?
Anything…all activities…other that Advertising, Publicity and Personal Selling used to stimulate sales or increase a corporate image.

2. Sales Promotion Sales Promotion is either:
business oriented (selling goods to wholesalers, retailers or other businesses) Trade Promotions
customer oriented (promote sales from the retail market) Consumer Sales Promotions
Trade Promotions (business-to-business)
Consumer Sales Promotion (retail customers)

3. Trade Promotion (Business)
Activities designed to gain support (resell) from businesses (other manufacturers, wholesalers, retailers)
Slotting Allowances
Buying Allowances (or Promotional Allowances)
Cooperative Advertising
Trade Shows / Conventions
Sales Incentives

4. Trade Promotions (Business)
SLOTTING ALLOWANCES
Manufacturers pay retailers to
get their products on the shelves.
Ex. Kit-Kat comes out with a new Mocha flavored candy. It pays Meijer $5000 to place the candy on end-caps in each of their Michigan Stores.

5. Trade Promotion (Business)
BUYING ALLOWANCES
also called Promotional Allowances
A quantity discount given to businesses to get them to buy more goods. (If the business gets a discount, they make more profit per piece sold)
Kraft takes 2% off the price of Macaroni and Cheese if Kroger purchases 500 boxes per store.

6. Trade Promotion (Business)
COOPERATIVE ADVERTISING
A manufacturer supports the retailer by helping to pay for the local advertising.
EX. Discount Tire may get reimbursed by Michelin to use their tire in a local television ad in Michigan

7. Trade Promotion (Business)
SALES INCENTIVES
Prizes and money given by manufacturers to managers and employees for selling a certain amount of goods.
If Chuck, from Heidebrecht Chevrolet sells 60 cars this quarter, he will win a trip to Cawker City, Kansas, the home of the world’s largest ball of twine.

8. Trade Promotions (Business)
TRADE SHOWS / CONVETIONS
An event where manufacturers get together to display their goods for wholesalers, retailers, and consumers to see new and existing products.
Doctors fly to Paradise Island in the Bahamas for a week to see new drugs and medicines on display from various pharmaceutical companies

9. CONSUMER SALES PROMOTIONS

10. Consumer Sales Promotion
Activities designed to generate sales from retail customers (end users).
Coupons
Premiums
Product Samples
Licensing
Product Placement
Visual Merchandising and POP Displays
Deals
Incentives
Sponsorships
Promotional Tie-Ins
Loyalty Programs

11. Consumer Sales Promotions
COUPONS
Certificates that entitles customers to cash discounts

12. Consumer Sales Promotions
DEALS
Short term price reductions marked directly on the label or package.
Many times, two similar products bound together for the price of one (same company)
Bausch & Lomb’s Renu contact lens cleaner and its multipurpose wetting solution.

13. Consumer Sales Promotions
PREMIUMS
Low-cost giveaways to customers.
People will be motivated if they are offered a gift.
Factory Packs - Free gifts in the package
Traffic Builders - Giveaways for visiting or purch
Coupon Plans - Collect labels for free stuff

14. Consumer Sales Promotions
INCENTIVE
Higher-priced give-aways through contests, sweepstakes, and rebates
Contests or sweepstakes to win scholarships, vacations, money…or
Rebates (discount) offered by manufacturer when you purchase an item (car, appliance, etc)

15. Consumer Sales Promotions
PRODUCT SAMPLE
Free trial size of a product sent through the mail, door-to-door, or given at retail stores or trade shows.

16. Consumer Sales Promotions
SPONSORSHIP
Company pays a fee to promote itself (or product) at an event or location.
“Comerica Park” or
McDonald’s being the official sponsor of the Olympic games.

17. Consumer Sales Promotions
LICENSING
Companies will sell the rights to use a logo, character, name, etc., to other businesses.
Judas Priest sold the rights to “Hellion” to Honda for use in their Honda Odyssey ad campaign.

18. Consumer Sales Promotions
PROMOTIONAL TIE-INS
Multiple companies pool their resources to do promotions together.
Taco Bell and 20th Century Fox teamed together to promote the movie Star Wars.

19. Consumer Sales Promotions
PRODUCT PLACEMENT
Using a brand name product in a movie, TV show, sporting event or even in a commercial for another product.
Wayne’s World product placements

20. Consumer Sales Promotions
LOYALTY PROGRAMS
Frequent buyer programs reward
customers for patronizing a company
Airline frequent flier programs.

21. Consumer Sales Promotions
VISUAL MERCHANDISING / DISPLAYS
In store promotion with physical merchandise and exhibits usually placed in high traffic areas or windows
Point of Purchase Display