2. Chapter 16 Sales Promotion -- “a direct inducement that offers an extra value or incentive for the product to the sales force, distributors or the ultimate consumer with the primary objective of creating an immediate sale.”

3. Consumer Promotions & Trade Promotions Sales promotion can be broken into two major categories: n Consumer-oriented sales promotion n Trade-oriented sales promotion

4. Importance of Sales Promotion

5. Consumer-Oriented Promotions n Samples n Coupons n Premiums n Contests/sweepstakes n Refunds/rebates n Bonus packs n Price-offs n Event sponsorship

6. Trade-Oriented Sales Promotion n Contests and dealer incentives n Trade allowances n Point-of-purchase displays n Training programs n Trade shows n Cooperative advertising

7. Cooperative Advertising There are three types of cooperative advertising including (the first two are not trade-oriented, though): Horizontal cooperative advertising

8. Cooperative Advertising (cont.) n Ingredient sponsored cooperative advertising -

9. Cooperative Advertising (cont.) n Vertical cooperative advertising - the manufacturer pays for a portion of the advertising a retailer runs to promote its product and its availability in the retailer’s place of business. The limit or amount of co-op funds the manufacturer provides to the retailer is usually based on a percentage of dollar purchases made from the manufacturer (around 3~5%).