4.04Exemplify sales promotions. Sales promotion is… All the communications or activities used to stimulate sales other than advertising, public relations.

4.04 Exemplify sales promotions

Sales promotion is…

• All the communications or activities used to stimulate sales other than advertising, public relations or personal selling communications or activities

• For example: “Try your key” contest to bring people in to look at a new car model

A trade promotion is…

• Designed to create support from manufacturers, wholesalers, and retailers for a product • Promotional allowances • Slotting allowances • Sales force promotions • Trade shows and conventions

A consumer promotion is…• Designed to increase sales of a

product • Coupons• Rebates • Premiums • Deals• Incentives • Product samples

A consumer promotion is… (con’t)

• Sponsorship • Promotional tie-ins (also called

cross-promotion and cross-selling campaigns)

A consumer promotion is… (con’t)

• Product placement • Loyalty marketing programs

(also called frequent buyer programs)

• Point-of-purchase displays• Contests, Sweepstakes, and

Games

4.04 Exemplify sales promotionsPush or Pull

Push or Pull Promotion Strategy• A “push” promotional strategy makes

use of a company's sales force and trade promotion activities.

• The producer promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers.

• example offering subsidies on the cell phones to encourage retailers to sell higher volumes.

Push or Pull Promotion Strategy• A “pull” selling strategy is one that

requires high spending on advertising and consumer promotion to build up consumer demand for a product.

• If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers.

6.05 Exemplify public relations

Public relations is…

• Used by a business to build and maintain a positive image about a company and its products

• Positive = Increased sales

• Negative = Decreased sales

A news release is…

• An announcement detailing newsworthy information about a company or a product

Publicity is…

• Using media to bring newsworthy information to the public’s attention

• Advantages• Free!

• Disadvantages• Little control