Sales and Trade Promotions: Consumer Orientation

Sales Promotion- includes those marketing activities other than personal selling, advertising and publicity designed to enhance consumer purchasing and dealer effectiveness. Retailers and Manufacturers- use sales promotions to offer consumers extra incentives to buy. It is important to understand what sales promotion can and cannot do.They CAN encourage interest from salespeople and consumers for both new and mature products, help introduce new products, encourage trial and repeat purchases, increase usage rates, neutralize competitions and reinforce advertising and personal selling efforts.

Sales Promotion cannot overcomes poor brand images, product deficiencies or poor training for salespeople.

Consumer-Oriented Promotion- Encourage purchases by rewarding current users, boosting sales of complementary products, and increasing impulse purchases. It includes Samples, Bonus Packs, Premiums, Coupons, Refunds, Contests, Sweepstakes, and Specialty Advertising Trade-Oriented Promotion- Is sales promotion that appeals to marketing intermediaries rather than to consumers. It includes Trade Allowances, Point-of-Purchase Advertising, Trade Shows, Dealer Incentives, Contests, and Training Programs.

Coupons- the most widely used form of sales promotion, offer discounts on the purchase price of goods and services.

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Refunds- or rebates, offer cash back to consumers who send in proof of purchasing one or more products *Sampling- refers to the free distribution of a product in an attempt to obtain future sales. Bonus Pack- is a specially packaged item that gives the purchase a larger quantity at the regular price. Premiums- items that are given free or at reduced cost with purchases of other products.

Contests- require entrants to complete a task such as solving a puzzle or answering questions in a trivia quiz, and they may also require proofs of purchase.

Sweepstakes- choose winners by chance, so no product purchase is necessary. They are more popular with consumers than contests because they do not take as much effort for consumers to enter. * Specialty Advertising- is a sales promotion technique that places the advertiser’s name, address, and advertising message on useful articles that are then distributed to target consumers.

Trade Allowances- special financial-incentives offered to wholesalers and retailers that purchase or promote specific products. Point-of-Purchase Advertising (POP) - A display or other promotion placed near the site of the actual buying decision. This method of sales promotion capitalizes on the fact that buyers make many purchase decisions within the store. Trade Shows- to influence resellers and other members of the distribution channel. Trade shows give especially effective opportunities to introduce new products and to generate sales leads. Dealer Incentives, Contests and Training Programs – to reward retailers and their salespeople who increase sales and, more generally, to promote specific products.