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Marketing
Key concepts
Product marketing Pricing Distribution Service Retail Brand management Account-based marketing Ethics Effectiveness Research Segmentation Strategy Activation Management Dominance Marketing operations
Promotional contents
Advertising Branding Underwriting Direct marketing Personal sales Product placement Publicity Sales promotion Sex in advertising Loyalty marketing SMS marketing Premiums Prizes
Promotional media
Printing Publication Broadcasting Out-of-home advertising Internet Point of sale Merchandise Digital marketing In-game advertising Product demonstration Word-of-mouth Brand ambassador Drip marketing Visual merchandising
Sales promotion is one of the seven aspects of the promotional mix. (The other six parts of the promotional mix are advertising, personal selling, direct marketing, publicity/public relations, corporate image and exhibitions.) Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include contests, coupons, freebies, loss leaders, point of purchase displays, premiums, prizes, product samples, and rebates Sales promotions can be directed at either the customer, sales staff, or distribution channel members (such as retailers). Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions. Some sale promotions, particularly ones with unusual methods, are considered gimmicks by many. Sales promotion includes several communications activities that attempt to provide added value or incentives to consumers, wholesalers, retailers, or other organizational customers to stimulate immediate sales. These efforts can attempt to stimulate product interest, trial, or purchase. Examples of devices used in sales promotion include coupons, samples, premiums, point-ofpurchase (POP) displays, contests, rebates, and sweepstakes.[1] Contents [hide]
1 Consumer sales promotion techniques 2 Trade sales promotion techniques 3 Retail Mechanics 4 Political issues 5 See also 6 References
[edit]Consumer
Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example, 25 percent extra).
Coupons: coupons have become a standard mechanism for sales promotions. Loss leader: the price of a popular product is temporarily reduced in order to stimulate other profitable sales
Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for delivery. On-shelf couponing: Coupons are present at the shelf where the product is available. Checkout dispensers: On checkout the customer is given a coupon based on products purchased.
On-line couponing: Coupons are available online. Consumers print them out and take them to the store.
Mobile couponing: Coupons are available on a mobile phone. Consumers show the offer on a mobile phone to a salesperson for redemption.
Online interactive promotion game: Consumers play an interactive game associated with the promoted product.
Rebates: Consumers are offered money back if the receipt and barcode are mailed to the producer.
Contests/sweepstakes/games: The consumer is automatically entered into the event by purchasing the product.
Point-of-sale displays: Aisle interrupter: A sign that juts into the aisle from the shelf. Dangler: A sign that sways when a consumer walks by it. Dump bin: A bin full of products dumped inside. Glorifier: A small stage that elevates a product above other products. Wobbler: A sign that jiggles. Lipstick Board: A board on which messages are written in crayon. Necker: A coupon placed on the 'neck' of a bottle. YES unit: "your extra salesperson" is a pull-out fact sheet. Electroluminescent: Solar-powered, animated light in motion.[2]
Kids eat free specials: Offers a discount on the total dining bill by offering 1 free kids meal with each regular meal purchased.
[edit]Trade
Trade discounts (also called functional discounts): These are payments to distribution channel members for performing some function .
[edit]Retail
Mechanics
Retailers have a stock number of retail 'mechanics' that they regularly roll out or rotate for new marketing initiatives. Buy x get y free a.k.a. BOGOF for Buy One Get One Free Three for two Buy a quantity for a lower price
[edit]Political
issues
Sales promotions have traditionally been heavily regulated in many advanced industrial nations, with the notable exception of the United States. For example, the United Kingdom formerly operated under a resale price maintenance regime in which manufacturers could legally dictate the minimum resale price for virtually all goods; this practice was abolished in 1964.[3] Most European countries also have controls on the scheduling and permissible types of sales promotions, as they are regarded in those countries as bordering upon unfair business practices. Germany is notorious for having the most strict regulations. Famous examples include the car wash that was barred from giving free car washes to regular customers and a baker who could not give a free cloth bag to customers who bought more than 10 rolls.[4]
[edit]See
also
Alcohol advertising Demand chain
[edit]References
Institute of Sales Promotion Marketing Pricing Promotion Sales Promotion (magazine) Tobacco advertising
1. 2. 3.
^ "Dave Dolak, Sales Promotion" ^ Electroluminescent Point of Purchase Signs ^ Stuart Mitchell, "Resale price maintenance and the character of resistance in the conservative party: 1949-64," Canadian Journal of History 40, no. 2 (August 2005): 259-289.
4.
^ Anonymous (May 13, 2000). "Handcuffs on the high street". The Economist 355, no. 8170 62.
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