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Types of Sales Promotion

13 May, 2016 - 16:19

There are a great many techniques that are considered sales promotion. One way of organizing this myriad of techniques is in terms of audience. As shown in Table 8.4, sales promotions are directed at consumers, employees, distributors, and dealers. While consumers attract the greatest number of sales promotion devices, the other two audiences are growing in importance. While space does not permit a discussion of these strategies, some generalizations apply to all. Specifically, the value of a sales promotion is especially prominent when a marketer is introducing a new product, especially a product with high perceived risk; is interested in creating a repeat purchase pattern for the customer; is attempting to create movement of large amounts of products quickly; is attempting to counter the strategy of a competitor; and is trying to move marginal customers to make a choice. Sales promotion cannot compensate for a poor product or ineffective advertising. Nor can it create strong brand loyalty or reverse a declining sales trend.

Audience/Technique Description Description
Table 8.4 Types of sales promotion techniques
price discounts
temporary reduction in price, often at point of purchase
coupon offers
certificates redeemable for amount specified
combination offers
selling two products in conjunction at a lower total price
awarding of prizes on the basis of chance or consideration
refund of a fixed amount of money
tangible reward received for performing an act, normally a purchase
trading stamps
certificate awarded based on purchase amount
providing the product either free or for a small fee
orientation program
introducing the employee to company facts
fringe benefits
extra incentives provided by company to employee
institutional promotion
messages portraying company in a positive light
motivational programs
temporary incentives, e.g. contests, prizes, or awards
temporary incentives offered for specific performance
trade shows
central location where products are displayed/sold
push money/dealer loaders
money offered for selling specified amounts of products
trade deals
dealers receive special allowances, discounts, goods, or cash