SALES PROMOTION

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-of-
purchase (POP) displays, contests, rebates, and
sweepstakes.
Consumer sales promotion techniques
Price deal: A temporary reduction in the
price, such as 50% off.
Loyal Reward Program: Consumers collect
points, miles, or credits for purchases and
redeem them for rewards.
Cents-off deal: Offers a brand at a lower
price. Price reduction may be a percentage
marked on the package.
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.

Kids eat free specials: Offers a discount on
the total dining bill by offering 1 free kids
meal with each regular meal purchased.
Sampling: Consumers get one sample for
free, after their trial and then could decide
whether to buy or not.
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Trade sales promotion techniques
Trade allowances: short term incentive
offered to induce a retailer to stock up on a
product.
Dealer loader: An incentive given to induce
a retailer to purchase and display a product.
Trade contest: A contest to reward retailers
that sell the most product.
Point-of-purchase displays: Used to create
the urge of "impulse" buying and selling
your product on the spot.
Training programs: dealer employees are
trained in selling the product.
Push money: also known as "spiffs". An
extra commission paid to retail employees
to push products.
Trade discounts (also called functional
discounts): These are payments to distribution
channel members for performing some
function .