- Sales promotion
Marketing Key concepts Product marketing · Pricing
Distribution · Service · Retail
Ethics · Effectiveness · Research
Segmentation · Strategy · Activation
Management · Dominance
Promotional content 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
In-store demonstration · Word-of-mouth
Brand ambassador · Drip marketing · Visual merchandising
Sales promotion is one of the four aspects of promotional mix. (The other three parts of the promotional mix are advertising, personal selling, and publicity/public relations.) 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. See an example of the Interactive Internet Ad for tomato ketchup.
- 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.
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 "spliffs". 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 .
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.
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.
- Alcohol advertising
- Demand chain
- Institute of Sales Promotion
- Sales Promotion (magazine)
- Tobacco advertising
- ^ "Dave Dolak, Sales Promotion"
- ^ http://www.business-idea.com/ShowPosting.asp?ID=2123
- ^ 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.
- ^ Anonymous (May 13, 2000). "Handcuffs on the high street". The Economist 355, no. 8170 62. http://www.economist.com/business/displaystory.cfm?story_id=333673.
Wikimedia Foundation. 2010.
Look at other dictionaries:
sales promotion — ➔ promotion * * * sales promotion UK US noun [C] COMMERCE, MARKETING ► an activity or series of activities done to increase sales of a particular product, for example by reducing its price or advertising it: have/run a sales promotion »They ran a … Financial and business terms
sales promotion — ☆ sales promotion n. the use of publicizing methods other than paid advertising to promote a product, service, etc … English World dictionary
sales promotion — noun promotion that supplements or coordinates advertising • Hypernyms: ↑promotion, ↑publicity, ↑promotional material, ↑packaging * * * noun : activities and devices designed to create goodwill and sell a product; especially : selling activities… … Useful english dictionary
sales promotion — / seɪlz prəˌməυʃ(ə)n/ noun promotional and sales techniques aimed at short term increases in sales, e.g. free gifts, competitions and price discounts ● We need some good sales promotion to complement our advertising campaign. ● Let’s hope this… … Marketing dictionary in english
Sales Promotion — Konsumentengerichtete Verkaufsförderung durch Ausverkauf und Angebote Als Verkaufsförderung (Sales Promotion) werden innerhalb der Kommunikationspolitik des Marketings alle zeitlich befristeten Aktivitäten mit Aktionscharakter zusammengefasst,… … Deutsch Wikipedia
sales promotion — Mktg activities, usually short term, designed to attract attention to a particular product and to increase its sales using advertising and publicity. Sales promotion usually runs in conjunction with an advertising campaign that offers free… … The ultimate business dictionary
Sales promotion — This is a retail store division that deals with advertising, public relations, and visual merchandising. It is headed by a promotion director whose job function is to influence the sale of merchandise or services for a store or chain of stores … Historical Dictionary of the Fashion Industry
sales promotion — An activity designed to boost the sales of a product or service. It may include an advertising campaign, increased PR activity, a free sample campaign, offering free gifts or trading stamps, arranging demonstrations or exhibitions, setting up… … Big dictionary of business and management
sales promotion — the methods or techniques for creating public acceptance of or interest in a product, usually in addition to standard merchandising techniques, as advertising or personal selling, and generally consisting of the offer of free samples, gifts made… … Universalium
Sales promotion — Salgsfremstød … Danske encyklopædi