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Sales Promotions

July 17, 2017Lecture Notes, Marketing InfoAdvertising, Marketing, Promotions, Sales

Sales promotions operate within advertising campaigns to motivate customers to visit the store and/or buy the product. By encouraging customers to buy items at a specific time and place, the consumer buying process is accelerated.

For example, when brand advertising is combined with sales promotions, consumers are informed about the product or service while prompted to try it or use it more often.

Some example of Sales Promotions

Coupons

Coupons reduce the cost of the product to increase sales volume or interest by attracting new customers and prompting repeat purchases. They are typically paid for by the manufacturer and distributed through newspapers, magazines, or direct mailings. More and more are being offered via the internet.

Demonstrations

Demos create attention by allowing potential customers to see the features and benefits first hand.

Incentives

These are designed to reward customers for frequent use of the product.

Examples include frequent flyer miles, Amex Reward points, and Discover Card’s cash back bonus.

Contests

These generate interest and awareness of the product by getting the potential customers involved in an activity. Most often, this activity will include a purchase, or completing a puzzle, or signing an entry form.

POP / POS Displays

draw attention to the product and influence buying decisions. Examples include signs, displays, and window exhibits placed near entryways, at aisle ends, and near the cash register.

Free Samples

These provide a no-risk opportunity to try the product. By distributing samples via the mail, at special events, door to door, or as attachments to other products, companies can grow their customer base and increase future sales.

Refunds / Rebates

Increases sales and promotes brand loyalty.

Specialty Advertisements

By placing a name / message on t-shirts, pencils, calendars, coffee mugs, etc., companies increase awareness and promote loyalty.

 

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