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Sales promotion is one of the four aspects of promotional mix
Promotional mix

There are four main aspects of a promotional mix. These are:# Advertising- Any paid presentation and promotion of ideas, goods, or services by an identified sponsor....
. (The other three parts of the promotional mix
Promotional mix

There are four main aspects of a promotional mix. These are:# Advertising- Any paid presentation and promotion of ideas, goods, or services by an identified sponsor....
 are advertising
Advertising

Advertising is a form of communication that typically attempts to persuade potential customers to Purchasing or to consume more of a particular brand of Product or Service ....
, personal selling
Sales

A sale is the pinnacle activity involved in selling products or services in return for money or other compensation. It is an act of completion of a commercial activity....
, and publicity
Publicity

Publicity is the deliberate attempt to manage the public's perception of a subject. The subjects of publicity include people , product and services, organizations of all kinds, and works of art or entertainment....
/public relations
Public relations

Public relations is the practice of managing the flow of information between an organization and its publics. Public relations - often referred to as PR - gains an organization or individual exposure to their audiences using topics of public interest and news items that do not require direct payment....
.) 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:



Sales promotions can be directed at either the customer
Customer

A customer, also client, buyer or purchaser is the buyer or user of the paid products of an individual or organization, mostly called the supplier or seller....
, sales staff, or distribution
Distribution (business)

Distribution is one of the four elements of marketing mix. An organization or set of organizations involved in the process of making a product or service available for use or consumption by a consumer or business user....
 channel members (such as retailers).






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Sales promotion is one of the four aspects of promotional mix
Promotional mix

There are four main aspects of a promotional mix. These are:# Advertising- Any paid presentation and promotion of ideas, goods, or services by an identified sponsor....
. (The other three parts of the promotional mix
Promotional mix

There are four main aspects of a promotional mix. These are:# Advertising- Any paid presentation and promotion of ideas, goods, or services by an identified sponsor....
 are advertising
Advertising

Advertising is a form of communication that typically attempts to persuade potential customers to Purchasing or to consume more of a particular brand of Product or Service ....
, personal selling
Sales

A sale is the pinnacle activity involved in selling products or services in return for money or other compensation. It is an act of completion of a commercial activity....
, and publicity
Publicity

Publicity is the deliberate attempt to manage the public's perception of a subject. The subjects of publicity include people , product and services, organizations of all kinds, and works of art or entertainment....
/public relations
Public relations

Public relations is the practice of managing the flow of information between an organization and its publics. Public relations - often referred to as PR - gains an organization or individual exposure to their audiences using topics of public interest and news items that do not require direct payment....
.) 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:

  • contest
    Contest

    A contest, is an event in which two or more individuals or teams engage in competition against each other, often for a prize or similar incentive....
    s
  • point of purchase displays
  • rebates
    Rebate (marketing)

    A rebate is an amount paid by way of reduction, return, or refund on what has already been paid or contributed. It is a type of sales promotion marketing use primarily as incentives or supplements to product sales....
  • free travel, such as free flights


Sales promotions can be directed at either the customer
Customer

A customer, also client, buyer or purchaser is the buyer or user of the paid products of an individual or organization, mostly called the supplier or seller....
, sales staff, or distribution
Distribution (business)

Distribution is one of the four elements of marketing mix. An organization or set of organizations involved in the process of making a product or service available for use or consumption by a consumer or business user....
 channel members (such as retailers). Sales promotions targeted at the consumer
Consumer

Consumer is a broad label that refers to any individuals or household that use Good generated within the economic system. The concept of a consumer is used in different contexts, so that the usage and significance of the term may vary....
 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 gimmick by many.

Consumer sales promotion techniques

  • Price deal: A temporary reduction in the price, such as happy hour
    Happy hour

    "Happy hour" is a marketing term for a period of time in which a restaurant or bar offers discounts on alcoholic drinks, such as beer, wine and cocktails....
  • Loyal Reward Program: Consumers collect points, miles, or credits for purchases and redeem them for rewards. Two famous examples are Pepsi Stuff
    Pepsi Stuff

    Pepsi Stuff refers to a promotion launched by PepsiCo, first in North America and then around the world, in the 1990s and continuing into the 2000s featuring merchandise that could be purchased with Pepsi Points....
     and AAdvantage.
  • 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
    Loss leader

    A loss leader or leader is a product sold at a low price to stimulate other, profitable sales. It is a kind of sales promotion, in other words marketing concentrating on a Pricing strategies....
    : 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 on line. 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 for tomato ketchup.
  • Rebates
    Rebate (marketing)

    A rebate is an amount paid by way of reduction, return, or refund on what has already been paid or contributed. It is a type of sales promotion marketing use primarily as incentives or supplements to product sales....
    : Consumers are offered money back if the receipt and barcode
    Barcode

    A bar code is an optical machine-readable representation of data. Originally, bar codes represented data in the widths and the spacings of parallel lines and may be referred to as linear or 1D barcodes or symbologies....
     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
      Fact sheet

      A fact sheet is a presentation of data on any subject in a format emphasizing brevity, key points of interest or concern, a fairly minimalist design aesthetic, and a general desire to convey the most relevant information in the least amount of space....
      .


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: Extra sales tools given to retailers to boost sales.
  • 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 .

Political issues

Sales promotions have traditionally been heavily regulated in many advanced industrial nations, with the notable exception of the United States
United States

The United States of America is a Federal government constitutional republic comprising U.S. state and a federal district. The country is situated mostly in central North America, where its Contiguous United States and Washington, D.C., the Capital districts and territories, lie between the Pacific Ocean and Atlantic Oceans, Borders of the U...
. For example, the United Kingdom
United Kingdom

The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom , the UK or Britain,is a sovereign state located off the northwestern coast of continental Europe....
 formerly operated under a resale price maintenance
Resale price maintenance

Resale price maintenance is the practice whereby a manufacturer and its distributors agree that the latter will sell the former's product at certain prices , at or above a price floor or at or below a price ceiling ....
 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
Unfair business practices

Unfair business practices encompass fraud, misrepresentation, and oppressive or unconscionability acts or practices by business, often against consumers and are prohibited by law in many countries....
. Germany
Germany

Germany , officially the Federal Republic of Germany , is a country in Central Europe. It is bordered to the north by the North Sea, Denmark, and the Baltic Sea; to the east by Poland and the Czech Republic; to the south by Austria and Switzerland; and to the west by France, Luxembourg, Belgium, and the Netherlands....
 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.

External references



See also

  • Marketing
    Marketing

    Marketing is defined by the American Marketing Association as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large....
  • Promotion
    Promotion (marketing)

    Promotion involves disseminating information about a product , product line, brand, or company. It is one of the four key aspects of the marketing mix....
  • Pricing
    Pricing

    Pricing is one of the four Ps of the marketing mix. The other three aspects are product, promotion, and Distribution . It is also a key variable in microeconomic price allocation theory....
  • Alcohol advertising
    Alcohol advertising

    Alcohol advertising is the advertising of alcoholic beverages by alcohol producers through a variety of mass media. Along with tobacco advertising, it is one of the most advertising regulation forms of marketing....
  • Tobacco advertising
    Tobacco advertising

    Tobacco Advertising is the advertising of tobacco products or use by the tobacco industry through a variety of mass media including sponsor ship, particularly of sporting events....
  • Institute of Sales Promotion
    Institute of Sales Promotion

    The Institute of Sales Promotion is an organisation in the UK that represents brand owners, agencies and service partners engaged in promotional marketing....
  • Sales Promotion (magazine)
    Sales Promotion (magazine)

    Sales Promotion magazine is a monthly UK business-to-business magazine for people working in marketing.It was launched in 1989 by Market Link Publishing, based in Bishops Stortford, Hertfordshire, and latterly Saffron Walden, Essex....