Haagen-Dazs ice-cream project

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Personal Selling

and Sales Promotion

MARKETING AN INTRODUCTION

Armstrong/Kotler

Rapid Growth of Sales Promotions

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Reasons for Growth

Outside competition and less differentiation

Advertising less effective

Consumers are deal oriented

Product managers pressure to increase sales

Types of Consumer Promotions

Samples Advertising Specialties

Coupons POP displays

Rebates Contests/sweepstakes/games

Price packs

premiums

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Trade Promotions

Trade promotions are sales promotion tools used

to persuade

resellers to

carry

a brand, give it

shelf space,

promote it in

advertising,

and push it to the consumer

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Trade Promotions

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Notes to Accompany Slide:

A manufacturer may offer a straight discount off the list price on each case purchased during a stated period of time (also called a price-off, off-invoice, or off-list). Manufacturers also may offer an allowance (usually so much off per case) in return for the retailer’s agreement to feature the manufacturer’s products in some way. An advertising allowance compensates retailers for advertising the product. A display allowance compensates them for using special displays. Manufacturers may offer free goods, which are extra cases of merchandise, to resellers who buy a certain quantity or who feature a certain flavor or size. They may offer push money—cash or gifts to dealers or their sales forces to “push” the manufacturer’s goods. Manufacturers may give retailers free specialty advertising items that carry the company’s name, such as pens, pencils, calendars, paperweights,

matchbooks, memo pads, and yardsticks.

Discount

Allowance

Free goods

Push money

Advertising items

Business Promotions

Business Promotions are sales promotion

tools used to generate business leads, stimulate purchases, reward customers, and motivate salespeople.

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