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   Are incentives that encourage buying
    › Build awareness
    › ↑ sales from current customers
    › Reward loyalty
    › Usually supported by advertising
    › Types:
       1. Trade Promotions
       2. Consumer Promotions
 Sales activities designed to get support
  for a product from manufacturers,
  wholesalers, retail
 More $ is actually spent on promoting to
  businesses than consumers
 Sales strategies to get buyers to buy
  product or service
 Types:
    ›   Coupons
    ›   Premium deals
    ›   Incentives
    ›   Product samples
    ›   Sponsorships
    ›   Promotional tie-ins
    ›   Product placement
    ›   Loyalty marketing programs
    ›   Point of purchase displays
 Certificates for cash discounts
 Stores accept & send them to a
  manufacturer’s headquarters or clearing
  house to be sorted
 Redemption centers reimburse stores for
  face value + charge a handling about
  8¢ per coupon
 Apps for your phone
 Low cost items provided at discount or for FREE
 Build product loyalty
 Attract new customers “added value”
 3 Types:
    › Factory packs = free gifts placed in product packages (cereal)
    › Traffic builders= pens, key chains, coffee mugs @ store or events
    › Coupon plans= ongoing programs (customer sends in soup
      labels)


The House Boardshop
 Free trial sizes
 Especially important in
  promoting new
  products
 Drug manufacturers to
  doctors and dentists
   People, events,
    groups, or a
    physical location
 Arrangements between 1 or more
  retailers or manufacturers
 Both benefit from combing resources
   Brand name products in movies, TV,
    sporting events, or in commercials for
    another product




   Transformers
   Programs
    that reward
    customers
    for
    patronizing
 Designed
  primarily by
  manufacturers
  to display their
  products
 Placed in ↑
  traffic areas for
  in store
  advertising
   Page 379 in text book

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Chapter 17.2

  • 1.
  • 2. Are incentives that encourage buying › Build awareness › ↑ sales from current customers › Reward loyalty › Usually supported by advertising › Types: 1. Trade Promotions 2. Consumer Promotions
  • 3.  Sales activities designed to get support for a product from manufacturers, wholesalers, retail  More $ is actually spent on promoting to businesses than consumers
  • 4.  Sales strategies to get buyers to buy product or service  Types: › Coupons › Premium deals › Incentives › Product samples › Sponsorships › Promotional tie-ins › Product placement › Loyalty marketing programs › Point of purchase displays
  • 5.  Certificates for cash discounts  Stores accept & send them to a manufacturer’s headquarters or clearing house to be sorted  Redemption centers reimburse stores for face value + charge a handling about 8¢ per coupon  Apps for your phone
  • 6.  Low cost items provided at discount or for FREE  Build product loyalty  Attract new customers “added value”  3 Types: › Factory packs = free gifts placed in product packages (cereal) › Traffic builders= pens, key chains, coffee mugs @ store or events › Coupon plans= ongoing programs (customer sends in soup labels) The House Boardshop
  • 7.  Free trial sizes  Especially important in promoting new products  Drug manufacturers to doctors and dentists
  • 8. People, events, groups, or a physical location
  • 9.  Arrangements between 1 or more retailers or manufacturers  Both benefit from combing resources
  • 10. Brand name products in movies, TV, sporting events, or in commercials for another product  Transformers
  • 11. Programs that reward customers for patronizing
  • 12.  Designed primarily by manufacturers to display their products  Placed in ↑ traffic areas for in store advertising
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  • 19. Page 379 in text book