Sales Promotion

Sales Promotion

Sales Promotion Jonathan Poland

Sales promotion refers to the use of various incentives and discounts to encourage customers to make a purchase. These promotions can be coordinated with other marketing efforts, such as advertising, promotional campaigns, and visual merchandising, in order to achieve specific sales targets and manage the distribution of products through various channels. The following are common types of sales promotion.

Sale prices such as a percentage discount.

Volume Discount
Volume discounts such as buy two get one free.

Free items with a purchase such as a free baseball cap with a purchase of a meal.

Contests such as prize giveaways.

Coupons are one way to implement price discrimination as price sensitive customers will be more willing to look for coupons.

Loss Leaders
Selling an item at an exceptionally low price to attract customers to a location.

Upgrades & Premiums
Free upgrades such as more memory in a mobile device.

Temporarily offering improved terms such a telecom company that offers unlimited bandwidth on new contracts for a limited time.

Free Trials
Allowing customers to try a service risk free for a period of time.

Free Samples
Samples such as a trial size of a new product that is given out to create brand awareness.

Loyalty Programs
Offering double or triple points on a loyalty program for a period of time.

Trade Allowances
Discounts given to distribution partners such as retailers to encourage them to stock up on your product. In many cases, this is done in conjunction with advertising to support sales.

Dealer Loader
A dealer loader is a reward that is given to retailers to buy a minimum amount or to install in-store displays.

Push Money
Extra commissions for salespeople and distribution partners to increase sales volumes.

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