| Marketing |
|---|
| Key concepts |
| Product marketing · Pricing Distribution · Service · Retail Brand management Account-based marketing Ethics · Effectiveness · Research Segmentation · Strategy · Activation Management · Dominance Marketing operations |
| Promotional contents |
| Advertising · Branding · Underwriting Direct marketing · Personal sales Product placement · Publicity Sales promotion · Sex in advertising Loyalty marketing · SMS marketing Premiums · Prizes |
| Promotional media |
| Printing · Publication · Broadcasting Out-of-home advertising · Internet Point of sale · Merchandise Digital marketing · In-game advertising In-store demonstration · Word-of-mouth Brand ambassador · Drip marketing · Visual merchandising |
Sales promotion is one of the seven aspects of the promotional mix. (The other six parts of the promotional mix are advertising, personal selling, direct marketing, publicity/public relations, corporate image and exhibitions.) 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 contests, coupons, freebies, loss leaders, point of purchase displays, premiums, prizes, product samples, and rebates
Sales promotions can be directed at either the customer, sales staff, or distribution channel members (such as retailers). Sales promotions targeted at the consumer 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 gimmicks by many.
Sales promotion includes several communications activities that attempt to provide added value or incentives to consumers, wholesalers, retailers, or other organizational customers to stimulate immediate sales. These efforts can attempt to stimulate product interest, trial, or purchase. Examples of devices used in sales promotion include coupons, samples, premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes.[1]
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Trade discounts (also called functional discounts): These are payments to distribution channel members for performing some function .
Retailers have a stock number of retail 'mechanics' that they regularly roll out or rotate for new marketing initiatives.
Sales promotions have traditionally been heavily regulated in many advanced industrial nations, with the notable exception of the United States. For example, the United Kingdom formerly operated under a resale price maintenance regime in which manufacturers could legally dictate the minimum resale price for virtually all goods; this practice was abolished in 1964.[3]
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. Germany 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.[4]