Sale Promotion

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Table of Contents
i) Summary2
ii) Justification2
I. Introduction3
II. What is Sales Promotions?3
A. Definition3
B. The importance of Sales Promotions3
C. Major Sales Promotions Tools 4
1. Consumer Oriented Sales Promotions 4
2. Trade Oriented Sales Promotions4
III. Consumer Oriented Promotions4
A. Objectives4
B. Consumer Oriented Sales Promotion Techniques 5
1. Free Samples5
2. Coupons5
3. Premiums6
4. Refunds and Rebates7
5. Bonus Packs7
6. Price-Off Deals8
7. Loyalty Programs8
IV. Conclusion10
V. Recommendation10
VI. Bibliography11

i) Summary

This report has covered the question i.e. what consumer-oriented techniques need to be considered in improving sales promotion and organization? The report illustrates the definition and the importance of sales promotions in business. Sales promotions are divided into two major areas (consumer-oriented sales promotion and trade-oriented sales promotion), based on the difference of targeted parties and within the context of this report, only consumer-oriented techniques will be discussed. The most common consumer-oriented techniques are sampling, couponing, premiums, refunds, bonus packs, price-off deals and loyalty program. This report mainly analyses the advantages and disadvantages of these tools and the effect of each techniques on business profits.

ii) Justification

Most of the companies’ bottom line is to maximize sales volume and speed up the selling process. The basic tools used to achieve an organization’s communication objectives are advertising, direct marketing, public relations, personal selling and sales promotion. I have chosen Marketing as my major in college; I find that sales promotion is the basic and important tool to increase business success. To be more specific, I choose to analyze consumer-oriented promotions in this report, which is one area of sales promotions beside trade-oriented promotions.

I. Introduction

The following report combines researched information and collected data to consider what are sales promotion and consumer-oriented sales promotions techniques as well as the influences of these tools on trial rates, which are defined as “speed and extent to which consumers in a market make a first time purchase of a new product or a new brand” (Roddy, 2010). Moreover, this report discusses the effects of these tools used in promotion program in order to accomplish higher sales promotion. Overall, this report states that sales promotions as well as consumer-oriented techniques are very crucial as they have a great impact on business success. These tools will aid in pushing up the sales volume as well as in enhancing the company’s overall performance.

II. What are Sales Promotions?
A. Definition
Sales promotions have been defined as short-term activities that are designed to encourage consumers to purchase a product or encourage resellers to stock and sell a product (Elliott 2010). Sales promotions offer some extra benefit or incentive above and beyond the intrinsic value of the product. Sales promotions are often used in combination with advertising, which gives customers the reason to buy a product or service, sales promotions, on the other hand, seek to motivate customers to make immediate purchases (Terence, 2010). In fact, sales Promotions are used by most organizations, including manufacturers, distributors, retailers, trade associations and non-profit institutions. They are targeted towards the consumer or final buyer, business customers, the trade or retailer and the company’s sales force.

B. The importance of Sales Promotion
First, sales promotion involves some type of inducement that provides an extra incentive to buy. This incentive is usually the key element in the promotional program, ranges from a coupon, sample, price-off deal or premium such as the free...
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