Sales Promotion Techniques
There are four key sales promotion techniques that marketing firms direct towards trade and consumers. These techniques are discounts and deals, increasing industry visibility, price-based sales promotions, and attention-getting consumer sales promotions. This paper will summarize these four key techniques and give real life examples of each technique.
The key sales promotions techniques that are directed towards trade are discounts and deals, and increasing industry visibility. The discount and deals techniques is about lowering the prices or giving a price break to the wholesaler or retailer. The company can do this in two ways either by merchandising allowance or case allowance. Merchandising allowance is giving the wholesaler or retailer money back for in-store advertizing. Case allowance is giving the wholesaler or retailer a discount for purchasing the product in bulk.
Here are some examples of the discount techniques. Maybelline a cosmetics company will give Wal-Mart merchandising allowance if Wal-Mart gives the product an entire shelf section. Also Wal-Mart receives deals with other companies because of buying their products by the case or even by the truck load which is called case allowance.
Other types of trade sales promotion techniques are trade shows, promotional products, and incentive programs. These promotions techniques increase the visibility of a manufacturer. This technique helps the manufacturer stay in the minds of the wholesalers and retailers. With trade shows the manufacturer shows the wholesalers and retailers what new products the manufacturer has. Promotional products are little gadgets or products with the logo of the manufacturer on the product. These free products can range from coffee mugs, hats, pins, and T-shirts. The manufacturer gives these goodies away to the wholesalers, retailers, and consumers so they will be reminded of who gave them the free stuff....