Page 151 - Marketing the Basics 2nd

TYPES OF SALES PROMOTIONS
• Advertising specialties: A product imprinted with a logo or promotional message. Marketers frequently imprint the corporate logo on items such as mugs, tee shirts and laptop bags for free to their employees and curious onlookers at recruitment fairs.
• Bundling: A discount is offered on the total price if the buyer purchases two or more distinct products together.
• Cash rebates: A partial refund to the buyer.
• Contests, sweepstakes and games: Sales promotion techniques
where chance factors heavily in determining those eligible to
receive the promotion.
• Coupons: Printed certificates entitling the holder to receive
the stated price reduction towards the purchase of a product.
• Discounting: Reducing the listed price for a limited period of
time
• Loyalty programs: An incentive program offering non-cash
benefits encouraging buyers to remain loyal to the marketer. Virtually every credit card company credits users with points that can be returned to receive products such as free airline tickets.
• Point-of-purchase: Promotional materials placed at the point of purchase or sale. Large supermarkets often place an advertised item at the checkout counter.
• Premiums: A product of value bundled for free or for a nominal fee to encourage a purchase. A favourite tactic of cereal companies is to include a free toy within each box.
• Samples: A limited batch of the product dispensed to potential buyers.
facToRs To consiDeR
When developing a sales promotion programme, the marketer must make several decisions. First, he or she decides the extent of the savings offered to the customer. For the most part, consumers are sensitive to price changes in the short term, therefore, incremental changes can significantly change sales revenue. The second issue to consider is whether to place limits on the length of the promotion.
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