978-1305769786 Chapter 18 Lecture Note Part 2

subject Type Homework Help
subject Pages 5
subject Words 1970
subject Authors O. C. Ferrell, William M. Pride

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II. Sales Promotion
A. Sales promotion is an activity and/or material that acts as a direct inducement, offering added
value or incentive for the product to resellers, salespeople, or consumers.
1. It encompasses all promotional activities other than personal selling, advertising, and public
relations.
2. Marketers often use sales promotion to facilitate personal selling, advertising, or both; they
also use advertising and personal selling to support sales promotions.
3. Sales promotion can increase sales by providing extra purchasing incentives.
4. When deciding which sales promotion methods to use, marketers must consider several
factors, especially product characteristics and target market characteristics.
5. The use of sales promotion has increased dramatically, primarily at the expense of
advertising. This shift has occurred for several reasons:
a. Heightened concerns about value have made customers more responsive to promotional
offers, especially price discounts and point-of-purchase displays.
1. Coupons reduce a product’s price and aim to prompt consumers to try new or established
products, increase sales volume quickly, attract repeat purchasers, or introduce new package
sizes or features.
2. They are the most widely used consumer sales promotion technique.
3. Digital coupons via websites and mobile apps are also becoming popular.
4. For best results, coupons should be easy to recognize and clearly state the offer.
5. The nature of the product is the prime consideration in setting up a coupon promotion.
6. Coupons offer several advantages.
a. Print advertisements with coupons are often more effective at generating brand awareness
than print ads without coupons.
b. Coupons reward present product users, win back former users, and encourage purchases
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