c. Managing Unfavorable Publicity: Crisis management is a coordinated effort to
6. Sales Promotion (16-6, PPT Slide 52, DISC: Promotion)
a. Sales promotion consists of marketing communication activities other than
advertising, personal selling, and public relations, in which a short-term incentive
motivates consumers or members of the distribution channel to purchase a good or
service immediately, either by lowering the price or by adding value. Sales
• Trade sales promotion – promotion activities directed to members of the
marketing channel, such as wholesalers and retailers
b. The objectives of a sales promotion, such as encouraging repeat purchases and
preventing brand switching, depend on the general behavior of targeted customers.
Generally, there are four types of consumers to consider when creating the
objectives for a sales promotion.
• Loyal customers – people who buy your product most or all of the time
c. Tools for Trade Sales Promotion: Trade promotions “push” a product through the
distribution channel, using many of the same sales promotion tools used in
consumer promotions, such as sales contests, premiums, and point-of-purchase
displays. But several tools are unique to manufacturers and channel intermediaries:
• A trade allowance is a price reduction offered by manufacturers to
intermediaries such as wholesalers and retailers