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Sales Promotion

Review of terms and concepts of Sales Promotions

TermDefinition
Sales Promotion Marketing communication activities, other than advertising, personal selling, and PR, where short-term incentives motivate consumers/members of the distribution channel to purchase a product immediately by lowering the price or adding a value.
Consumer Sales Promotion Sales promotion activities targeting the ultimate consumer.
Trade Sales Promotion Sales promotion activities targeting a channel member, such as a wholesaler or retailer.
Coupon A certificate that entitles consumers to an immediate price reduction when they buy the product.
Rebate A cash refund given for the purchase of a product during a specific period of time.
Premium An extra item offered to the consumer, usually in exchange for some proof of purchase of the promoted product.
Loyalty Marketing Program A promotional program designed to build long term, mutually beneficial relationships between a company and its key customers.
Frequent Buyer Program A loyalty program in which loyal consumers are rewarded for making multiple purchases of a particular good or service.
Contests & Sweepstakes One is a promotion in which participants use some skill or ability to compete for prizes and the other is based on luck, game of chance.
Sampling A promotional program that allows the consumer the opportunity to try a product or service for free.
Point-of-Purchase Display A promotional display set up at he retailer's location to build traffic, advertise the product, or induce impulse buying.
Trade Allowance A price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers.
Push Money Money offered to channel intermediaries to encourage them to "push" products - that is, to encourage other members of the channel to sell the products.
Created by: knkeller
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