Marketing Essentials

Section 2: Types of Promotion

After You Read Online Action

Reviewing Key Terms and Concepts

1. Sales promotions are used to encourage product trials, build product awareness, encourage more purchases, or reward loyalty.
2. Trade promotions are sales promotion activities designed to gain manufacturers’, wholesalers’, and retailers’ support for a product. Consumer sales activities are designed to encourage individual customers to buy a product.
3. Promotional tie-ins involve sales promotional arrangements between one or more retailers or manufacturers. This is designed to stimulate customer response to a product offered and combine the resources of each partner in the arrangement. It enables different companies to reach customers and prospects within market segments that they have in common, to share costs, and to capitalize on the brand awareness of popular consumer or business-to-business brands.

Integrating Academic Skills

4. Snowboards: Net cost = $4,802.50, 15% discount; CD players: Net cost = $492.20, 8% discount
5. Answers will vary. Tables should be organized and contain evidence of research.