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Learn about different types of sales promotions companies use to get customers to buy their products. Understand the different types of sales promotions companies use with their business customers.
Understand why sales promotions have become such an integral part of an organizationa€™s promotion mix. Sales promotions are activities that supplement a companya€™s advertising, public relations, and personal selling efforts.
Also as discussed in ChapterA 11, Advertising, Integrated Marketing Communications, and the Changing Media Landscape, companies use a pull strategypull strategyA strategy in which consumers are targeted with sales promotions such as coupons, contests, games, rebates, mail-in offers.
Point-of-purchase displayspoint-of-purchase displaysIn-store displays designed to encourage consumers to buy products immediately., including coupon machines placed in stores, encourage consumers to buy a product immediately. Loyalty programsloyalty programsMarketing efforts that reward the frequent purchase and consumption of an offering. RebatesrebatesA promotion whereby part of the purchase price of an offering is refunded to a customer after the customer completes a form and sends in the proof of purchase (sales receipt). Companies also gather competitive information at trade shows because they can see the products other firms are exhibiting and how they are selling them. ConventionsconventionsMeetings of groups of professionals that provide a way for sellers to showing potential customers different products., or meetings, with groups of professionals also provide a way for sellers to show potential customers different products. Intuitive Surgical is the maker of the da Vinci robot, a new type of technology used to make surgeries easy to perform and less invasive.
Sales contestssales contestsContests designed to motivate salespeople to increase their sales of particular products., which are often held by manufacturers or vendors, provide incentives for salespeople to increase their sales. Trade allowancestrade allowancesDiscounts an organization gives its channel partners for performing different functions. Another sales promotion tool manufacturers offer businesses is trainingtrainingAssistance an organization offers its channel partnera€™s salespeople. Free merchandisefree merchandiseA product or service a seller offers retailers in order to get them to push it toward consumers., such as a tool, television, or other product produced by the manufacturer, can also be used to get retailers to sell products to consumers. Have you ever been to an electronics store or a furniture store and felt like the salesperson was pushing one particular television or one particular mattress?
FigureA 12.7, a€?Examples of Sales Promotionsa€? recaps the different types of sales promotions designed for both consumers and businesses. Leveraging technology, analytics, and creativity, we strive to reach your goals by being your strategic adviser.
Automate and measure marketing tasks and workflows to increase efficiency and grow revenue faster.
Considering this, you need to keep in mind that push tactics more often than not cost money. For example, your content could come across as a YouTube ad people have to watch to get to the content they wanted. A pull strategy aims to get customers to seek out your brand’s product, giving them a reason to come to you.
On the plus side, you aren’t directly paying for your visitors by using pull strategies but the cost could be considered in time spent and personnel resources. In your growth hacking journey, try using a mix or push and pull marketing tactics for a healthy balance between the two techniques. Manufacturers need consumers to buy their products and consumers need somewhere to buy products from. A push strategy is where the manufacturer concentrates their marketing effort on promoting their product to the next party in the distribution chain (retailer or wholesaler), to convince them to stock their products. A pull strategy involves the manufacturer promoting their products to the target market to create demand, so that retailers are forced into stocking the manufacturer's product.
Pull marketing campaigns allows you to draw in leads and business with less effort, and at a lower cost than traditional marketing approaches. Pull marketing is increasing in value thanks to the rise of the internet, search marketing and social media. Pull marketing also taps into the growing number of social media communities by maximising your impact via online a€?word of moutha€™.
Pull marketing techniques done effectively makes it easier to attract prospects and convert them into customers. Sales promotions are often temporary, but when the economy is weak sales promotions such as coupons become even more popular for consumers and are used more frequently by organizations.
CouponscouponsProvide an immediate price reduction off an item and the amount of the coupon is reimbursed to the retailer by the manufacturer. Mobile marketing and the Internet provide consumers in international markets access to coupons and other promotions.


When a consumer sees a special display or can get a coupon instantly, manufacturers hope the sales promotion increases sales. A premiumpremiumsSomething consumers get for free or a small handling charge with proof of purchase. A trade showtrade showAn event in which firms in a particular industry display and demonstrate their offerings to other organizations they hope will buy them.
While approximately 75 percent of representatives attending trade shows actually buy the product(s) they see, 93 percent of attendees are influenced by what they see at the trade shows. For example, a medical convention might be a good opportunity to display a new type of medical device. The goal is to help them understand how the organizationa€™s products work and how consumers can be enticed to buy them. In other words, a manufacturer of televisions might offer the manager of a retail electronics store a television to push its products.
Perhaps the salesperson was getting push moneypush moneyA cash incentive a manufacturer provides its channel partners to sell particular items., or a cash incentive from the manufacturer to push a particular item. Although different types of sales promotions work best for different organizations, rebates are very profitable for companies because, as you have learned, many consumers forget to send in their rebate forms. Sales promotions increase the awareness of products, help introduce new products, and often create interest in the organizations that run the promotions. Tanner, Jr., and Dennis Pitta, a€?Identifying and Creating Customer Valuea€? (special session presentation, Summer Educatorsa€™ Conference, Chicago, 2009).
These strategies are used to get a brand’s product in front of its target market in two very different ways. Or maybe you run a promoted tweet on Twitter that comes up in their timeline even though they aren’t following you.
Take a step back and think about the amount of money a customer is going to spend with your business over the span of your relationship. Pull strategies work best for highly visible brands and are known as a method of inbound marketing, meaning the customer comes to you for answers, interest or inquiries.
Once you know the difference between the two and how it affects the growth of your business, you can find out which method brings the best ROI for your brand.
This means that manufacturers not only need to persuade consumers to buy their products but also have to persuade retailers and wholesalers (the distribution chain) to stock their products. Consumer demand pulls products from the manufacturer through the distribution chain and onto the customer hence the name pull strategy. Yet, too many companies continue to depend on traditional a€?pusha€™ marketing approaches to achieve this. More and more people are using the web and social networking to make decisions about the products or services they want to buy. The goal of sales promotions is to persuade customers to take action quickly and make larger purchases. In other words, a company promotes it products and services to the final consumer to pull a consumer to the stores or get the consumer asking for the product.
In India, the majority of coupons used are digital, while paper coupons have the largest share in the United States.
As with other sales promotion tools, the idea is to get you to buy a product and more specifically to make repeat purchases. Loyalty programs include things such as frequent flier programs, hotel programs, and shopping cards for grocery stores, drugstores, and restaurants.
When you get a rebate, you are refunded part (or all) of the purchase price of a product back after completing a form and sending it to the manufacturer with your proof of purchase. The sales representative with the most sales of the product wins a prize such as a free vacation, company recognition, or cash. One type of trade allowance is an advertising allowanceadvertising allowanceAn allowance (money) a manufacturer provide retailers to advertise its products in local newspapers. The push to the sell item might be because there is a large amount of inventory of it, it is being replaced by a new model, or the product is not selling well. In a weak economy, consumers tend to use more coupons, but they also buy more store brands. Coupons, contests, samples, and premiums are among the types of sales promotions aimed at consumers. A push strategy often involves you interrupting the content the consumer was viewing by using a form of paid advertising.
Your push strategies should cost enough that you make a profit on moving a customer through the funnel.


You need to provide something of value that draws your audience in, or else you have no pull. If a company sends coupons to the consumer, hopefully the consumer will take the coupon (sales promotion) to the store and buy the product.
Over 80 percent of diapers are purchased with coupons; imagine how much easier and less wasteful digital coupons scanned from a mobile phone are for both organizations and consumers. Online sales promotions include incentives such as free items, free shipping, coupons, and sweepstakes. The Publishera€™s Clearing House Sweepstakes and the Monopoly Game at McDonalda€™s are both examples. Many manufacturers also provide in-store product demonstrationsproduct demonstrationsA demonstration designed to show a channel partnera€™s customers how products work and answer any questions they might have. Coupons available online or at the point of purchase are being used more often by consumers. Trade promotions, or promotions aimed at businesses, include trade shows, sales contests, trade allowances, and push money.
A push strategypush strategyA strategy in which businesses are the target of promotions so products get a€?pusheda€? through their marketing channels and sold to consumers. For example, many online merchants such as Shoe Station and Zappos offer free shipping and free return shipping to encourage consumers to shop online. The organization that conducts the sweepstakes or contest hopes you will not only enter its contest but buy some magazines (or more food) when you do. After you accumulate so many miles or points, an organization might provide you with a special incentive such as a free flight, free hotel room, or free sandwich. Using displays, brochures, and other materials, representatives at trade shows can identify potential customers (prospects), inform customers about new and existing products, and show them products and materials. Trade shows can be very successful, although the companies that participate in them need to follow-up on the leads generated at the shows.
You have probably purchased a product that included a small free sample with ita€”for example, a small amount of conditioner packaged with your shampoo. When the economy is weak, more consumers cut out coupons and look for special bargains such as double coupons and buy-one-get-one-free (BOGO) coupons.
Some firms have found that the response they get to their online sales promotions is better than response they get to traditional sales promotions. Sometimes you might have to mail in a certain number of proofs of purchase to get a premium.
Many loyalty programs, especially hotel and airline programs, have partners to give consumers more ways to accumulate and use miles and points. Representatives can also get feedback from prospects about their companya€™s products and materials, and perhaps about competitors. Typically, the retailer can get a lower rate than manufacturers on advertising in local outlets, saving the manufacturer money.
Demonstrations of new video game systems and computers are extremely popular and successful in generating sales. For example, a manufacturer may provide incentives such as price discounts to the retailer who then promotes or pushes the product to the final consumer. While many consumers cut coupons from the inserts in Sunday newspapers, other consumers find coupons for products and stores online. FigureA 12.4, a€?A Push versus a Pull Strategya€? shows how push strategy differs from a pull strategy. What many people dona€™t realize is that when they pay the shipping and handling charges, they may also be paying for the premium. Many organizations use both a pull and push strategy, promoting their products and services to both final consumers and their trade partners (retailers, wholesalers).
Although sampling is an expensive strategy, it is usually very effective for food products. People try the product, the person providing the sample tells consumers about the product, and mentions any special prices for the product.



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