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To understand the nature and purpose of sales promotions. |
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To recognize the tasks that sales promotions can and cannot accomplish |
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To appreciate the objectives of trade-oriented promotions and the factors critical to building a successful trade promotion program. |
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To comprehend the various forms of trade allowances and the reasons for their usage. |
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I. What are sales promotions?
A. Key elements
B. How is sales promotion different from advertising?
C. Why have sales promotions grown as an important marketing tool in recent years?
II. How does sales promotion affect sales?
A. Promotion Insensitives
B. Stockpiling Loyalists
C. Stockpiling Sensitives:
D. Non-stockpiling Sensitives
III. Problems with Sales Promotion
A. Fuzzy message
B. Future sales
C. Alienates customers
D. Time and expense
E. Legal considerations
IV. Trade Allowances
A. Objectives for Trade Promotions
B. Trade Promotion Techniques: Slotting Fees
1. Why can retailers charge slotting fees?
2. Do all manufacturers pay slotting allowances?
3. What are exit fees?
C. Problems with Trade Promotion:
II. Efforts to Reduce Trade Promotion Problems
A. Category Management
B. Pay-for-Performance:
Questions and Comments to: drmartin@hawaii.edu
This document was last modified October 30, 2008