Marketing: Ch. 17

A cash premium paid by a manufacturer to a retailer to help the retailer cover the costs of placing the manufacturer’s product on the shelves. Range from a few thousand dollars to several million dollars per product.

• Promotional Tie In

• Slotting Allowance

• Trade Show

• Promotional Allowance

Promotional method used by businesses to convince prospects to select their goods or services instead of a competitor’s brand.

• Consumer Promotion

• Institutional Promotion

• Product Placement

• Product Promotion

The cost-effective combination of personal selling, advertising, direct marketing, sales promotion, & public relations used to reach company goals.

• Promotional Mix

• Marketing Mix

• Marketing Concept

• Loyalty Marketing

Cash payments or discounts given by manufacturers to wholesalers or retailers for performing activities to encourage sales. Used to encourage wholesalers or retailers to stock a large quantity.

• Promotional Tie In

• Slotting Allowance

• Trade Show

• Promotional Allowance

A promotional method used to create a favorable image for a business, help it advocate for change, or take a stand on trade or community issues.

• Consumer Promotion

• Institutional Promotion

• Product Placement

• Product Promotion

When a manufacturer supports the retailer by helping to pay for the cost of advertising its product locally.

• Trade Promotions

• Promotional Allowance

• Cooperative Advertising

• Consumer Promotions

Generally higher-priced products, awards, or gift cards that are earned & given away through contests, sweepstakes, special offers, & rebates.

• Trade Promotions

• Incentives

• Deals

• Premiums

Low-cost items given to consumers at a discount or for free.

• Trade Promotions

• Incentives

• Deals

• Premiums

Short-term price reductions that are marked directly on the label or package, such as a gas station selling one Red Bull for $3 or 2 for $5.

• Trade Promotions

• Incentives

• Deals

• Premiums

This requires sales representatives to generate & maintain direct contact with prospects & customers.

• Personal Selling

• Advertising

• Sales Promotion

• Public Relations