Please provide a 3-sentence response/comment to each post, which is a total of 6 sentences. Please keep both separate on the same page but different paragraph. Also watch out for errors, punctuation and grammar.
An advantage to trade promotions is that they can be tailored to fit the needs of most businesses. There are a number of different promotions that can be used by different retailers and wholesalers. With a consumer promotion, it is generally offered to everyone at the same time, so it cannot be tailored as well.
Consumer and trade promotions are both short-term marketing strategies. “Consumer promotions, which are directed to the final user, or trade promotions, which are directed at retailers or wholesalers instead of consumers” (Ogden & Ogden, 2014, ch. 6.2). Consumer promotions encourage the consumer to purchase a product or service by offering incentives. These may be in the form of a coupon, promotional code, buy one get one free deals, or a rebate. An example of a consumer promotion that I see frequently is at Publix, a grocery store chain. They have weekly buy one get one free deals on household staples such as condiments, soup, and bread. While these increase sales of those items on a temporary basis, it does not necessarily translate to long-term customers. It does allow for an increase of brand awareness, which may assist in building brand awareness.
Trade promotions are used by the manufacturer or other members of the distribution channel to encourage the sale of an item that will eventually be resold (Clow & Baack, 2012). As an events planner, I have been to many trade shows, and the people working the booths are trying to get your attention for a quick sales pitch, or to get you to leave your information so they can later reach out and set up a meeting. These same booths often have giveaways or will give you a branded sample of their product in hopes to gain your business. Many times they are successful because they will have exclusive savings or promotions if you sign up for their product on the spot. An example of this would be at home shows – many times you will see roofing or windows companies offering special prices for attending the show.
Clow, K. E., & Baack, D. (2012). Integrated advertising, promotion, and marketing communications (5th ed.). Upper Saddle River, NJ: Pearson Education.
Ogden, J., & Ogden, D. (2014). Integrated Marketing Communications: Advertising, PublicRelations, and More. San Diego, CA: Bridgepoint Education, Inc.
Trade promotions are directed at wholesalers and retailers. There may be three types of trade promotions: (1) place in-store demonstrators, (2) offer product samples, and (3) run a game or contest. Trade promotions are designed to motivate and provide incentives to the retailer/wholesaler. In-place demonstrators are salespeople who can converse with consumers in the retail store, while product samples can be provided to the consumer to introduce them to the actual product itself. A contest can provide an incentive for the retailer to become aware of the product and provide its customers the opportunity to purchase the end product (Robbins, 2016). Trade promotions can also include specialty advertising (pens with company logos, etc.), sponsorships and trade allowances. These methods provide an opportunity for the marketer to associate the product with the need of the retailer. It further provides incentives for the retailer to showcase the product in its stores, thus making it more attractive to the consumer.
Consumer promotions can include activities such as coupons, refunds and rebates, premiums, and loyalty programs. These are heavily weighted toward the consumer in an effort to familiarize the buyer with the product and provide the incentive to purchase. Coupons are one of the most used short-term incentive programs due to their availability in newspapers and magazines, and other readily available media. They, however, may create a negative image in the consumers’ minds as to the image or quality of the product. Sweepstakes and contests are other methods of reaching the consumer directly, allowing the buyer to become involved in a chance of winning something free that, in turn, the marketer hopes will lead to further sales. Sponsorships, especially in sports, create an association with the sport or team and can create an atmosphere of positivity. Loyalty programs are designed to keep the consumer coming back for additional sales based upon their experiences with the product and the discounts or other benefits coming from those plans. The engagement of the consumer is key in all of these strategies.
Ogden, J. R., & Ogden, D. T. (2014). Integrated marketing communications: Advertising, public relations, and more. [E-book]. Bridgepoint Education, Inc.
Robbins, N. (2016, September 29). Valentine’s Promotion Ideas for Retail Clothing. Your Business. https://yourbusiness.azcentral.com/valentines-promotion-ideas-retail-clothing-14437.htm