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Promotional Strategy

Promotional Strategy. Chapter 16: Sales Promotion Part 3. Promotional Strategy. Chapter 16: Sales Promotion Part 4: Trade Promotion. Trade Promotion. Reasons for trade promotion. Everyday Low Pricing (EDLP) vs. Hi-Low Pricing. ===========Regular price============

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Promotional Strategy

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  1. Promotional Strategy Chapter 16: Sales Promotion Part 3.

  2. Promotional Strategy Chapter 16: Sales Promotion Part 4: Trade Promotion

  3. Trade Promotion • Reasons for trade promotion.

  4. Everyday Low Pricing (EDLP) vs. Hi-Low Pricing. ===========Regular price============ ===========Discount price===========

  5. Everyday Low Pricing (EDLP) vs. Hi-Low Pricing. ===========Regular price============ ===========Discount price===========

  6. Everyday Low Pricing (EDLP) vs. Hi-Low Pricing. ===========Regular price============ ===========Discount price===========

  7. Everyday Low Pricing (EDLP) vs. Hi-Low Pricing. ===========Regular price============ ===========Discount price===========

  8. Everyday Low Pricing (EDLP) vs. Hi-Low Pricing. ===========Regular price============ ===========Discount price===========

  9. Everyday Low Pricing (EDLP) vs. Hi-Low Pricing. ===========Regular price============ ----------------------EDLP------------------------- ===========Discount price===========

  10. 100% 75% 50% Money back offers/other refunds Sampling established products Couponing consumer direct Electronic retail promotions Couponing in retailers' ads 25% Sampling new products Prepricing on package Cents-off promotions Internet promotions Couponing in store Premium offers Sweepstakes Contests Other 0% Percentage of Promotions Vehicles Used by Package Goods Manufacturers

  11. 43% Disposable Diapers 35% Ready-to-Eat Cereal 29% Liquid Detergents 25% Deodorants 24% Sanitary Protection 20% Coffee 12% Pet Food 11% Adult Cold Remedies 8% Carbonated Beverages 7% Candy 2% Gum Percent of sales made with coupons for various products

  12. Arm & Hammer uses a promotion offer to encourage new uses of its product Source: Courtesy Church & Dwight Co., Inc.

  13. Contests can be used to build brand equity

  14. Samples are often distributed with local newspapers

  15. Gerber developed a sweepstakes in conjunction with a loyalty program Source: Courtesy Gerber Products Company.

  16. End of Part 3

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