7 Keys to Marketing Genius: Types of Sales Promotion
The following is an excerpt from The 7 Keys to Marketing Genius by Michael Daehn
There are many types of sales promotions. Most of what we see is on the consumer side, but a majority of sales promotions are given to wholesalers and sales people for selling a product. Most consumers are familiar with coupons as a popular form of sales promotion. Some others include buy one, get one free; free with purchase packs; bonus-size packages; in-store specials and sales; contests; loyalty programs; sweepstakes and rebates. A powerful way to build relationships and often meet your potential customers is through special events.
Most sales people work on some kind of commission where they receive a percentage of what they sell. They also receive all sorts of promotional items, such as t-shirts, key chains and coffee mugs with the sponsoring company’s name emblazoned on the front. These giveaways to sales people are commonly called tchotchkes. Many times sales of individual products will also provide sales people with an additional reward called a sales performance incentive fund (SPIF). So a shoe salesman may make a 2% commission on every pair of shoes sold, but he also may make an extra $5 when he sells a pair of Nikes.