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4…introduction to
sales promotion
direct inducement or incentive
often provide in-store promotions…
personal selling may be used to offer and deliver a discount
payment terms (i.e. interest free credit)
quantity increases
value adding… something extra
loyalty schemes
Lee (2002) puts forward four main reasons…
High Low
New Product or Market
Withhold Sales
Promotion
Use Sales Promotion to
Stimulate Full Trial
Established Product or
Market
Non-Loyals – Use for
Switching
Loyals – Use Carefully
Non-Loyals – Attract for
Trial
Loyals – Reward for
Increased Usage
Involvement
sales promotion

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