Sales Promotion


Sales promotion consists of promotional activities that stimulate purchases, other than advertising, personal selling, and publicity. It normally involves a direct inducement (such as money, prizes, free trials, extra products, gifts, or specialized information) that provides extra incentives to buy now or buy more, visit a store, request literature, display a product, or take some other action. Promotions are also designed to motivate impulse purchase (through the implementation of in-store displays), increase the quantity purchase (via pricing discounts), or shift the burden of inventory from the manufacturer to distributors or retailers (by providing volume discounts or other incentives). Sales promotion activities occur simultaneously with, and leverage advertising and publicity. Examples of Sales Promotion Displays Fashion shows Coupons Exhibits Free samples Novelty items Trade shows Demonstrations The Positive Effect of Sales Promotion on Brand Volume Sales promotion adds immediate and tangible value to the brand by maximizing sales volume. Advertising helps to develop and reinforce quality, differentiate brand reputation, and build long-term market value. A short-term price cut or rebate may be very effective at boosting sales. When all brands appear equal, sales promotion can be more effective than advertising in motivating customers to try a new brand or to select one brand over another. A strong sales promotions should be focused, creative, hard to imitate, and should well timed. The Negative Effect of Sales Promotion on Brand Volume Excessive sales promotion at the expense of advertising hurts profits. Some marketers believe the proper expenditure balance is approximately 60% for trade and consumer promotion and 40% for advertising. High levels of trade promotions relative to advertising and consumer promotions, have a positive effect on short-term market share, but may have a negative effective on brand attitudes and long-term market share. Many consumer promotions can undercut a brand's image, especially those that offer discounted pricing. Customers may not develop brand loyalty and promotions may erode brand perception. Sales promotion has a high cost relative to gains generated. Overly aggressive sales promotion can draw competitors into a price war, which reduces sales and profits for everyone.

Auto Rental

An auto rental, rent-an-auto or auto hire agency is a company that rents automobiles for short periods of time (ranging from a few hours to a few weeks) for a fee. It is an elaborate form of a rental shop, organized in numerous local branches, primarily located near airports or busy city areas and often complemented by a website allowing online reservations. There are also third party websites (such as online travel agencies) which compare quotes from the major auto rental agencies. auto rental agencies primarily serve people who have a auto that is temporarily out of reach or out of service, for example travelers who are out of town or owners of damaged or destroyed vehicles who are awaiting repair or insurance compensation. Because of the variety of sizes of their vehicles, auto rental agencies may also serve the self-moving industry needs, by renting vans or trucks.

Auto rentals are subject to many conditions which vary from one brand to another. The vehicle must be returned in a good condition and must not exceed a maximum driven distance, otherwise extra fees may be incurred. Additionally, some companies set a minimum age for the vehicle driver, which in some cases is as high as 25, even in countries where the minimum legal age to hold a driver's license is much lower. Recent conditions have utilized GPS technology to limit maximum speeds or driving to specific regions. Renewable fuel vehicles are available in certain areas.

The vast majority of auto rental companies require the use of a Credit card to make it easier for them to trace a person after they have stolen a auto, or to charge additional fees at will if a defect is later found with the auto. There are two major types of auto hire companies. The first group of companies own their own autos (known as a fleet) and may have agreements with auto manufacturers to provide all the autos for that fleet. An example of this type of company would be Alamo or Europacar. The other type of auto hire company operate on a broker model and have commercial agreements with auto hire companies to provide access to their fleets of autos. To allow for a uniform classification and easy comparison of auto rental prices, the Association of auto Rental Industry Systems and Standards has developed the ACRISS_auto_Classification_Code coding system. This describes the size, dour count, gearbox type (manual/automatic) and whether the auto is air-conditioned in a short code.

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