=+LO4 Discuss the strengths and weaknesses of consumeroriented and trade-oriented sales promotions.

Coupons encourage retailer support but may delay consumer purchases. Deals reduce consumer risk but also reduce perceived value. Premiums offer consumers additional merchandise they want, but they may be purchasing only for the premium. Contests create involvement but require creative thinking. Sweepstakes encourage repeat purchases, but sales drop after the sweepstakes. Samples encourage product trial but are expensive. Loyalty programs help create loyalty but are expensive to run. Displays provide visibility but are difficult to place in retail space. Rebates stimulate demand but are easily copied. Product placements provide a positive message in a noncommercial setting but are difficult to control. Trade-oriented sales promotions include

(a) allowances and discounts, which increase purchases but may change retailer ordering patterns, (b)

cooperative advertising, which encourages local advertising, and