For instance, Nike is known for its large inventory of athletics shoes and sponsoring popular athletes. But, Adidas is also a similar company with the same objectives as Nike. If Nike would want to increase its number of consumers, Nike would want to launch a long term sale in order for Adidas users to switch because of its lower prices. In addition, if Nike would want to increase sales, it would also launch contests, prizes, or coupons to its already existing users. Even though sales for existing users can increase short-term sales, they have to planned correctly because that technique can gradually decrease equity and lower the value perception of a …show more content…
Trade supports are people who contact clients that are in the process of possessing the manufacturer’s products in order to sell. Manufactures can increase their trade support by offering trade support pros price-offs for a certain time period. Moreover, Manufactures may sometimes want to eliminate their old product in order to introduce a new one. Therefore, one might decide to liquidate their inventories by introducing rebates towards their products. An example of this can be Firestone; they offer many rebates on tires in order to liquidate their inventory of tires. Furthermore, in order for a manufacturer to have a good relation with their distributor, the manufacturer may want to offer a kind gesture to those channels. For example, Herbalife offers an increase in discounts if one exceeds their quota and are also promoted into a higher position. In conclusion, sales promotion are great incentives to buy in which it can create great relationships between a manufacturer and distributor. As well as a manufacturer with the consumer. Sales promotions create an increase in sales and attractions towards new customers and motivate one to increase their quantity on purchases. They are usually used for short term periods, as well as when one would like to introduce a new