Sales promotion is a short term incentive that motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price of by adding value. McDonalds and Mccafe are continuously trying to lower the price of a product instead of raising the price. They constantly use coupons or premiums to promote their product. A premium is an extra item offered to the consumer; usually In exchange for some proof that the promoted product has been purchased. McDonalds uses a premium when they sell happy meals which its tarket market is children and include a free toy with it. They also promote the toys according to new movies. For example if Toy Story 2 came out in theaters then they will also feature Toy Story toys in their Happy meals. Premiums can also include a two-for-the-price-of-one bonus pack. Since lent began McDonalds recently started the filet-o-fish premium where it is 2 for $3. They usually sell one for that price.
Mcdonalds uses traditional selling and advertising and sales promotion is more important than personal selling. Mcdonalds sells a good or service at a low price and has many customers. Consumers know what they will expect when they enter a McDonalds restaurant because they are aware of it due to their advertising on televisions and billboards. They are also global so almost everywhere you go you will see a McDonalds. They try to build a relationship with their customers and by doing so they give us more and more reasons as to why we should go back to their restaurant. Another sales promotion McDonalds uses is giving their customers free products called and this strategy is also considered a game called a monopoly. The more and more pieces you get to the puzzle is a higher chance you have of winning a greater prize. McDonalds gives customers the opportunity to win prizes, money or anything on the menu. Whenever you buy fries or a soda you get a coupon attached to it and when you tear it out you win a prize. 
While launching a premium coffee line smack in the middle of a recession may seem counterintuitive, the debut of McCafe helped drive McDonald's second quarter sales. The chain announced a comparable U.S. sales increase of 3.5 percent and a 4.8 percent spike globally. CEO Jim Skinner, in a statement, gave credit to the chain's "balanced focus" on favorites like the Big Mac, beverage value offerings and the McCafe launch. "This is the weakest the restaurant in 28 years," said NPD restaurant industry analyst Bonnie Riggs. "McDonald's is one of the few that is faring well. They have a lot of marketing initiatives. It's not just the value menu. They are introducing a lot of new products. -Kenneth Hein
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