Tap Light Phonics - This was one of my recent finds at Walmart. They were only about $1 each! I use these in small group for segmenting words. The kids tap a light for each sound. They LOVE this!
Swat the Sound - I say a letter, word, or sound, and they have to swat the correct alphabet card with the fly swatter. So much fun!
Slinky Stretch - We also use Slinkys for segmenting and blending words. As I say the sounds, they stretch out the slinky. Then they snap it back together and say the word.
Head Tummy Feet - We do segmenting exercises to get their bodies moving. The kids are standing for this activity. They touch their head for the first sound, tummy for the second, and feet for the third. Then they say the whole word as they straighten their bodies and throw their hands up in the air.