Sales Promotion

1. Sales promotionSales promotion

2. Activity that provides special incentives to encourage immediate
response from customers, distributors, and an organization’s
sales force.”
Sales Promotion consists of short-term
incentives to encourage the purchase or
sales of a product.
Activity that provides special
incentives to encourage immediate
response from customers,
distributors, and an organization’s
sales force.”
Sales Promotion consists of short-
term incentives to encourage the
purchase or sales of a product

3.  Advertising offer reason to buy, sales promotion offers an incentives toAdvertising offer reason to buy, sales promotion offers an incentives to
buybuy
 .. Sales promotionSales promotion consists of all marketing activities that attempt toconsists of all marketing activities that attempt to
stimulate quick buyer action, or, in other words, attempt to promotestimulate quick buyer action, or, in other words, attempt to promote
immediate sales of a product (thereby yielding the name salesimmediate sales of a product (thereby yielding the name sales
promotion).promotion).
Consumer
Sales
Promotion
Consumer
Sales
Promotion
Trade
Sales
Promotion
Trade
Sales
Promotion
Consumer market
Marketing channel
Goal = Drive immediate purchase
= Influence Behavior

4. Purpose of sales promotionPurpose of sales promotion
 Attract new triesAttract new tries
 To reward loyal customerTo reward loyal customer
 Increase purchase rate of occasional userIncrease purchase rate of occasional user
 Attracts brand switcherAttracts brand switcher
 Marketing of high brandMarketing of high brand
 Building long term relationship with customerBuilding long term relationship with customer

5. Major decision in sales promotionMajor decision in sales promotion
 Establish objectivesEstablish objectives
 Select the toolsSelect the tools

6. Establishing ObjectivesEstablishing Objectives
Type of BuyerType of Buyer
Loyal
Customers
Competitor’s
Customers
Brand
Switchers
Price Buyers
Desired ResultsDesired Results
• Reinforce behavior
• Increase consumption
• Change timing
• Break loyalty
• Persuade to switch
• Persuade to buy your
brand more often
• Appeal with low
prices
• Supply added value
Sales PromotionSales Promotion
ExamplesExamples
• Loyalty marketing
• Bonus packs
• Sampling
• Sweepstakes,
contests, premiums
• Price-lowering
promotion
• Trade deals
• Coupons, price-off
packages, refunds
• Trade deals

7. Objectives for final buyers:Objectives for final buyers:
 There are four basic buyer action that can beThere are four basic buyer action that can be
stimulated by S.Pstimulated by S.P
 InquiresInquires:when new model or version of a product:when new model or version of a product
or service are being offered.SP may designed toor service are being offered.SP may designed to
stimulate inquires.stimulate inquires.
 It can be include returning a form, requestingIt can be include returning a form, requesting
additional information about a product or service.additional information about a product or service.
 Managers can generate inquire by offering:Managers can generate inquire by offering:
 Free catalogsFree catalogs
 Mail in coupons for informationMail in coupons for information

8.  Encourage re purchasingEncourage re purchasing:another objectives is:another objectives is
repurchasing.to the extent that habit building will lead torepurchasing.to the extent that habit building will lead to
brand loyalty.brand loyalty.
 Managers can generate repurchasing by,Managers can generate repurchasing by,
 On pack couponsOn pack coupons
 Mail in coupons for rebateMail in coupons for rebate
Product trialProduct trial A product trial objectives is certainlyA product trial objectives is certainly
appropriate in marketing new product.firms which marketappropriate in marketing new product.firms which market
a number of different products (such as franchisea number of different products (such as franchise
extension) may be use this techniques.extension) may be use this techniques.
It can be done for,It can be done for,
New productNew product
Related productRelated product
Brand switcher----by,Brand switcher----by,

9.  CouponsCoupons
 Free samplesFree samples
 ContestContest
 DemonstrationDemonstration
 Traffic buildingTraffic building: it can be use as a vehical for: it can be use as a vehical for
stimulating more store traffic from new buyers asstimulating more store traffic from new buyers as
well as for the repurchase.well as for the repurchase.
 Special attraction in malls may attract customersSpecial attraction in malls may attract customers
who will then make some purchases. It can also bewho will then make some purchases. It can also be
done by,done by,
 Special salesSpecial sales
 Weekly salesWeekly sales
 Entertainment events.Entertainment events.

10. Trade promotion objectivesTrade promotion objectives
 It can also says channel member objectives.theIt can also says channel member objectives.the
fundamental purpose of trade promotion is to pushfundamental purpose of trade promotion is to push
the product through marketing channel by gettingthe product through marketing channel by getting
resellerreseller
(retailer, whole seller )to aggressive market the(retailer, whole seller )to aggressive market the
product .product .
 Encourage trade inventory buildingEncourage trade inventory building::
manufacture may offer special margin or extramanufacture may offer special margin or extra
merchandise at no extra cost to include an increasemerchandise at no extra cost to include an increase
in retailer or whole seller inventories.in retailer or whole seller inventories.

11.  Persuading retailers to carry new items andPersuading retailers to carry new items and
high level of inventoryhigh level of inventory
 Encourage off season buyingEncourage off season buying
 Building brand loyaltyBuilding brand loyalty
 Gaining entry into new retail outlets.Gaining entry into new retail outlets.

12. Selecting consumer-promotionSelecting consumer-promotion
tooltool
CouponCoupon
RebateRebate
PremiumPremium
A certificate that entitles
consumers to an immediate
price reduction.
A certificate that entitles
consumers to an immediate
price reduction.
A cash refund given for the
purchase of a product during
a specific product.
A cash refund given for the
purchase of a product during
a specific product.
An extra item offered to the consumer,
usually in exchange
for some proof of purchase.
An extra item offered to the consumer,
usually in exchange
for some proof of purchase.
Consumer sales promotions are steered toward the ultimate product users
—typically individuals—especially shoppers in the local supermarket.

13. SamplingSampling
A promotional program that allows
the consumer the opportunity to try a
product or service for free.
A promotional program that allows
the consumer the opportunity to try a
product or service for free.
ContestContest
SweepstakesSweepstakes
Promotions that require skill or
ability to compete for prizes.
Promotions that require skill or
ability to compete for prizes.
Promotions that depend on
chance or luck, with
free participation.
Promotions that depend on
chance or luck, with
free participation.

14.  A premiumA premium is tangible compensation, anis tangible compensation, an
incentive, given for rendering a particular deed,incentive, given for rendering a particular deed,
usually buying a product. The premium may beusually buying a product. The premium may be
free, or, if not, the cost is well below the usualfree, or, if not, the cost is well below the usual
price.price.
 On-shelf couponingOn-shelf couponing: Coupons are present at the: Coupons are present at the
shelf where the product is available.shelf where the product is available.
 Checkout dispensers: On checkout the customerCheckout dispensers: On checkout the customer
is given a coupon based on products purchased.is given a coupon based on products purchased.
 On-line couponingOn-line couponing: Coupons are available on: Coupons are available on
line. Consumers print them out and take them toline. Consumers print them out and take them to
the store.the store.

15.  Point-of-sale displays:Point-of-sale displays:
 Aisle interrupter: A sign the juts into the aisle fromAisle interrupter: A sign the juts into the aisle from
the shelf.the shelf.
 Dangler: A sign that sways when a consumer walksDangler: A sign that sways when a consumer walks
by it.by it.
 Dump bin: A bin full of products dumped inside.Dump bin: A bin full of products dumped inside.
 Glorifier: A small stage that elevates a productGlorifier: A small stage that elevates a product
above other products.above other products.
 . Lipstick Board: A board on which messages are. Lipstick Board: A board on which messages are
written in crayon.written in crayon.
 Necker: A coupon placed on the 'neck' of a bottle.Necker: A coupon placed on the 'neck' of a bottle.

16.  Money RefundsMoney Refunds
 Offering consumers money when they mail in a proofOffering consumers money when they mail in a proof
of purchase, usually for multiple product purchasesof purchase, usually for multiple product purchases
 Cents-Off OffersCents-Off Offers
 Promotions that let buyers pay less than the regularPromotions that let buyers pay less than the regular
price to encourage purchaseprice to encourage purchase
 Free SamplesFree Samples
 Samples of a product given out to encourage trial andSamples of a product given out to encourage trial and
purchasepurchase
 DemonstrationsDemonstrations
 Manufacturers use them temporarily to encourage trialManufacturers use them temporarily to encourage trial
use and purchase of a product or to show how a productuse and purchase of a product or to show how a product
worksworks

17. Selecting Trade Promotion ToolsSelecting Trade Promotion Tools
 A trade sales promotion is pointed towardA trade sales promotion is pointed toward
resellers who distribute products to ultimateresellers who distribute products to ultimate
consumers. The term "trade" traditionallyconsumers. The term "trade" traditionally
refers to wholesalers and retailers who handlerefers to wholesalers and retailers who handle
or distribute marketers' products. Other termsor distribute marketers' products. Other terms
for wholesalers and retailers include "resellers"for wholesalers and retailers include "resellers"
and "dealers."and "dealers."

18. Tools for Trade Sales PromotionTools for Trade Sales Promotion
Trade AllowancesTrade Allowances
Push MoneyPush Money
DiscountsDiscounts
Free goodsFree goods
Store DemonstrationStore Demonstration
Conventions & Trade ShowsConventions & Trade Shows
3

19. Trade AllowanceTrade Allowance
A price reduction offered by manufacturers toA price reduction offered by manufacturers to
intermediaries, such as wholesalers and retailers.intermediaries, such as wholesalers and retailers.
Push MoneyPush Money
Money offered to channel intermediaries to encourageMoney offered to channel intermediaries to encourage
them to “push” products--that is, to encourage otherthem to “push” products--that is, to encourage other
members of the channel to sell the products.members of the channel to sell the products.
Discounts:Discounts:
A straight reduction in the price on purcahse duringA straight reduction in the price on purcahse during
stated period of time.stated period of time.

20.  Free goods:Free goods:
 Free goods are offer to middle man who buy certainFree goods are offer to middle man who buy certain
quantity.such as pen, pencil, calendarsquantity.such as pen, pencil, calendars
 Trade shows and convention:Trade shows and convention:
 Organization organize annual trade and conventions.Organization organize annual trade and conventions.
Firms selling product to the particular industry buyFirms selling product to the particular industry buy
space set up booths and displays to demonstratespace set up booths and displays to demonstrate
their product at the trade show.their product at the trade show.