Tools of Sales promotion

1. SHIKSHAPEETH CDD PRESENTS
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SHIKSHAPEETH COLLEGE OF
MANAGEMENT & TECHNOLOGY

2. SALESMANSHIP
• Salesmanship is defined as the level of skill
you have in convincing people to buy or in
persuading people to do something.
• Basic objective continues to be negotiation of
a sale, though, the emphasis on the means to
achieve the end.
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3. CONT…
• Success of salesmanship is dependent on
three major factors
• PERSONALITY of the salesman
• PRODUCT knowledge
• Psychology of the PEOPLE
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4. PERSONAL QUALITIES OF A
SUCCESSFUL SALESMAN
1. Physical Qualities
2. Psychological Qualities
3. Social Qualities
4. Character Qualities
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5. SALES PROMOTION
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6. An extra
incentive to buy
An extra
incentive to buy
A tool to
speed up sales
A tool to
speed up sales
An extra
incentive to buy
An extra
incentive to buy
A tool to
speed up sales
A tool to
speed up sales
Sales Promotion
“A direct inducement that offers an extra value or
incentive for the product to the sales force,
distributors, or the ultimate consumer with the
primary objective of creating an immediate sale.”
“A direct inducement that offers an extra value or
incentive for the product to the sales force,
distributors, or the ultimate consumer with the
primary objective of creating an immediate sale.”

7. SALES PROMOTION
• “It consists of those marketing activities other
than advertising, publicity and personal
selling, that stimulate consumer purchasing
and dealer effectiveness, such as displays,
shows and exhibitions, demonstrations and
various other non-recurring selling efforts not
in the ordinary routine”.
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8. PROMOTIONS PLANNING
• Five different market categories in which sales
promotions is used;
1.Industrial selling
2.Selling to wholesalers
3.Selling to retailers
4.Selling to consumers
5.Selling of services
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9. MATERIAL USED IN SALES PROMOTION IR TOOLS OF SALES
PROMOTION
To increase the sales of a product, the producers
or manufacturers use various measures like
free samples, bonus, etc. These measures are
called the tools or techniques of sales
promotion.

10. TOOLS OF SALES PROMOTION

11. LIST OF TOOLS
• Free samples: These are distributed to attract
consumers to try out a new product and
thereby create new customers. Some
businessmen distribute samples among
selected persons in order to popularize the
product.
Common examples - shampoo, washing powder,
coffee powder, etc.

12. • Premium or Bonus offer: This is a reward
given to the existing customers. This tool will
help increase the sales of the product among
the existing customers itself.
A milk shaker along with Nescafe, mug with
Bourn vita, toothbrush with 500 grams of
toothpaste might be some examples of this
tool.
• Exchange schemes: It refers to offering
exchange of old product for a new product at a
price less than the original price of the
product. This is useful for drawing attention to
product improvement.

13. Exchange offer
Bonus offer
Price-off
offer
Scratch and win offer

14. Most common example for this tool is - 'Bring your
old mixer-cum-juicer and exchange it for a new
one just by paying Rs.500'
• Price-off offer: Under this offer, products are sold
at a price lower than the original price. This type
of scheme is designed to boost up sales in off-
season and sometimes while introducing a new
product in the market.
'Rs. 2 off on purchase of lifeboy soap, Rs. 15 off
on a pack of 250 grams of Taj Mahal tea, Rs.
1000 off on cooler' etc., are some of the common
schemes.

15. PRICE OFF DEALS / DISCOUNTS

16. • Coupons: Sometimes, coupons are issued by
manufacturers either in the packet of a product
or through an advertisement printed in the
newspaper or magazine or through mail. These
coupons can be presented to the retailer while
buying the product. The holder of the coupon
gets the product at a discount. Best example
for this is coupons distributed by the pizza
restaurants like dominos, pizza hut, etc.

17. • Fairs and Exhibitions: Fairs and exhibitions
may be organized at local, regional, national or
international level to introduce new products,
demonstrate the products and to explain
special features and usefulness of the products.
Apart from this small stalls are also placed in
popular locations where the products are sold
in smaller quantity to attract more customers.

18. TRADE PROMOTION

19. • Bonus points: certain retail shops will have a
scheme which will require the customer to be a
member of the shop and to acquire membership
card for the same. And every time the customer
makes a purchase bonus points are added to the
card and at the end of the year gifts are given for
the points earned. Example – coffee day bonus
points card
• Money Back offer: Under this scheme customers
are given assurance that full value of the product
will be returned to them if they are not satisfied
after using the product.

20. This creates confidence among the customers
with regard to the quality of the product. This
technique is particularly useful while
introducing new products in the market.
• Scratch and win offer: To induce the
customer to buy a particular product 'scratch
and win' scheme is also offered. Under this
scheme a customer scratch a specific marked
area on the package of the product and gets the
benefit according to the message written there.

21. Advantages Of Sales Promotion
• Price discrimination
Producers can introduce price discrimination
through the use of sales promotions. They can
charge different prices to different consumers and
trade segments depending on how sensitive each
segment is to particular prices.

22. • Effect on consumer behavior
As sales promotions are mostly announced for a
short period, customers may feel a sense of
urgency and stop comparing the alternatives.
They are persuaded to act now rather than later.
(E.g.)With every 500g pack of Tang, you get a
free Tang glass. Offer valid only till stocks last.

23. • Effect on trade behavior
Short-term promotions present an opportunity and
encourage dealers to forward by. This forward
buying ensures that retailers won’t to go out of
stocks. As dealers have more than the normal
stocks, they think it advisable to advertise in local
media, arranged displays and offer attractive
promotion deals to consumers. These actions help
in increasing the store traffic.

24. • Luring New Customers with Price
By offering a reduced price on a popular item,
you can lure customers away from competitors,
which may ultimately help turn them into regular
shoppers. For example, if you own a small
electronics store that's competing with a large
retailer, offer a discounted price on a popular cell
phone model for a limited time. If you serve the
customers well during the purchase process, they
may be willing to come back.

25. • Gaining Community Favor
Create a good name for your business by staging
a promotion that supports a worthy cause. For
example, if your town needs a new fire engine or
police car, donate a portion of customer purchases
at your business to the cause. You'll be helping
your community, which is a win-win for everyone
and may lead to more business for you.

26. • Providing Information
A sales promotion can help you provide
information to potential customers that aids them
in making a decision. This can be beneficial for
products or services that are complicated or are
unfamiliar to consumers. For example, if you're a
financial planner and you're attempting to gain
clients in the area of retirement planning, a free
seminar allows you to explain what you do and
how some of your investment products work.

27. Disadvantages Of Sales Promotion
• Increased price sensitivity
Consumers wait for the promotion deals to be
announced and then purchase the product. This is
true even for brands where brand loyalty exists.
Customers wait and time their purchases to
coincide with promotional offers on their
preferred brands. Thus, the routine sales at the
market price are lost and the profit margin is
reduced because of the discounts to be offered
during sale-season.
(E.g.)‘The Diwali Bonanza Offers’ on electronic
goods.

28. • Quality image may become tarnished:
If the promotions in a product category have been
rare, the promotions could have a negative effect
about its quality image. Consumers may start
suspecting that perhaps the product has not been
selling well, the quality of the product is true
compared to the price or the product is likely to be
discontinued because it has become outdated.

29. • Merchandising support from dealers is doubtful:
In many cases, the dealers do not cooperate in
providing the merchandising support nor do they
pass on any benefit to consumers. The retailer
might not be willing to give support because he
does not have the place, or the product does not
sell much in his shop, or maybe he thinks the
effort required is more than the
commission/benefit derived.

30. • Short-term orientation:
Sales promotions are generally for a short
duration. This gives a boost to sales for a short
period. This short-term orientation may
sometimes have negative effects on long-term
future of the organization. Promotions mostly
build short-term sales volume, which is difficult
to maintain. Heavy use of sales promotion, in
certain product categories, may be responsible for
causing brand quality image dilution.

31. Difference Between Sales Promotion And
Advertisement
ADVERTISEMENT SALES PROMOTION
By using a variety of persuasive
appeals, it offers reasons to buy a
product or service.
E.g.: Good Network, Promises and
Delivers.
Besides giving reasons in the form of
different appeals, they offer incentive to the
consumers to buy the product or service
now.
e.g. For new users, 1 no. is given free for 1
month & sms is free for 3 months.
Appeals are emotional or functional in
nature.
E.g.: the ad of “Wherever you go, our
network follows”
Appeals are rational
Contd……..

32. Time-frame is long term. Time frame is short term.
The primary objective is to create an
enduring brand image.
To get sales quickly or to induce trial.
Indirect and subtle approach towards
persuading customers to buy a product or
service.
Direct in approach to induce consumers
to buy a product or service immediately
by temporarily changing the existing
price-value relationship of the product or
service.

33. IT IS A PRESENTATION BY SHIKSHAPEETH
CDD
33
SHIKSHAPEETH COLLEGE OF
MANAGEMENT & TECHNOLOGY