Sales Promotion

Sales Promotion
sajith@plink.co.in

Sales Promotion

Sales Promotion
Sales Promotion
a short-term incentive that motivates a purchase

Sales Promotion

Simply put

Advertising

Reason to buy

Sales Promotion

Incentive to buy

Sales Promotion

Positive Effects
Adds value to the brand (people buy more) Maximizes sales volume (short term) Motivate customers to try new product or brand

Sales Promotion

Negative Effects
Reduces profitability (high cost of promotional activities) Affects brand image Draws competitors into a price war

Sales Promotion

Sales Promotion
Marketing Objective
Short term Regional One-off deals Event driven

Tactical nature

Sales Promotion Targets Consumer Sales Promotion Trade Sales Promotion

Sales Promotion

GAP Groupon example

Gap offered $50 worth of apparel and accessories at a price of $25 on Groupon. By days end 441,000 Groupons were sold, bringing in around $11 million.

Sales Promotion

Sales Promotion
Consumer Sales Promotion

Consumer market

Goal
Trade Sales Promotion

Drive immediate purchase Influence behavior

Marketing channel

Sales Promotion

Uses of Sales Promotion

Immediate Purchases Increase Trial Boost consumer inventory Encourage repurchase Uses of Sales Promotion Increase ad effectiveness Encourage brand switching Encourage brand loyalty

Sales Promotion

Tools for Consumer Sales Promotion

Coupons and Rebates Premiums Loyalty Marketing Programs Contests & Sweepstakes

Popular Tools for Consumer Sales Promotion

Sampling Point-of-Purchase Promotion

Sales Promotion

Tools for Consumer Sales Promotion

Coupon

A certificate that entitles consumers to an immediate price reduction. 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.

Rebate

Premium

Sales Promotion

http://www.makelifeeasy.com/Resources/images/Rpt_Coupons_02.gif

Sales Promotion

http://www.niagarafallshotels.com/images/coupons.jpg

Sales Promotion

Electronic Coupons

http://telescope0.logika.net/b/scope?u=www.mainstonline.com%2F&c=xynylnprtnnwysupmuzpmznkkwuxxztw

Sales Promotion

Rebate

http://www.jemurphy.ca/rebate_promo.php

Sales Promotion

http://www.shamrockhomeinspections.com/i//rebates.jpg

Sales Promotion

http://www.site5review.org/images/site5-reseller-rebates-2.jpg

Sales Promotion

Premium

http://snorkelbobs.com/sbimages/choice_premiums.jpg

Sales Promotion

In-pack Premium

http://www.ighsolutions.com/specialtyprint/PublishingImages/5.10.2.jpg

Sales Promotion

http://premium-partners.com/Upload/HOF_Pic3_1.jpg

Sales Promotion

Tools for Consumer Sales Promotion

Loyalty Marketing Program
A promotional program designed to build long-term, mutually beneficial relationships between a company and key customers.

Frequent Buyer Program

A loyalty program in which loyal consumers are rewarded for making multiple purchases.

Sales Promotion

Tools for Consumer Sales Promotion

Contests
Promotions that require skill or ability to compete for prizes.

Sweepstakes

Promotions that depend on chance or luck, with free participation.

Sales Promotion

Tools for Consumer Sales Promotion

Sampling A promotional program that allows the consumer the opportunity to try a product or service for free.

Sales Promotion

Methods of Sampling
Direct mail Door-to-door delivery Packaging with another product Retail store demonstration

Sales Promotion

Make-up Samples

Sales Promotion

Polybagging

http://www.innovativepackaging.com/images/1a.jpg http://www.leafletdistribution.biz/mediac/400_0/media/DIR_3201/poly

Sales Promotion

In-door Sampling

http://www.dneworld.com/Portals/24/images/demo%20image.jpg

Sales Promotion

Sales Promotion

Combination Offers

http://www.unilever.co.id/Images/pepsodent_junior_tcm110-130198.jpg

Sales Promotion

Contest

Sales Promotion

Sales Promotion

Sales Promotion

Sweepstakes

http://www.quadratec.com/winbig/images/StagesSweepstakesTop.jp

Sales Promotion

http://www.shoprite.com/Cnt/images/Sweepstakes.jpg

Sales Promotion

Objectives of Sales Promotion

Type of Buyer Loyal Customers Competitors Customers Brand Switchers Price Buyers Desired Results
Reinforce behaviour Increase consumption Change timing Break loyalty Persuade to switch Persuade to buy your brand more often Appeal with low prices Supply added value

Sales Promotion Examples

Loyalty marketing Bonus packs Sampling Sweepstakes, contests, premiums Price-lowering promotion Trade deals Coupons, price-off packages, refunds Trade deals

Sales Promotion

Emerging trends

Sales Promotion

Online Consumer Sales Promotion

Free merchandise Effective Types of Online Sales Promotion

Sweepstakes

Free shipping

Coupons

Sales Promotion

Social Shopping
Group buying Snapdeal, Facebook offers, Timesdeal, etc.

Sales Promotion

Point-of-Purchase Promotion
Build traffic Advertise the product Induce impulse buying

Sales Promotion

Aisle Vision

Sales Promotion

Carts

POS?

Sales Promotion?

Sales Promotion

Instore promotion events

Sales Promotion

Coupons

Sales Promotion

Act Radio

Sales Promotion

Shelf take one

Sales Promotion

Shelf Talk

Sales Promotion

Vision System

Sales Promotion

Alpine Promotions

Sales Promotion

Field Services

Sales Promotion

Conveyor Belt Advertising

Sales Promotion

Checkout Message

Sales Promotion

Trade Sales Promotions

Sales Promotion

Trade Sales Promotion Tools

Trade Allowances Push Money Training Free Merchandise Store Demonstration Conventions & Trade Shows

Sales Promotion

Trade Allowance
Trade Allowance
A price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers.

Sales Promotion

Push Money
Money offered to channel intermediaries to encourage them to push products--that is, to encourage other members of the channel to sell the products.

Push Money

Sales Promotion

Role of Trade Sales Promotion

Gain new distributors Obtain support for consumer sales promotions Build or reduce dealer inventories Improve trade relations

Sales Promotion

Questions?

Sales Promotion