Sales & Promotion Management

Module 1

SalesPromotion
Definition:SalesPromotionsisdefinedasadirectinducementwhichoffersanextra
value and incentive for the product to the sales force, distributors, or the ultimate
consumerswiththeprimaryobjectiveofcreatingimmediatesale.
Pointstobenoted
Anextraincentivetobuy
Anaccelerationtool.
Aninducementtointermediaries
Targetedtodifferentparties

SalesPromotionVehicles

SalesPromotionVehicles

ConsumerOriented

TradeOriented

1)Samples

1)Contests,Dealerincentives.

2)Premiums

2)Tradeallowances

3)Coupons

3)PointofPurchasedisplays

4)ContestsorSweepstakes

4)Trainingprograms

5)Refunds/Rebates

5)Tradeshows

6)BonusPacks

6)Cooperativeadvertising

7)PriceOffs
8)EventMarketing

ReasonsforincreaseinSalesPromotion
1)Growingpowerofretailers
2)Decliningbrandloyalty
3)Increasedpromotionalsensitivity
4)Brandproliferation
5)Fragmentationofconsumermarkets
6)Shorttermfocus
7)Increasedaccountability
8)Competition
9)Clutter

SalesPromotionUses
1)Introducenewproducts
2)Getexistingcustomertobuymore
3)Attractmorecustomers
4)Combatcompetition
5)Maintainsalesinoffseason
6)Tieinadvertisingandpersonalselling
7)Enhancepersonalsellingefforts.

Objectives of Consumer Oriented Sales Promotion Uses

1) To obtain trial and repurchase
2) To increase consumption of established brand
3) To defend (maintain) current customers
4) To target a specific segment
5) Enhance IMC programs and build brand equity