Sales Promotion

Sales Promotion
Sales Promotion, a key ingredient in
marketing campaigns, consists of a
collection of incentive tools, mostly
short term, designed to stimulate
quicker or greater purchase of
particular products or services by
consumers or the trade. Where as
advertising offers a reason to buy,
sales promotion offers an incentive to
buy.
Sales Promotion Includes Tools for

Consumer promotion

Trade promotion

Business and Sales-force promotion.

Consumer promotion tools
Samples, Coupons,
Cash refund offers
Prices off, Premiums,
Prizes
Patronage rewards, Free trials,
Warranties
Tie-in promotions, Cross-promotions
Point-of-purchase displays,
Demonstrations
Trade Promotion Tools

Prices off
Advertising and display allowances
Free goods
Business and sale-force promotion tools

Trade shows and conventions

Contests for
sales reps

Specialty
advertising
Sales promotion objectives
Sales promotion tools vary in their specific
objectives. A free sample stimulates
consumer trial, where as a free
management-advisory service aims at
cementing a long-term relationship with a
retailer. Sellers use incentive-type
promotions to attract new tries, to reward
loyal customers, and to increase the
repurchase rates of occasional users.
Sales promotion often attract brand
switchers, who are primarily looking for low
price, good value, or premiums.
A number of sales promotion benefits flow to
manufactures and consumers. Sales
promotions enable manufacturers to cope
with the vagaries of demand and supply.
They get an opportunity to test high prices for
their products (with discounts always
available for use). They induce customers to
try new products. Service marketers too
employ sale promotion tools to achieve
marketing objectives. Some service firms use
promotions to attract new customers and
establish loyalty.
Events and Experiences
Marketers report a number of reasons why
they sponsor events:
1. To identify with a particular target market or life
style. Customers can be targeted geographically,
demographically, psychographically, or behaviorally
according to events. Events can be chosen based
on attendees’ attitudes toward and usage of certain
products or brands.
2. To increase awareness of company or product
name. Sponsorship often offers sustained
exposure to a brand, a necessary condition to build
brand recognition.
3. To increase or reinforce consumer
perceptions of key brand image
associations. Events themselves have
associations that help to create or
reinforce brand associations.
4. To enhance corporate image
dimensions. Firms events and
sponsorships to create perceptions that
the company is likable, prestigious, and
so on.
5. To create experiences and evoke
feelings. The feelings engendered by an
exciting or rewarding event may also
indirectly link to the brand.
6. To express commitment to the
community or on social issues.
Marketers tie up with corporations and
non-profit organizations to support a
cause or charity program for the good of
the society.
7. To entertain key clients or reward key
employees. Events held to shower
hospitality or recognize contributions of
the clients and employees generate good
perceptions the stakeholders of the
company.
8. To permit merchandising or
promotional opportunities. Many
marketers tie in contests or sweepstakes,
in-store merchandising, direct response,
or other marketing activities with an
event.