Sales promotions

A key ingredient in marketing campaigns, consists of

incentive tools, mostly short term , designed to stimulate
quicker or greater purchase of particular products or
services by consumers or the trade

Types of sales promotion:

1.Consumer promotion{samples ,coupons , cash refund ,
prices off,premiums,prizes,pat5ronage awards. Free trials.
Warranties , tie-in-promotions , cross promotions pop
displays and demonstrations}
Types contd..
Trade promotions:{prices off , advertising and display
allowances and free goods}

Business and sales force promotios{ trade shows and

conventions , contests for sales reps and speciality
advertising}
Objectives of sales promotion
1.stimulates consumer trial
2.long term relationship
3.Attract new triers
4.Increases the repurchase rates
5.Attract brand switchers
6.Increse in market share
7Temporary gain in brand pareference
Contd..
8.Helps in managing short term variations in demand
and supply
9.Invoke consumers to try new products

 discussion:
Advertising Vs promotions
Public relations

Apublic is any group that has an actual or potential

interest in or impact on a company’s ability to achieve
its objectives.

Public relations is a variety of programs to promote

and protect a company’s image or individuals product
Functions of public relations
1.Press relations- presenting news and information abot
the organization in positive light.
2.Product publicity-sponsoring effects to publicize
specific products.
3.Corporate communications-
4.Lobbying-
5.counseling-advising mgmt about public issues, and
company positions and image during good times and
bad.
6.Managing brand crisis-
Marketing public relations(MPR)
Traditional name of MPR is publicity .It plays a few
important tasks.
1.Launching new products
2.Repositoning a mature products
3.Building interest in a productcategory
4.Influencing specific target groups
5.Defending products that have encountered public
problems.
6.Building the corporate image that reflects favourably
on its products
Tools in marketing PR
Publications
Events
Sponsorships
News
Speeches
Public service activities
Identity media
Ad budget
1.Affordable Method
2.Percentage of sales method
3.Competitive –parity method
4.Objective & task method-It calls upon marketers to
develop promotion budget by defining specific
objectives, determining the tasks that must be
performed and estimating the cost of performing
these tasks
For example suppose Cadbury wants to introduce a new
energy drink called ” sunburst” for athlete
Steps…
1.Establish the market share goal- company estimates
50 million potential users and sets a target of 8% of the
market i.e 4 million users.
2.Determine the % of the market that should be reached
by advertising- let it be 80% of the market i,.e 40 mn
3.Determine the % of aware prospects that should be
persuaded to try the brand-suppose 25% of aware
prospects(10 mn) tried sunburst. It estimates 40% of
all triers (4mn) will become loyal consumers this is the
marketing goal
Contd..

4.Determine the number of ad impressions per 1% trial-

advertiser estimates 40 exposures for every 1% of the
population will bring about 25% trial rate
5. Determine the number o f gross rating points that would
have to be purchased- GRP is one exposur es to 1% of
target population. Company wants 40 exposures to 80%
of population i.e it will want to buy 3200GRP
6.Determine the necessary budget on the basis of cost of
buying GRP-suppose 1% of target population for one
exposure cost say Rs 10,000 . Therefore 3200 GRP would
cost Rs 320,00,000 in the introductory year.