Clas

Date s: 7
Sa le s :1 9 A
s
th

m o ti on ug , 2
Pr o 020

Mar
ke ting
M in o
r
 i s S a l es
What n ?
Prom o t i o

A direct inducement, offering added value, or incentive for the product, to

resellers, sales persons or consumers with the primary objective of
immediate (short term) increase in product sales. e.g Sweepstakes,
contests, premiums, test drives, P-o-P displays, rebates etc.
 
Sales promotion is one of the five tools of promotional mix. (The other
four tools of the promotional mix are advertising, personal selling, direct
marketing and publicity/public relations.)
 e s o f
je c t iv
h e Ob ion
T r o m ot
P
Sales
 c t i v es o f
Obje o ti o n
o m
Sales Pr
 Building Product Awareness

 Creating Interest

 Providing Information

 Stimulating demand

 Reinforcing the brand

 fo r r a p id
Reasons S a les
h o f
growt n
Promotio

1. Increasing Competition
2. Customers Have Become More Price Sensitive
3. Sales Promotions Generally Create An Immediate Positive
Impact On Sales
4. Products have become more standardized:
5. Consumer Acceptance:
6. Advertising Has Become More Expensive And Less Effective:
7. Trade Has Become More Powerful:
8. Emphasis On Sales Volumes:
9. Sales Promotions Maximise Profits:
10. Introducing An Element Of Interest:
11. Impulse Buying Is Increasing:
12. Sales Promotion Specialists Are Available:  
13. Clear Excess Stocks:
Types :

 Consumer Sales Promotion

 Trade Sales Promotion

 Sales-force Sales Promotion

 omotion
ales Pr
S
GOAL Drive immediate purchase
Influence behavior

Consumer
Sales Promotion Consumer market

Sales Force – Sales

Promotions Sales force of the Company

Trade
Marketing channel
Sales Promotion

• It is a marketing technique that is used to entice customers
to purchase a product. The promotions typically last for a
set period of time and are used to achieve a specific
purpose, such as increasing market share or unveiling a new
product

Objectives of Consumer Sales Promotion :


Retain customer

Increase repurchase

Increase footfall

 A type of promotion related activity whereby a
product and/or service is pushed through a marketing
channel via the encouragement of those channel
members to buy, as well as to promote the product
and/or service to their own group of customers.

Objectives of Trade Sales

 Promotion Buying more
 Building relationship
Competition
The
 schemes are intended to motivate sales people to
put in more efforts to increase sales, increase
distribution, promote new or seasonal products, sell
more deals to resellers, book more orders, develop
prospects lists and build up morale and enthusiasm.

Objectives of Sales-force Sales Promotion


Increase the level of motivation



Getting Market Information Encourage

selling of a new product
 tiv e s of
Objec r oriented
n su m e
C o mot ion
e s Pr o
S a l
Sales Promotion
Type of Buyer Desired Results
Examples

• Reinforce behavior
Loyal • Increase consumption
• Loyalty marketing
Customers • Bonus packs
• Change purchase timing
• Sampling
Competitor’s • Break loyalty
• Sweepstakes,
Customers • Persuade to switch
contests, premiums
• Price-lowering
Brand • Persuade to buy your
promotion
Switchers brand more often • Trade deals

• Appeal with low • Coupons, price-off

LO
Price Buyers1
prices packages, refunds
• Supply added • Trade deals
value
 su m er
r C on
ools fo ti on
T P ro mo
Sale s
Coupons and Rebates

Premiums

Loyalty Marketing Programs

Contests & Sweepstakes

Sampling

Point-of-Purchase Promotion
 Co n su mer
r
Tools fo o ti on
r o m
Sales P

A certificate that entitles

Coupon consumers to an immediate
price reduction.

A cash refund given for the

Rebate purchase of a product during
a specific period.

An extra item offered to the consumer, usually

Premium in exchange
for some proof of purchase.
 ons u mer
fo r C
Tools ot ion
P rom
Sales

Loyalty A promotional program designed

to build long-term, mutually
Marketing beneficial relationships between
Program a company and key customers.

Frequent A loyalty program in which

Buyer loyal consumers are rewarded for
Program making multiple purchases.
 s um e r
or Co n
s f
Tool om o t ion
a le s Pr
S

Promotions that require skill

Contests or ability to compete for
prizes.

Promotions that depend on

Sweepstakes chance or luck, with free participation.
 on su mer
s f or C
Tool o tion
Pro m
Sales
A promotional program that allows the
Sampling consumer the opportunity to try a
product or service for free.
 od s o f
Meth g
m plin
Sa
Direct mail

Door-to-door delivery

Packaging with another product

Retail store demonstration


 O f fe rs
Combo

Price o ff

 B u nd l i n g
P ro d uc t


A product bundling strategy is a marketing approach where

multiple units of the same product are packaged together
into one bundled solution.
 p r o g r a m s
Lo y al ty

structured marketing
efforts that reward, and
therefore encourage, loyal
buying behaviour –
behaviour which is
potentially beneficial to
the firm.


Private label is a Brand

owned not by a
manufacturer or producer
but by a retailer or supplier
who gets its goods made by
a contract manufacturer
under its own label.
 T ra de
s of
Fo rm
mo tion
les Pro
Sa
 - T rade
B2B - m otion
P ro
Sales
Trade Allowances

Push Money

Training

Free Merchandise

Store Demonstration

Conventions & Trade Shows

 l lowa n c e
Trade A

Trade • A price reduction

Allowance offered by
manufacturers to
intermediaries, such
as wholesalers and
retailers.
 o n e y
Push M

Money offered to channel

Push Money intermediaries to encourage
them to “push” products--that
is, to encourage other members
of the channel to sell the
products.
E.g. Nike gives bonus to sales
staff of retailers for meeting
quotas

An allowance given to
trade for arranging desired
display and merchandising
efforts.

To create enthusiasm in
trade, increase store traffic
and exposure at the point-
of-purchase, encourage
trade to promote company’s
product, to gain more shelf
space.
 t r at i o n s
Demons


Product demonstrations
are arranged to increase
awareness about new
products, usage benefits
and performance.
To convince customer,
motivate
 dealers, build
store-traffic, reinforce
advertising and personal
selling efforts.
 T rade
fits of
Bene ot io ns
Prom

 Help manufacturers gain new distribution

 Obtain wholesaler and retailer support for

consumer sales promotions

 Build or reduce dealer inventories

 Improve trade relations

Sum up :