SAL E S

PR O MO T IO NS
 WHAT IS SALES PROMOTIONS?

Sales promotions is a direct inducement that offers an extra value or incentive

for the product to the sales force, distributors, or the ultimate consumer, with
the primary objective of creating an immediate sale (Belch & Belch 2007).

It consists of short-term incentives to encourage the purchase or sale of a

product or service (Kotler et al. 2010). It involves a variety of techniques that
serves to accelerate purchase of products or services.
The growth of sales promotions was mainly due to the changes in the
marketing environment. Belch & Belch (2007) identified the
following factors:

1. Growing power of retailers

2. Declining brand loyalty
3. Increased promotional sensitivity
4. Brand proliferation
5. Fragmentation of the consumer market
6. Short term focus of the consumer market
7. Increased accountability
8. Competition
9. Clutter
 Sales promotions can be targeted to different levels of the sales process: (1) consumer, (2) trade
intermediaries, (3) sales force. Consumer-oriented promotional tools include samples, coupons,
packages, rebates, price-offs, premiums, contests, refunds, bonus packs, and demonstrations.
Trade promotions include allowances, free goods, cooperative advertising, contests and dealer
incentives, point of purchase displays, training programs, and push money. Sales promotions
directed to sales force include bonuses, contests, and incentives.
Kotler et al. (2010) spell out some factors to consider in setting up a sales promotional plan:

1. Objectives of the campaign

2. Type of market to be tapped
3. Competition
4. Cost and effectiveness of each tool
 SALES PROMOTIONAL TOOLS
1. Samples are offers of a trial amount of a product. Some samples are free, others charge a small amount

to offset its cost while inducing product trial.

2. Coupons are certificates that offer buyers savings when they purchase specific products. It is used to

stimulate sales of a mature product as well as promote the trial of a new product.

3. Packages involve putting together a set of complementing products to come up with one bundle at ab

special price. If the products are sold separately, the total cost will be more expensive.

4. Premiums are goods offered either for free or at a low cost to provide incentive for consumers to buy a

product.
5. Patronage rewards are bonuses in the form of cash or items of value that
can be redeemed for regular purchases made. These kinds of programs
create more frequency of purchase, positive word of mouth, and possibly
larger purchases.

6. Point of purchase promotion includes displays and promotions that take

place at the point of sale.

7. Contests and games give consumers a chance to win something such as a

trip or cash upon purchase of products and services.
Step 1: Decide on what Promotional Tools to Use
Tools Characteristics Uses Strengths Weaknesses
Step 2: Decide on which Media Channels to Use
Comparison of Media Channels’ Uses, Strengths, and Weaknesses
Medium Uses Strengths Limitations
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Step 3: Timing the Media Release
Audience size and interests vary at different periods of the year. Budgets are
increased when projecting an increase in interest. Kotler et al. (2002)
discussed that timing decisions should take three factors into consideration:
(1) audience turnover, (2) behavior frequency, and (3) forgetting rate.

Step 4: Evaluate the Media Results

Measuring the results of media messages is a difficult task especially
since there are many variables that have to be taken into consideration.
Evaluation research and tracking of media messages are important for
media planning.
THANK YOU FOR
LISTENING!

Reporter: Danna Marie A. Igoy