Consumer and Trade Sales Promotion

Presented By Dr Sanat Kumar Patnaik

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 What is promotion in sales
• A sales promotion is a marketing
strategy where a business will use
short-term campaigns to spark interest
and create demand for a product,
service

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 Objective of sales promotion
• . Sales promotion is used to create a market for new
products.
• 2. It is used by companies for competing with the
marketing strategies of the competitors.
• 3. It is helpful in gaining trust of the
• 4. It can be used for launching a product into a new
market. propel customers to try out the new product.
• 5. It serves as a great way of increasing brand
• 6. helpful for customer to identify products

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 Promotion mix

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 The Role of Sales Promotion
• Sales Promotion:
– Consists of media and non-media marketing
communications employed for a predetermined,
limited time to stimulate trial, increase consumer
demand, or improve product availability.

• Consumer Sales
Promotion:
– Directed at Consumers
• Trade Sales Promotion:
– Directed at Resellers

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 The Significance of Sales Promotion

Sales Promotion Expenditures

Consumer Factors

Impact of Technology

Increased Retail Power

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 The 10 Commandments of Creative
Sales Promotion
1. Set specific objectives
2. Know how basic promotion techniques work
3. Use simple, attention-getting copy
4. Use contemporary, easy-to-track graphics
5. Clearly communicate the concept
6. Reinforce the brand’s advertising message.
7. Support the brand’s positioning and image.
8. Coordinate promotional efforts with other
marketing plans.
9. Know the media you work with.
10. Involve the trade.

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 Consumer Sales Promotion
Objectives of Consumer Sales
Promotion:
• Stimulate trial
• Increase consumer inventory and
consumption
• Encourage repurchase
• Neutralize competitors
• Increase sales of complementary
products
• Stimulate impulse purchasing
• Allow flexible pricing

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 Consumer Sales Promotion
Techniques
• Price Deals
• Coupons
• Rebates
• Cross-Promotions
• Contests, Sweepstakes,
Games
• Premiums
• Sampling
• Advertising Specialties

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 Trade Sales Promotion

Objectives of Trade Sales Promotion:

• Gain/maintain distribution
• Influence resellers to promote product
• Influence resellers to offer price discount
• Increase reseller inventory
• Defend against competitors
• Avoid reduction of normal prices

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 Trade Sales Promotion Techniques

• Trade Allowances
• Dealer Loaders
• Trade Contests
• Point-of-Purchase Displays
• Trade Shows
• Training Programs
• Push Money

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 Limitations of Sales Promotion
• It typically cannot reverse a genuine declining
sales trend.

• Marketers cannot reasonable expect sales

promotion to convert refection of an inferior
product into acceptance.

• Sales promotion may even weaken the brand

image.

• Sales promotion has also been blamed for

encouraging competitive retaliation.

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 Limitations of Sales Promotion
• Short-term volume gain at the sacrifice of
profits.
– Forward Buying:
• People buy more than they need at the deal
price.

– Pay-for-Performance Trade Promotions:

• Retailers are rewarded for making sales to
consumers rather than making purchases from
manufacturers.

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 Ethical and Legal Issues
in Sales Promotion
• Deceptive Sales Promotion
• Fraud:
• The Fake Storefront
• Stuffing the Ballot Box
• Playing the Middleman
• The Redemption Scam

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 Ethical and Legal Issues
in Sales Promotion
Diverting (or Arbitraging):
• Secretly purchasing a product where it
is less expensive, usually as a result
of a trade promotion, and reselling in
areas where prices are higher.

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 Global Concerns

• The Global
Perspective requires
marketers to make an
extra effort to become
familiar with local laws
and customs.

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