SALES PROMOTION

MS. SHIPRA B. UPPAL

 What is sales promotion?

 Sales promotion is a marketing strategy where a

business will use short-term campaigns to spark interest
and create demand for a product, service or other offers.
Sales promotions can have many objectives and ideal
outcomes, which we will explore in detail throughout
this article. Primarily, sales promotions are used to
motivate buying behavior or trigger an uptick in
purchases in the short term, in order to reach a
benchmark or goal. Although the immediate purpose of
a sales promotion is an uptick in sales, there are plenty
of other benefits to building out a strategic sales
promotion technique with your marketing
 The pros of SALES PROMOTION

Creating loyalty and enthusiasm for your brand

Increasing sales and revenue
Gaining valuable insights into customer behavior
and price sensitivity
 Generate new leadsIn the short-term

sales promotions can help you attract new leads or

customers. However, this should also be seen as one
piece in a long-term strategy, since you’ll need to
continue to nurture these leads to move them along
the sales pipeline or turn them into loyal customers
that don’t churn.
 Introduce a new product, service or feature

Sales promotions are a great way to grab attention

and increase demand when introducing a new
product, service or feature that doesn’t yet have
social proof within your market.
 Gain valuable insights

Sales promotions work to generate valuable insights into

what your customers desire, how they make purchasing
decisions and what kinds of promotions they value the most
– useful information for both your sales and marketing
teams. When designing your sales promotion campaign,
you’ll need to conduct research into your customers’
interests, as well as what your competitors offer. Taking time
to do this research can help you and your team learn how to
attract new clients, improve customer service and create
compelling offers that resonate with your target audience.
Just imagine, you wouldn’t want to run a campaign for 15%
off the same week when your competitor is running a promo
for 20%
 Encourage existing customers to buy more

A great sales promotion idea could focus specifically on

repeat customers. Encouraging repeat business is easier
and more cost-effective than attracting new clients. In
fact, a 5% increase in customer retention generates more
than a 25% increase in profit, on average. By providing
existing customers with exclusive incentives, you can
increase loyalty, generate repeat purchases and
hopefully draw high-quality referrals. You can also
attract long-term and repeat customers. This practice is
a good one for any sales pipeline, as repeat clients move
through the funnel quickly, since they already know
what to expect.
 Sell during off-season or slow periods

Similar to selling out extra inventory, if your

business is seasonal or has slower periods, well-
timed sales promotions can help inject purchases
and galvanize interest during a time where sales are
often slow or stagnant.
 Short burst of revenue increase

Sales promotions can help companies increase the

number of products or services sold. Although the
sale often occurs at a reduced price, the increased
quantity sold helps counteract the difference.Send
 sales promotions to your existing audience

Once a person makes a purchase, they’re often

subscribed to your email list. By sending them a mix
of helpful content as well as sales promotions, you
can continue to keep them engaged.Email is a great
vehicle for this communication, as research shows
that 49% of people would like to receive weekly email
blast campaigns from their favorite brands. By
segmenting your list, you can ensure that you’re
sending them only the most relevant
It retains current customers. Gaining a paying
customer is not the end of the story. The more
challenging task is to nurture them over time for
another purchase. With sales promotions, you can
reward your audience and keep them involved in
your brand.
It gives a quick increase in sales. Sales promos
are meant to boost your sales on short notice. Done
right, they improve short-term sales and bring the
customer back to repeat a purchase.
 Sales Promotion
12

Sales promotion is any form of promoting sales where

there is a call to action that results in a demonstrable
benefit, whether tangible or not’
(Mullin and Cummins, 2008)

ADVERTISING OFFERS A REASON TO BUY WHEREAS SALES

PROMOTION OFFERS AN INCENTIVE TO BUY.
 SALES PROMOTION

2 for 1 Sale
$2 off
Buy One, after 8PM
Get One on Tuesday
Free

A variety of short-term incentives to encourage trial or

purchase of a product or service to stimulate purchases
and increase store traffic
 Importance-Why Sales Promotion?
 Products have become more standardized

 Consumer acceptance

 Advertising has become more expensive & less effective

 Immediate response

 Customers are more price sensitive

 Increasing Competition

 Creates immediate positive impact on sales

 Introduces an element of interest

 Impulse buying is increasing

 Excess stocks
 Objectives
15

 To attract the customers

 To increase sales
 Creating interest
 To encourage buyers to buy in great quantity
 To clear the inventory
 To introduce new products or services
 To increase sales in off- seasons
 Advertisement vs sales promotion
ADVERTISING SALES PROMOTION
Offers a reason to buy via using a variety of Offers incentive to the consumers to buy
persuasive appeals

Appeals are emotional or functional in Appeals are rational in nature

nature

Done for long term Time frame is short term

Primary objective is to create an enduring Primary objective is to get sales quickly or
brand image to induce trial

Indirect & subtle approach Direct approach to induce customer to buy

by changing existing price value
relationship.
 Limitations of Sales Promotion
17

 Short-term perspectives
 Impacts brand loyalty
 Increases price sensitivity
 Shoddy products are Passed-Off
 Quality image may become tarnished
 Non-recurring in its use
 Too many affects brand image
 Low status by ad agencies
 Reflection of Crisis
 To conclude……
 Sales promotions provide a short term incentive to purchase NOW.
 Trade promotions can get dealer support for both new and
established brands
 Consumer promotions can increase trial and/or repurchase and
can be used either offensively or defensively.
 Profitability depends on deal responsiveness
 Overuse or inappropriate use of sales promotions may harm brand
equity
 Don’t fall into the sales promotion trap!
“It is said that selling makes the world go
around. For it is somebody who sold
something to someone else, who in turn sold
it to us”

Thank you !