Sales promotion

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Sales promotion

  1. 1. Sales Promotion Promotion Unit No. 5 Marketing Management VIM
  2. 2. Concept • “Sales promotion consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker and/or greater purchase of particular products/ services by consumers or the trade.”
  3. 3. • Whereas advertising offers a reason to buy, sales promotion offers an incentive to buy.
  4. 4. • Sales promotion includes tools for ▫ Consumer promotion ▫ Trade promotion ▫ Salesforce promotion
  5. 5. Consumer Promotion- Tools • Samples • Cash refund offers • Price deal • Cents-off deal • Price-pack deal • Prizes • Patronage awards • Loyal reward program • Free trials • Warranties • Demonstrations • Contests/ sweepstakes • Rebates • Loss leader • Couponing- ▫ Free standing insert- coupons in local newspaper ▫ On-shelf couponing ▫ Check out dispensers ▫ Online couponing ▫ Mobile couponing
  6. 6. Trade Promotion- Tools • Buying/ trade allowances • Free goods • Cooperative advertising • Advertising • Display allowances • Dealer sales contests • Push money • Training programmes
  7. 7. Salesforce Promotion- Tools • Bonuses • Contests
  8. 8. Growth of Sales Promotion • Advertising to sales promotion ratio • Consumers are more deal oriented • Advertising efficiency has declined because of rising costs, media clutter and legal constraints • Promotion clutter- a concern
  9. 9. Purpose of sales promotion • Sales promotion tools vary in their specific objectives ▫ Incentive type promotions;  to attract new triers  To reward loyal customers  To increase the purchase rates of occasional users  To increase bill size ▫ Sales promotion designed to break down brand loyalty ▫ increase temporary sales volume
  10. 10. Four objectives of trade promotion • Trade promotion can persuade the retailer or wholesaler to Carry the brand • Trade promotion can persuade the retailer or wholesaler to Carry more goods • Trade promotion can induce the retailer to promote the brand by featuring, display and price reductions • Trade promotion can stimulate the retailers and their sales clerks to push the product

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