2. Definition of sales promotion
• According to American Marketing association:
“Those Marketing activities other than personal
selling, advertising and publicity, that stimulate customer purchasing,
dealer effectiveness, such as display, shows and exposition,
demonstrations and various non-recurrent selling efforts not in the
ordinary routine.”
4. Selecting consumer promotion tools
• Different types of market, sales promotion objectives, competitive
conditions and cost effectiveness
• Eg. In auto industry
• manufacturer: rebates, gift to motivate for test drives, purchases,
high value trade in credit
• Retailer : price cuts, feature ads, retailer coupons, contests or
premiums
• Consumer franchisee building and those that are not
• Eg. Free sample, coupons/premiums,contests
5. Consumer promotion tools
Samples
• Offer a free amount of product or services delivered door to
door, sent in mail, picked up in store, attached to another
product or featured in an advertising offer
• Eg. Medicines, samples with magazines
Coupons
• Certificates entitling the bearer to a stated saving on the
purchase of a specific product
• Eg. Coupons by dominos, pizza hut, online stores etc
6. Consumer promotion tools (cont.)
Cash refund offers (rebates)
• provides a price reduction after purchase rather than at the real
shop. Consumer sends a ‘proof of purchase to manufacturer who
refunds part of purchase by mail
• Eg. Cash back in City bank in flipkart
Frequency programs
• programs providing rewards related to the consumers frequency
and intensity in purchasing the companies product or services
• Eg. Loyalty programs by federal bank
7. Consumer promotion tools (cont.)
Price packs(cents off deal)
• offers to customers on savings off the regular price of a product.
Flagged on the label of a product
• 30% extra on biscuits, parachute oil , colgate etc
Premiums (gifts)
• Merchandise offered at a relatively low cost or free as an incentive
to purchase a particular product. A pack with premium
accompanies the product inside or on the package.
• Eg. Kinder joy
8. Consumer promotion tools (cont.)
Free trials
• Inviting prospective purchases to try the product without cost in the hope that
they will buy
Product warranties
• Explicit or implicit promises by sellers that the product will perform as specified or that
the seller will fix it or refund the money
• HP additional warranty
Tie-in-promotions
• Two or more brands or companies team up on coupons refunds and contests to
increase the pulling power
• Eg. James bond movies and Aston martin, Bang bang and mountain dew
9. Consumer promotion tools (cont.)
Patronage awards
• Values in cash or in other forms that are
proportionate to patronage of a certain vendor or
group of vendors
Point of purchase(p-o-p) displays and
demonstrations
• p-o-p displays and demonstrations take place at
the point of purchase or sale
10. Consumer promotion tools (cont.)
Cross-promotions
• using one brand to advertise another non
competing brand
Prizes (contests, sweepstakes, games)
• prizes are offers of the chance to win cash, trips, or
merchandise as a result of purchasing something
