TOOLS OF SALES PROMOTION
Without sales promotion something terrible happens …….nothing!
P T BARNUM
TATA SATHISH 121247
VEN...
An extra
incentive to buy
A tool to
speed up sales
An extra
incentive to buy
A tool to
speed up sales
Targeted to
differen...
Samples
Coupons
Premiums
Contests/sweepstakes
Refunds/rebates
Bonus Packs
Price-off deals
Frequency programs
Cooperative a...
FREE SAMPLES
These are distributed to attract consumers to
try out a new product and thereby create new
customers. Some bu...
Free Premiums:
Only require purchase of the
product
Self-liquidating Premiums:
require consumer to pay
some or all of the ...
COUPONS
Sometimes, coupons are issued by manufacturers
either in the packet of a product or through an
advertisement print...
Contests and Sweepstakes
Contest: a promotion where consumers compete for prizes or money on
the basis of skills or abilit...
BONUS REWARDS/ POINTS
Certain retail shops will have a scheme which
will require the customer to be a member of
the shop a...
MONEY BACK OFFER/ REFUNDS
Under this scheme customers are given assurance
that full value of the product will be returned ...
PRICE OFF DEALS / DISCOUNTS
Exchange offer
Bonus offer
Price-off offer
Scratch and win offer
TRADE PROMOTION
What is Trade Promotion?
• Marketing or Promotional activities undertaken to
promote a new or existing product, increase s...
Trade Sales Promotion
Objectives of Trade Sales Promotion:
• Gain/maintain distribution
• Influence resellers to promote p...
Trade ShowsTrade Shows
Contests and IncentivesContests and Incentives
Trade Allowances
Point-of-Purchase Displays
Sales Tr...
Trade Contests
 Used to achieve sales targets.
 Funds known as “spiff money.”
 Rewards can be prizes or cash.
 Can be ...
TRADE INCENTIVES
 Cooperative merchandising agreement
(CMA)
 Corporate sales program (CSP)
 Producing plant allowance (...
TRADE SHOWS
 Ranks 3rd in B-to-B marketing expenditures.
 Manufacturers spend huge amounts of money per show....
Largest...
Trade Allowances
Off-invoice allowance: a per-case rebate paid to
retailers for an order.
Drop-ship allowance: money paid ...
Effective POP Displays
• Integrate the brand’s image into the display.
• Integrate the display with current advertising an...
THANK YOU
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Sales promotional tools

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Sales promotional tools

  1. 1. TOOLS OF SALES PROMOTION Without sales promotion something terrible happens …….nothing! P T BARNUM TATA SATHISH 121247 VENKAT MANOHAR 121248 VISHNU KJ 121250 WASIM AKRAM 121251 BINAY JASWAL 121252
  2. 2. An extra incentive to buy A tool to speed up sales An extra incentive to buy A tool to speed up sales Targeted to different parties Sales Promotion “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.”
  3. 3. Samples Coupons Premiums Contests/sweepstakes Refunds/rebates Bonus Packs Price-off deals Frequency programs Cooperative advertising Trade allowances Training programs Contests, dealer incentives Point-of-purchase displays Trade shows Sales Promotion Tools Consumer-Oriented Trade-Oriented Event marketing Samples Coupons Premiums Contests/sweepstakes Refunds/rebates Bonus packs Price-off deals Loyalty programs Trade allowances Training programs Contests, dealer incentives Point-of-purchase displays Trade shows Event marketing
  4. 4. FREE SAMPLES These are distributed to attract consumers to try out a new product and thereby create new customers. Some businessmen distribute samples among selected persons in order to popularize the product. Common examples - shampoo, washing powder, coffee powder, etc.
  5. 5. Free Premiums: Only require purchase of the product Self-liquidating Premiums: require consumer to pay some or all of the cost of the premium Free Premiums: Only require purchase of the product Premium: an offer of an item of merchandise or service either free or at a low cost that is an extra incentive for customers Premiums Two Types of Premiums
  6. 6. COUPONS Sometimes, coupons are issued by manufacturers either in the packet of a product or through an advertisement printed in the newspaper or magazine or through mail. These coupons can be presented to the retailer while buying the product. The holder of the coupon gets the product at a discount. Best example for this is coupons distributed by the pizza restaurants like dominos, pizza hut, etc
  7. 7. Contests and Sweepstakes Contest: a promotion where consumers compete for prizes or money on the basis of skills or ability. Winners are determined by judging entries or ascertaining which entry comes closes to some predetermined criteria Sweepstakes/games: a promotion where winners are determined purely by chance and cannot require a proof of purchase as a condition for entry. Winners are chosen by random selection from a pool of entries or generation of a number to match those held by game entrants.
  8. 8. BONUS REWARDS/ POINTS Certain retail shops will have a scheme which will require the customer to be a member of the shop and to acquire membership card for the same. And every time the customer makes a purchase bonus points are added to the card and at the end of the year gifts are given for the points earned. Example – coffee day bonus points card, Moore super markets, Reliance fresh.
  9. 9. MONEY BACK OFFER/ REFUNDS Under this scheme customers are given assurance that full value of the product will be returned to them if they are not satisfied after using the product. When customers doubt the quality or reliability of your product or service, offer a money-back guarantee. Give a detailed explanation of eligible returns and refunds available for customer reference. Eg : Telebrands shopping
  10. 10. PRICE OFF DEALS / DISCOUNTS
  11. 11. Exchange offer Bonus offer Price-off offer Scratch and win offer
  12. 12. TRADE PROMOTION
  13. 13. What is Trade Promotion? • Marketing or Promotional activities undertaken to promote a new or existing product, increase sales of existing products, expand market share or create brand awareness among the distribution channels wholesalers, retailers, etc. • The word Trade Promotion encompasses virtually all forms of Product Promotion and Demand Creation. • Trade shows, special pricing, sales incentives, discounted or free display fixtures, demonstrations and freebies such as tickets to sporting events, movies or novelties (pens, paperweights, calculators), etc are few examples of promotional activities.
  14. 14. 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
  15. 15. Trade ShowsTrade Shows Contests and IncentivesContests and Incentives Trade Allowances Point-of-Purchase Displays Sales Training Programs Cooperative Advertising Tools of Trade-Oriented Promotions Buying Allowances Promotional Allowances Slotting Allowances Buying Allowances Promotional Allowances Trade Allowances Point-of-Purchase Displays Sales Training Programs Slotting Allowances
  16. 16. Trade Contests  Used to achieve sales targets.  Funds known as “spiff money.”  Rewards can be prizes or cash.  Can be designed for various channel members.  Some organizations do not allow trade contests because of possible conflict of interests.
  17. 17. TRADE INCENTIVES  Cooperative merchandising agreement (CMA)  Corporate sales program (CSP)  Producing plant allowance (PPA)  Back haul allowance (BHA)  Cross-dock or Pedal runs  Premium or bonus pack
  18. 18. TRADE SHOWS  Ranks 3rd in B-to-B marketing expenditures.  Manufacturers spend huge amounts of money per show.... Largest trade shows all over the world are:  International CES ( consumer electronic and technology shows )  The Super Show ( Texas car & vehicle shows )  Miami International Boat Show & Strictly Sail  International Housewares Show  Mid-America Trucking Show Egs in India are auto expos (last year jan 5 to jan 11 ),vivah mumbai ( 2-4th august), food fairs etc .
  19. 19. Trade Allowances Off-invoice allowance: a per-case rebate paid to retailers for an order. Drop-ship allowance: money paid to retailers who bypass wholesalers or brokers for pre- planned orders. Slotting fees: money paid to retailers to stock a new product. Exit fees: money paid to retailers to remove an item from their inventory
  20. 20. Effective POP Displays • Integrate the brand’s image into the display. • Integrate the display with current advertising and promotions. • Make the display dramatic to get attention. • Keep the color of the display down so the product and signage stand out. • Make the display versatile so it can be easily adapted by retailers. • Make the display re-usable and easy to assemble. • Make the display easy to stock. • Customize the display to fit the retailer’s store. Eg: Mobile Sims,toothpastes etc.
  21. 21. THANK YOU
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