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Sales promotional tools
1. TOOLS OF SALES PROMOTION
Without sales promotion something terrible happens …….nothing!
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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.”
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. 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. 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. 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. 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. 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
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. 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. 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. 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. 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. 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. 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. 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.
