Sales promotion ppt2 by Shumet Demeke. (AAUSC)
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Sales promotion ppt2 by Shumet Demeke. (AAUSC)

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Sales promotion ppt2 by Shumet Demeke. (AAUSC) Sales promotion ppt2 by Shumet Demeke. (AAUSC) Presentation Transcript

  • ALL YOU NEED TO KNOW ABOUT SALES PROMOTION E2BAIS3 GROUP ‘C’ STUDENTS Principles of Marketing ADDIS ABABA UNIVERSITY SCHOOL OF COMMERCE DEC,29/2013
  • WHAT IS SALES PROMOTION? Set of marketing activities undertaken to boost sales of the product or service.  It describes incentives and rewards to get customers to buy now rather than later. . Means to give short term incentives to encourage purchase or sale of a product or service (AMA)
  • Purpose of Sales Promotion Yield faster, more measurable results in sales Stimulate consumer trial Attract new triers or brand switchers Reward loyal customers Increase repurchase rate of occasional users Enhance Brand Image
  • Sales Promotion Vs Other Promotional tools In order to understand the basic role and function of sales promotion, one must differentiate between sales promotion and other components of the marketing mix.  Sales promotion usually operates on : a short timeline (temporarily), uses a more rational appeal, returns a tangible or real value, fosters an immediate sale, and contributes highlyreasonable, practical and functional desirability The to profitability.  of a product or service to a potential consumer
  • Main objectives of Sales Promotion To introduce new products or services : To attract new customers To induce existing customers to buy more Helps the firm to remain competitive To increase sales in off-seasons
  • Advantages of Sales Promotion Can be viewed from two point of views Manufacturers helps to increase sales in a competitive market and thus, increases profits; helps to introduce new products in the market by drawing the attention of potential customers;  When a new product is introduced or there is a change of fashion or taste of consumers, existing stocks can be quickly disposed off;  It stabilizes sales volume by keeping its customers
  • Advantages…Con’t consumers the consumer gets the product at a cheaper rate;  It gives financial benefit to the customers by way of providing prizes and sending them to visit different places;  The consumer gets all information about the quality, features and uses of different products;  Certain schemes like money back offer creates confidence in the mind of customers about the quality of goods
  • Disadvantages of Sales Promotion Increased price sensitivity Quality image may become discolored Dealers forward buy and divert stocks Merchandising support from dealers is doubtful Short-term orientation
  • Major tools of Sales Promotion •To increase the sales of a product, the producers or manufacturers use various tools of sales promotion.
  • MAJOR TOOLS ……CON’T Consumer Sales Promotion Directed to consumers of goods and service  Trade Sales Promotion Directed to distributors and retailers
  • Consumer Sales Promotion
  • Trade Sales Promotion
  • Objectives, Merits & Demerits of TSP
  • MAJOR DECISIONS IN SALES PROMOTION Establish Objectives Selecting the Appropriate Tools Developing the Program Pretesting, Implementing and Controlling the Program Evaluate Results
  • 1. Establishing Objectives Objectives for Consumers • Purchase larger size units • Lead nonusers to trial • Attract switchers from competing brands Objectives for the Sales Force • Encourage support of new products • Encouraging more prospecting
  • Establishing ….Con’t Objectives for Retailers • Carry new items in stock • Carry a higher level of inventory • Off-season buying • Stock related items • Offset competitive promotions • Build brand loyalty • Enter new retail outlets
  • 2. Selecting the Appropriate Tools Consumer Promotion Tools • Manufacturer Promotions • Retailer Promotions • Consumer-Franchise Building Promotions • Non-Consumer-Franchise Building Promotions
  • 3. Developing the Program • Integration of various tools • Factors: • Size of Incentive • Conditions for Participation • Duration • Distribution • Timing • Total Sales-promotion Budget
  • 4. Pretesting, Implementation & Control • Pretesting is important to ensure efficacy of promotion tools • Implementation • Lead time: preparation prior to launch • Sell-in time: begins with promotional launch and ends when 95% of merchandise is distributed to
  • 5. Evaluation of Sales Promotion •Brand switching •Repeat purchasing •Purchase acceleration
  • Some local Examples on Promotional tools 1) Consumer Oriented Promotion COMPANY/ORGANIZATION NAME PRICE DEAL Local Boutiques CONTESTS/SWEEPSTAKES SPECIAL EVENTS PREMIUMS CONTINUITYPROGRAM SAMPLING 2) TRADE ORIENTED PROMOTIONS POINT-OF-PURCHASE (POP) DISPLAYS TRADE SHOWS PUSH MONEY DEAL LOADERS TRADE DEALS BUYING ALLOWANCES ADVERTISING ALLOWANCES
  • THANK YOU! Any Questions?