“Activity that provides special incentives to encourage immediate response from customers, distributors, and an organization’s sales force.” “Developing a plan of action for communicating incentives to designated targets.” Promotion strategy involves selecting the right combination of consumer promotions and trade promotions to achieve the marketing objectives. Contact: nomanaleemft@gmail.com 00923084089243

1. 8-1
PDP Sales Promotion

2. 8-2
PDP Sales Promotion
“Activity that provides special incentives to encourage
immediate response from customers, distributors, and an
organization’s sales force.”
Media
Promotion
Media
Promotion
Retailer
Promotion
Retailer
Promotion
Incentives to stimulate
purchase or loyalty.
Incentives to encourage
purchase and merchandising
support by distributors.

3. 8-3
Push and Pull Strategies
MarketerMarketer WholesalerWholesaler RetailerRetailer ConsumerConsumer
Media
Incentive %
A combination of push and pull works best!

4. ©2005 Pearson Education Canada Inc.8-4

5. 8-5
PDP Sales Promotion Planning
“Developing a plan of action for communicating
incentives to designated targets.”
Promotion plans are often devised by external
specialists who are briefed on the assignment.
• Increases Market Profile
• Competitive Activity
• Target Market Profile
• Promotion Objectives
• Budget

6. 8-6
PDP Sales Promotion Plans
Marketing PlanMarketing Plan
Sales Promotion
Plan
Objectives
Strategies
Tactics
Sales Promotion
Plan
Objectives
Strategies
Tactics
FulfillmentFulfillment EvaluationEvaluation
Advertising
Strategy
Advertising
Strategy
Other IMC
Plans
Other IMC
Plans

7. 8-7
Sales Promotion Objectives
PDP Consumer
Promotion
PDP Consumer
Promotion
Trade
Promotion
Trade
Promotion
• Trial Purchase
• Repeat Purchases
• Brand Loyalty
• Listings
• Sales Increases
• Merchandising Support

8. ©2005 Pearson Education Canada Inc.8-8

9. 8-9
PDP Sales Promotion Strategy
Promotion strategy involves selecting the right combination
of consumer promotions and trade promotions to achieve
the marketing objectives.
Strategy = Consumer Promotion + Trade Promotion +
Advertising Strategy
Advertising is essential to create awareness and interest in
the sales promotion.

10. 8-10
Logistics and Fulfillment
1. Involves decisions about dates, deadlines, and
details.
2. A promotion must run seamlessly from the
front-end (announcing the promotion) to the
back-end (delivering prizes or merchandise to
recipients).
3. Fulfillment is often outsourced to a specialist.

11. 8-11
Measurement and Evaluation
Some typical yardsticks include:
• Sales increases in promotion period
• Trial and Loyalty (research may be necessary)
• Number of entries in a contest
• Redemption rates
• Financial Payout

12. ©2005 Pearson Education Canada Inc.8-12

13. 8-13
Consumer Promotion Execution
CouponsCoupons
• Media delivery
• Product delivery
• In-store delivery
• Cross-product delivery
A price-saving incentive
to trigger new or repeat
purchases.

14. 8-14
Consumer Promotion Execution
Free
Samples
Free
Samples
• Regular size
• Trial size
• In-store taste samples
• On-site giveawayFree product to
encourage trial
purchase.

15. 8-15
Consumer Promotion Execution
ContestsContests
•Sweepstakes
•Games Contests
•Instant Wins
Repeat purchase and
loyalty-building incentives.
They require advertising
support to create interest.

16. 8-16
Consumer Promotion Execution
Cash
Rebates
Cash
Rebates
• Single Purchase Offers
• Multiple Purchase Offers
• Slippage Occurs
$ returned to consumers
after purchase has been
made.

17. 8-17
Consumer Promotion Execution
Premium
Offer
Premium
Offer
• In-pack
• Mail-in
• With purchase
• Product bundling
• Bonus packsAn item given free or at a
discounted price with the
purchase of a good.

18. 8-18
Consumer Promotion Execution
Loyalty
Programs
Loyalty
Programs
• Points programs
• Loyalty cards
• $ rewards
Incentives that encourage
long-term loyalty; database
management initiatives.

19. ©2005 Pearson Education Canada Inc.8-19

20. 8-20
Trade Promotion
A distributor’s loyalty to any supplier’s products is
influenced by the quality and quantity of trade
promotion offers.
Distributors make money by buying and re-selling
goods. Inventory turnover is very important.

21. 8-21
Trade Promotion Execution
A variety of financial incentives are commonly offered
to distributors.
Trade
Allowance
Trade
Allowance
Performance
Allowance
Performance
Allowance
Cooperative
Advertising
Cooperative
Advertising
Temporary price reduction to
stimulate larger purchases.
An additional allowance to
encourage merchandising
support.
An accumulating fund that
supports retail advertising.

22. 8-22
Trade Promotion Execution
Some trade promotion incentives are controversial.
Dealer
Premium
Dealer
Premium
An incentive offered a
distributor to encourage a
“special” purchase. Often
called “payola.”
SpiffSpiff
Retail representatives are
offered incentives to “push”
a sponsors product line.

23. 8-23
Trade Promotion Execution
Some trade promotions support the personal selling
effort and in-store merchandising programs.
Collateral
Matrial
Collateral
Matrial
Dealer Display
Material
Dealer Display
Material
Material used by sales reps in
presentations (price lists,
catalogues, brochures, CD-
ROMs, etc.).
Point-of-purchase display
material to encourage
purchase (shelf pads, posters,
displays, etc.).

24. 8-24
Planning the Promotion
Planning is crucial. Sales promotions are complimentary
activities that must be integrated with other marketing
and marketing communications programs.
1. How frequent should promotions be?
2. What effect will promotions have on brand image?
3. Will promotions enhance brand equity?
Tim Hortons RRRoll Up the Rim meets all of
these considerations positively.

25. 8-25

26. •
Thank You
©2005 Pearson Education Canada Inc.8-26