Retail Promotion Strategies

1. RETAIL SALES
PROMOTION STRATEGIES

2. CONSUMER SALES PROMOTION
V/S
TRADE SALES PROMOTION

3. DIFFERENCE BETWEEN SALES PROMOTION
AND ADVERTISING!

4. SALES PROMOTION
WHETHER A PULL/PUSH STRATEGY?

5. DO YOU FEEL THAT SALES PROMOTION IS
AN EFFECTIVE CHANNEL OF MARKETING
COMMUNICATION THAT INFLUENCE
DISTRIBUTION CHANNEL PERFORMANCE?

6. WHY SALES PROMOTION?
• Provides immediate results
• To attract new clients
• To stimulate repeat purchases
• To introduce a new product
• To stimulate sales during off-peak business hours
• Get potential buyers to heed a call to action
• Increase the size of purchases
• To increase sales in general
• Relatively inexpensive compared to advertising
• Helps build database

7. SALES PROMOTION TECHNIQUES
• Discounts
• Buy More, Save more
• Bundling
• Coupon Giveaway
• Loyalty Points
• Continuity/Loyalty programs
• Flash Sales
• Price Match Promise
• Holiday/Specific occasion Promotions
• Gifting

8. • Sampling and Free trial
• Contests
• Lotteries
• Financing
• Exchange offer
SALES PROMOTION TECHNIQUES

9. TRADE PROMOTION TECHNIQUES
Trade
Allowances
Discounts offered to channel partners to stock up/
promote a product.
Dealer Loaders
Incentives/Gifts used to persuade retailers to
purchase and display a product
Trade Contests
Contests used to reward dealers/retailers that sell
the largest quantity or highest units of a brand’s
product.
Push Money
(Spiffs)
Extra commission paid to distributor/retail
employees to push products.
Training
Programs
Training instructing dealer employees in selling the
brand’s product.

10. TRADE PROMOTION TECHNIQUES
Point-of-Sales
Materials
Posters, Dangler, Dummy Boxes, Shelf Branding,
Shelf Talker, Leaflets & Leaflets Dispenser, Wobblers
Exhibition &
Trade fairs
Sponsoring to participate in these fairs

11. CHANNEL CONFLICT
MANAGEMENT

12. TYPES OF CHANNEL CONFLICT
Vertical Channel
Conflict
The channel partner belonging to a higher level enters into a dispute
with the channel member of a lower level or vice-versa.
e.g. - channel conflict between dealers and retailers or wholesalers
and retailers.
Horizontal
Channel Conflict
Multi-Channel
Conflict
The conflict among the channel partners belonging to the same level,
i.e., issues between two or more stockists or retailers of different
territories, on the grounds of pricing or manufacturer’s biases.
When the manufacturer uses multiple channels for selling the
products, it may face multi-channel level conflict where the channel
partners involved in a particular distribution channel encounters an
issue with the other channel.

14. HOW CHANNEL MEMBERS HANDLE
DISPUTES AND NEGOTIATE
High Assertiveness
Low Assertiveness
Low Cooperativeness
High Cooperativeness
Accommodation
Avoidance
Compromise
Competition or
Aggression