Sales Promotion


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Sales Promotion

  1. 1. Sales Promotion Prepared By: - Vivek Sharma Roll No. 06 ISMC, Noida
  2. 2. Sales Promotion <ul><li>Sales promotion includes several communications activities that attempt to provide added value or incentives to consumers, wholesalers, retailers or sales-force to stimulate the immediate sales. </li></ul><ul><li>Sales promotion describes promotional methods using special short term techniques. </li></ul>
  3. 3. Types of sales promotion <ul><ul><li>Consumer promotion </li></ul></ul><ul><ul><li>Trade promotion </li></ul></ul><ul><ul><li>Sales-force promotion </li></ul></ul>
  4. 4. Objective of Sales Promotion <ul><ul><li>Building product awareness </li></ul></ul><ul><ul><li>Creating interest </li></ul></ul><ul><ul><li>To increase the sales volume in short term </li></ul></ul><ul><ul><li>Attract more customer </li></ul></ul><ul><ul><li>Encourage the customer for buying </li></ul></ul>
  5. 5. Objective of Consumer Promotion <ul><li>Retain the customer </li></ul><ul><li>Increase repurchase </li></ul><ul><li>Brand Switching </li></ul><ul><li>Store Switching </li></ul><ul><li>Increase footfall </li></ul>
  6. 6. Objective of Trade Promotion <ul><li>Buy More </li></ul><ul><li>Building Relationship </li></ul><ul><li>Stock during off season </li></ul><ul><li>Display of new product launch </li></ul><ul><li>Competition </li></ul>
  7. 7. Objective of Sales Force Promotion <ul><li>Increase the level of Motivation </li></ul><ul><li>Getting market information </li></ul><ul><li>Encourage selling a new product </li></ul>
  8. 8. Major Consumer-Promotion Tools <ul><li>Free Samples: - Company provide samples of the product by mail, by retail store, attached in magazines. </li></ul><ul><ul><li>For Example - Clinic Plus Provide samples of its shampoos in Big Bajar and attached with Times of India. </li></ul></ul><ul><li>Coupons: - Company provide coupons to their customers inside the pack of product or inserted in magazines and newspaper ads. </li></ul><ul><ul><li>For Example - Mr. White provide coupons inside the pack. Returned empty pack and get Rs 5 off in next purchase. </li></ul></ul>
  9. 9. Major Consumer-Promotion Tools <ul><li>Discounts: - Company provide discount offers to their customers when they buy the product. </li></ul><ul><ul><li>For Example - Globus provide 50% discount on its product. </li></ul></ul><ul><li>Buy 1 Get 1 Free: - Company provide offers to their consumers to buy 1 product and get another 1 free. </li></ul><ul><ul><li>For example - Lux offers to their customer buy 3 get 1 free offer. </li></ul></ul><ul><li>Combo Offer: - A Combo pack is two related products banded together. </li></ul><ul><ul><li>For Example - Colgate offers a combo pack of toothbrush free with toothpaste. </li></ul></ul>
  10. 10. Major Trade-Promotion Tools <ul><li>Price-Off : - A straight discount off the list price on each case purchased during a stated time period. </li></ul><ul><ul><li>For Example - Nokia offers to their retailers price off facility. </li></ul></ul><ul><li>Allowance: - An amount offered in return for the retailer’s agreeing to feature the manufacturer’s products. An advertising allowance and display allowance compensates retailers for advertising the manufacturer’s product. </li></ul><ul><ul><li>For example - Samsung and LG provide allowances to their retailers in the season of Diwali. </li></ul></ul>
  11. 11. Major Trade-Promotion Tools <ul><li>Free Goods: - Offers of extra cases of merchandise to intermediaries who buy a certain quantity or who feature a certain flavor or size. </li></ul><ul><ul><li>For example - Nestle Eclairs provides free goods offers to their retailers. </li></ul></ul><ul><li>POP Displays: - This is extra tool of sales promotion given by a company to retailers to boost the sales. </li></ul><ul><ul><li>For example - Outside signs, window displays, counter pieces, product display. </li></ul></ul><ul><li>Push money: - An extra commission paid to retailers to push the products. </li></ul><ul><ul><li>For example – Nokia provide their retailers sale 5 pack of mobiles and get extra 2% margin. </li></ul></ul>
  12. 12. Advantage of Sales Promotion <ul><li>Increased Buying Confidence Customer </li></ul><ul><li>Increased Retention </li></ul><ul><li>Increased Repeat purchase </li></ul><ul><li>Increased short term sales </li></ul><ul><li>Increased Brand switching </li></ul><ul><li>Good short term promotional tool </li></ul><ul><li>Provide quicker results </li></ul>
  13. 13. Disadvantage of Sales Promotion <ul><li>Dangerous in long term basis </li></ul><ul><ul><ul><li>Damage the image of product in customers mind </li></ul></ul></ul><ul><ul><ul><li>Reduced the effect over the customer </li></ul></ul></ul><ul><ul><ul><li>Risk factor getting high </li></ul></ul></ul><ul><ul><ul><li>Less profit margin </li></ul></ul></ul>
  14. 14. Example <ul><li>Nike provide its customers flat 40% reduction on the product MRP. </li></ul><ul><li>The objective of using this techniques is to attract more new customers and increase the footfall of the store. </li></ul><ul><li>The other objective of Nike is to clearance the stock and bring the new trend. </li></ul>