• Short term incentives to encourage the purchase or sale of a product or service.
• To increase sales.• To introduce a new product.• To encourage consumers to buy more.• To encourage consumers to try the product.• To encourage consumers to buy at off peak times.• To reward loyal customers by increasing customers time of contact with the company.• To increase sales among existing customers.• To regain former customers.
• Consumer promotion• Trade promotion• Business promotion
Sales promotion tool used to urge short term customer buying or to enhance long-term customer relationship.• Sales promotions aimed final consumers and designed to stimulate consumer purchasing.• Can be direct to consumer’s home or in-store.
Role:• To encourage sales.• To increase usage.• To increase in frequency of usage.• To increase off peak sales.• To encourage sales of slow moving products.
• Contests• Coupons• Point of sale displays• Samples• Trade shows• Loyalty cards• Rebates (cash refund)• Prices off• Bundling
Sales promotion tools used to persuade reseller to carry a brand , give it shelf space, promote it in advertising and push it to consumer.• Sales promotion designed to gain reseller support and to improve reseller selling effort.• Sales promotions aimed at distributors to encourage them to stock a particular product.
Role of trade promotions:• To obtain shelf space.• To develop goodwill.• To encourage retailers to promote the product.• To increase the distribution network.• To encourage sales of slow moving products.• To assist sales force.