Sales Promotion


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Sales Promotion

  1. 1. Sales Promotion
  2. 2. Promotion mix
  3. 4. Sales promotion <ul><li>It is a key ingredient in marketing campaigns , consists of a collection of incentive tools, mostly short term , designed to stimulate quicker or greater purchase of particular product or services by consumer trade. It includes -: </li></ul><ul><li>Consumer promotion </li></ul><ul><li>Trade promotion </li></ul><ul><li>Sales-force promotion </li></ul>
  4. 5. Objectives <ul><li>To stimulate trial purchase </li></ul><ul><li>To stimulate repeat purchase </li></ul><ul><li>To stimulate larger purchase </li></ul><ul><li>To introduce a new brand </li></ul><ul><li>To compete with the market competitors & marketing strategy </li></ul><ul><li>To increase the sale of goods </li></ul><ul><li>To target specific market segment </li></ul><ul><li>To attract new customers </li></ul><ul><li>To increase impulse buying </li></ul><ul><li>To clear excessive inventories </li></ul>
  5. 6. Tools <ul><li>Samples </li></ul><ul><li>Premiums </li></ul><ul><li>Contest </li></ul><ul><li>Point of purchase display </li></ul><ul><li>Coupons </li></ul><ul><li>Refund </li></ul><ul><li>Bonus packs </li></ul><ul><li>Free trial </li></ul><ul><li>Free training </li></ul><ul><li>Trade fares & exhibitions </li></ul><ul><li>Sponsoring games & teams </li></ul><ul><li>After sales service </li></ul><ul><li>Warranty & guarantee </li></ul><ul><li>Frequency programs </li></ul><ul><li>Event sponsorship </li></ul><ul><li>Advertising specialty </li></ul><ul><li>Honoring brilliant people </li></ul><ul><li>Promoting through celebrities </li></ul>
  6. 7. 1. Samples <ul><li>It refers to free amt. of product or service which can be delivered in the following way-: </li></ul><ul><li>In store sampling </li></ul><ul><li>Door to door sampling </li></ul><ul><li>Newspaper sampling </li></ul><ul><li>On package sampling </li></ul>
  7. 8. In store sampling <ul><li>Free samples are distributed within the organization. For eg-: pepsi </li></ul>
  8. 9. Door to door sampling <ul><li>Some agents are assigned for distributing the samples for free. </li></ul><ul><li>For eg-: agarbatti </li></ul>
  9. 10. Newspaper sampling <ul><li>Newspaper are distributed as free samples. For eg-: Raj express in Indore </li></ul>
  10. 11. On package sampling <ul><li>In this the product is attached with another product. For eg-: pepsodant tooth paste with tooth brush </li></ul>
  11. 12. 2. Premiums <ul><li>They are offered with goods either free or at a low cost as an incentive to buy a product. Types of premiums are-: </li></ul><ul><li>In or on package premium </li></ul><ul><li>Purchase privilege plan </li></ul><ul><li>Re usable container </li></ul><ul><li>Additional weight or product </li></ul><ul><li>Exchange offer </li></ul>
  12. 13. In or on package premium <ul><li>It accompanies the product inside or on the product. For eg-: Tattoos </li></ul>
  13. 14. Purchase privilege plan <ul><li>When we buy a product there are no. of alternatives available. For eg-: soft drinks </li></ul>
  14. 15. Re-usable container <ul><li>A container is given with the product as a gift. For eg-: Bournvita </li></ul>
  15. 16. Additional weight or product <ul><li>In this it offers increase in quantity of product or adds a new product to it. For eg-: bear paws </li></ul>
  16. 17. Exchange offer <ul><li>It says bring old and get new. For eg-: mehindpurwala in Indore –bring old arm chair n get new at half cost </li></ul>
  17. 18. 3. Contest <ul><li>A contest calls for customer to submit an entry to be examined by a panel of judges who will select the best entries. It can be in the following forms-: </li></ul><ul><li>Inviting slogans on a product </li></ul><ul><li>Suggesting a new name for a product </li></ul><ul><li>Suggesting a new usage for the product </li></ul><ul><li>Participating in a game for a product </li></ul>
  18. 19. Inviting slogans on a product <ul><li>Amul – </li></ul><ul><li>The taste of India </li></ul>
  19. 20. Suggesting a new name for the product <ul><li>Uti bank is now known as axis bank </li></ul>
  20. 21. Suggesting new usage for product <ul><li>Vaseline was earlier used as oil in organizations but is now used as a cosmetic item </li></ul>
  21. 22. Participating in a game for the product
  22. 23. 4. Point of purchase display <ul><li>It offers an extra amt. of a product at a regular price by proving larger containers or extra unit. for eg-: big bazar </li></ul>
  23. 24. 5.Coupons <ul><li>They are the certificates that gives buyer a saving when they purchase specified products. for eg. </li></ul>
  24. 25. 6.Refund <ul><li>They are the offers by the manufactures to return a portion of price after the consumer supplies some proof of purchase. for eg-: </li></ul>
  25. 26. 7.Bonus packs <ul><li>It offers an extra amt. of a product at the regular price by providing larger container or extra units. For eg. Shoes 1+1 </li></ul>
  26. 27. 8. Free trial <ul><li>It refers to inviting prospective purchasers to try the product without cost in the hope that the customer will buy. For eg-: cars </li></ul>
  27. 28. 9. Free training <ul><li>It refers to the training which is given to the customers regarding the product usage before they use it. For eg-: scooty pep </li></ul>
  28. 29. 10.Trade fares & exhibitions <ul><li>Industrial associations organize them which includes free demonstration of the product & various schemes to attract customers. For eg-: </li></ul>
  29. 30. 11.Sponsoring games & teams <ul><li>Organizations sponsor certain activities in order gain customers attraction. For eg-: reliance 20-20world cup </li></ul>
  30. 31. 12. After sales service <ul><li>After selling the product the organization provides benefit of various free services on the product. For eg-: cars </li></ul>
  31. 32. 13.Warranty & guarantee <ul><li>Explicit or implicit promises by the seller that the product will perform as specified or that the seller will fix it or refund the customers money during a specified period. For eg-: computer </li></ul>
  32. 33. 14. Frequency programs <ul><li>Programs providing rewards relating to consumer frequency & intensity in purchasing the co’s product. For eg-: airlines </li></ul>
  33. 34. 15.Event sponsorship <ul><li>It includes-: </li></ul><ul><li>Cultural </li></ul><ul><li>Social </li></ul><ul><li>Educational event </li></ul><ul><li>For eg-: polio vaccination </li></ul>
  34. 35. 16.Advertising specialty <ul><li>The co. gives some or the other item on which co’s name is given. For eg-: </li></ul>
  35. 36. 17.Honoring brilliant people <ul><li>People who have won some special awards are being honored by the co. for eg-: </li></ul>
  36. 37. 18.Promoting through celebrities
  37. 38. Advantages <ul><li>It offers low price to the customer. </li></ul><ul><li>It increases the standard living of the customer. </li></ul><ul><li>It increases the saving </li></ul><ul><li>It helps in personal selling </li></ul><ul><li>It increases the goodwill of the co. </li></ul><ul><li>It increases the demand of new product. </li></ul><ul><li>It is a motivating factor for retailers & salesman </li></ul>
  38. 39. Disadvantages <ul><li>Continuous sales promotion leads to loss of perceived value of the brand. </li></ul><ul><li>The brand image & loyalty may erode if the sales promotion are continuously used. </li></ul><ul><li>It is useful mostly in mature markets. </li></ul><ul><li>There is no visible increase in the market share since is just a borrowing from the future sales. </li></ul><ul><li>It also increases the overall cost of the organization. </li></ul><ul><li>It has a negative effect on brand. </li></ul>