2. Meaning : Sales promotion relates to
short term incentives or activities that
encourage the purchase or sale of a
product or service. Sales promotions
initiatives are often referred to as “below
the line” activities.
3. OBJECTIVE
The primary objective of a sales
promotion, a catch all marketing
function, is to stimulate market demand,
improve product availability and to
coordinate public selling, advertising
and public relations
Sales promotion cannot compensate for
a poor product, a declining sales trend,
ineffective advertising or can it create
strong brand loyalty.
4. .
There are two types of sales
promotions;
consumer sales promotion:
A consumer sales promotion targets the
customer
trade sales promotion :
It focuses on organizational customers
that can stimulate immediate sales.
5. Consumer sales promotion
Consumer sales promotions encompass a
variety of short-term promotional techniques
designed to induce customers to respond in
some way. The most popular consumer sales
promotions are directly associated with
product purchasing. These promotions are
intended to enhance the value of a product
purchase by either reducing the overall cost of
the product or by adding more benefit to the
regular purchase price
6. TRADE SALES PROMOTION
a trade promotion aimed at retailers may
encourage retailers to instruct their employees to
promote a marketer’s brand over competitors’
offerings.
Many sales promotions aimed at building
relationships with channel partners follow similar
designs as those directed to consumers.
7. .
Consumer Sales Promotion Techniques
Consumers attract the greatest number of sales
promotion devices. Commonplace techniques
include
price deals: that offer a temporary price reduction
while cents-off deals offer a brand at a lower price,
usual as a percentage marked on the package.
Reward programs: involve collecting points, miles,
or credits from purchases and then redeeming
them for rewards.
coupons: They are used to lower prices, for
discounts, free goods and value added giveaways.
Even "cashback" or rebate offers can be
redeemed on line instead of through the mail.
Point-of-sale
8. .
Trade Sales Promotion Techniques
Wholesalers, retailers and other organizational groups
are offered a wide array of sales promotion devices
such as trade allowances or short term incentives to
encourage retailer to stock up on a product, dealer
loaders incentivizing product purchase and display,
trade contests for selling the most product,
point-of-purchase displays to create impulse buying
and spiffs or bonus commissions on certain products
and trade or functional discounts paid to distribution
channel members for conducting sales and special
events.
Sales Promotion Techniques at the Retail
Retailer sales promotion devices are regularly rolled
out for new marketing initiatives. For example "buy
one, get one free, three for two, buy quantity and
receive a lower price or percentage discounts on
specific days of the week.
