Sales promotion is used to stimulate short-term purchases and build long-term relationships. There are three main types: consumer promotion which uses coupons and samples, trade promotion which offers prices off and free goods, and business/sales promotion like trade shows and sales contests. Developing an effective promotion program requires establishing objectives, choosing appropriate tools, determining the size, conditions, duration, distribution, timing, and budget. Implementation and evaluation ensures proper execution and assessment of the program's success.

2. Collection ofINCENTIVE tools
Mostly SHORT TERM
Stimulategreater PURCHASE
What is sales promotion?

3. Consumer
Promotion
• Coupons
• Samples
• Cash refund
offers
Trade
Promotion
• Prices off
• Free goods
Business and
sales
Promotion
• Trade shows
• Contests for sales
reps

4. Stimulate customer trial
Establishlong term relationship with
retailer
Reward loyal customers
Increase repurchase rate

5. Major DECISIONS
in
sales promotion

6. ESTABLISH OBJECTIVES
Customers Retailers Sales Force
• Encourage purchase of
largerunits
• Build trial among non-
users
• Attract switchers from
competitors’ brands
• Carry new items
• Higher level of
inventory
• Encourage off season
buying
• Support of newproduct
• Encourage off season
selling

7. Consumer
Promotion
Tools
Samples
Coupons
Cash
Refund
Offers
Price Packs
Premiums
Frequency
Programs
Prizes
Patronage
Awards
Free Trials
Product
Warranties

8. Trade
Promotion
Tools
Price Off
Allowance
Free
Goods

9. Business
and Sales
Force
Promotion
Trade Shows
Conventions
Sales
Contests
Speciality
Advertising

10. DEVELOPING THE PROGRAM
Determinesizeof program
Establish conditionsfor participation
Durationof promotion
Choose distributionvehicle
Establish timingof promotion
Total sales budget

11. IMPLEMENTATION AND EVALUATION
Implementation and control plans must cover
lead time and sell-in time.
Program is evaluated using sales
data,consumer surveys and experiments.