Sales promotion regarding marketing management

1. Course Name: Marketing Management - II
Instructor: Dr. Akanksha Batra
Email: abatra@imt.edu

2. Hurry!
Course - Marketing Management | Instructor - Dr. Akanksha
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3. Sales Promotion
• Sales promotion, 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 products or
services by consumers or the trade
• Whereas advertising offers a reason to buy, sales promotion offers an
incentive
Course - Marketing Management | Instructor - Dr. Akanksha
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4. Sales Promotion
• Some sales promotion tools are consumer franchise building. They
impart a selling message along with the deal, such as free samples,
frequency awards, coupons with a selling message, and premiums
related to the product
• Sales promotion tools that are typically not brand building include
price-off packs, consumer premiums not related to a product,
contests and sweepstakes, consumer refund offers, and trade
allowances.
Course - Marketing Management | Instructor - Dr. Akanksha
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5. Sales Promotion
• Sales promotions in markets of high brand similarity can produce a
high sales response in the short run but little permanent gain over the
longer term
• In markets with high brand dissimilarity, they may be able to alter
market shares permanently. In addition to brand switching,
consumers may engage in stockpiling— purchasing earlier than usual
(purchase acceleration) or buying extra quantities but sales may then
hit a post-promotion dip
Course - Marketing Management | Instructor - Dr. Akanksha
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6. Sales Promotion
• Establishing Objectives
• For consumers: encouraging more frequent purchases or purchase of larger-
sized units among users, building trial among non-users, and attracting
switchers away from competitors’ brands
• For retailers: persuading retailers to carry new items and more inventory,
encouraging off-season buying, encouraging stocking of related items,
offsetting competitive promotions, building brand loyalty, and gaining entry
into new retail outlets
• For the sales force: encouraging their support of a new product or model,
encouraging more prospecting, and stimulating off-season sales
Course - Marketing Management | Instructor - Dr. Akanksha
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7. Sales Promotion
• Selecting Consumer Promotion Tools: Depending on the type of
product, competitive conditions, cost effectiveness, the marketer can
choose between samples, coupons, refunds, price packs, frequency
programs, trial, warranties, etc.
• Selecting Trade Promotion Tools: Price-off, Allowance, Free goods
• Selecting Business and Sales Force Promotion Tools: Trade Shows and
Conventions, Sales Contests, Specialty Advertising
Course - Marketing Management | Instructor - Dr. Akanksha
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8. Sales Promotion
• Developing the Program
• Size of promotion
• Conditions for participation
• Duration of promotion
• Distribution vehicle
• Total sales promotion budget (administrative + incentive)
Course - Marketing Management | Instructor - Dr. Akanksha
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9. Sales Promotion
• Implementing and Evaluating the Program
• Sales (scanner) data help analyze the types of people who took advantage of
the promotion, what they bought before the promotion, and how they
behaved later toward the brand and other brands
• Consumer surveys can uncover how many consumers recall the promotion,
what they thought of it, how many took advantage of it, and how it affected
later brand-choice behavior
• Experiments vary in such attributes as incentive value, duration, and
distribution media. For example, coupons can be sent to half the households
in a consumer panel. Scanner data can track whether they led more people to
buy the product and when
Course - Marketing Management | Instructor - Dr. Akanksha
Batra
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