The document discusses various sales promotion tools used by companies to stimulate short-term purchases. It describes consumer promotions like coupons, sampling, and premiums/gifts that target consumers. It also outlines trade development promotions aimed at retailers, including performance-based promotions tied to sales targets and non-performance relationship building. The document stresses that all promotions should have clear objectives and be evaluated before and after through metrics like incremental sales and learnings.

1. Sales Promotion

2. Diverse collection of incentive tools
mostly short term, designed to stimulate
quicker or greater purchase of
particular products or services by
consumers or the trade

3. Consumer Promotions
Activities targeted at consumers
to:
• Encourage purchase of large
packs
• Entice switchers (consumer with
no brand loyalty)
• Help non users for trail
generation

4. Sampling
Dry Sampling
Wet Sampling
Used to increase product trail or increase sales

5. Coupons
Price reduction offer redeemed in shape of price off, gift, discount
on subsequent purchase etc

6. Premium or Gifts
Targeted to increase consumer offtake in a certain time period

7. Contests

8. Price Offs

9. Trade Development
(Promotions) Expenses
Performance based
Performance Non
Performance
Relationship based

10. Performance Trade Expenses
Expenses related to activities targeting a quantifiable sales objective
Placement
• Expenses related to
• Installation of displays
• Shelf space
• POP / in store communications
Bulk purchased
• Trade incentives aimed to induce trade for bulk
purchasing (Pack Free, Price off) for a certain time
period
Specific Target Incentives
• Cost paid to trade to reach a specific target in a
specific time period

14. Non Performance Trade
Expenses
Expenses related to activities that are not performance related
Cost paid to trade that are not directly
performance related and has limited or no
perceived value for the group

15. Salesforce Promotions
Sales Contests
Incentive
Schemes

16. Promotion Evaluation
Promotion Must have Clear Objectives

17. Promotion Evaluation
Pre & Post Promotional evaluation must be made for
effective promotion spending
Define
Incremental Sales
Promotional Scope
(Channels, Duration)
Incremental
Returns
Key Learnings
(Pros & Cons)