This document discusses sales promotion and marketing management. It outlines internal and external factors that contribute to rapid growth in sales promotion, such as increased competition and price-oriented consumers. The purposes of sales promotion are to attract new customers, reward loyal customers, and increase repurchase rates. Major decisions in developing a sales promotion program include selecting tools, setting objectives, implementing and controlling the program, developing the program, and pre-testing and evaluating it. Consumer and trade promotion tools are described, such as coupons, premiums, and price discounts. The goals of trade promotion tools are to increase brand carrying and sales.

1. “Marketing Management”
Sales Force and
Promotion
Prepared by:
Jonah C. Pardillo

2. SALES PROMOTION:
- Consists of a 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. FACTORS CONTRIBUTE TO THE RAPID GROWTH OF SALES
PROMOTION
INTERNAL FACTORS:
 Promotion is now more accepted by top management as an
effective sales tool;
 More product managers are qualified to use sales-promotion tools;
 Product managers are under greater pressure to increase current
sales.
EXTERNAL FACTORS:
 The number of brands has increased;
 Competitors use promotion frequently;
 Many brands are seen as similar;
 Consumers are more price-oriented
 The trade has demanded more deals from manufacturers;
 Advertising efficiency has declined because of rising costs, media
clutter, and legal restraints.

4. PURPOSE OF SALES PROMOTION
1. to attract new triers
 Users of other brand in the same category
 Users in other categories
 Frequent brand switchers
2. To reward loyal customers
3. To increase the repurchase rates of occasional users.

5. MAJOR DECISION IN
SALES PROMOTION
Select the tools
Established its
objectives
Implement and
control
Develop the
program
Pre-test the
program
Evaluate the
result

6. ESTABLISHING THE OBJECTIVES
 Basic marketing – developed for the product
 Sales promotion – target market
 Consumers – encouraging purchase of large-size units,
building trial among nonusers, and attracting switchers away
from competitors’ brand.

7.  Retailers – persuading retailers
to new items and higher levels of
inventory, encouraging off
seasons buying, encouraging
stocking of related items,
offsetting competitive
promotions, building loyalty, and
gaining entry into new retail
outlets.
 Sales force – encouraging
support of a new product or
model, encouraging more
prospecting, and stimulating off-
season sales.

8. SELECTING CONSUMER-
PROMOTION TOOLS
 Samples
 Coupons
 Cash refunds offers(rebates)
 Price packs (cents-off deals)
Reduced-price pack- is a
single package sold at a
reduced price
A banded pack – is two
related products banded
together

9.  Premiums
 with pack-premium
Free in mail premium
Self liquidating premium
 Prizes
 contest
Sweepstakes
Game
 Patronage awards
 Free trials
 Product warranties
 Tie-in promotions
 Cross promotions
 Point-of-purchase (POP)
Displays and
Demonstrations

10. SELECTING TRADE-
PROMOTION TOOLS:
1. To persuade the retailer or
wholesaler to carry the
brand.
2. To persuade the retailer or
wholesaler to carry more
units than the normal
amount.
3. To induce retailers to
promote the brand by
featuring, display, and price
reductions.
4. To stimulate retailers and
their sales clerks to push
the product.

11. MAJOR TRADE PROMO-
TION TOOLS:
 Price-off(off-invoice or off-
list)
 Advertising
 Display Allowance
 Free goods

12. SELECTING BUSINESS &
SALES FORCE PROMOTION
TOOLS:
 Trade shows and
conventions
 Sales contests
 Specialty advertising
DEVELOPING THE
PROGRAM:
 Size of the incentive
 Conditions for participation
 Duration of promotion
 Distribution vehicles
 Timing of promotion
 Sales-promotion budget

13. PRETESTING THE PROGRAM:
- To determine if the tools are appropriate, the incentive size
optimal, and the presentation method efficient. Consumers can
be asked to rate or rank different possible deals, or trial tests can
be run in limited geographic area.
IMPLEMENTING AND CONTROLLING THE PROGRAM
 Lead time – is the time necessary to prepare the program prior
to launching it: initial planning, design, and approval of package
modifications or material to be mailed or distributed;
preparation of advertising of and point-of-sale materials;
notification of field sales personnel; established of allocations
for individual distributors

14. purchasing and printing of special premiums or packaging materials;
production of advance inventories in preparation for release at a
specific date; and finally, the distribution to retailer
 Sell-in-time – begins with the promotional launch and ends when
approximately 95% of the deal is in the hands of consumers.

15. EVALUATING RESULTS
1. Sales data – marketers can analyze the
types of people who took advantage of
the promotion, what they bought before
the promotion, and how consumer
behaved later toward the brands and
other brands.
2. Consumers survey – can be conducted
to learn how many recall the promotion,
what they thought of it, how many took
advantage of it, and how the promotion
affected subsequent brand choice
behaviour.
3. Experiments – vary such attributes as
incentive value, duration, and
distribution media.

16. Thank you......
And GOD BLESS ......!!!