The document discusses sales promotion as a pivotal aspect of marketing communication, categorizing it into consumer-oriented, trade-oriented, and business and sales force promotions. It outlines various tools and objectives specific to each type of promotion, emphasizing the need to stimulate immediate sales and manage brand messaging. Additionally, it highlights the advantages and disadvantages of sales promotions, including their short-term effectiveness and potential impact on brand equity.

1. Sales Promotion
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DR. AMITABH MISHRA

2. • Among 4 P’s, promotion contains the
marketing communication function.
• “Promotion/Marketing communication is all
about how to create, deliver, manage, and
evaluate brand message.”
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DR. AMITABH MISHRA

3. PROMOTION MIX /
Marketing Communications mix
1. Advertising
2.Sales Promotion
3. Public Relation and Publicity
4. Personal Selling
5. Direct Marketing
Advertising
Sales Promotion
Public Relations
Direct
Marketing
Interactive tools
Unconventional
tools
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DR. AMITABH MISHRA

4. Sales Promotion
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DR. AMITABH MISHRA

5. Sales Promotion
• “Sales promotion are those marketing activities that
provide extra value or incentives to the sales force,
the distributors, or the ultimate consumer and can
stimulate immediate sales”.
• “Sales promotion includes marketing devices for
stimulating buyer interest and product trial.”
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6. Types/Kinds of
Sales Promotion
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7. • Sales promotion is generally broken into three major categories:
– Consumer-oriented sales promotion
– Trade-oriented sales promotion.
– Business and Sales force Promotion
• These promotional tools encourage consumers to make an
immediate purchase and thus can stimulate short term sales.
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8. 1. Consumer-Oriented Sales
Promotion & Tools
Consumer-oriented sales promotion is targeted to the ultimate user of a product
or service.
Tools of Consumer-oriented sales promotion includes
– Couponing,
– Sampling,
– Premiums,
– Rebates,
– Contests, and
– Point-of-purchase materials
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– Quantity Deals
– Free trials
– In-product gift
– Out-product gift
DR. AMITABH MISHRA

10. 2. Trade-Oriented Sales Promotion
& Tools
• Trade-oriented sales promotion is targeted toward
marketing intermediaries such as-
– Wholesalers,
– Distributors, And
– Retailers.
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11. • Tools of Trade Oriented Sales Promotional are-
– Promotional and merchandising allowances,
– Price deals,
– Sales contests, and Dealer Meets
– Trade shows & Co-operative Advertising
– Dealer Gifts & Dealer Discounts
– Shop Board paintings
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12. 3. Business and Sales force Promotion
• Tools of Business and Sales force Promotion are:
– Trade shows,
– Conventions,
– Contests for sales reps, and
– Specialty Advertising.
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13. Objectives of Sales Promotion
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14. Objectives of
Consumer-Oriented Sales Promotion
• In relation to consumers, objectives of sales promotion
include:
– Encouraging purchase of large size units.
– Building trial among non-users.
– Attracting switchers away from competitors’ brands.
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15. Objectives of Trade-Oriented
Sales Promotion
• In relation to retailers/distributers, objectives include:
– Persuading retailers to carry new items and higher levels of inventory,
– Encouraging off-season buying
– Encouraging stocking of related items
– Off-setting competitive promotions
– Building brand loyalty and gaining entry into new retail outlets
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16. Objectives of
Business and Sales Force Promotion
• In relation to the sales force, objectives
include:
– Encouraging support of a new product or model,
– Encouraging more prospecting, and
– Stimulating off-season sales.
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17. Characteristics of Sales Promotion
• Sales promotion tools are highly diverse, they
have three distinctive characters:
– Communications
– Incentive
– Invitation
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18. • Companies use sales-promotion tools to create a
stronger and quicker response.
• Sales promotion can be used to dramatize product
offers and to boost sagging sales.
• Sales-promotion effects are usually short run and
not effective in building long-run brand preference.
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Advantages of Sales Promotion
• Produces immediate results in terms of sales.
• Creates effective entry barriers for competition.
• Results are measurable.
• Helps in gaining channel support.
• Relatively easy to design and implement.
• Relatively inexpensive.
DR. AMITABH MISHRA

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Disadvantages of Sales Promotion
• Focus can shift to short term planning.
• Can erode brand equity, if used frequently.
• Can lead to clutter.
• Attracts mainly switchers, who are deal prone.
• Consumers forward buy. Therefore no real increase in sales
over the long term.
DR. AMITABH MISHRA

21. Push Strategies
vs.
Pull Strategies
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22. • Push Strategy: “A push strategy uses the manufacturer’s
sales force, trade promotion money, and other means to
induce intermediaries to carry, promote, and sell the
product to end users”
• “Pushing the product “down” through the distribution
channel to the customer”.
– Incentives to agents and intermediaries
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DR. AMITABH MISHRA