This document discusses sales promotion and motivation. It covers the role and objectives of consumer and trade sales promotion, common techniques used, and limitations. Motivation of the sales force is also addressed, including theories of motivation, tools to increase motivation, and ways companies can fulfill sales force needs and keep them motivated. Ethical issues related to some sales promotion practices are also briefly outlined.

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Chapter 5
Consumer and Trade Sales PromotionConsumer and Trade Sales PromotionConsumer and Trade Sales PromotionConsumer and Trade Sales Promotion

2. 1-2
• Explain the role and significance of sales
promotion in the marketing communications
mix.
• Understand why sales promotion
expenditures account for a significant portion
of many firms’ marketing communications
budgets.
• Discuss the objectives and techniques of
consumer sales promotion.
After studying this chapter
you should be able to:

3. 1-3
• Discuss the objectives and techniques
of trade sales promotion.
• Explain the limitations of sales
promotion.
• Realize how deceptive and fraudulent
sales promotion victimizes both
consumers and marketers.
After studying this chapter
you should be able to:

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The Role of Sales Promotion
• Sales Promotion:
– Consists of media and non-media marketing
communications employed for a predetermined,
limited time to stimulate trial, increase consumer
demand, or improve product availability.
• Consumer Sales
Promotion:
– Directed at Consumers
• Trade Sales Promotion:
– Directed at Resellers

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The Significance of Sales PromotionThe Significance of Sales Promotion
Sales Promotion
Expenditures
Consumer Factors
Impact of Technology
Increased Retail Power

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The 10 Commandments of Creative
Sales Promotion
The 10 Commandments of Creative
Sales Promotion
1. Set specific objectives
2. Know how basic promotion techniques work
3. Use simple, attention-getting copy
4. Use contemporary, easy-to-track graphics
5. Clearly communicate the concept
6. Reinforce the brand’s advertising message.
7. Support the brand’s positioning and image.
8. Coordinate promotional efforts with other
marketing plans.
9. Know the media you work with.
10. Involve the trade.
1. Set specific objectives
2. Know how basic promotion techniques work
3. Use simple, attention-getting copy
4. Use contemporary, easy-to-track graphics
5. Clearly communicate the concept
6. Reinforce the brand’s advertising message.
7. Support the brand’s positioning and image.
8. Coordinate promotional efforts with other
marketing plans.
9. Know the media you work with.
10. Involve the trade.

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Consumer Sales PromotionConsumer Sales Promotion
Objectives of Consumer Sales
Promotion:
• Stimulate trial
• Increase consumer inventory and
consumption
• Encourage repurchase
• Neutralize competitors
• Increase sales of complementary
products
• Stimulate impulse purchasing
• Allow flexible pricing

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Consumer Sales Promotion
Techniques
Consumer Sales Promotion
Techniques
• Price Deals
• Coupons
• Rebates
• Cross-Promotions
• Contests, Sweepstakes,
Games
• Premiums
• Sampling
• Advertising Specialties
• Price Deals
• Coupons
• Rebates
• Cross-Promotions
• Contests, Sweepstakes,
Games
• Premiums
• Sampling
• Advertising Specialties

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Trade Sales PromotionTrade Sales Promotion
Objectives of Trade Sales Promotion:
• Gain/maintain distribution
• Influence resellers to promote product
• Influence resellers to offer price discount
• Increase reseller inventory
• Defend against competitors
• Avoid reduction of normal prices

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Trade Sales Promotion TechniquesTrade Sales Promotion Techniques
• Trade Allowances
• Dealer Loaders
• Trade Contests
• Point-of-Purchase Displays
• Trade Shows
• Training Programs
• Push Money

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Limitations of Sales PromotionLimitations of Sales Promotion
• It typically cannot reverse a genuine declining
sales trend.
• Marketers cannot reasonable expect sales
promotion to convert refection of an inferior
product into acceptance.
• Sales promotion may even weaken the brand
image.
• Sales promotion has also been blamed for
encouraging competitive retaliation.
• It typically cannot reverse a genuine declining
sales trend.
• Marketers cannot reasonable expect sales
promotion to convert refection of an inferior
product into acceptance.
• Sales promotion may even weaken the brand
image.
• Sales promotion has also been blamed for
encouraging competitive retaliation.

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Limitations of Sales PromotionLimitations of Sales Promotion
• Short-term volume gain at the sacrifice of
profits.
– Forward Buying:
• People buy more than they need at the deal
price.
– Pay-for-Performance Trade Promotions:
• Retailers are rewarded for making sales to
consumers rather than making purchases
from manufacturers.
• Short-term volume gain at the sacrifice of
profits.
– Forward Buying:
• People buy more than they need at the deal
price.
– Pay-for-Performance Trade Promotions:
• Retailers are rewarded for making sales to
consumers rather than making purchases
from manufacturers.

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Ethical and Legal Issues
in Sales Promotion
Ethical and Legal Issues
in Sales Promotion
• Deceptive Sales Promotion
• Fraud:
• The Fake Storefront
• Stuffing the Ballot Box
• Playing the Middleman
• The Redemption Scam

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Ethical and Legal Issues
in Sales Promotion
Ethical and Legal Issues
in Sales Promotion
Diverting (or Arbitraging):
• Secretly purchasing a product
where it is less expensive, usually
as a result of a trade promotion,
and reselling in areas where prices
are higher.
Diverting (or Arbitraging):
• Secretly purchasing a product
where it is less expensive, usually
as a result of a trade promotion,
and reselling in areas where prices
are higher.

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Global ConcernsGlobal Concerns
• The Global
Perspective requires
marketers to make an
extra effort to become
familiar with local laws
and customs.

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What is Motivation??
• Drive to initiate an action.
• The intensity of effort in an action
• The persistence of effort over time.

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Why the concern
for sales force
motivation?
Why the concern
for sales force
motivation?
What are the
different theories
of motivation?
What are the
different theories
of motivation?
Motivation Tools
Self- Quotas Incentive Recognition
management programs programs
Motivation Tools
Self- Quotas Incentive Recognition
management programs programs

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• Frequent rejection
• Physical separation from
company support
• Direct influence on quality of sales
presentation
• Indirect influence on performance
Why is Motivation
Important?

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Steps to Greater Personal Motivation
1.Define what you want.
2.Inform a special person of your goals.
3.Do something.
4.Don’t let failure deter you.
5.Break down problems into pieces.
6.Set deadlines.
7.Turn work into play.
8.Associate with people who motivate you.

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Sales Force Needs and Ways to Fill Them
Sales Force Needs Company Actions to Fill Needs
Status Change title from “salesperson” to
“area manager.”
Buy salespeople more luxurious cars
to drive.
Control Allow salespeople to help plan sales
quotas and sequences of calls.
Respect Invite salespeople to gatherings of
top executives.
Put pictures of top salespeople in
company ads and newsletters.
Assign each salesperson a core of
Routine loyal customers that are called on
regularly.

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What Makes Great Salespeople?
The Competitor
This person not only wants to win, but derives
satisfaction from beating specific rivals -- another
company or even colleagues. They tend to verbalize
what they are going to do, and then do it.
The Ego-driven
They are not interested in beating specific
opponents, they just want to win. They like to be
considered experts, but are prone to feeling slighted,
change jobs frequently, and often take things too
personally.