The document discusses sales promotions, defining it as a short-term tactic aimed at persuading customers to buy products and boost sales. It outlines various objectives, types, and methods of sales promotion, including consumer, trade, and sales-force promotions, each with specific goals and strategies. Additionally, it highlights the advantages and disadvantages of sales promotions in influencing customer behavior and market dynamics.

1. SALES PROMOTIONS
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2. Sales Promotions
“Sales promotion is the process of persuading
a potential customer to buy the product. Sales
promotion is designed to be used as a short-
term tactic to boost sales it is rarely suitable as
a method of building long-term customer
loyalty.”

3. Objective
1. Building product awareness.
2. Creating interest.
3. To increase the sales volume in short term.
4. Attract more customer.
5. Encourage the customer for buying.

4. Types of Sales Promotion
 Consumer promotion
 Trade promotion
 Sales-force promotion

5. Consumer Promotion
Consumer sales promotion is a marketing
technique that is used to entice customers to
purchase a product. The promotions typically
last for a set period of time and are used to
achieve a specific purpose, such as increasing
market share or unveiling a new product.

6. Objective
1. Retain the customer.
2. Increase repurchase.
3. Brand Switching.
4. Store Switching.
5. Increase footfall.

7. Types of Consumer Promotions
1. Lucky draw.
2. Incentives.
3. Sampling.
4. Contests.
5. Rebates.
6. Refunds.
7. Coupons.

8. Lucky draw
In the lucky dip and main draws a winner is
chosen at random 'from a hat'.

9. Incentives
Tangible reward for performing a particular act.
Such as games.

10. Sampling
Allowing the customer to experience the
product or service. It is very effective strategy
to introduce a new product or modified
product.

11. Contests
Compete for a price based on some skills or
ability.

12. Rebates
A Marketer’s Offer to Return a Certain Amount
Of Money to the Consumer Who Purchases
the Product.
i.e. cash rebate

13. Refunds
A process in which a consumer returns a
product to the original retailer in exchange for
money previously paid.

14. Coupons
A coupon is a ticket or document that can be
redeemed for a financial discount.

15. Trade Promotion
Trade Promotion refers to marketing activities
that are executed in retail between these two
partners.

16. Objective
1. Buy More.
2. Building Relationship.
3. Stock during off season.
4. Display of new product launch.
5. Competition.

17. Types of Trade Promotions
1. Price Off.
2. Allowance.
3. Free Goods.
4. POP Display.
5. Push Money.

18. Price Off
A straight discount off the list price on each case
purchased during a stated time period. For
Example - Nokia offers to their retailers price
off facility.

19. Allowance
An amount offered in return for the retailer’s
agreeing to feature the manufacturer’s
products. An advertising allowance and display
allowance compensates retailers for
advertising the manufacturer’s product.
For example - Samsung and LG provide
allowances to their retailers in the season of
Diwali.

20. Free Goods
This is an tool for selling more products given
by a company to retailers to boost the sales.
For example - Nestle provides free goods
offers to their retailers.

21. POP Display
This is extra tool of sales promotion given by a
company to retailers to boost the sales.
For example - Outside signs, window displays,
counter pieces, product display.

22. Push Money
An extra commission paid to retailers to push
the products.
For example – Nokia provide their retailers
sale 5 pack of mobiles and get extra 2%
margin.

23. Sales-force Promotion
These schemes are intended to
motivate sales persons to put more efforts to
increase sales, increase
distribution, promote new or seasonal
products, book more orders.

24. Objective
 The level of Motivation.
 Getting market information.
 Encourage selling a new product.

25. Types of Force sales
Promotions
Trade shows and conventions.
Sales contests.
Specialty advertising.

26. Trade shows and conventions
A trade fair (trade show, trade exhibition, or
expo) is an exhibition organized so that
companies in a specific industry can showcase
and demonstrate their latest products and
services, meet with industry partners and
customers, study activities of rivals, and
examine recent market trends and
opportunities.

28. Sales contests
A sales contest is a motivational program in
which rewards are offered to sales people
based upon their sales and/or results.

29. Specialty advertising
It involves giving away gifts in the form of
small handy items with the permanent
promotional message imprinted on them for
the target market.

30. Advantage of Sales Promotion
 Increased Buying Confidence Customer.
 Increased Retention.
 Increased Repeat purchase.
 Increased short term sales.
 Increased Brand switching.
 Good short term promotional tool.
 Provide quicker results.

31. Disadvantage of Sales
Promotion
 Dangerous in long term basis.
 Damage the image of product in customers
mind.
 Reduced the effect over the customer.
 Risk factor getting high.
 Less profit margin.

32. Any Question?

33. Thank you.