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Sales Promotion
Sales promotion is defined as short-term marketing tactics used to stimulate immediate sales or trial of a product. The objectives of sales promotion include rewarding loyal customers, persuading consumers to try new products, and increasing sales during off-seasons. There are several types of sales promotion targeted at consumers, trade partners, and the sales force, such as coupons, premiums, contests, and trade shows. While sales promotion can increase market share and sales in the short-term, it also carries disadvantages like high costs and potentially damaging retailer relationships if overused.
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Sales Promotion
- 1. Prof. Savica Dimitrieska SALESPROMOTION
- 2. 1. DEFINITION ANDOBJECTIVES OF SALES PROMOTION
- 3. Definition of SalesPromotion Short-term and temporary promotional activity, in the form of rewards and incentives, that stimulates immediate sales!
- 4. Definition of SalesPromotion Persuading potential consumers to buy a particular product at once! Short-term marketing tactics as a basis for building long-term customer relationships.
- 5. Definition of SalesPromotion АМА: Media and nonmedia marketing pressure applied for a predetermined, limited period of time in order to stimulate trial, increase consumer demand, or improve product availability.
- 6. Definition of SalesPromotion Activities that supplement both personal selling and advertising, coordinate them and help to make them more effective. Sales promotion means any steps that are taken for the purpose of obtaining or increasing sales.
- 7. Definition of SalesPromotion Contests, sweepstakes Premiums, samples, bonus packs, freebies Coupons, refunds/rebates price-off deals, fairs Sponsorship, trade-shows, conventions, training Happy hour, open days, event marketing Loyalty programs Point-of –purchase displays
- 8. Objectives of SalesPromotion To reward a company’s loyal customers To persuade consumers to try the (new) products To increase sales in off-seasons Helps the company to remain competitive To add to the stock of the dealers To attract new customers To induce existing customers to buy more
- 9. Objectives of SalesPromotion Bridge between advertising and personal sales Promotion of new products Attracting new customers Challenging the existing customers Sales in all the seasons Cooperation with retailers and distributors Reinforcing the company’s image
- 10. Objectives of SalesPromotion Building product awareness – knowledge about company and its products Creating interest– persuading consumers for the need of a product Providing information – characteristics and product benefits Reinforcing the brand– building long-term relationships and loyalty Stimulating demand– trial, frequent and larger quantities of products
- 11. 2. MEANING OFTHE SALES PROMOTION
- 12. Meaning of theSales Promotion Consumers Producers Trade Society
- 13. Meaning of SalesPromotion For consumers: Purchase at lower prices Trial of a new product Purchase in larger quantities Getting to know the product
- 14. Meaning of SalesPromotion For producers: Increased Sales Increased Sales in Off-Seasons Close cooperation with intermediaries Stimulating demand New markets, new customers Competitive advantage Greater efficency in combination with advertising and personal sales
- 15. Meaning of SalesPromotion For intermediaries: Purchases in larger quantities, at lower prices Direct relationship with consumers
- 16. Meaning of SalesPromotion For society as a whole: Higher living standard More employments Development of transport, communications, insurance, storage Healthy competition
- 17. Customers and SalesPromotion Loyal customers Reinforce behavior: bonus packs, loyalty programs Persuade to buy the brand: trade deals, trials Competitor’s customers Persuade to switch: contests, premiums, samples Brand switchers Price buyers Appeal with low prices: coupons, price-off packs, refunds, trade-deals
- 18. Sales Promotion isa FUN for consumers
- 19. 3. TYPES OFSALES PROMOTION
- 20. Types of SalesPromotion Consumers Trade Sales Force
- 21. А) Sales Promotionfor Consumers Stimulating interest Coupons, trials, free samples, premiums Asking questions Visiting shops Repeated purchase Free catalogues, contests, sweepstakes Marketing events, fun activities, fashion shows Membership cards, T-shirts, clothing
- 22. А) Sales Promotionfor Consumers Free gifts Premiums Price-off deals Coupons Rebates Samples Displays Contests Sweepstakes Happy HourTrade-InLoyalty programs
- 23. B) Sales Promotionfor Trade Trade shows Trade allowance Push-money Training Samples Displays
- 24. C) Sales Promotionfor Sales Force Premiums Contests Symposiums Conferences Bonus Sales Rallies
- 25. 4. ADVANTAGES ANDDISADVANTAGES OF SALES PROMOTION
- 26. Advantages of SalesPromotion Eye-catching appeal Increasing market share Introducing new products Distintctive themes and tools Close cooperation with trade Increased sales in off-seasons Additional value for customers Increased profit, in a short-time Competitive advantage Fun for customers Supplement to advertising and personal sales
- 27. Disadvantages of SalesPromotion Possible damage to retailer’s image High costs, expensive Difficult to terminate High consumers expectations Short-term effects only Often abused
- 28. Questions Defintion Objectves Promotion and customers Meaning Typesof Sales promotion Advantages Disadvantages