Sales promotion is a marketing technique used to increase short-term sales or trial of a product or service. It involves the use of incentives and rewards to stimulate consumer demand. Some common sales promotion techniques include price discounts, coupons, contests, premiums, and sampling. The goals of sales promotion are to increase immediate customer sales, gain support from the sales force and trade partners, and stimulate demand. Sales promotion is differentiated from advertising in that it aims to drive short-term action rather than build long-term brand image.

1. WELCOME

2. SALES PROMOTION

3. Definition :
Media & Non media marketing
pressure applied for a predetermined,
limited period of time in order to
stimulate trial, increase consumer
demand or improve product quality.

4. Meaning:
Sales promotion is one of the elements of the promotional
mix. The primary elements in the promotional mix are
advertising, personal selling, direct marketing and
publicity/public relations. Sales promotion uses both media
and non-media marketing communications for a pre-
determined, limited time to increase consumer demand,
stimulate market demand or improve product availability.

5. Sales promotion is used not only for products or
brands; it can be extended to technology and service.
Samsung launched a scratch-card promo for its
CTVs in June 1999. Thums Up used the same
strategy. What differentiates the promotions is the
industry? One was in the durable sector, which was
aimed at growth. The other was in the FMCG sector,
with the aim of increasing short-term sales.

6. Focus Areas :
• “Public” & not just consumers.
• Action oriented. E.g: “Buy Now”.
• 3 Party involvement:
üConsumers
üSales Representatives
üThe Trade
• Limited Period. E.g. offer closes 1st
December

7. Goals Of Sales Promotion:
o Increase immediate customer sales
o Support from marketer’s sales force.
o Gain the support of the trade in
marketing the product.

8. Consumer Promotion:
o Price Deals: E.g. “More for Less”, 50% Off, Buy One Get On
Free offer.
o Coupons: E.g: VLCC coupons for discount.
o Contests: E.g: Answer a simple question and win a Color TV
o Sweepstakes: E.g: Name is selected for query form for lucky
draw.
o Premiums: E.g: Buy Pepsodent & collect G.I Joes’; Win a
Mercedes Benz, the more you use your ICICI credit card.
o Sampling: E.g: Consumer sample new products for free.

9. Benefits of Sales Promotion
 It helps to generate new leads
 Allows re-engaging with your existing
audience
 Skyrockets revenue
 Increases brand awareness

10. Drivers of SP in Marketplace:
•Consumer Behavior: Consumers better educated, low
brand loyalty & Selective.
•Pricing: Festivals, major events in sports still draw a
huge crowd. Indians are still price conscious.
•Market Share: Brand switching, the name of the game.
•Parity Products: Differentiation strategy in a world of
‘me too’ product.
•Power of the Retailer: The place where it all happens.
Consumers directly in touch with them.

11. Trade PromotionsGoals
o Stimulate in store merchandising.
o Manipulate the inventory held by a
retailer.
o Expand product base geographically.
o To create a high level of excitement for
the product

12. Types of Promotions:
o Consumer Promotion
o Trade Promotion

13. Trade Promotion
o Point of Purchase (POP): E.g: Banners, Danglers &
Posters at the retail outlet.
o Dealer/Retailer Kit: All the information about the
product that the retailer should know.
o Contests & Sweepstakes: Specials offers to the retailer
so that he pushes that brand.
o Trade Shows & Exhibits: E.g: Auto Expo at Pragati
Maidan in Delhi.
o Trade Incentive: The more ‘cut’ is given to the retailer,
the more he pushes your product.

14. Promotion Strategies
3 broad objectives:
Ø Stimulate demand by consumers
Ø Improve marketing performance of
resellers
Ø To supplement and coordinate advertising,
personal selling & public relations activities.

15. • Help in creating & sustaining brand
value.
• Managing brand image
• Cut into brand loyalty of other brands.
• Promotion to be more brand focused.
• Co-branding, a key tool.

16. R
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M
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T
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N
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F
F
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Manufacturer
Reseller
Consumer

17. Difference Between
Advertising
• Creates an Image over time
•Relies on Emotional
appeals
•Adds Intangible value to the
product / service
•Contributes Moderately to
short term profitability
Sales promotion
• Creates immediate
Action
•Relies on Rational appeal
•Adds Tangible value to
the product / service
•Contributes Greatly to
short term profitability

20. “The manufacturer who finds himself
up the creek is the short-sighted
opportunist who siphons off all his
advertising dollars for short-term
promotions.”- David Ogilvy, Ogilvy on
Advertising (1985), New York: Vintage
Books, p. 169.

21. Thank you