This document discusses different types of sales promotions. It describes consumer sales promotions and trade promotions, noting that consumer promotions target end users to encourage purchases. Some key consumer promotion tools discussed include free samples, coupons, percent-off discounts, bonus packs, refunds/rebates, premiums, and contests/sweepstakes. Each tool is described in terms of its pros and cons. Characteristics of effective consumer promotions include encouraging trial purchases and brand preference while stimulating sales and preventing competition.

1. SALES PROMOTION
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Nabduan
Neeranuch
Raveepitchaya
D.
Ng.
R.
5520212002
5520212006
5520212007
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2. Consumer Sales Promotion
Trade Promotion
Trade
Promotion
To persuade and encourage manufacturers, wholesalers
and retailers who buying the products for business to
business purpose but consumer sales promotions
target directly to customers or end user customers.
Consumer
Sales
Promotion
Using to persuade and encourage customer to buy
products and services in order to increase sales in the
short term (limited time) as a tactical strategy
Building Products Awareness
Create Interest and New Users
Providing Information
Stimulating Demand
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Reinforcing the Brand

3. Characteristic of Sales Promotion
• By Prof. Philip Kotler
• There are 3 distinctive characteristics of sales promotion
including Communication, Incentives and Invitation.
Communication can draw attention from customers and provide information to
influence customers to purchase products.
Sales Promotion is incentive to incorporated some
concession, inducement, or contribution that gives value
to the consumer.
Sales promotions have a distinct invitation to
engage in the transaction now or future customer
purchase as soon as possible.
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4. Characteristic of
Good Consumer Sales Promotion
• Able to encourage customers to buy one brand over another by
introducing samples, coupons, pop promotions etc.
• Able to obtain trial purchase from customers
• Able to stimulate sales force enthusiasm
• Able to join force with advertising to
reinforce sales
• Able to prevent competition in advance.
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5. Consumers Sales Promotion Tools
Free Sample
Coupon
Percent-off
Bonus Packs
Refunds/Rebates
Premium
Contest/Sweepstake
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6. Consumer Sales Promotion Tools
Free Sample
Free Sample
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Effective way for new product launching
Most of customer not confident to buy new products because they are not sure
about product reliability and quality.
Pros
 Increase the number of new customers
 Entice former customers to return
 To find ways to drive new users to your
company:
 To get permission to turn people into
customers unless you have asked
permission to give them the sample.
 To encourage trial to People who are
your target audience
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Cons
o Not be as easy to measure as other
promotional strategies, but they can be
measured
o Not effective if the company set the
wrong sampling group

7. Consumer Sales Promotion Tools
Free Sample
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8. Consumer Sales Promotion Tools
Coupon
Coupon
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One of the most common sales promotion techniques
To stimulate sales volume and customer intention of purchasing both of new and
existing customers
Include special price coupon, discounts coupon, free goods and value
added giveaway coupon.
Pros
✓Increase the number of new customers. Name on
the coupon even when the coupon is not
redeemed.
✓Entice former customers to return
✓Reward current customers - Customers are
delighted when they receive the gift of savings from
the manufacturer of a product that they buy
regularly.
✓Create the opportunity for the marketer to up-sell
a more profitable product
✓Provide the marketer with a highly measurable
marketing program
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Cons
O Unable to judge the effectiveness of
your coupon campaign without testing
and measuring
O The coupon may not best fit for target
audience.
O Many requirement in using coupon
O Have no monetary value

9. Consumer Sales Promotion Tools
Coupon
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10. Consumer Sales Promotion Tools
Percent-Off
Percent-offs
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Lower price offers of the original price.
It designs to boost up sales in off-season and first stage of new product
launching to the market.
Pros
✓Increase the number of new customers
✓Entice former customers to return
✓Maintain current customers
✓Provide product with lower price
✓Allow the company to new segment in price
sensitive group of customers
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Cons
O May effect the brand image
O May reflect the dropping in price
quality

11. Consumer Sales Promotion Tools
Percent-Off
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12. Consumer Sales Promotion Tools
Bonus Packs
Bonus Packs (Banded Packs)
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To persuade consumer by offer in adding amount of package containing
To introduce a new product by the same manufacturer or to make buyers aware
of a companion product to one they already use.
Producer use a bonus pack as an incentive to purchase by attaching a sample
size of a product to a full size of the same product.
Pros
 Increase the number of new customers
 Entice former customers to return
 Maintain current customers
 Offer customers lower price
 Have no redemption or couponing cost
 Reduce cost per units
 Direct to consumers
 Invent competitors to current consumers
 Influence in retailers
 Increase brand loyalty
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Cons
O May affect the brand image
O May reflect the dropping in price
quality
O Increase shelf space
O Increase in cost of transportation
shipment
O No time consuming for customer

13. Consumer Sales Promotion Tools
Bonus Packs
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14. Consumer Sales Promotion Tools
Refunds and Rebates
Refunds and Rebates
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Consumer able to refund their money after paid full amount of price.
To refund their money back such as having to write consumer’s name or address
and send the information by mail back to company’s products.
Take long time to classify till proved then company will paid back in return
Pros
✓Increase the number of new customers
✓Entice former customers to return
✓Maintain current customers
✓Offer customers lower price
✓Easy to measure the effectiveness of the sale
promotion campaign
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Cons
O Take a certain amount of time and
effort from the consumer
O Requires such procedures and
assume the out-the-door price when
considering the purchase
O Come up with many regulation
O Customers require more skills to
obtain benefits
O Most of them are exaggerated
promote
O Most of them not guarantee for
satisfaction

15. Consumer Sales Promotion Tools
Refunds and Rebates
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16. Consumer Sales Promotion Tools
Premiums
Premiums
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Reward given to the existing customers by offering free or low price in return for
product purchase.
Help increase the sales of the product among the existing customers itself.
Pros
✓Maintain current customers
✓Add value and are brand related;
✓no need for elaborate packaging
✓Impact at point-of-sale due to their visibility;
✓Offer immediate consumer gratification;
✓Have no redemption or couponing cost;
✓Provide added value.
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Cons
O Not effective if the company set the
wrong target group
O Don't expect premium to increase
profits.
O Not be as easy to measure as other
promotional strategies, but they can be
measured

17. Consumer Sales Promotion Tools
Premiums
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18. Consumer Sales Promotion Tools
Contests and Sweepstakes
Contests and Sweepstakes
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To persuade consumer buy their product immediately and invite consumer
to join with the sale promotion by created the interesting and exciting
activity.
Contest, consumer have to use their skill or competence to join the
contest to win the prize
Sweepstakes, consumer can win the prize by random drawing or
consumer have to send the cap or pieces of product for winning
Develop to be easy method than previous that call instant winners. By the
way, for instant winners method, producer should aware the gambling as
well.
Pros
 Increase the number of new customers
 Entice former customers to return
 Maintain current customers
 Create a buzz about the product
 Draw traffic to their website or store
 Strengthen their relationship with their
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customers
Cons
O Mostly in order to set up event must
rely on sponsorship
O May mislead customer to concentrate
in reward instead of products

19. Consumer Sales Promotion Tools
Contests and Sweepstakes
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20. Favorable Consumers Sales Promotion
FREE SAMPLE
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21. Unfavorable Consumers Sales Promotion
COUPON
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22. www.company.com