Sales promotion includes short-term tactics to provide added value or incentives to consumers, wholesalers, retailers, or salespeople to stimulate immediate sales. The objective is to build awareness, create interest, and increase short-term sales volume. Common consumer promotion tools include free samples, coupons, discounts, buy one get one offers, and combo packs. Major trade promotion tools given to retailers are price discounts, advertising allowances, free goods, and point-of-purchase displays to encourage purchasing and stocking certain products. An example given is Nike providing a 40% discount to attract new customers, increase store footfall, and clear existing stock.

1. Sales Promotion Prepared By: - Vivek Sharma Roll No. 06 ISMC, Noida

2. Sales Promotion Sales promotion includes several communications activities that attempt to provide added value or incentives to consumers, wholesalers, retailers or sales-force to stimulate the immediate sales. Sales promotion describes promotional methods using special short term techniques.

3. Types of sales promotion Consumer promotion Trade promotion Sales-force promotion

4. Objective of Sales Promotion Building product awareness Creating interest To increase the sales volume in short term Attract more customer Encourage the customer for buying

5. Objective of Consumer Promotion Retain the customer Increase repurchase Brand Switching Store Switching Increase footfall

6. Objective of Trade Promotion Buy More Building Relationship Stock during off season Display of new product launch Competition

7. Objective of Sales Force Promotion Increase the level of Motivation Getting market information Encourage selling a new product

8. Major Consumer-Promotion Tools Free Samples: - Company provide samples of the product by mail, by retail store, attached in magazines. For Example - Clinic Plus Provide samples of its shampoos in Big Bajar and attached with Times of India. Coupons: - Company provide coupons to their customers inside the pack of product or inserted in magazines and newspaper ads. For Example - Mr. White provide coupons inside the pack. Returned empty pack and get Rs 5 off in next purchase.

9. Major Consumer-Promotion Tools Discounts: - Company provide discount offers to their customers when they buy the product. For Example - Globus provide 50% discount on its product. Buy 1 Get 1 Free: - Company provide offers to their consumers to buy 1 product and get another 1 free. For example - Lux offers to their customer buy 3 get 1 free offer. Combo Offer: - A Combo pack is two related products banded together. For Example - Colgate offers a combo pack of toothbrush free with toothpaste.

10. Major Trade-Promotion Tools 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. 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.

11. Major Trade-Promotion Tools Free Goods: - Offers of extra cases of merchandise to intermediaries who buy a certain quantity or who feature a certain flavor or size. For example - Nestle Eclairs provides free goods offers to their retailers. POP Displays: - 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. 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.

12. 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

13. 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

14. Example Nike provide its customers flat 40% reduction on the product MRP. The objective of using this techniques is to attract more new customers and increase the footfall of the store. The other objective of Nike is to clearance the stock and bring the new trend.