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Contents
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2.
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6.
7.

Introduction
Objective
Types
Techniques
Advantage
Disadvantage
Difference
Introduction
Sales promotion usually involves an immediate
incentive for a buyer.
A/C to AMA
Sales promotion is those marketing activities other
than personal selling. Advertisement & Publicity
that stimulate consumer purchasing as well as dealer
effectiveness such as point of purchase display,
shows & exhibition, product demonstration &
various selling efforts not in the ordinary routine.
 Sales promotion serves as link between
personal selling & advertisement & mainly on
small customer group.
It is non routine methods in comparison to
other marketing mix i.e. Advertising &
Personal selling.
Objective of Sales Promotion
To Introduce new product
To Attract customer
To Increase sales during slack period to
encourage dealer to carry large storage
To Create image of the company i.e. Branding
To Create awareness for new product
To Increase sales during pick season
To Improve public image
Types of Sales Promotion
1. Consumer Sales Promotion
2. Dealer Sales Promotion
Consumer Sales Promotion:
It include those activities design to
inform consumer & also educate them for
stimulating demand.
e.g. Gift Coupon, Price offer, Fashion show etc.
Dealer Sales Promotion:
It is use to help dealer in
improving their effectiveness. It includes free
display materials, free trails, target deals,
offering discount & gift.
Techniques for Sales Promotion
 Sample: Its price is low or free of cost
distributed to selected people to gain consumer
acceptance. This technique is costly, it is used
by big company. This product is not expensive.
 Coupons: Coupon is certificate that entitle its
holder for specific saving or discount on the
purchase of a particular product.
 Sales Premium or Bonus offer: Bonus offer is
an article free of cost or at nominal price on
the purchase of a particular product.
e.g. A shop with detergent.
Premium is of Four TypesWith pack premium: Inside or on the package.
Price off premium: Extra %
Money refund: Guarantee money back
Extra quantity premium: Family Pack

 Prizes: Prizes are offers of the chance to win
cash, trip.
 Sweepstakes: It ask consumers to submit their
names in drawing.
 Clearance Sales: Sales at reduce price are known
as Clearance sales. It organized in festive season
& important momente.g.- Khadhigram gives offer at 2nd oct.
 Buy 1 Get 1 free- In this offer company give
offer buy one or more than one & get extra
one free off cost.
Advantage of Sales Promotion
Increased buying confidence customer
Increase retention
Increase repeated purchase
Increase short term sales
Increase brand switching
Good short term promotion tool
Provide quick results
Disadvantage of Sales Promotion
Dangerous in long term basis
Damage the image of product in customer
mind.
Reduced the effect over the customer
Risk factor getting high
Less profit margin
Difference between Sales Promotion & Advertising
Basis

Sales Promotion

Advertising

Definition

Sales promotion usually involves an
immediate incentive for a buyer. It
can also involve disseminating
information about a product, product
line, brand or Company. e.g. Giving
free products, coupons, money back
etc.

Advertising is one way communication
whose purpose is to inform potential
customers about products & services. It
also inform how to obtain them. e.g.
Giving an advertisement in the
newspaper about the major products of
a company.

Suitable for

small to large company.

medium to large company.

Purpose

Increase sales.

Increase sales & make brand image.

Sales

Directly related to sales.

Assumption that it will lead to sales.

Price

Not very expensive in most cases.

Expensive in most cases.

Time

Short term.

Long term.

Result

Very soon.

Slowly .
Sales promotion By-Sanjeev (RAU, Pusa)

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Sales promotion By-Sanjeev (RAU, Pusa)

  • 1.
  • 3. Introduction Sales promotion usually involves an immediate incentive for a buyer. A/C to AMA Sales promotion is those marketing activities other than personal selling. Advertisement & Publicity that stimulate consumer purchasing as well as dealer effectiveness such as point of purchase display, shows & exhibition, product demonstration & various selling efforts not in the ordinary routine.
  • 4.  Sales promotion serves as link between personal selling & advertisement & mainly on small customer group. It is non routine methods in comparison to other marketing mix i.e. Advertising & Personal selling.
  • 5. Objective of Sales Promotion To Introduce new product To Attract customer To Increase sales during slack period to encourage dealer to carry large storage To Create image of the company i.e. Branding To Create awareness for new product To Increase sales during pick season To Improve public image
  • 6. Types of Sales Promotion 1. Consumer Sales Promotion 2. Dealer Sales Promotion Consumer Sales Promotion: It include those activities design to inform consumer & also educate them for stimulating demand. e.g. Gift Coupon, Price offer, Fashion show etc.
  • 7. Dealer Sales Promotion: It is use to help dealer in improving their effectiveness. It includes free display materials, free trails, target deals, offering discount & gift.
  • 8. Techniques for Sales Promotion  Sample: Its price is low or free of cost distributed to selected people to gain consumer acceptance. This technique is costly, it is used by big company. This product is not expensive.  Coupons: Coupon is certificate that entitle its holder for specific saving or discount on the purchase of a particular product.  Sales Premium or Bonus offer: Bonus offer is an article free of cost or at nominal price on the purchase of a particular product.
  • 9. e.g. A shop with detergent. Premium is of Four TypesWith pack premium: Inside or on the package. Price off premium: Extra % Money refund: Guarantee money back Extra quantity premium: Family Pack  Prizes: Prizes are offers of the chance to win cash, trip.  Sweepstakes: It ask consumers to submit their names in drawing.  Clearance Sales: Sales at reduce price are known as Clearance sales. It organized in festive season & important momente.g.- Khadhigram gives offer at 2nd oct.
  • 10.  Buy 1 Get 1 free- In this offer company give offer buy one or more than one & get extra one free off cost.
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  • 12. Advantage of Sales Promotion Increased buying confidence customer Increase retention Increase repeated purchase Increase short term sales Increase brand switching Good short term promotion tool Provide quick results
  • 13. Disadvantage of Sales Promotion Dangerous in long term basis Damage the image of product in customer mind. Reduced the effect over the customer Risk factor getting high Less profit margin
  • 14. Difference between Sales Promotion & Advertising Basis Sales Promotion Advertising Definition Sales promotion usually involves an immediate incentive for a buyer. It can also involve disseminating information about a product, product line, brand or Company. e.g. Giving free products, coupons, money back etc. Advertising is one way communication whose purpose is to inform potential customers about products & services. It also inform how to obtain them. e.g. Giving an advertisement in the newspaper about the major products of a company. Suitable for small to large company. medium to large company. Purpose Increase sales. Increase sales & make brand image. Sales Directly related to sales. Assumption that it will lead to sales. Price Not very expensive in most cases. Expensive in most cases. Time Short term. Long term. Result Very soon. Slowly .