This document discusses sales promotion tools used by West Bengal State University. It defines sales promotion as direct inducements that offer extra value or incentives to consumers, sales forces or distributors to create immediate sales. Some key sales promotion tools discussed include samples, coupons, premiums, contests and sweepstakes, refunds/rebates, and bonus packs. The objectives of consumer-oriented sales promotions are also outlined, such as increasing consumption of established brands or obtaining trial purchases. Factors that make sampling an effective tool are described. Advantages and disadvantages of different promotion tools like price deals and premiums are also summarized.

1. West Bengal State University
Sales Promotion
Presented By: Souvik Dutta
Student of M.com Sem-3(marketing)

2. An extra
incentive to buy
An extra
incentive to buy
A tool to
speed up sales
A tool to
speed up sales
An extra
incentive to buy
An extra
incentive to buy
A tool to
speed up sales
A tool to
speed up sales
Targeted to
different parties
Targeted to
different parties
Sales Promotion
“A direct inducement that offers an extra
value or incentive for the product to the sales
force, distributors, or the ultimate consumer
with the primary objective of creating an
immediate sale.”
“A direct inducement that offers an extra
value or incentive for the product to the sales
force, distributors, or the ultimate consumer
with the primary objective of creating an
immediate sale.”

3. SamplesSamples
CouponsCoupons
PremiumsPremiums
Contests/sweepstakesContests/sweepstakes
Refunds/rebatesRefunds/rebates
Bonus PacksBonus Packs
Price-off dealsPrice-off deals
Frequency programsFrequency programs
Cooperative advertisingCooperative advertising
Trade allowancesTrade allowances
Training programsTraining programs
Contests, dealer incentivesContests, dealer incentives
Point-of-purchase displaysPoint-of-purchase displays
Trade showsTrade shows
Sales Promotion Tools
Consumer-OrientedConsumer-Oriented Trade-OrientedTrade-Oriented
Event marketingEvent marketing
SamplesSamples
CouponsCoupons
PremiumsPremiums
Contests/sweepstakesContests/sweepstakes
Refunds/rebatesRefunds/rebates
Bonus packsBonus packs
Price-off dealsPrice-off deals
Loyalty programsLoyalty programs
Trade allowancesTrade allowances
Training programsTraining programs
Contests, dealer incentivesContests, dealer incentives
Point-of-purchase displaysPoint-of-purchase displays
Trade showsTrade shows
Event marketingEvent marketing

4. To increase
consumption of
an established
brand
To increase
consumption of
an established
brand
To target a
specific segment
To target a
specific segment
Enhance IMC
efforts and build
brand equity
Enhance IMC
efforts and build
brand equity
To defend
(maintain)
current
customers
To defend
(maintain)
current
customers
To obtain trial
and purchase
To obtain trial
and purchase
To target a
specific segment
To target a
specific segment
To defend
(maintain)
current
customers
To defend
(maintain)
current
customers
To increase
consumption of
an established
brand
To increase
consumption of
an established
brand
To obtain trial
and purchase
To obtain trial
and purchase
Objectives of Consumer-Oriented
Sales Promotion
ObjectivesObjectives

5. The products
are of relatively
low unit value,
so samples
don’t cost much
The products
are of relatively
low unit value,
so samples
don’t cost much
The products are
divisible and can
be broken into
small sizes that
can reflect the
products features
and benefits
The products are
divisible and can
be broken into
small sizes that
can reflect the
products features
and benefits
The purchase
cycle is
relatively short
so the
consumer can
purchase in a
relatively short
time period
The purchase
cycle is
relatively short
so the
consumer can
purchase in a
relatively short
time period
The products
are of relatively
low unit value,
so samples
don’t cost much
The products
are of relatively
low unit value,
so samples
don’t cost much
The products are
divisible and can
be broken into
small sizes that
can reflect the
products features
and benefits
The products are
divisible and can
be broken into
small sizes that
can reflect the
products features
and benefits
Sampling
Sampling Works Best
When
Sampling Works Best
When

6. Door-to-doorDoor-to-door
Direct mailDirect mail
Central location distributionCentral location distribution
Could be used for a smaller area or
may be used for the country as a
whole, depending on the objective of
the trial, or budget or the company.
Could be used for a smaller area or
may be used for the country as a
whole, depending on the objective of
the trial, or budget or the company.
Response is quick on generating trial.Response is quick on generating trial.
Surest way to induce trial of a productSurest way to induce trial of a product
Sampling Advantages
AdvantagesAdvantages

7. Sampling Dis-Advantages
Dis-
Advantages
Dis-
Advantages
May lead to loss
of reputation of existing
and established brand if
sample is not up to the
mark of expectation.
Nearly
240 billion
distributed each
year in the US
The
oldest and
most widely used
sales promotion tool
Expensive ;
cost-benefit
ratio may
come adverse.
Often faces
the problem of
theft,
pilferage &
misuse.

8. Price Deals
• Apart from the regular discounts, special discounts are
also allowed to the dealers for some specified quantities
of purchase, the special discounts is over and above the
regular discounts. Ex-A regular discounts of RS 10 per
case is allowed and if the dealer purchases 10 cases at
a time he will be given a discount of RS 12 per case i.e,
RS 200 extra for the purchase of 100 cases.

9. Free Premiums:
Only require purchase
of the product
Free Premiums:
Only require purchase
of the product
3. Lead impulse &
unplanned purchase
for certain product
categories.
3. Lead impulse &
unplanned purchase
for certain product
categories.
2. Offer immediate
value & hence produce
stronger response
2. Offer immediate
value & hence produce
stronger response
AdvantagesAdvantages
Price Deals Advantages
1. Flexibility & convenience of implementation1. Flexibility & convenience of implementation

10. Encourage retailers
to display
existing brands
Encourage retailers
to display
existing brands
4.May hit the brand-image
among the loyal consumers, as
it appears to be a cheap way to
popularize the product.
4.May hit the brand-image
among the loyal consumers, as
it appears to be a cheap way to
popularize the product.
Obtain distribution of
new products
Obtain distribution of
new products
Maintain trade
support for existing
products
Maintain trade
support for existing
products
3.Price discount may make the
people suspicious about the
quality and lead to reject the
products.
3.Price discount may make the
people suspicious about the
quality and lead to reject the
products.
2. Unlike to produce any
long-term gain, as the sense
of urgency will go with the
withdrawal of the offer.
2. Unlike to produce any
long-term gain, as the sense
of urgency will go with the
withdrawal of the offer.
1.May lose its
advantages if
competitors announce
a similar offer
1.May lose its
advantages if
competitors announce
a similar offer
Price Deals Dis-Advantages
Dis-
Advantages
Dis-
Advantages

11. Thank You
Souvik Dutta