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Souvik
- 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
Editor's Notes
- Relation to text This slide relates to material on pp. 495-496 and Figure 16-1 of the text. Summary Overview Sales promotion can be broken into two major categories, consumer-oriented promotion and trade-oriented promotion. This slide shows the various types of activities of each. Consumer-oriented Samples Coupons Premiums Contests/sweepstakes Refunds/rebates Bonus packs Price-off deals Frequency programs Event marketing Trade-oriented Contests, dealer incentives Trade allowances Point-of-purchase displays Training programs Trade shows Cooperative advertising Use of this slide This slide can be used to show the various tools that can be used for consumer and trade-oriented promotions. Consumer-oriented promotions are generally used as part of a push channel strategy while trade-oriented promotions are part of a pull strategy.
- Relation to text This slide relates to material on pp. 507-509 of the text. Summary Overview Sampling involves giving the consumer some quantity of the product at no charge to induce trial. This slide outlines three criteria for an effective sampling program. These include: The products are relatively low unit value, so samples do not cost much 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 relatively short time period Use of this slide This slide can be used to discuss sampling as a sales promotion technique. Manufacturers of packaged-goods products such as food, health care items, cosmetics, and toiletries, are heavy users of sampling since their products meet the three criteria for an effective sampling program. As a sales promotion technique, sampling is commonly used to introduce a new product or brand to the market.
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- Relation to text This slide relates to the material on pp. 512-515, which discusses coupon distribution methods. Summary Overview This slide shows a Free Standing Insert type of coupon used by Chicken of the Sea to promote various seafood products. FSIs are the most popular method for delivering coupons to consumers as they are usually delivered through inserts in the Sunday paper in most areas. Use of this slide This slide can be used to show an example of a FSI coupon and to engage students in a discussion of coupon distribution methods. Nearly 87% of all coupons are distributed through FSIs. However, this all creates a problem because of the high level of clutter. Most consumers ignore the FSI inserts or do not take the time to go through them thoroughly. However, consumers who are prone to using coupons will go through the FSIs carefully and clip coupons of brands that they use or might be interested in trying.
- Relation to text This slide relates to material on pp. 516-517 of the text, which discusses premiums. Summary Overview This slide defines premiums which are an offer of an item of merchandise or service either free or at a low cost that is an extra incentive for customers. There are two basic types of premiums: Free premiums – small gifts or merchandise included in the product package Self-liquidating premiums – require customer to pay for some or all of the cost of the premium Use of this slide This slide can be used to introduce premiums as a sales promotion tool. Packaged carried premiums have high impulse value and can provide an extra incentive to buy the product. Free premiums have become very popular in the fast food restaurant industry as companies such as McDonalds and Burger King use premiums in their kids meals to attract children. Self-liquidating premiums are designed to not necessarily make money, but rather to cover costs and offer value to the consumer.
- Relation to text This slide relates to material on pp. 525-527 of the text that discusses trade promotion. Summary Overview Trade-oriented sales promotion is targeted to marketing intermediaries such as wholesalers and retailers. There are several reasons promotions are targeted to the trade, which include: Obtain distribution of new product Maintain trade support for existing products Encourage retailers to display existing brands Build retail inventories Use of this slide This slide can be used to introduce trade-oriented sales promotion. Like consumer oriented sales promotion, sales promotion programs targeted to the trade should be based on well-defined objectives and measurable goals and a consideration of what the marketer wants to accomplish.