Marketing communication: sales promotion

1. Sales Promotion
Dr. Gopal Thapa
Tribhuvan University

2. Sales Promotion
 Sales promotion consists of diverse collection of
incentive tools, mostly short term, designed to
stimulate quicker and /or greater purchase of
particular products/services by consumers or the
trade. (Kotler)
 Sales promotion refers to demand-stimulating
devices designed to supplement advertising and
facilitate personal selling. (Stanton)
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3. Sales Promotion
 Sales promotion is 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
---Belch and Belch
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4. Features of Sales Promotion
 Short term
 Incentives
 Quicker response
 Target audience: consumer, trade channels or sales
personnel
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5. Objectives of Sales Promotion
 Encourage greater purchase volume
 Attract new customers
 Introduce new products
 Carry and push new brands
 Increase inventories
 Attract new channel members
 Offset competitive promotion
 Better store display
 Motivate sales force
 Support new products
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6. Methods of Sales Promotion
 Consumer promotion
 Trade promotion
 Sales force promotion
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7. Methods of Consumer Promotion
 Free samples
 Coupons
 Rebates/money refund
 Premium (gifts)
 Price off
 Contest and prize
 Display and demonstration
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8. Methods of Trade Promotion
 Free goods
 Allowances
 Price-off
 Sales contest
 Gift items
 Credit facilities
 Trade show
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9. Methods of Sales-force Promotion
 Sales contest
 Trade show/conventions
 Gift items
 Promotional kits
 Bonus and commission
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10. Reasons for the Increase in Sales
Promotion
 Growing power of retailers
 Declining Brand Loyalty
 Increased Promotional Sensitivity
 Brand Proliferation
 Fragmentation of the Consumer Market
 Short-Term Focus
 Increased Accountability
 Competition
 Clutter
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11. Reasons for the Increase in Sales
Promotion

12. Publicity
 Publicity is any communication about an
organization, its products or policies through the
media that is not paid for by the organization.
(Stanton)
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13. Features of Publicity
 Communication with public groups
 No identified sponsor
 Done through various media
 Free of cost
 High credibility
 Can be positive or negative
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14. Objectives of Publicity
 Announce new products
 Build interest in established products
 Announce policies and performance
 Announce technological development
 Counter negative publicity
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15. Types of Publicity
 Personal communication
 Press conference
 News releases
 Feature articles
 Publications
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16. Public Relations
 Public relations involve a variety of programs
designed to promote and or protect a company’s
image or its individual products. (Kotler)
 Public relations is a management tool designed to
favorably influence attitudes towards an
organization, its products and its policies.
(Stanton)
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17. Objectives of Public Relations
 Announce new products
 Build interest in established products
 Announce policies and performance
 Announce technological development
 Maintain good relations with community
 Counter negative publicity
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18. Nature of Public Relations
 Media relations
• Personal communication
• News releases
• Feature articles
• Publications
 Public service activities
 Sponsorship of events
 Lobbying
 Exhibits and displays
 Problem solving
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19. Factors Affecting Promotion Mix
 Promotion objectives
 Nature of product
 Nature of target market
 Stage of PLC
 Size of promotion budget
 Competitors promotion mix
 Government rules and regulations
 Promotion mix strategy
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20. Promotion strategies
 Pull and push strategies
 Personal and mass communication strategies
 Cooperative promotion strategies
 Online promotion strategies
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21. Thank you
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