2. Concept
• “Sales promotion consists of a 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.”
3. • Whereas advertising offers a reason to buy, sales
promotion offers an incentive to buy.
4. • Sales promotion includes tools for
▫ Consumer promotion
▫ Trade promotion
▫ Salesforce promotion
8. Growth of Sales Promotion
• Advertising to sales promotion ratio
• Consumers are more deal oriented
• Advertising efficiency has declined because of
rising costs, media clutter and legal constraints
• Promotion clutter- a concern
9. Purpose of sales promotion
• Sales promotion tools vary in their specific
objectives
▫ Incentive type promotions;
to attract new triers
To reward loyal customers
To increase the purchase rates of occasional users
To increase bill size
▫ Sales promotion designed to break down brand
loyalty
▫ increase temporary sales volume
10. Four objectives of trade promotion
• Trade promotion can persuade the retailer or
wholesaler to Carry the brand
• Trade promotion can persuade the retailer or
wholesaler to Carry more goods
• Trade promotion can induce the retailer to
promote the brand by featuring, display and
price reductions
• Trade promotion can stimulate the retailers and
their sales clerks to push the product
