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Sales Promotion
Promotion
Unit No. 5
Marketing Management
VIM
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.”
• Whereas advertising offers a reason to buy, sales
promotion offers an incentive to buy.
• Sales promotion includes tools for
▫ Consumer promotion
▫ Trade promotion
▫ Salesforce promotion
Consumer Promotion- Tools
• Samples
• Cash refund offers
• Price deal
• Cents-off deal
• Price-pack deal
• Prizes
• Patronage awards
• Loyal reward program
• Free trials
• Warranties
• Demonstrations
• Contests/ sweepstakes
• Rebates
• Loss leader
• Couponing-
▫ Free standing insert- coupons in local newspaper
▫ On-shelf couponing
▫ Check out dispensers
▫ Online couponing
▫ Mobile couponing
Trade Promotion- Tools
• Buying/ trade allowances
• Free goods
• Cooperative advertising
• Advertising
• Display allowances
• Dealer sales contests
• Push money
• Training programmes
Salesforce Promotion- Tools
• Bonuses
• Contests
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
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
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

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Sales promotion

  • 1. Sales Promotion Promotion Unit No. 5 Marketing Management VIM
  • 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
  • 5. Consumer Promotion- Tools • Samples • Cash refund offers • Price deal • Cents-off deal • Price-pack deal • Prizes • Patronage awards • Loyal reward program • Free trials • Warranties • Demonstrations • Contests/ sweepstakes • Rebates • Loss leader • Couponing- ▫ Free standing insert- coupons in local newspaper ▫ On-shelf couponing ▫ Check out dispensers ▫ Online couponing ▫ Mobile couponing
  • 6. Trade Promotion- Tools • Buying/ trade allowances • Free goods • Cooperative advertising • Advertising • Display allowances • Dealer sales contests • Push money • Training programmes
  • 7. Salesforce Promotion- Tools • Bonuses • Contests
  • 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