Sales Promotion , its tools and difference between sales promotion and advertising.

1. SALES PROMOTION
AGNES MIRIAM. I

2. SALES PROMOTION
• Collection of incentive tools, mostly short
term, designed to simulate quicker or greater
purchase of particular products or services by
consumers or the trade.
• Used by most organizations including
manufacturers, distributors, retailers, and
non-for-profit institutions.

3. OBJECTIVES
• To create a long term relationship with a
retailer
• To attract new triers
• To reward loyal customers
• To increase the repurchase rates of occasional
users
• To attract brand switchers

4. ADVERTISING VS SALES PROMOTION
ADVERTISING SALES PROMOTION
TIME Long Term Short Term
DEFINITION One-way communication of a
persuasive message by an identified
sponsor, whose purpose is non-
personal promotion of
products/services to potential
customers.
A Promotion usually involves
an immediate incentive for a
buyer (intermediate distributor
or end consumer). It can also
involve disseminating
information about a product,
product line, brand, or
company.
PRICE Expensive Not very expensive
SUITABLE FOR Medium to Large Companies Small to Large Companies
SALES Assumption that it will lead to sales Directly related to sales
EXAMPLE Giving an advertisement in the
newspaper about the major products of
a company
Giving free products, coupons
etc.
PURPOSE Increase sales, Brand building Increase Sales
RESULT Slowly Very soon

5. MAJOR DECISIONS
• Establishing objectives
• Selecting consumer promotion tools
• Selecting trade promotion tools
• Selecting business and sales force promotion
tools
• Developing the program
• Implementing and evaluating the program

6. MAJOR CONSUMER PROMOTION
TOOLS
• Samples
• Coupons
• Cash refund offers(rebates)
• Price packs(cents-off deals)
• Premiums(gifts)
• Frequency programs
• Prizes(contests, sweepstakes, games)
• Patronage awards
• Free trails
• Product warranties
• Tie-in promotions
• Cross-promotions
• Point-of-purchase(p-o-p)displays and demonstrations

7. MAJOR TRADE PROMOTION TOOLS
• Price-off (off-invoice or off-list)
• Allowance
• Free goods

8. MAJOR BUSINESS AND SALES FORCE
PROMOTION TOOLS
• Trade shows and conventions
• Sales contests
• Specialty advertising