This presentation shows how sales promotion decisions be made

1. How should sales promotion decisions be
made?
-Nikunj G Katkoria
- NIT Surat

4. How should sales promotion decisions be made?
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

5. Establishing Objectives
Consumers
•Encouraging Purchase of larger-sized units
•Building trial among non-users
•Attracting Switchers
Retailers
•Persuading retailers to carry new items % higher levels of inventory
•Encouraging off-season buying
•Encouraging stocking of related items
•Offsetting competitive promotions
•Building Brand Loyalty
•Gaining entry into new retail outlets

6. Selecting Consumer Promotion Tools
Samples Coupons
Cash Refund
Offers
Price Packs
Premiums Prizes
Patronage
Awards
Free Trials
Product
Warranties
Tie-in
promotions
Cross-
Promotion
Point-of-
Purchase

7. Consumer gets
a free sample
of the product

10. Price Packs

11. Premiums

15. Tie-in Promotions

16. Cross-Promotions

17. Point-of-Purchase

18. Price-off Allowance
Free
Goods
Selecting Trade Promotion Tools
A straight discount
off the list price on
each case purchased
Get discounts in
bulk
Offers of extra cases of
merchandise who buy a
certain or who feature
certain flavor or size

19. Selecting business and sales force promotion tools
Trade shows
and
convention
Sales Contests
Specialty
Advertising
Exhibitions for companies
or ventures to showcase
and demonstrate their new
products
Aims at including sales
force or dealers to
increase their sales
It consists of useful low
cost items bearing the
company’s name

20. Developing the program
•Size
•Incentives might be given
•Duration of promotion
•Distribution vehicle should be chosen
appropriately
•Timing of the promotion
•Total sales promotion budget must be
determined

21. Implementing and Evaluating the program
•Lead Time
•Sell-in Time
Implementing
•Sales Data
•Consumers Survey
•Experiments
Evaluating