Sales promotion techniques are used to incentivize consumers and retailers to purchase products. For consumers, common incentives include coupons, samples, rebates, and contests. The objectives are to generate interest, inquiries, traffic, repeat purchases, and increased purchase rates. For retailers, trade promotions provide incentives like allowances and contests to encourage inventory builds and promotional cooperation. However, trade promotions can cause issues like opportunism, forward buying, and demand spikes. Effective promotions require a good product that can retain customers after incentives end to avoid losing promotional gains. Excessive promotions may diminish returns and devalue brands.

1. Sales promotion Soumitra

2. “Whereas advertising gives a reason to buy, SP gives an incentive to buy” ……Soumitra

3. Why SP?

6. Consumer Sales promotion techniques

7. 1. Coupons

8. 2. Demonstrations

9. 3. Frequent-User Incentives

10. 4. Point-of-Purchase Displays

11. 5, Free samples

12. 6. Money refunds and rebates

13. 7. Premiums

14. 8. Consumer Contests and Sweepstakes

15. Objectives of Consumer-oriented sales promotion

16. 1. Generate consumer interest

17. 2) Generate inquires from the target customer group

18. 3) Build consumer traffic

19. 4) Motivate customers to repeat their purchase

20. 5) Increasing rates of purchase

21. Trade Sales Promotion Techniques

22. Double-Marginalization problem Retail prices too high Insufficient market coverage Offer lower wholesale price to retailers to increase market coverage Why offer trade promotions?

23. 1. Buy-Back Allowances

24. 2. Buying Allowances

25. 3. Scan-Back Allowances

26. 4.Trade Contest

27. 5. Free Merchandise

28. 6. Cooperative Advertising

29. Objectives of Trade Promotions

30. a) Encouraging trade to build inventory

31. b) Getting trade’s cooperation in promotions

32. Problems with Trade Promotions

33. Retail Opportunism Forward Buying Inventory problems and Demand Spikes Problems with Trade Promotions

34. Don’t promote if the product is not good Promotions rarely stop a declining sales curve It is very easy to lose the promotional gains made if your promotion has not been effective in retaining new customers. So the product has to speak for itself. The objective of the promotion is to wean away users from competition and create new users. Excessive promotions lead to diminishing returns and may devalue the brand Final considerations

35. Thank You for attaintion