How should sales promotion decision be made

1. How should sales promotion
decision be made?
Guided by: Presented by:
Prof. Sameer Mathur Smriti Mishra
G.E.C Rewa

2. Sales promotion
• Itconsistofcollectionofincentivetools,designedto
stimulatequickerorgreaterpurchaseofparticular
product.

3. Difference between advertising
and sales promotion
Advertisingoffersareasontobuyaproductwhereas
salespromotionoffersanincentive.

4. Major decisions
• Establishingobjectives
• Selectingconsumerpromotiontools
• Selectingtradepromotiontools
• Selectingbusinessandsalesforcepromotiontools
• Developingtheprograms
• implementingandevaluatingtheprogram

5. Establishing objectives
• Forconsumers-
Encouragingpurchaseoflarger-sizedunits
Buildingtrialamongnonusers
Attractingswitchersawayfromcompetitorbrands
• Forretailers-
Persuadingretailerstocarrynewitems
Encouragingoff-seasonbuying
Buildingbrandloyalty
• Forsalesforce-
Encouragingsupportofanewproduct
Encouragingmoreprospectiveoff-seasonsale

6. Selecting consumer promotion
tools
Promotionalplannershouldtakeintoaccount
• Typeofmarket
• Salespromotionobjectives
• Competitiveconditions
• Tool’scosteffectiveness

7. Main consumer promotional
tools
• Samples- offerfreeamountofaproduct
orservice

8. • Coupons-certificatesentitlingthebearerto
astatedsavingonthepurchase

9. • Cashrefundoffers-provide
apricereductionafterpurchase

10. • Pricepacks-offerstoconsumersofsavingsoffthe
regularpriceoftheproduct,flaggedonthelabelor
package

11. • Premiums-productsofferedatarelativelylowpriceor
freeasanincentivetopurchase

12. • Frequencyprograms-programs
providingrewardsrelatedtothe
consumer’sfrequencyandintensity
inpurchasingtheproducts.

13. • Prizes-offerstowinprizesorrewardsasaresultof
purchasingsomething.

14. • Patronageawards-valuesincashorintheformsthat
areproportionaltopatronage.

15. • Freetrials-invitingpurchaserstotrytheproducts
withoutcost

16. • Productwarranties-insuranceagainst
failure

17. • Tie-inPromotions-twoormorebrandsorcompanies
teamuptoincreasepullingpower.

18. • Cross-promotions-usingone
brandtoadvertiseanother
noncompetingbrand

19. • Pointofpurchase-displaysand
demonstrationstakeplaceatthepointof
purchase

20. Selecting trade promotion tools
Majortradepromotionaltools
• Price-off
• Allowance
• Freegoods

21. • Price-off-discountoffthelistpriceontheproducts

22. • Allowance-amountofferedinreturnfortheretailers
agreeingtofeaturetheproductsinsomeway.

23. • Freegoods-offersonbuyingcertainquantity,flavouror
size.

24. Selecting business and sales force
promotional tool
• Tradeshowandconventions
• Salescontests
• SpecialityAdvertising

25. Trade show and conventions
• Anexhibitionforcompaniesinaspecificindustryto
showcaseanddemonstratetheirnewproductsand
services

26. Sales contests
• Aimsatinducingthesalesforcefordealerstoincrease
theirsales.

27. Speciality advertising
• Consistofuseful,lowcostitemsbearingthecompany
name

28. Developing the program
• Marketersmustfirstdeterminesizeoftheincentive
• Marketingmanagermustestablishconditionsfor
participation
• Marketermustdecideonthedurationofpromotion.
• Marketermustchooseadistributionvehicle
• Mustestablishtotalsalespromotionbudget

29. Implementing and evaluating the
program
• Preparingimplementationandcontrolplansthatcover
leadtimeforeachindividualpromotion
• Programcanbeevaluatedusingsalesdata,consumer
surveys,andexperiments

31. Created by Smriti Mishra,G.E.C Rewa, during
an internship by Prof. Sameer Mathur,IIM
Lucknow
www.IIMinternship.com