Sales Promotion

1. Prof. Savica Dimitrieska
SALES PROMOTION

2. 1. DEFINITION AND OBJECTIVES OF
SALES PROMOTION

3. Definition of Sales Promotion
Short-term and temporary promotional activity, in the form of rewards and incentives, that
stimulates immediate sales!

4. Definition of Sales Promotion
Persuading potential consumers to buy a particular product at once!
Short-term marketing tactics as a basis for building long-term customer relationships.

5. Definition of Sales Promotion
АМА: Media and nonmedia marketing pressure applied for a predetermined, limited period of
time in order to stimulate trial, increase consumer demand, or improve product availability.

6. Definition of Sales Promotion
Activities that supplement both personal selling and advertising, coordinate them and help
to make them more effective.
Sales promotion means any steps that are taken for the purpose of obtaining or increasing
sales.

7. Definition of Sales Promotion
Contests, sweepstakes
Premiums, samples, bonus
packs, freebies
Coupons, refunds/rebates
price-off deals, fairs
Sponsorship, trade-shows,
conventions, training
Happy hour, open days,
event marketing
Loyalty programs
Point-of –purchase displays

8. Objectives of Sales Promotion
To reward a company’s loyal
customers
To persuade consumers to try
the (new) products
To increase sales in
off-seasons
Helps the company to remain
competitive
To add to the stock of the
dealers
To attract new customers
To induce existing customers
to buy more

9. Objectives of Sales Promotion
Bridge between advertising and personal
sales
Promotion of new products
Attracting new customers
Challenging the existing customers
Sales in all the seasons
Cooperation with retailers and distributors
Reinforcing the company’s image

10. Objectives of Sales Promotion
Building product awareness – knowledge about company and its products
Creating interest– persuading consumers for the need of a product
Providing information – characteristics and product benefits
Reinforcing the brand– building long-term relationships and loyalty
Stimulating demand– trial, frequent and larger quantities of products

11. 2. MEANING OF THE
SALES PROMOTION

12. Meaning of the Sales Promotion
Consumers Producers Trade Society

13. Meaning of Sales Promotion
For consumers:
Purchase at lower prices
Trial of a new product
Purchase in larger quantities
Getting to know the product

14. Meaning of Sales Promotion
For producers:
Increased Sales
Increased Sales in Off-Seasons
Close cooperation with intermediaries
Stimulating demand
New markets, new customers
Competitive advantage
Greater efficency in combination with
advertising and personal sales

15. Meaning of Sales Promotion
For intermediaries:
Purchases in larger quantities, at
lower prices
Direct relationship with consumers

16. Meaning of Sales Promotion
For society as a whole:
Higher living standard
More employments
Development of transport,
communications, insurance, storage
Healthy competition

17. Customers and Sales Promotion
Loyal customers Reinforce behavior: bonus packs, loyalty programs
Persuade to buy the brand: trade deals, trials
Competitor’s customers Persuade to switch: contests, premiums, samples
Brand switchers
Price buyers Appeal with low prices: coupons, price-off packs,
refunds, trade-deals

18. Sales Promotion is a FUN for consumers

19. 3. TYPES OF SALES PROMOTION

20. Types of Sales Promotion
Consumers Trade Sales Force

21. А) Sales Promotion for Consumers
Stimulating interest Coupons, trials, free samples, premiums
Asking questions
Visiting shops
Repeated purchase
Free catalogues, contests, sweepstakes
Marketing events, fun activities, fashion shows
Membership cards, T-shirts, clothing

22. А) Sales Promotion for Consumers
Free gifts
Premiums
Price-off deals
Coupons
Rebates
Samples
Displays
Contests
Sweepstakes
Happy HourTrade-InLoyalty programs

23. B) Sales Promotion for Trade
Trade shows
Trade allowance
Push-money
Training
Samples
Displays

24. C) Sales Promotion for Sales Force
Premiums
Contests
Symposiums
Conferences
Bonus
Sales Rallies

25. 4. ADVANTAGES AND DISADVANTAGES
OF SALES PROMOTION

26. Advantages of Sales Promotion
Eye-catching appeal
Increasing market share
Introducing new products
Distintctive themes and tools
Close cooperation with trade
Increased sales in off-seasons
Additional value for customers
Increased profit, in a short-time
Competitive advantage
Fun for customers
Supplement to advertising and
personal sales

27. Disadvantages of Sales Promotion
Possible damage to retailer’s image
High costs, expensive
Difficult to terminate
High consumers expectations
Short-term effects only
Often abused

28. Questions
Defintion
Objectves
Promotion and customers
Meaning
Types of Sales promotion
Advantages
Disadvantages