3. Definition
Sales Promotion may be defined as
media and non media marketing
pressure applied for a predetermined,
limited period of time in order to
stimulate trial and impulse purchases,
increase consumer demand, or improve
product quality.
(American Marketing Association)
6. Sales Promotion Goals
• Increasing awareness
• Inducement to try
• Increasing short term sales volume
• Maintaining customer loyalty
• Emphasizing novelty
• Overcoming product problems
• Complementing other promotion tools
7. Advantages
• It often has eye catching appeal
• Themes and tools can be distinctive
• The consumer may receive something of
value, such as coupons or free merchandise
• It helps draw customer traffic and maintain
loyalty to the retailer
• Impulse purchases are increased
• Customers can have fun, particularly with
promotion tools such as contests and
demonstrations
8. Disadvantages
• It may be hard to terminate certain promotions
without adverse customer reactions
• The retailer’s image may be hurt if repetitive
promotions are used
• Frivolous selling points may be stressed rather
than the retailer’s product assortment, prices,
customer services and other factors
• Many sales promotions have only short term
effects
• It can be used mostly as a supplement to other
promotional tools.
10. Premiums
An extra item offered to
the customer when
purchasing promoted
products
11. Contests & Sweepstakes
Sales Promotion
Techniques in which
customers have a chance
of winning a special prize
based on entering a
contest in which the
entrant competes with
others, or a sweepstake
in which all entrants have
an equal chance of
winning a prize
12. Frequent Buyer Programme
Sales Promotion
Programme in which
buyers are rewarded with
special rewards, which
other shoppers are not
offered., for purchasing
often from the retailer
15. Coupons
A sales promotion tool in
which the shopper is
offered a price discount
on a specific item if the
retailer is presented with
the appropriate coupon at
time of purchase
16. In Store Displays
…are promotional fixtures
of displays that seek to
generate traffic, highlight
individual items and
encourage impulse
buying.
17. Demonstrations & Sampling
…are in-store
presentations with the
intent of reducing the
consumer’s perceived
risk of purchasing a
product
18. Major Decisions
Establishing Objectives
Deciding on Budget
Selecting sales promotion tools
Developing the program
Pre testing,Implementing, controlling,
evaluating the programme
19. Recap
What are various types of sales
promotion ?
What are the advantages &
disadvantages of sales promotion ?
Offered kashmiri Carpets if sales exceed 20000 francs (selfrides & Harrods) entire stock cleared in three days
Strategy of Care & cure
“day Spas”
Fairone for men.Marketing tie up with Elder Pharmaceuticals
A part of Harvard curriculam for building a brand w/o advertising
Tools used : Sales Promotion, word of mouth & good product placements
T & M appliance store in US
Budget USD 500 (they spent 455 dollars only)
Customers came into store in october – free pumpkin
Come back & submit carved pumpkin
Again come back to see all the entries & vote for their favourite for people choice award
Came back the fourth time during the Moonlight madness costume contest & parade on main street to pick up their pumpkins
Pumpkins made a great display in the store for Moonlight Madness.A half page of the store’s regular ad was devoted to the contest
Major expense - $250 as prize
150 pumpkins : $95
Well designed orange flyers : $ 75
Store decoration (Straw Bales) - $ 35
Tips for
1.Have flyers printed in Sept
2. When all the pumpkins are gone, tell customers they still can enter with their own pumpkin
3.Put finished pumpkins on paper plate when they are on display – they will leak
4. Start giving away pumpkins early in Oct – they will remind the customer about the store everyday
5.Promotional flyer to local library, day care centre, public schools
6.Keep a list of customers who receive pumpkins & those who return them
7. Put the carved pumpkins thruout the store so that customers will see all the merchandise
8. Coordinate the promotion with other holiday promotions in the store’s area
9. Phone the local newspapers to print photos & stories about the promotion
