SALES PROMOTION

3. Sales promotion is a marketing discipline
that utilizes a variety of incentive
techniques to structure sales related
programs targeted to consumers, trade,
and sales levels that generated specific
measurable action or response for a
product or service

5. •Increasing Competition
•Customers have become more price sensitive
•Consumer Acceptance
•Advertising has become more expensive and
less effective
•Sales promotion generally create an immediate
positive impact on sales

7. •To introduce the new products
•To increase the sales of existing products
•To attract new customers
•To maintain old customers
•To create brand identity of the organisation
•To improve public image of the
organisation
•To assist salesmen and the dealers
•To induce customers to purchase more
items

9. Sales promotions can be directed at the:
• Customer
• Sales staff
• Distribution channel (such as retailers)
Sales promotions targeted at the consumer are called consumer sales
promotions.
Sales promotions targeted at retailers and wholesalers are called trade
sales promotions.

10. Sales Promotion Strategies
Push Strategies Pull Strategies
Trade Consumer
Promotions Promotions

13. Free samples: These are distributed to
attract consumers to try out a new product
and thereby create new customers. Some
businessmen distribute samples among
selected persons in order to popularize the
product.

14. Distribution of Trading Stamps: Trading stamps are
issued to customers through the retailers in
proportion to the amount of purchase. The customer
goes on collecting the stamps on his purchases. Once
he has collected stamps of an adequate amount, he
obtains a free product in exchange of his stamps.

15. Coupons: Sometimes, coupons are issued by
manufacturers either in the packet of a
product or through an advertisement printed
in the newspaper or magazine or through
mail. These coupons can be presented to the
retailer while buying the product. The holder
of the coupon gets the product at a discount.

16. Premium or Bonus offer: This is a reward
given to the existing customers. This tool
will help increase the sales of the product
among the existing customers itself.
A milk shaker along with Nescafe, mug with
Bourn vita, toothbrush with 500 grams of
toothpaste might be some examples of this
tool.

17. CONTESTS: The contest may be held for the
customers, salesmen and dealers. They are
required to write a slogan/ complete sentence
about the utility of the product. Attractive
Prizes are given for the best entries.

18. Fairs and Exhibitions: Fairs and exhibitions
may be organized at local, regional,
national or international level to introduce
new products, demonstrate the products
and to explain special features and
usefulness of the products. Apart from this
small stalls are also placed in popular
locations where the products are sold in
smaller quantity to attract more customers.

20. Other like....
Exchange schemes
Price-off offer
Bonus points
Money Back offer
Scratch and win offer

22. • Trade Allowances
• Point-of-Purchase Displays
• Contests and Dealer Incentives
• Training Programs
• Trade Shows
• Cooperative Advertising
• Trade-Oriented Promotions

23. SALES
FORCE
PROMOTION

24. •Bonus to the sales force
•Sales force contests
•Conferences and meetings of salesmen

26.  Price discrimination
 Effect on consumer behavior
Effect on trade behavior
Luring New Customers with Price
Gaining Community Favor
Providing Information

28.  Increased price sensitivity
 Quality image may become tarnished
Merchandising support from dealers is
doubtful
Short-term orientation

30. Difference Between Sales Promotion And
Advertisement
ADVERTISEMENT SALES PROMOTION
By using a variety of persuasive
appeals, it offers reasons to buy a
product or service.
E.g.: Good Network, Promises and
Delivers.
Besides giving reasons in the form of
different appeals, they offer incentive to
the consumers to buy the product or
service now.
e.g. For new users, 1 no. is given free
for 1 month & sms is free for 3 months.
Appeals are emotional or functional
in nature.
E.g.: the ad of “Wherever you go,
our network follows”
Appeals are rational
Contd……..

31. Time-frame is long term. Time frame is short term.
The primary objective is to create an
enduring brand image.
To get sales quickly or to induce trial.
Indirect and subtle approach towards
persuading customers to buy a product
or service.
Direct in approach to induce
consumers to buy a product or service
immediately by temporarily changing
the existing price-value relationship of
the product or service.