1. SALES PROMOTION
THOMAS HILL
BA 260
SUMMER 2012
S

2. What is it?
S One of 7 aspects of the promotional mix which targets or
incentivizes consumers to buy your product or service
S Advertising
S Personal selling
S Sales promotion
S Public relations
S Direct marketing
S Corporate image
S Sponsorship
S The sales promotion is targeted towards the
customer, sales staff and/or the company’s distribution
channel or retailer

3. S Usually a short-run tool used to stimulate demand for a
certain product or service
S Extremely effective and popular amongst most, if not all,
major companies in the US
S Estimates state that sales promotion accounts for $400
billion per annum
S The goal: immediate purchase
S What can we do as a company that will drive people to want
to buy our product or service immediately

4. Examples:
S Free Samples
S Contests
S Premiums
S Tradeshows
S Vacation Giveaways
S Coupons
S Loyalty Marketing Programs

5. Two greatest effects:
S Lowers the price of the good or service
to increase demand
S Adds value to the current product or
service to increase demand
S As advertising offers the consumer a
reason to buy, the sales promotion
offers the consumer a reason to buy

6. Benefits to sales promotions:
S A lot cheaper and easier to measure than advertising:
S Take any major sporting event for example–getting the
necessary airtime to promote your product can cost millions
S It’s difficult to objectively measure the impact of many
advertising campaigns
S Whereas with sales promotions, marketers know the exact
number of coupons redeemed, contest entries, free samples
given, etc.

7. Types of Consumers and
Goals of Sales Promotion
Sales Promotion
Type of Buyer Desired Results
Examples
• Reinforce behavior
Loyal • Loyalty marketing
• Increase consumption
Customers • Bonus packs
• Change purchase timing
• Sampling
Competitor’s • Break loyalty
• Sweepstakes,
Customers • Persuade to switch
contests, premiums
• Price-lowering
Brand • Persuade to buy your
promotion
Switchers brand more often
• Trade deals
• Appeal with low • Coupons, price-off
Price Buyers prices packages, refunds
• Supply added value • Trade deals
**Maj-Britt Kimm Chapter 18 Powerpoint slide #8**

8. S “Once marketers are able
to understand the
dynamics occurring within
their product category
and have determined the
particular consumers and
consumer behavior they
want to influence, they
can go about selecting
promotional tools to
achieve these goals.”
Lamb et. al, 2011.

9. Some Contemporary
Examples

10. Premiums

11. Premiums continued..

12. Loyalty Marketing Programs

13. Contests and Sweepstakes

14. Sampling