1. Sales Promotion
Promotion
Unit No. 5
Marketing Management
VIM

2. Concept
• “Sales promotion consists of a diverse collection
of incentive tools, mostly short term, designed to
stimulate quicker and/or greater purchase of
particular products/ services by consumers or
the trade.”

3. • Whereas advertising offers a reason to buy, sales
promotion offers an incentive to buy.

4. • Sales promotion includes tools for
▫ Consumer promotion
▫ Trade promotion
▫ Salesforce promotion

5. Consumer Promotion- Tools
• Samples
• Cash refund offers
• Price deal
• Cents-off deal
• Price-pack deal
• Prizes
• Patronage awards
• Loyal reward program
• Free trials
• Warranties
• Demonstrations
• Contests/ sweepstakes
• Rebates
• Loss leader
• Couponing-
▫ Free standing insert- coupons in local newspaper
▫ On-shelf couponing
▫ Check out dispensers
▫ Online couponing
▫ Mobile couponing

6. Trade Promotion- Tools
• Buying/ trade allowances
• Free goods
• Cooperative advertising
• Advertising
• Display allowances
• Dealer sales contests
• Push money
• Training programmes

7. Salesforce Promotion- Tools
• Bonuses
• Contests

8. Growth of Sales Promotion
• Advertising to sales promotion ratio
• Consumers are more deal oriented
• Advertising efficiency has declined because of
rising costs, media clutter and legal constraints
• Promotion clutter- a concern

9. Purpose of sales promotion
• Sales promotion tools vary in their specific
objectives
▫ Incentive type promotions;
 to attract new triers
 To reward loyal customers
 To increase the purchase rates of occasional users
 To increase bill size
▫ Sales promotion designed to break down brand
loyalty
▫ increase temporary sales volume

10. Four objectives of trade promotion
• Trade promotion can persuade the retailer or
wholesaler to Carry the brand
• Trade promotion can persuade the retailer or
wholesaler to Carry more goods
• Trade promotion can induce the retailer to
promote the brand by featuring, display and
price reductions
• Trade promotion can stimulate the retailers and
their sales clerks to push the product