SALES PROMOTION
• BY: Kamalkant Tandel

Sales Promotion
• Sales
Promotion Materials that act as a direct
inducement, offering added value, or
incentive for the product, to resellers,
sales persons or consumers.
Trade sales promotion is directed at
reseller.
Consumer sales promotion is
directed at consumers.

How sales promotion differs from Advertising?
• sales promotion is a direct while
Advertisement is mostly an indirect.
• sales promotion an immediate task of
increasing current sales while Advertising
normally has long term objective.
• Sales promotion aids selling by temporarily
changing the existing price value equation of
the product in favour of the consumer while
advertising helps sales by adding some
durable and long term value to the product.

Consumer sales promotion
• Consumer sales promotion is directed to
consumer.
• It stimulate consumer demand, market
demand and improve product
availability. For e.g. coupons, contest,
product sample etc…

Objectives of Consumer Sales
Promotion:
Stimulate trial
Allow flexible pricing
Neutralize competitors
Encourage repurchase
Stimulate impulse purchasing
Increase consumer inventory and consumption

Consumer promotion tools
Samples Offer of a free amount of a product or service
delivered door-to-door, sent in the mail, picked
up in a store, attached to another product,
or featured in an advertising offer.
coupons are given with the product.
e.g.- scratch and with the price.
Coupons
Merchandise offers at a relatively low cost or
free as an incentive to purchase a particular
product.
Premiums (gifts)

Frequency
programs
programs providing rewards related to the
consumer’s frequency and intensity in purchasing
the company’s product or services.
Free Trials inviting prospective purchasers to try the product
without cost in the hope that they will buy.
Rs.- off
offer
This is strong incentives for trying a product very
similar to coupons, but are a part of the package.

Demonstrations excellent attention getters. Labor costs are
usually high.
Consumer
contests
consumers complete based on their analytical or
creative skills. Must be accurate or you will anger
customers/retailers
:.
using one brand to advertise another
Noncompeting brand.
Cross-
promotions

Trade sales promotion
• Trade sales promotion are directed to
retailer/ wholesaler/ intermediaries.

Objectives of Trade Sales Promotion
Gain/maintain distribution
Influence resellers to promote product
Influence resellers to offer price discount
Increase reseller inventory
Defend against competitors
Avoid reduction of normal prices

Trade Allowances Trade allowances are short-term special
allowances, discounts, or deals granted to
resellers as an incentive to stock, feature, or in
some way participate in the cooperative promotion
of a product.
Dealer Loaders A dealer loader is a premium given to a reseller
to encourage development of a special display or
product offering.
Trade Promotion Tools

Trade Contests A trade contest typically associates prizes with
sales of the sponsor’s product. Trade contests
generate interest, which makes them useful for
motivating resellers.
Point-of-Purchase
Display
Point-of-purchase displays are
generally used at the retail level to call customer
attention to a featured
product.

Trade Shows
A trade show is a periodic, semi-public event at
which suppliers rent booths to display products
and provide information to potential buyers.
Training Programs Some manufacturers sponsor or pay for training
programs for customer employees.
Push Money
Push money, also called spiffs (for special
promotional products incentive funds), is what a
manufacturer pays retail sales- people to
encourage them to promote its products over
competitive brands.

ADVANTAGES & DISADVANTAGES OF SALES PROMOTION
• Easily measured
response
• Flexible
• Quick objective
achievement
• Can be cheap at times
ADVANTAGES
•BRAND IMAGE PROBLEM
•SHORT TERM ADVANTAGE
•STRESSFULL FOR RETAILERS
•BRAND MESSAGE NOT
CLEAR
DISADVANTAGES