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Sales Promotions
Defined
What’s the difference
between Advertising and
Sales Promotion?
D.A.Novak & Text of the GNU Free
Documentation License
1

Sales Promotion
Successful sales promotions increase interest in your
products and spur revenue growth. Whether you offer
consumer products or services, properly positioned
sales promotion is an integral component to your
overall marketing plan. The best ideas for sales
promotion expand the reach of your products and lead
customers to choose your products over your
competitors.
Ideas for Sales Promotion
By Laura Acevedo, eHow Contributor
2

Sales Promotion Defined
• Sales Promotion:
The use of a value added offer or incentive
for the purpose of influencing or moving
the buying cycle forward.
Advertising changes minds – Promotion changes behavior
3

Advertising vs. Sales Promotion
Sales Promotion
Advertising
• Creates perception,
builds brand image
• Creates concept =
communication of idea or
image.
• Longer term.
• Measurement-
Awareness and attitudes
• Creates sales or
consumer response,
builds desire and
stimulates action.
• Creative concept-the
proposition or offer that
gets the consumer to act.
• Shorter term.
• Measurement: sales and
responses.
4

What Can Sales Promotion Do?
Sales Promotions Can
Stimulate Trial
Build Traffic
Build purchase frequency
Build customer loyalty.
Encourage stocking-up.
Reinforce advertising.
Reinforce brand image
Generate trade support
Motivate salespeople
Sales Promotion Cannot
Change negative
perceptions about a
product.
Turn a product around
when it is in decline.
“Create” a brand image.
Documentation License 5

Setting Objectives
1. They must be clear and concise.
2. They need to indicate what you want to
achieve quantitatively, qualitatively and in
what time frame.
3. The need to define exact action.
• Example: Increase the number of active travel agents 10% by end of fiscal year.
Achieve 70% renewal rate on two-year membership in first solicitation.
6

Who Is Your Target Market?
CONSUMER?
TRADE?
SALESFORCE?
7

Six Promotions Strategies
Objectives and market dictate strategy:
1. Trial-Introducing a new product.
2. Loading-Increasing volume (stocking up).
3. Continuity-Building Repeat purchases.
4. Usage-Encouraging new and frequent use.
5. Image-Reinforcing brand image/perception and
enhancing advertising.
6. Traffic-Encouraging store promotions, events,
website, or trade show exhibit.
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Sales Promotion Media.
• Coupons
• Clubs and frequency rewards
• Bonus & value packs
• Premiums
• Incentives and spiffs
• Stamps and continuity offers
• Rebates and refunds
• Sampling and demos
• P.O.P. & P.O.S. displays
• Advertising specialties and business gifts
• Sports events
• Charity events
9

Sales Promotion Techniques
Trade sales promotion techniques
Price deal: A temporary reduction in the price, such as happy hour
Loyal Reward Program: Consumers collect points, miles, or credits for purchases and redeem them for
rewards. Two famous examples are Pepsi Stuff and AAdvantage.
Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage marked on the package.
Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same
price (for example, 25 percent extra).
Coupons: coupons have become a standard mechanism for sales promotions.
Loss leader: the price of a popular product is temporarily reduced in order to stimulate other profitable sales
Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for delivery.
On-shelf couponing: Coupons are present at the shelf where the product is available.
Checkout dispensers: On checkout the customer is given a coupon based on products purchased.
On-line couponing: Coupons are available on line. Consumers print them out and take them to the store.
Mobile couponing: Coupons are available on a mobile phone. Consumers show the offer on a mobile phone
to a salesperson for redemption.
Online interactive promotion game: Consumers play an interactive game associated with the promoted
product. See an example of the Interactive Internet Ad for tomato ketchup.

Sales Promotion Techniques
• Rebates: Consumers are offered money back if the receipt and barcode are mailed to
the producer.
• Contests/sweepstakes/games: The consumer is automatically entered into the event
by purchasing the product.
• Point-of-sale displays:
– Aisle interrupter: A sign that juts into the aisle from the shelf.
– Dangler: A sign that sways when a consumer walks by it.
– Dump bin: A bin full of products dumped inside.
– Glorifier: A small stage that elevates a product above other products.
– Wobbler: A sign that jiggles.
– Lipstick Board: A board on which messages are written in crayon.
– Necker: A coupon placed on the 'neck' of a bottle.
– YES unit: "your extra salesperson" is a pull-out fact sheet.
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Core Elements of a Sales Promotion
• Creative concept (the offer)
• The idea or proposition that gets the consumer or trade to
act (strategy)
• The media or system for communicating
the offer.
• Newspaper, TV, direct mail, FSI, in-store promo., displays,
web, e-mail, and ad specialties. , on-pack, and
salespeople.
• Note: The fulfillment or distribution of the reward
promised in the offer is extremely important and reflects
directly on the company.

Advertising and Sales Promotion
• Based upon studies by Dr. Walter Dill Scott,
Northwestern University.
• Within 24 hours, 25 out of 100 people forget
impressions.
• Within 2 days, more than 50% have forgotten the
impression.
• Within 4 days, more than 75% have forgotten the ad.
13

Sales Promotion Political Issues
Political issues
Sales promotions have traditionally been heavily regulated in many
advanced industrial nations, with the notable exception of the United
States. For example, the United Kingdom formerly operated under a
resale price maintenance regime in which manufacturers could legally
dictate the minimum resale price for virtually all goods; this practice was
abolished in 1964.[1]
Most European countries also have controls on the scheduling and
permissible types of sales promotions, as they are regarded in those
countries as bordering upon unfair business practices. Germany is
notorious for having the most strict regulations. Famous examples
include the car wash that was barred from giving free car washes to
regular customers and a baker who could not give a free cloth bag to
customers who bought more than 10 rolls.[2]
14

Sales Promotion Ideas
• Cause-Related
• Tie your sales promotion to a worthy cause to increase your business profile and sales. Customers
like helping a good cause and may choose your product or services over a competitor if you tie a
sales promotion to an appropriate cause. Choose a cause that is related to your products for
maximum benefit. If you sell makeup, tie your sales promotion to a skin cancer charity. Promote
through store signs, information on your website, coupons and direct marketing efforts. Work with
the charity you choose to include promotional information on their website and marketing
materials for added exposure. For long-term cause marketing, consider international movements
such as fair trade products.
• Finance Deals
• Offer special financing deals to spur sales on new, underperforming or high-value goods and
services. For some customers, financing specials can speed up a planned purchase or increase the
value of an order. For service sales, financing deals can be critical to enabling customers to obtain
needed equipment or ease into a service contract. For example, a security company that makes
most of their revenue off of long-term service contracts can offer financing specials to offset the
cost of monitoring equipment. These financing arrangements can help lock in customers to longer-term
service contracts that will lead to predictable increases in revenue for your company.
•
By Laura Acevedo, eHow Contributor
Read more:
15

Sales Promotion Ideas
• Text Promotions
• Place codes on your products that require customers to text a number to enter a drawing for
a significant prize. Text promotions can help you target a younger demographic and can
generate a buzz about your products. Use this type of promotion to build a contact list that
you can use for future text-based marketed campaigns. Text-based sales promotions work
best on consumer products that are frequently purchased like beverages, candy or youth-oriented
products.
• BOGO
• Buy one, get one at a discount (BOGO) offers are popular with consumers and can have a
large impact on your sales volume. Since customers must purchase a second product to
receive the discount, your store benefits from increased overall sales. BOGO sales draw in
repeat customers and new customers and increase traffic to your store. Make your BOGO
sale encompass most of the products you offer for maximum benefit. Increase prices on any
product that will not be profitable in a BOGO offer or clearly exclude them from your sales
promotion. Depending on your product, consider gradually increasing the prices on all your
products before your sales promotion if customers are not highly price sensitive.
•
By Laura Acevedo, eHow Contributor 16

Advertising and Promotion definitions
Definition
Advertising Promotion
Definition
One-way communication of a
persuasive message by an
identified sponsor, whose
purpose is non-personal
promotion of products/services
to potential customers.
A Promotion usually involves an
immediate incentive for a buyer
(intermediate distributor or end
consumer). It can also involve
disseminating information
about a product, product line,
brand, or company.
Time Long term Short term
Price Expensive in most cases
Not very expensive in most
cases.
Suitable for Medium to large companies Small to large companies
Sales
Assumption that it will lead to
sales
Directly related to sales.
Example
Giving an advertisement in the
newspaper about the major
products of a company
Giving free products, coupons
etc.
About A type of marketing tool A type of marketing tool
Purpose Increase sales, brand building. Increase sales.
Result Slowly very Soon 17

Advertising vs Promotion
• Cost of advertising vs promotion
• Promotions are directly linked to sales and hence for
small companies it may be easier to use promotional
methods. Advertising may be more expensive for small
companies and it may not be feasible for them while in
advertising it is being assumed that adverts will lead to
sales.
• For example: A store may give 20% discount on its
products which may increase sales while the same shop
may find it difficult to advertise this in various medias.
18

Advertising Types
• Advertising can be of the following types:
• Media: Commercial advertising media can include wall paintings,
billboards, street furniture components, printed flyers and rack cards,
radio, cinema and television ads, web banners, mobile telephone
screens, shopping carts, web popups, skywriting, bus stop benches etc.
• Covert Advertising: Covert advertising is when a product or brand is
embedded in entertainment and media. For example: John Travolta
wearing only "Diesel" clothing in a movie.
• Television Commercials: Virtual advertisements may be inserted into
regular television programming through computer graphics. It is
typically inserted into otherwise blank backdrops.
• Internet Advertising: This is the newest form of advertising wherein
web space is used and email advertising is used.
19

Marketing and Sales
Marketing and sales are both activities aimed at
increasing revenue. They are so closely intertwined
that people often don’t realize the difference
between the two. Indeed, in small organizations,
the same people typically perform both sales and
marketing tasks. Nevertheless, marketing is
different from sales and as the organization grows,
the roles and responsibilities become more
specialized.
20

Sales vs Marketing
• Sales vs Marketing Activities
• Marketing activities include consumer research (to identify the needs
of the customers), product development (designing innovative
products to meet existing or latent needs), advertising the products to
raise awareness and build the brand. The typical goal of marketing is to
generate interest in the product and create leads or prospects.
• On the other hand, sales activities are focused on converting prospects
to actual paying customers. Sales involves directly interacting with the
prospects to persuade them to purchase the product.
• Marketing thus tends to focus on the general population (or, in any
case, a large set of people) whereas sales tends to focus on individuals
or a small group of prospects.
21

Marketing vs Sales
Marketing Sales
Approach
Broader range of activities to
sell product/service, client
relationship etc.; determine
future needs and has a
strategy in place to meet
those needs for the long term
relationship.
makes customer demand match the products the company currently offers.
Focus
Overall picture to promote,
distribute, price
products/services; fulfill
customer's wants and needs
through products and/or
services the company can
offer.
fulfill sales volume objectives
Process
Analysis of market,
distribution channels,
competitive products and
services; Pricing strategies;
Sales tracking and market
share analysis; Budget
Usually one to one
Scope
Market research; Advertising;
Sales; Public relations;
Customer service and
satisfaction .
Once a product has been created for a customer need, persuade the customer to purchase the product to fulfill her needs
Horizon Longer term Short term
Strategy pull push
Priority
Marketing shows how to
reach to the Customers and
build long lasting relationship
Selling is the ultimate result of marketing.
Identity
Marketing targets the
construction of a brand
identity so that it becomes
easily associated with need
fulfillment.
Sales is the strategy of meeting needs in an opportunistic, individual method, driven by human interaction. There's no premise of brand identity,
longevity or continuity. It's simply the ability to meet a need at the right time.
22

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