A tool in Marketing Communication that manifest immediate purchase with the help of impulsive buying decision. learn about various methods of sales promotion and key techniques.
2. SALES PROMOTION
• Sales promotion Marketing activities other than personal selling,
advertising, and publicity that enhance consumer purchasing and dealer
effectiveness.
• Goal is speeding the sales process and increasing sales volume.
• Produce best results when combined with other other marketing activities,
such as advertising.
• Cannot overcome poor brand images, product deficiencies, or poor training
for salespeople.
3. CONSUMER-ORIENTED SALES PROMOTIONS
• Goals: Encourage repurchases by rewarding current users, boost sales of
complementary products, and increase impulse purchases.
• Coupons: most widely used form of sales promotion.
• Refunds Or Rebates: help packaged-goods companies increase purchase
rates, promote multiple purchases, and reward product users.
• Samples, Bonus Packs, And Premiums: a “try it, you’ll like it” approach.
• Contests: require entrants to complete a task such as solving a puzzle or
answering questions in a trivia quiz.
• Sweepstakes: choose winners by chance; no product purchase is
necessary.
• Specialty Advertising: sales promotion technique that places the
advertiser’s name, address, and advertising message on useful articles that
are then distributed to target consumers.
4. TRADE-ORIENTED PROMOTIONS
• Sales promotion that appeals to marketing intermediaries rather than to
final consumers.
• Accounts for half of typical firm’s promotion budget.
• Trade allowances—special financial incentives offered to wholesalers and
retailers that purchase or promote specific products.
• Point-of-purchase advertising—display or other promotion located near the
site of the actual buying decision.
• Trade shows—vendors who serve the industries display and demonstrate
their products for members.
• Dealer incentives, contests, and training programs.
7. LO1
Objectives of Sales Promotion
Type of Buyer
Loyal
Customers
Competitor’s
Customers
Brand
Switchers
Price Buyers
Desired Results
•Reinforce behavior
•Increase consumption
•Change purchase timing
•Break loyalty
•Persuade to switch
•Persuade to buy your
brand more often
•Appeal with low
prices
•Supply added value
Sales Promotion
Examples
•Loyalty marketing
•Bonus packs
•Sampling
•Sweepstakes,
contests, premiums
•Price-lowering
promotion
•Trade deals
•Coupons, price-off
packages, refunds
•Trade deals
8. Tools for Consumer Sales Promotion
Coupons and Rebates
Premiums
Loyalty Marketing Programs
Contests & Sweepstakes
Sampling
Point-of-Purchase Promotion
9. Tools for Consumer Sales Promotion
Coupon
Rebate
Premium
A certificate that entitles
consumers to an immediate
price reduction.
A cash refund given for the
purchase of a product during
a specific period.
An extra item offered to the consumer, usually
in exchange
for some proof of purchase.
10. Tools for Consumer Sales Promotion
Loyalty
Marketing
Program
A promotional program designed
to build long-term, mutually
beneficial relationships between
a company and key customers.
Frequent
Buyer
Program
A loyalty program in which
loyal consumers are rewarded for
making multiple purchases.
11. Tools for Consumer Sales Promotion
Contests
Promotions that require skill
or ability to compete for prizes.
Sweepstakes
Promotions that depend on
chance or luck, with free participation.
12. Tools for Consumer Sales Promotion
Sampling
A promotional program that allows the
consumer the opportunity to try a
product or service for free.
13. Methods of Sampling
Direct mail
Door-to-door delivery
Packaging with another product
Retail store demonstration
14. B2B -- Trade Sales Promotion
Trade Allowances
Push Money
Training
Free Merchandise
Store Demonstration
Conventions & Trade Shows
16. Push Money
Push Money
Money offered to channel
intermediaries to encourage
them to “push” products--that
is, to encourage other members
of the channel to sell the
products.
E.g. Nike gives bonus to sales
staff of retailers for meeting
quotas
17. Benefits of Trade Promotions
Help manufacturers gain new distribution
Obtain wholesaler and retailer support for
consumer sales promotions
Build or reduce dealer inventories
Improve trade relations
19. Kiosk Marketing
• Information and ordering machines called kiosks (in contrast to vending machines
which dispense actual products) are used heavily in recent years at airports, stores
and other locations.
• Kiosks at Hilton hotels help customers to see their reservations, get room keys,
view pre-arrival messages, check in and out.
• Kiosks can read customer data from encoded registration badges and produce
useful data that can be printed.
• Kiosks can give people information about the current schemes and sales
promotion
