2. Sales Promotion
Sales promotion is one of the seven aspects of
the promotional mix. Media and non-media
marketing communication are employed for
a pre-determined, limited time to increase
consumer demand, stimulate market
demand or improve product availability.
Examples include contests, coupons,
freebies, loss leaders, point of purchase
displays, premiums, prizes, product samples,
and rebates.
3. Sales Promotion
Sales promotions can be directed either
at the customer, sales staff, or distribution
channel members (such as retailers).
Sales promotions targeted at the
consumer are called consumer sales
promotions. Sales promotions targeted at
retailers and wholesale are called trade
sales promotions
5. Objectives
Free samples stimulate trials
Free management advisory service aims at long
term relation
Incentive type promotion reward royal customers
and increase repurchase rates
To attract brand switchers.
Used in markets of high brand similarity
It enables manufacturers to adjust to short term
variations in supply and demand.
7. Types of Sales Promotions
1. Consumer promotions
2. Trade promotions
3. Business and sales force promotions
8. Tools
Consumer promotion tools- the promotion
planner should take into account the
type of market, sales promotion
objectives, competitive conditions, and
each tool’s cost effectiveness. The main
consumer promotion tools are:-
9. Different Tools
Samples
Coupons
Cash refund
Price packs
Premium/gifts
Frequency programs
Prizes
Free trials
Product warranties
Tie in promotion
Cross promotions
Point of purchase display & demonstrations
11. Why is Trade Promotion Used?
To persuade retailer or wholesaler to carry
the brand
To persuade retailer or wholesaler to carry
more inventory
To induce retailers to promote the brand
by featuring display and price reductions
To stimulate retailers and sales clerks to
push their products.
12. Tools Used
Price Off- A straight discount off the list price
on each case purchased during a stated
time period.
Allowance- An amount offered in return for
the retailer’s agreeing to feature the
manufacturer’s products in some way.
Free goods- offers of extra cases of
merchandise to intermediaries who buy a
certain quantity or who feature a certain
flavor or size.
14. Business or sales force
promotions
Companies spend large amount of
money on business and sales-force
promotion tools to gather business
leads, impress and reward customers, and
motivate the sales force to greater effort.
They develop budgets for tools that
remain fairly constant from year to year.
15. Sales force promotion tools
1. Trade shows and conventions
2. Sales contests
3. Specialty advertising
17. Trade Shows & Conventions
Industryassociations organize annual
trade shows and conventions. Business
marketers may spend as much as 35% of
their annual promotion budget on trade
shows.
Participating vendors expect several
benefits including-
18. Benefits …
Generating new sales leads
Maintaining customer contacts
Introducing new products
Meeting new customer
Selling more to present customers
Educating customers with
publications/videos
Other audio visual materials
20. Sales Contests
A sales contest aims at inducing the sales
force or dealers to increase their sales
results over a stated period, with
prizes(money, trips, gifts, or points) going
to those who succeed.
22. Specialty Advertising
Itconsists of useful, low cost items bearing
the company’s name and address and
sometimes an advertising message that
sales people give to prospects and
customers.
Common items are ball point pens,
calendars, key chains, flash lights etc.
24. Why P.R.?
Companies cannot survive in isolation they
need to have a constant interaction with
customers, employees and different
stakeholders. This servicing of relation is done
by the public relation office.
The major function of the public relation office
is to handle press releases, support product
publicity, create and maintain the corporate
image, handle matters with lawmakers, guide
management with respect to public issues.
25. Functions
PR involves a variety of programs designed to
promote or protect the company’s image or
its individual products. The best PR
departments perform the following functions
Press relations
Product publicity
Corporate communications
Lobbying
Counseling
27. M.P.R.
The old name for MPR was PUBLICITY, the
task of securing editorial space-as
opposed to paid space- imprint and
broadcast media to promote “HYPE” a
product, service, idea, place, person or
organization.
MPR goes beyond simple publicity and
plays an important role in the following
tasks-
28. Tasks
Assisting in launch of new products
Assisting in repositioning a mature product
e.g. Onida
Building interest in a product category e.g.
eggs
Influencing specific target groups
Defending products that have encountered
products e.g. coke
Building corporate image in a way that
reflects favorable on its products.
29. Tools
Publications- Newsletters, magazines and
journals
Events- Castrol gives away free tickets for
Malaysian Moto GP
Sponsorship- Complan sponsors under-14
sports events
News- Media helps enhance brand image
Public service activities- Subway celebrating
RED NOSE DAY worldwide
Identity media- Pens, locks, diaries
