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The Sales Promotion

The Sales Promotion. Definition: Promotion. Marketing activities used to communicate to consumers about the organization, its products, its activities, and to directly or indirectly expedite exchanges.

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The Sales Promotion

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  1. The Sales Promotion

  2. Definition: Promotion • Marketing activities used to communicate to consumers about the organization, its products, its activities, and to directly or indirectly expedite exchanges. • Communication by marketer that informs, persuade and remind the buyers of the product /services in order to influence their opinion or elicit a response

  3. Categories of promotion • 1.Consumer franchise-building promotion- -Awareness, Loyalty -To build brand image - reduced reliance on discount to entice saless • 2.Consumer sales-building promotion -immediate sales

  4. The Promotional Mix Reach the masses Maintain Image & Educate consumers Advertising PublicRelations PersonalSelling SalesPromotion Build Relationship Stimulate the purchase

  5. Example of Sales Promotion Activities • Coupons & Rebate • Premium • Loyalty Marketing Program • Contests and sweepstakes • Point-of-purchase display • materials Aimed at final consumers or users SALES PROMOTION ACTIVITIES Aimed at middlemen Aimed at sales force • Trade allowances • Push money • Training • Free Merchandise • Store Demonstration • Bonus to sales force • Sales force contest • Salesman meeting • &conference

  6. Sales Promotion An activity or material that offers a direct inducement to purchase

  7. Sales Promotions • effective for changing behavior in the short run • very flexible cons • can lead to promotion wars

  8. Objectives of Sales Promotion • Create Awareness • Stimulate Demand • Encourage Product Trial • Increase Consumption Frequency • Facilitate Reseller Support • Combat Competitive Promotional Efforts • Reduce Sales Fluctuations

  9. Example of Sales Promotion Activities • Coupons & Rebate • Premium • Loyalty Marketing Program • Contests and sweepstakes • Point-of-purchase display • materials Aimed at final consumers or users SALES PROMOTION ACTIVITIES Aimed at middlemen Aimed at sales force • Trade allowances • Push money • Training • Free Merchandise • Store Demonstration • Bonus to sales force • Sales force contest • Salesman meeting • &conference

  10. Coupons and rebate A coupon is a certificate that entitles the consumer an immediate price reduction when they buy the product Types of Coupons • Instant redemption coupon • Bounce-back coupon • Scanner-delivered coupon • Cross-ruffing • Response offer coupon

  11. Tactics that improve coupon effectiveness • Higher Face value of coupon • Distribution method-FSIs • Attractiveness factor- for preferred brand or any brand in the evoked set .

  12. Premium A premium is an extra item offered to consumer, usually in exchange of some proof that the promoted market has been purchased Types of premium • Free-in-mail premium • In-or-on package premium • Store and manufacturer premium • Self liquidating premium

  13. Loyalty Marketing Program Loyalty Marketing Program is designed to build long term, mutually beneficial relationship between a company and its key customers for e.g. 1.Frequent shopper cards 2.Co-branded credit cards Shopper receive discounts, alerts on new products and other enticing offers.

  14. Contest and sweepstakes Contest and sweepstakes designed to create interest in goods/services and to encourage the brand switching.

  15. Sampling • Delivering the sample door-to-door • Packaging the sample with other product • Demonstrating the sample in the retail store for product trial

  16. Point of purchase display • Ads on grocery carts and bags • Television monitors at supermarket counters • In store audio message and visual display • Shelf talkers and shelf extenders

  17. Trade promotion • Trade allowances 1.Off-Invoice allowances- 2.Drop Ship allowances 3.Slotting fees 4.Exit Fees

  18. Money • Training • Free merchandise • Store demonstration • Business meetings ,conventions, trade shows

  19. Trade promotion • Helps to gain new distributors • Obtain wholesaler and retailers support • Improve trade relation • To obtain prime retail shelf space • Increase the order size • To counter the competitive actions

  20. Sales force Promotion • Bonus to sales force • Sales force contest • Salesmen meeting and conference

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