Sales Promotion

1
Sales Promotion
2
Sales Promotion

• Sales promotion consist of a diverse collection
  of incentive tools, mostly short term, designed
  to stimulate quicker and/or greater purchase of
  particular products/ services by consumers or the
  trade.

3
Purpose of sales Promotion

• To stimulate Consumer trials
• To obtain shelf space in the retail stores
• Cementing a long term relationship with customer/
  retailer
• To reward the loyal customers
• To increase the repurchase rate of occasional
  users

4
Major decisions in Sales Promotion

• Establishing the Sales Promotion Objectives
• Selecting the Sales Promotion tools
• Developing the Sales Promotion Program
• Pre-testing the Sales Promotion Program
• Implementing Controlling the Sales Promotion
  Program
• Evaluating the Sales Promotion Results

5
Establishing the Sales Promotion Objectives

• Encouraging purchase of larger-size units
• Building trial among non users
• Attracting switchers away from competitors
  brands
• Persuading retailers to carry new items
• Persuading retailers to carry higher levels of
  inventory
• Encouraging off-season buying
• Encouraging stocking of related items
• Off-setting competitive promotions
• Building brand loyalty
• Gaining entry into new retail outlets
• To stimulate the sales force for off-season sales
• To encourage and motivate the sales force

6
Selecting the Sales Promotion Tools

• Consumer Promotion Tools
• Manufacturer promotions
• Retailer promotions

7
Major Consumer-Promotion Tools

• Samples
• Coupons
• Cash refund offers
• Premium (gifts)
• With pack/inside pack premium
• Reusable package/container
• Free in the mail premium
• Price Packs
• Reduced-price pack
• Banded pack

8
Major Consumer-Promotion Tools

• Prizes (contests, sweepstakes, games)
• Patronage awards
• Free trials
• Product warranties
• Tie-in promotions
• Gross-promotions
• Point of purchase displays and demonstrations

9
Major Trade Promotion Tools

• Trade promotion tools
• Price offs
• Allowance
• Free goods
• Contests

10
Major Business Sales Force Promotion Tools

• Trade Shows
• Sales contest
• Specialty Advertising

11
Developing The Sales Promotion Program

• Deciding the incentive and its size
• Establishing the conditions for participation
• Deciding the duration of promotion
• Deciding the Distribution vehicle
• Deciding the Timing of the promotion
• Deciding the sales promotion budget
• Ground up method
• Percentage method

12
Pre testing the sales program

• Rating or ranking by consumers
• Trial tests

13
Implementing and Controlling the Sales Promotion
Program

• Lead time
• Initial planning , design, approval of package
  modifications or material to be mailed or
  distributed.
• Preparation of advertising and point of sales
  materials, notification to sales personnel
• Establishment of allocations for individual
  distributors, purchasing and printing of special
  premiums or packaging materials
• Production of advanced inventories , distribution
  to the retailer
• sell in time
• Launch of Promotion to 95 distribution of deal
  merchandise

14
Evaluating the Sales Promotion Results

• Sales Data
• 6-10-5-7
• Consumer Survey
• How many Recall the offer
• What they thought of it
• How many took advantage of it
• How it has affected subsequent brand choice
  behavior

15
Evaluating the Sales Promotion Results

• Experiments
• Vary the incentive value, duration, and
  distribution media