Sales Promotion BHARATHI

8/8/2019 Sales Promotion BHARATHI

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G.V.BHARATHI

Sales PromotionSales Promotion

McGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.


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Sales Promotion

An extraincentive to buy

A tool tospeed up sales

Targeted todifferent parties

A direct inducement that offers an extravalue or incentive for the product to the salesforce, distributors, or the ultimate consumerwith the primary objective of creating an

immediate sale.


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Sales Promotion Techniques

Samples

Coupons

Premiums

Contests/sweepstakes

Refunds/rebates

Bonus Packs

Loyalty programs

Cooperative advertising

Trade allowances

Training programs

Contests, incentives

Point-of-purchase displays

Trade shows

Consumer-Oriented Trade-Oriented


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Long-Term Budget Allocations

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%100%

94 95 96 97 '98 99 00 01 02 03 04 05

Consumer Promotions

Media Advertising

Trade Promotions

% of Total Promotional Dollars, 3-yr Moving Average


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Sales Promotion Increases

Declining brand loyalty

Declining brand loyalty

Short-term focus

Short-term focus

Reasons

Advertising clutter problem

Advertising clutter problem


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Involves givingconsumers

some quantity

of a productfree of chargeto induce trial.

Pros:Excellent way toinduce trial.Allows consumers

to experienceproduct withoutrisk.

Cons:

Costs can be

high

Free Samples


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Methods for Distributing Samples

Door-to-door

Direct mail

In-store

On package

Event

Newspaper/magazine insert

Internet sites

Methods


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Distributing Samples With Newspapers


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Armor All Uses On-Package Samples


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Coupons

Pricereduction

to consumer when

they redeem coupon

Theoldest and

most widely used

sales promotion tool

85% ofconsumers

use coupons;21% use them regularly


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Coupons are Most Often Used With

Disposable

Diapers

CerealLaundry

Soap


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Methods of Distributing Coupons

Other

Magazines

In / On PackDirect Mail

On line sites

Newspapers

FreestandingInserts


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The Most Popular Coupons are FSIs


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Coupons are Available Electronically


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Pros and Cons of Coupons

Advantages Disadvantages

Appeals to price sensitiveconsumer

Effective way to inducetrial of new products

Often used by loyal

consumers who maypurchase anyway

Trains consumers to waitfor coupon offer before

buying


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Premiums

An offer of an item, merchandise, orservice, free or at a low cost, that is

an extra incentive for customers

Pros and Cons

Advantages:

Consumers mostpreferred type of salespromotion.

High impulse value.

Disadvantages:

Can have high cost.Consumer may notvalue premiumoffered.


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More Consumer-Oriented Promotions

Contests a promotion where consumers compete for prizes ormoney on the basis of skills or ability.

Sweepstakes a promotion where winners are determinedpurely by chance.

Rebates offers to return some portion of the product purchaseprice after supplying proof of purchase.

Loyalty programs programs that reward customers for

continuing to purchase the same brand of product or serviceover time

Bonus Packs offer the consumer an extra amount of a productat the regular price by providing larger containers or extra units


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Contests Can Build Brand Equity


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Media Often Delivers a Promotion Message


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Trade Oriented Promotions

Build retail inventories

Encourage display ofproducts

Obtain distribution for newproducts

Objectives


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Types of Trade Oriented Promotions

Buying

Promotional

Slotting

POP displays

Sales training

Trade shows

Contests and incentives

Trade allowances

Co-op AdvertisingTypes


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Coordinating Sales, Advertising, IMC Tools

Budgetallocation

Coordination of

themes

Media supportand timing

Documents

Sales Promotion BHARATHI