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Sales PromotionSales Promotion 

in Integrated MarketingCommunication

University of Canberra

Instructor: Raveena Singh

Marketing Communication Campaigns M

Presented by Kraivich K.Student ID: 3003196

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 Agenda Agenda

- Sales Promotion Success & Failure Case Studies

- Definitions of Sales Promotion- Tpes of Sales Promotion

- Sales Promotion Trends- Ma!or Decisions in Sales Promotion- "valuating Sales Promotion- Sales Promotions as #rand #uilders

- $hat can consumer%trade sales promotion do- Sales Promotion Pitfalls

- #alancing Sales Promotion and 'dvertising- Conclusion

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CaseStudy CaseStudy  ( The Success of Sales Promotion in IMC 

- ' general li)uid cleaning agent- Ran a *Pine-Sol in Pine +alle, seepstakes

- $inners ould travel to .os 'ngeles to meet the stars

- 'ssociation of an ordinar cleaning agent ith stars

/ enhanced 0rand image

PineSo!

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CaseStudy CaseStudy  ( The Failure of Sales Promotion in IMC 

- 'n apparel compan1 perceived as premium 0rand

- Came up ith the campaign *2ou can get ever Domonproduct in the stores for as little as 33#aht,

- "ver0od then 0ought Domon during discount period

- Too often sales promotion

- The compan can never charge high prices again

Do"on

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DefinitionsDefinitions

4Marketing activities1 other than personal selling1 advertising1

and pu0licit1 that stimulate consumer purchasing and dealer

effectiveness1 such as displas1 shos1 e5hi0itions1demonstrations1 and various non-recurrent selling efforts not in

the ordinar routine64

$he -fficia! Definition

Pro#osed by $he "erican (ar)etin'ssociation

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Types of Sales PromotionTypes of Sales Promotion

76 "5ternal Sales Promotion

8Consumer Sales Promotion9

:6 Internal Sales Promotion8Trade Promotion & Sales Force Promotion9

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- Sample- Coupon- Premium- Contest%Seepstake

- Refund%Re0ate- #onus Pack- Price-off - "vent Sponsorship

- Contest andDealer Incentive

- Trade 'lloance- P;P Displa

- Training Program- Trade Sho- Cooperative 'd6

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Sales Promotion TrendsSales Promotion Trends

 'dvertising to sales promotion ratio as =

Toda?s sales promotion accounts for

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Major Decisions in Sales PromotionMajor Decisions in Sales Promotion

76 "sta0lishing o0!ectives

:6 Selecting Consumer-Promotion tools

6 Selecting Trade-Promotion tools>6 Selecting #usiness- and sales-force-promotion tools

A6 Developing the program

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Evaluating Sales PromotionEvaluating Sales Promotion

76 Sales Data

:6 Consumer surves

6 "5periments

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Sales Promotions as Brand BuildersSales Promotions as Brand Builders

76 Make sure the promotion is !ustified

:6 Tie the promotion to a 0rand?s image

6 .ook at ever promotion 0oth for the sales

 !o0 it can do and as a communications tool

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What can consumer sales promotion do What can consumer sales promotion do 

76 Product Trial

:6 Create more uses

6 #uild more fre)uent or multiple purchases

>6 Introduce ne%improved product

A6 Introduce ne Package%e SiEe

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What can trade sales promotion do What can trade sales promotion do 

76 ;0tain Feature Pricing1 Displa Support

:6 Increase % Decrease Trade Inventor

6 Improve Product Distri0ution

>6 Motivate Sales Force & Distri0utor 

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Consumer Sales Promotion PitfallsConsumer Sales Promotion Pitfalls

!What can"t consumer sales promotion do !What can"t consumer sales promotion do 

76 Cannot 0uild 0rand loalt

:6 Cannot reverse a decline sales trend6 Cannot change product acceptance

6 Cannot Compensate for Inade)uate level

of 'dvertising

>6 Cannot ;vercome Poor Product Pro0lems

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Trade Sales Promotion PitfallsTrade Sales Promotion Pitfalls

!What can"t trade sales promotion do !What can"t trade sales promotion do 

76 Cannot Compensate ith a poor sales force

:6 Cannot ;vercome Poor Distri0ution from Poor Product6 Cannot Compensate for inade)uate level of

consumer advertising

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Balancing sales promotion and advertising Balancing sales promotion and advertising Professor Roger '6 Strang concludes that there is a relationship 0eteen

advertising and sales promotion

- 'n increase in Sales promotion 0udget1 ith a decrease in

advertising 0udget1 does not help increase long term sales

and profits- If the ratio 0eteen 'dvertising 0udget and Sales Promotion

0udget falls 0elo the ratio of =1 long term sales tend to

decrease

- 'dvertising helps 0uild 0rand image and change attitudes thansales promotion

- Sales promotion can increase short term sales1 0ut can as

ell result in a drastic decrease in sales after the sales

promotion campaign

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ConclusionConclusion

- Sales promotion is a short term solution

- Sales promotion is not a Siss arm knife

- .ook ver carefull into the pro0lem 0eforedeciding hich IMC Tools to use

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#eferences#eferences- Gotler Philip 8:==91 HMarketing Management?6 77th "dition1 Pearson

"ducation International

- #elch "6 eorge and #elch '6 Michael 873391 H'dvertising and Promotion(

 'n Integrated Marketing Communications Perspective?6 >th "dition1

Mcra-Jill- SchultE "6 Don and Ro0inson ' $illiam 87391 HSales Promotion

Management?6 TC #usiness #ooks

- #lock #reEen Tamara & Ro0inson '6 $illiam 8733>91 HSales Promotion

Jand0ook?6 th "dition1 The Dartnell Corporation

- SchultE "6 Don1 Tannen0aum K Stanle1 .auter0orn F6 Ro0ert 8733@91

HIntegrated Marketing Communications?6 TC #usiness #ooks