Sales Promotion

Outline

-Definition

-Features

-Sales Promotion Goals

-Advantages

-Disadvantages

-Types of Sales Promotions

-Major Decisions

Definition

Sales Promotion may be defined as media and non media marketing pressure applied for a predetermined, limited period of time in order to stimulate trial and impulse purchases, increase consumer demand, or improve product quality.

(American Marketing Association)

Features

Focus Area Action orientedParty InvolvementLimited Period

Sales Promotion Goals

• Increasing awareness

• Inducement to try

• Increasing short term sales volume

• Maintaining customer loyalty

• Emphasizing novelty

• Overcoming product problems

• Complementing other promotion tools

Advantages• It often has eye catching appeal• Themes and tools can be distinctive• The consumer may receive something of

value, such as coupons or free merchandise• It helps draw customer traffic and maintain

loyalty to the retailer• Impulse purchases are increased• Customers can have fun, particularly with

promotion tools such as contests and demonstrations

Disadvantages• It may be hard to terminate certain promotions

without adverse customer reactions• The retailer’s image may be hurt if repetitive

promotions are used• Frivolous selling points may be stressed rather

than the retailer’s product assortment, prices, customer services and other factors

• Many sales promotions have only short term effects

• It can be used mostly as a supplement to other promotional tools.

Types of Sales Promotions

Sole Sponsored Sales Promotions– Premiums– Contest & Sweepstakes– Frequent Buyer Programme

Jointly Sponsored Sales Promotions– Coupons– In store Displays– Demonstrations & Sampling

Premiums

An extra item offered to the customer when purchasing promoted products

Contests & Sweepstakes

Sales Promotion Techniques in which customers have a chance of winning a special prize based on entering a contest in which the entrant competes with others, or a sweepstake in which all entrants have an equal chance of winning a prize

Frequent Buyer Programme

Sales Promotion Programme in which buyers are rewarded with special rewards, which other shoppers are not offered., for purchasing often from the retailer

JOINTLY SPONSORED SALES PROMOTION

Coupons

A sales promotion tool in which the shopper is offered a price discount on a specific item if the retailer is presented with the appropriate coupon at time of purchase

In Store Displays

…are promotional fixtures of displays that seek to generate traffic, highlight individual items and encourage impulse buying.

Demonstrations & Sampling

…are in-store presentations with the intent of reducing the consumer’s perceived risk of purchasing a product

Major Decisions

Establishing ObjectivesDeciding on BudgetSelecting sales promotion toolsDeveloping the programPre testing,Implementing, controlling,

evaluating the programme

Recap

What are various types of sales promotion ?

What are the advantages & disadvantages of sales promotion ?

Merci Beaucoup !!