Sales Promotion

•D I F F E R E N T T Y P E S O F S A L E S
PROMOTION,
•R E L A T I O N S H I P B E T W E E N
SALES PROMOTION AND ADVERTISING

PROF. SHRAWANI SEN

 The objective of any marketing activity is to
 SELL A PRODUCT
 Right product
 Right place
 Right time
 Right price
All 4 marketing P’s communicates with the customer
Product Price Place Promotion
 Definition Of Sales Promotion.

 Sales promotion consists of a diverse

collection of incentive tools, mostly short
term, designed to stimulate quicker or
greater purchase of a particular product/
service by consumers or the trade- Philip
Kotler

 Sales promotions are short term incentives

to encourage purchase or sale of a product
or service- Roger A Strang
 Essence Of Sales Promotion

 Short term incentives to increase sales of a

product/service

 Directed to consumers and trade to increase purchase

 They are non recurrent

 Supplement other communication programmes such as

advertising

 They consist of several tools.

 3: Broad Categories Of Sales Promotion

 Sales promotion to Consumers

 Sales promotion to the Trade

 Sales promotion to the Field force

 Sales promotion to Consumers

Consumers can be defined by the way of

 Demographics- segmentation by age, income levels,

occupation, gender education level

 Psychographic- usage and attitude study

Socio Economic Classification(SEC): Urban And Rural
Consumers

 Consumer motivation plays an important role in buying

certain product and product category.

 Researching consumer preferences becomes a key

element in designing sales promotion for Consumers
Types Of Consumer Promotions Tools

 Sampling
 Price off
 Quantity deals
 Banded offers
 In- product gift
 Out product gift
 Coupons
 Trading stamps
 Consumer contests
 Sales Promotion To The Trade

 Trade is interested in maximizing their profit, either

through higher margins or through higher
turnovers

 These promotions are undertaken to get better and

quicker response from the trade.

 These can be done on introducing a new product, to

ensure enhanced stocking preceding a good season or to
block a competitor

 They are a part of the push strategy

 Types Of Trade Promotions Tools

 On- consignment sales

 Dealer contests
 Dealer gifts
 Display contests
 Point of sale material
 Shop Board painting
 Dealer discounts
 Trade fare participation
 Dealer meets
 Cooperative advertising
 Sales Promotion To The Field Force

 These are normally undertaken to stimulate the sales

force to better performance.

 This falls under the push strategy as well as the pull

strategy.

 This kind of promotion is mainly to motivate the

field force.
 Types Of Sales Force Promotions Tools

 Incentive scheme

 Star awards

 Sales meets

 Local ad budgets

 Promotional Aids
 Advantages Of Sales Promotion

 Produces immediate results

 Prevents competitor entry

 Measurable results

 Helps gain channel support

 Easy to design and implement

 Relatively inexpensive

 Helps to build database.

 Sales Promotion- Disadvantages.

Short-term results
 Sales promotion such as coupons and trade
allowances produce quicker, more measurable sales
results. However critics of this strategy argue that
these immediate benefits come at the expense of
building brand equity. They believe that an over
emphasize on sales promotion may under mine a
brand’s future.
Competitive Pressure
 If competitors offer buyers price reductions, contest
or other incentives, a firm may feel forced to retaliate
with its own sales promotions.
Buyers’ expectations
 Once they are offered purchase incentives,
consumers and channel members get used to them
and soon begin expecting them.
Low quality of retail selling
 Many retailers use inadequately trained sales clerks
or have switched to self service. For these outlets,
sales promotion devices such as product displays and
samples often are the only effective promotional
tools available at the point of purchase.