Topic sales promotion sales promotion mix kinds of promotion
Sales promotion
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Transcript of Sales promotion
SALES PROMOTION
AGNES MIRIAM. I
SALES PROMOTION• Collection of incentive tools, mostly short
term, designed to simulate quicker or greater purchase of particular products or services by consumers or the trade.
• Used by most organizations including manufacturers, distributors, retailers, and non-for-profit institutions.
OBJECTIVES• To create a long term relationship with a
retailer• To attract new triers• To reward loyal customers• To increase the repurchase rates of occasional
users• To attract brand switchers
ADVERTISING VS SALES PROMOTIONADVERTISING SALES PROMOTION
TIME Long Term Short Term
DEFINITION One-way communication of a persuasive message by an identified sponsor, whose purpose is non-personal promotion of products/services to potential customers.
A Promotion usually involves an immediate incentive for a buyer (intermediate distributor or end consumer). It can also involve disseminating information about a product, product line, brand, or company.
PRICE Expensive Not very expensive
SUITABLE FOR Medium to Large Companies Small to Large Companies
SALES Assumption that it will lead to sales Directly related to sales
EXAMPLE Giving an advertisement in the newspaper about the major products of a company
Giving free products, coupons etc.
PURPOSE Increase sales, Brand building Increase Sales
RESULT Slowly Very soon
MAJOR DECISIONS
• Establishing objectives• Selecting consumer promotion tools• Selecting trade promotion tools• Selecting business and sales force promotion
tools• Developing the program• Implementing and evaluating the program
MAJOR CONSUMER PROMOTION TOOLS
• Samples• Coupons• Cash refund offers(rebates)• Price packs(cents-off deals)• Premiums(gifts)• Frequency programs• Prizes(contests, sweepstakes, games)• Patronage awards• Free trails• Product warranties• Tie-in promotions• Cross-promotions• Point-of-purchase(p-o-p)displays and demonstrations
MAJOR TRADE PROMOTION TOOLS
• Price-off (off-invoice or off-list)• Allowance• Free goods
MAJOR BUSINESS AND SALES FORCE PROMOTION TOOLS
• Trade shows and conventions• Sales contests• Specialty advertising