Sales Promotion

Submitted ToMiss Supriya Singh

Presented ByChandan Kumar

INTRODUCTION•According to AMA, Sales promotion include those marketing activities other personal selling or Direct Selling, that stimulate consumer demand and dealer effectiveness through Shows and exhibitions, demonstration, POP display, which are not in the ordinary routine.• Sales promotion act as a link between advertising and public selling on a small group of customer.•Sales Promotion is the most short term of the promotion mix tools, whereas advertising or Personal Selling says “BUY” , Sales Promotion says “BUY NOW”.

Objective of Sales Promotionfor Consumers

• To Introduce new product• To attract new customer• To increase sales in off season• To stimulate sales• To Facilitate Co-ordination• Encouraging Purchase of larger sized units.• Building trail among nonusers• Creating Interest • To increase the sales volume in short term• Attract more customers/consumers

Objective of Sales Promotionfor Retailers

• Persuading Retailers to carry new items and higher levels of inventory.

• Encouraging off-seasons Buying.• Encouraging stocking of related items.• Offsetting competitive promotions.• Gaining new entry into new retail outlets.

1. Consumer Promotion2. Trade Promotion3. Business and sales force Promotion

Types of Sales Promotion

• Discounts: Company provide discount offers to their consumers when they buy the product .

Buy 1 Get 1 free

Company Provide offers to their consumers to buy 1 product and get another 1 free.

Combo Offer

• A combo pack is two related products banded together.

POP Display• P-O-P displays and demonstrations take

place at the point of purchase or sale.

Trade Promotion Objective

• Buy more product• Building relationship • Stock during off season• Display of new product launch• Competition

Tools of Trade Promotion

• Price off : A straight discount o0ff the list price on each case purchased during a stated time period.

• Allowance: An amount offered in return for the retailers agreeing to features the manufacturer’s product.

• Free Goods: Ex: Nestle Eclairs provides free goods offer to their retailers for huge sell in the market

Business and Sales force Promotion

• Trade shows and Conventions: Industry associations organize annual trade shows and conventions

• Contests: A sales contest aim at inducing the sales force or dealers to increase their sales results over a stated period, with prizes going to those who succeed.

Promotion at different stages of the PLC

• Introduction – wise to use heavy promotion to induce trials and promote brand franchise

• Growth – promotion should be limited ,if any• Maturity – Higher promotions required since the

brand is under attack from competitors or product quality or advertising effectiveness is tapering off

• Decline – Heavy promotions. Used only to retain a set of loyal customers. Prior to withdrawal of the product, it could be used as a one time stock clearance from the trade

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