TOOLS OF SALES PROMOTION Without sales promotion something terrible happens …….nothing!

P T BARNUM

TATA SATHISH 121247VENKAT MANOHAR 121248

VISHNU KJ 121250WASIM AKRAM 121251

BINAY JASWAL 121252

An extra incentive to buyAn extra incentive to buy

A tool to speed up salesA tool to speed up sales

An extra incentive to buyAn extra incentive to buy

A tool to speed up salesA tool to speed up sales

Targeted to different partiesTargeted to different parties

Sales Promotion

“A direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale.”

“A direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale.”

SamplesSamples

CouponsCoupons

PremiumsPremiums

Contests/sweepstakesContests/sweepstakes

Refunds/rebatesRefunds/rebates

Bonus PacksBonus Packs

Price-off dealsPrice-off deals

Frequency programsFrequency programs

Cooperative advertisingCooperative advertising

Trade allowancesTrade allowances

Training programsTraining programs

Contests, dealer incentivesContests, dealer incentives

Point-of-purchase displaysPoint-of-purchase displays

Trade showsTrade shows

Sales Promotion ToolsConsumer-Oriented Trade-Oriented

Event marketingEvent marketing

SamplesSamples

CouponsCoupons

PremiumsPremiums

Contests/sweepstakesContests/sweepstakes

Refunds/rebatesRefunds/rebates

Bonus packsBonus packs

Price-off dealsPrice-off deals

Loyalty programsLoyalty programs

Trade allowancesTrade allowances

Training programsTraining programs

Contests, dealer incentivesContests, dealer incentives

Point-of-purchase displaysPoint-of-purchase displays

Trade showsTrade shows

Event marketingEvent marketing

FREE SAMPLES

These are distributed to attract consumers to try out a new product and thereby create new customers. Some businessmen distribute samples among selected persons in order to popularize the product.

Common examples - shampoo, washing powder, coffee powder, etc.

Free Premiums: Only require purchase of the product

Free Premiums: Only require purchase of the product

Self-liquidating Premiums: require consumer to pay some or all of the cost of the premium

Self-liquidating Premiums: require consumer to pay some or all of the cost of the premium

Free Premiums: Only require purchase of the product

Free Premiums: Only require purchase of the product

Premium: an offer of an item of merchandise or service either free or at a low cost that is an extra incentive for customers

Premium: an offer of an item of merchandise or service either free or at a low cost that is an extra incentive for customers

Premiums

Two Types of PremiumsTwo Types of Premiums

COUPONS

Sometimes, coupons are issued by manufacturers either in the packet of a product or through an advertisement printed in the newspaper or magazine or through mail. These coupons can be presented to the retailer while buying the product. The holder of the coupon gets the product at a discount. Best example for this is coupons distributed by the pizza restaurants like dominos, pizza hut, etc

Contests and Sweepstakes

Contest: a promotion where consumers compete for prizes or money on the basis of skills or ability. Winners are determined by judging entries or ascertaining which entry comes closes to some predetermined criteria

Contest: a promotion where consumers compete for prizes or money on the basis of skills or ability. Winners are determined by judging entries or ascertaining which entry comes closes to some predetermined criteria

Sweepstakes/games: a promotion where winners are determined purely by chance and cannot require a proof of purchase as a condition for entry. Winners are chosen by random selection from a pool of entries or generation of a number to match those held by game entrants.

Sweepstakes/games: a promotion where winners are determined purely by chance and cannot require a proof of purchase as a condition for entry. Winners are chosen by random selection from a pool of entries or generation of a number to match those held by game entrants.

BONUS REWARDS/ POINTS

Certain retail shops will have a scheme which will require the customer to be a member of the shop and to acquire membership card for the same. And every time the customer makes a purchase bonus points are added to the card and at the end of the year gifts are given for the points earned. Example – coffee day bonus points card, Moore super markets, Reliance fresh.

MONEY BACK OFFER/ REFUNDS Under this scheme customers are given assurance that full value of the product will be returned to them if they are not satisfied after using the product.When customers doubt the quality or reliability of your product or service, offer a money-back guarantee. Give a detailed explanation of eligible returns and refunds available for customer

reference.Eg : Telebrands shopping

PRICE OFF DEALS / DISCOUNTS

Exchange offer

Bonus offer

Price-off offer

Scratch and win offer

TRADE PROMOTION

What is Trade Promotion?• Marketing or Promotional activities undertaken to

promote a new or existing product, increase sales of existing products, expand market share or create brand awareness among the distribution channels wholesalers, retailers, etc.

• The word Trade Promotion encompasses virtually all forms of Product Promotion and Demand Creation.

• Trade shows, special pricing, sales incentives, discounted or free display fixtures, demonstrations and freebies such as tickets to sporting events, movies or novelties (pens, paperweights, calculators), etc are few examples of promotional activities.

Trade Sales PromotionTrade Sales Promotion

Objectives of Trade Sales Promotion:• Gain/maintain distribution• Influence resellers to promote product• Influence resellers to offer price discount• Increase reseller inventory• Defend against competitors• Avoid reduction of normal prices

Trade ShowsTrade ShowsTrade ShowsTrade Shows

Contests and IncentivesContests and IncentivesContests and IncentivesContests and Incentives

Trade AllowancesTrade Allowances

Point-of-Purchase DisplaysPoint-of-Purchase Displays

Sales Training ProgramsSales Training Programs

Cooperative AdvertisingCooperative Advertising

Tools of Trade-Oriented Promotions

Buying AllowancesBuying Allowances

Promotional AllowancesPromotional Allowances

Slotting AllowancesSlotting Allowances

Buying AllowancesBuying Allowances

Promotional AllowancesPromotional Allowances

Trade AllowancesTrade Allowances

Point-of-Purchase DisplaysPoint-of-Purchase Displays

Sales Training ProgramsSales Training ProgramsSlotting AllowancesSlotting Allowances

Trade Contests

Used to achieve sales targets. Funds known as “spiff money.” Rewards can be prizes or cash. Can be designed for various channel

members. Some organizations do not allow trade

contests because of possible conflict of interests.

TRADE INCENTIVES

Cooperative merchandising agreement (CMA)

Corporate sales program (CSP) Producing plant allowance (PPA) Back haul allowance (BHA) Cross-dock or Pedal runs Premium or bonus pack

TRADE SHOWS Ranks 3rd in B-to-B marketing expenditures. Manufacturers spend huge amounts of money per show....Largest trade shows all over the world are: International CES ( consumer electronic and technology shows ) The Super Show ( Texas car & vehicle shows ) Miami International Boat Show & Strictly Sail International Housewares Show Mid-America Trucking Show Egs in India are auto expos (last year jan 5 to jan 11 ),vivah mumbai ( 2-4th august), food fairs etc .

Trade Allowances

Off-invoice allowance: a per-case rebate paid to retailers for an order.Drop-ship allowance: money paid to retailers who bypass wholesalers or brokers for pre-planned orders.Slotting fees: money paid to retailers to stock a new product.Exit fees: money paid to retailers to remove an item from their inventory

Effective POP Displays

• Integrate the brand’s image into the display.• Integrate the display with current advertising and

promotions.• Make the display dramatic to get attention.• Keep the color of the display down so the product and

signage stand out.• Make the display versatile so it can be easily adapted by

retailers.• Make the display re-usable and easy to assemble.• Make the display easy to stock.• Customize the display to fit the retailer’s store.Eg: Mobile Sims,toothpastes etc.

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