Chapter 3 Sales Promotion Objective ◉ ◉ ◉ ◉ Understand the concept of sales promotion Identify the scope of sales promotion Describe consumer and trade promotion Describe various types of sales promotion What is Sales Promotion? ◉ Set of marketing activities undertaken to boost sales of the product or service ◉ Process of persuading a potential customer to purchase ◉ Incentives that encourages customers to buy or use products and services ◉ Stimulate demand for products Sales Promotion: Objectives ◉ ◉ ◉ ◉ ◉ Encourage customers to try a new product Build awareness and brand loyalty Increase purchases by current customers Help the firm to remain competitive Increase sales in off-seasons/stock clearance Sales Promotion Tool ◉ Consumer promotion ◉ Trade Promotion Sales Promotion Tool ◉ Consumer promotion ◉ Trade Promotion ◉ Business promotion Consumer Promotion ◉ Consumer sales promotion is a marketing technique that is used to entice customers to purchase a product. ◉ The promotions typically last for a set period of time and are used to achieve a specific purpose Consumer Promotion ◉ ◉ ◉ ◉ ◉ ◉ ◉ ◉ ◉ Samples/Free trials Coupons Cash Refunds offers (rebates) Sweepstakes Premium / Gifts Frequency / loyalty programs Product warranties Volume discounts Points of purchases displays and demonstrations Trade Promotion ◉ Sellers award money to the trade ○ To persuade the retailer or wholesaler to carry the brand ○ To persuade the retailer or wholesaler to carry more units than the normal amount ○ To induce retailer to promote the brand by featuring, display and price reductions ○ To stimulate retailers and their sales people to push the product Trade Promotion ◉ ◉ ◉ ◉ ◉ Price-off Allowance Free goods Sales contests Speciality advertising Consumer Promotion ◉ ◉ ◉ ◉ ◉ ◉ ◉ ◉ ◉ ◉ Samples Coupons Cash Refunds offers (rebates) Price packs Premium / Gifts Frequency / loyalty programs Product warranties Tie-in Promotion Cross promotions Points of purchases displays and demonstrations
