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SALES PROMOTION

Presented by,
Group-III
SALES PROMOTION

 Definition - Marketing communication activities,


other than advertising, personal selling, and public
relations, in which a short-term incentive motivates
a purchase.

 Sales promotion offers an incentive to buy.

 Sales promotion include tools for consumer
promotion, trade promotion and business and sales
force promotion.


Objectives
 Speeding the sales process and increasing the
sales volume.
 Building product awareness.
 Creating interest.
 Providing information.
 Reinforcing the brand.


THE MORE THE PRODUCT’S
QUALITY AND ITS
ADVERTISING
PERSUASIVENESS FAIL TO
MEET COMPETITION, THE
GREATER IS THE NEED FOR
PROMOTION TO IMPROVE
THE PRICE – VALUE
ADVERTISING GIVES A REASON TO BUY, SALES
PROMOTION GIVES AN INCENTIVE TO BUY

 It is part of the Marketing spend of all companies


and these days SP spends in many companies
exceed that of the advertisements spends
Tools of sales promotion
 Coupons and rebates
 Premiums

 Contests and sweepstakes


 Sampling

 Point of purchase promotion



Uses of sales promotion
 Immediate purchases
 Increase trial
 Boost consumer inventory
 Encourage repurchase
 Encourage brand switching
 Encourage brand loyalty
Decision making

 Establishing the objectives.


 Selecting consumer promotion tools.
 Selecting trade promotion tools.
 Selecting business and sales force promotion
tools.
 Developing the program.
 Pretesting, implementing, controlling and
evaluating the program.
What Sales Promotion
Can’t Do
 Change negative attitudes
 Reverse a declining sales trend
 Create a brand image
 Make up for insufficient advertising
Final considerations
 Don’t promote if the product is not good
 Promotions rarely stop a declining sales
curve
 It is very easy to lose the promotional gains
made if your promotion has not been
effective in retaining new customers. So
the product has to speak for itself.
 The objective of the promotion is to wean
away users from competition and create
new users.
Cont’d
 Itshould be novel and attractive
 Ensure supply lines are good and adequate
stock is available right through the
promotion
 Cater for contingencies. Have escape routes
built into the plan
 Trade has to be handled tactfully
 Reimburse incentives/ rewards/ gifts
promptly
 Must be within the legal boundaries
THANK YOU

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