It is defined as 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. It consists of a diverse collection of incentive tools mostly short term, designed to stimulate quicker and/or greater purchase of particular products/services by the consumers or the trade.

SALES PROMOTIONS
CONSUMER PROMOTIONS TRADE PROMOTIONS

Samples
Coupons Price Packs/Bonus Packs Premiums/Gifts

Off Invoice or Buying Allowances

Count-Recount allowances Contest and dealer incentives Point of Purchase Display allowances In ad grocer coupons Slotting allowances for large retail stores Delayed billing or Trade inventory financing (in case of durables) Co-operative Advertising.

Contest and Sweepstakes

Refunds, Rebates Price offs Event Sponsorships

Finance Schemes (for durables)

Continuity Programs

1.

To persuade consumers to try (and repurchase) a new brand

2. 3. 4.

To convince consumers to stay with a brand To increase product purchase and usage. To encourage consumers to buy your other products

5.

To reinforce advertising and marketing efforts for more

immediate results.

1. 2.

To gain distribution To encourage support for a consumer product or a consumer sales promotion

3.

To stimulate distributors to raise or lower their

inventory levels.

4.

To strengthen relationship with distributors and sales people.

5.

To display the brand on retail shelves.

 Sales Promotion activities that communicate distributive

brand attributes and contribute to the development and reinforcement of brand identity are Consumer Franchise Building promotions (CFB)
Non - franchise building (non-FB) promotions are designed

to accelerate the purchase decision process and generate an immediate increase in sales.
Non - FB promotions merely borrow customers from other

brands, whereas well planned CFB promotion activities can convert customers to loyal customers. Short term nonFB promotions have their place. In a firms promotion mix, particularly when competitive situation demands them. But their limitations must be recognized when a long term marketing strategy for a brand is developed.

Decreasing Brand Loyalty Increasing Price Sensitivity Forward Buying and diversion

Detracting from Quality Image

Short term Orientation

 Sales results are measurable They strongly influence consumers actions They can generate shot-term revenues and profits.

1.

Prisoners Dilemma - Very often firms use promotions

because of competitive pressure, even though they may

not be very profitable.
2.

Hostaging - This refers to the ability of the retailer (or

trade channel) to exert significant pressure on

manufacturers to force them to continually offer trade promotions.