Sales Promotion Sales promotion may be defined as short- term incentives used to encourage a desired response from intermediaries or consumers.

Developing a Sales Promotion Program Define the Sales Promotion Target Define Sales Promotion Objectives Set the Sales Promotion Budget Develop the Sales Promotion Strategy Select the Sales Promotion Method

Define the Sales Promotion Target The audience to whom the sales promotion is directed Two broad groups: –Final consumers – consumer sales promotion –Resellers – Trade sales promotion

Set the Promotion Budget Must determine how much to spend on sales promotion Companies are allocating a larger percentage of their promotion budget to sales promotion as opposed to advertising

Long-Term Budget Allocations 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ‘94‘95‘96‘97'98‘99‘00‘01‘02‘03‘04‘05 Consumer Promotions Media Advertising Trade Promotions % of Total Promotional Dollars, 3-yr Moving Average

Develop Sales Promotion Strategy Size of incentive to be offered Means of distributing the incentive Duration of the sales promotion

Methods of Distributing Coupons Other Magazines In / On Pack Direct Mail On line sites Newspapers Freestanding Inserts

Select the Sales Promotion Method Samples Coupons Premiums Contests/sweepstakes Refunds/rebates Product Placements Loyalty programs Cooperative advertising Training programs Contests, incentives Point-of-purchase displays Trade shows Consumer-Oriented Trade-Oriented

Armor All Uses On-Package Samples

The Most Popular Coupons are FSIs

Contests Can Build Brand Equity

Public Relations/Publicity Public relations is a form of communication management that seeks to influence the image of an organization and its products and services. Advantage – credibility Disadvantage – difficult to control

PR/Publicity Tools News releases News conferences High-visibility individuals