Sales promotion An acceleration tool

The growth of sales promotion the growing power of retailers declining brand loyalty increased promotional sensitivity brand proliferation fragmentation of the consumer market short-term focus increased desire for accountability competition clutter

Concerns about increased role of sales promotion effect on brand equity encourages consumers to purchase primarily on the basis of price the harm of nonfranchise-building promotions

Consumer-oriented sales promotion obtaining trial and repurchase increasing consumption of an established brand defending current customers targeting a specific market segment enhancing advertising and marketing efforts Trade promotions increase stock levels gain more or better shelf space offer incentive to retailer to stock new product even out fluctuating sales counter the competition Continued…

Retailer promotions increase store traffic (loss leaders) increase frequency and amount of purchase increase store loyalty increase own-brand sales even out busy periods

Consumer-oriented sales promotion techniques sampling couponing premiums prize promotions refunds and rebates bonus packs

Objectives of trade-oriented sales promotion obtain distribution for new products maintain trade support for established brands encourage retailers to display established brands build retail inventories

Types of trade promotions contests and incentives trade allowances promotional allowances slotting allowances displays and POS materials sales training programmes trade shows co-operative advertising

Requirements for success in sales promotion pre-testing, post-testing & tracking must be part of the evaluation process sales promotion should be distinctive, simple, easy to follow, easy to use planning is required to assess possible effects - not just on anticipated sales but on resource implications the appeal of sales promotion should be directed towards specific target audiences should result in a net contribution to the organisation