1. Sales Promotion

2. Sales Promotion
Sales promotion consist of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker and/or greater purchase of particular products/ services by consumers or the trade.

3. Purpose of sales Promotion
To stimulate Consumer trials
To obtain shelf space in the retail stores
Cementing a long term relationship with customer/ retailer
To reward the loyal customers
To increase the repurchase rate of occasional users

4. Major decisions in Sales Promotion
Establishing the Sales Promotion Objectives
Selecting the Sales Promotion tools
Developing the Sales Promotion Program
Pre-testing the Sales Promotion Program
Implementing & Controlling the Sales Promotion Program
Evaluating the Sales Promotion Results

5. Establishing the Sales Promotion Objectives
Encouraging purchase of larger-size units
Building trial among non users
Attracting switchers away from competitor’s brands
Persuading retailers to carry new items
Persuading retailers to carry higher levels of inventory
Encouraging off-season buying
Encouraging stocking of related items
Off-setting competitive promotions
Building brand loyalty
Gaining entry into new retail outlets
To stimulate the sales force for off-season sales
To encourage and motivate the sales force

6. Selecting the Sales Promotion Tools
Consumer Promotion Tools
Manufacturer promotions
Retailer promotions

7. Major Consumer-Promotion Tools
Samples
Coupons
Cash refund offers
Premium (gifts)
With pack/inside pack premium
Reusable package/container
Free in the mail premium
Price Packs
Reduced-price pack
Banded pack

8. Major Consumer-Promotion Tools
Prizes (contests, sweepstakes, games)
Patronage awards
Free trials
Product warranties
Tie-in promotions
Gross-promotions
Point of purchase displays and demonstrations

9. Major Trade Promotion Tools
Price offs
Allowance
Free goods
Contests

10. Major Business & Sales Force Promotion Tools
Trade Shows
Sales contest
Specialty Advertising

11. Developing The Sales Promotion Program
Deciding the incentive and its size
Establishing the conditions for participation
Deciding the duration of promotion
Deciding the Distribution vehicle
Deciding the Timing of the promotion
Deciding the sales promotion budget
Ground up method
Percentage method

12. Pre testing the sales program
Rating or ranking by consumers
Trial tests

13. Implementing and Controlling the Sales Promotion Program
Lead time
Initial planning , design, approval of package modifications or material to be mailed or distributed.
Preparation of advertising and point of sales materials, notification to sales personnel
Establishment of allocations for individual distributors, purchasing and printing of special premiums or packaging materials
Production of advanced inventories , distribution to the retailer
sell in time
Launch of Promotion to 95 % distribution of deal merchandise

14. Evaluating the Sales Promotion Results
Sales Data
6%-10%-5%-7%
Consumer Survey
How many Recall the offer
What they thought of it
How many took advantage of it
How it has affected subsequent brand choice behavior

15. Evaluating the Sales Promotion Results
Experiments
Vary the incentive value, duration, and distribution media