1. Sales promotion
An acceleration tool

2. 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

3. 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

4. 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…

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

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

7. 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

8. 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

9. 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