how should sales promotion decisions be made?
TRANSCRIPT
Consumer Promotion• Coupons• Samples• Cash refund
offers
Trade Promotion• Prices off• Free goods
Business and sales Promotion• Trade shows• Contests for sales
reps
Stimulate customer trialEstablish long term
relationship with retailerReward loyal customersIncrease repurchase rate
ESTABLISH OBJECTIVES
Customers Retailers Sales Force
• Encourage purchase of larger units
• Build trial among non-users
• Attract switchers from competitors’ brands
• Carry new items
• Higher level of inventory
• Encourage off season buying
• Support of new product
• Encourage off season selling
Consumer Promotion
Tools
Samples
Coupons
Cash Refund Offers
Price Packs
Premiums
Frequency Programs
Prizes
Patronage Awards
Free Trials
Product Warranties
DEVELOPING THE PROGRAM
Determine size of programEstablish conditions for participation Duration of promotionChoose distribution vehicleEstablish timing of promotionTotal sales budget
IMPLEMENTATION AND EVALUATION
Implementation and control plans must cover lead time and sell-in time.
Program is evaluated using sales data,consumer surveys and experiments.