sales promotion

Download Sales Promotion

Post on 31-May-2015




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  • 1. Sales Promotion

2. Promotion mix 3. 4. Sales promotion

  • Itis a key ingredient in marketing campaigns , consists of a collection of incentive tools, mostly short term , designed to stimulate quicker or greater purchase of particular product or services by consumer trade. It includes -:
  • Consumer promotion
  • Trade promotion
  • Sales-force promotion

5. Objectives

  • To stimulate trial purchase
  • To stimulate repeat purchase
  • To stimulate larger purchase
  • To introduce a new brand
  • To compete with the market competitors & marketing strategy
  • To increase the sale of goods
  • To target specific market segment
  • To attract new customers
  • To increase impulse buying
  • To clear excessive inventories

6. Tools

  • Samples
  • Premiums
  • Contest
  • Point of purchase display
  • Coupons
  • Refund
  • Bonus packs
  • Free trial
  • Free training
  • Trade fares & exhibitions
  • Sponsoring games & teams
  • After sales service
  • Warranty & guarantee
  • Frequency programs
  • Event sponsorship
  • Advertising specialty
  • Honoring brilliant people
  • Promoting through celebrities

7. 1. Samples

  • It refers to free amt. of product or service which can be delivered in the following way-:
  • In store sampling
  • Door to door sampling
  • Newspaper sampling
  • On package sampling

8. In store sampling

  • Free samples are distributed within the organization. For eg-: pepsi

9. Door to door sampling

  • Some agents are assigned for distributing the samples for free.
  • For eg-: agarbatti

10. Newspaper sampling

  • Newspaper are distributed as free samples. For eg-: Raj express in Indore

11. On package sampling

  • In this the product is attached with another product. For eg-: pepsodant tooth paste with tooth brush

12. 2. Premiums

  • They are offered with goods either free or at a low cost as an incentive to buy a product. Types of premiums are-:
  • In or on package premium
  • Purchase privilege plan
  • Re usable container
  • Additional weight or product
  • Exchange offer

13. In or on package premium

  • It accompanies the product inside or on the product. For eg-: Tattoos

14. Purchase privilege plan

  • When we buy a product there are no. of alternatives available. For eg-: soft drinks

15. Re-usable container

  • A container is given with the product as a gift. For eg-: Bournvita

16. Additional weight or product

  • In this it offers increase in quantity of product or adds a new product to it. For eg-: bear paws

17. Exchange offer

  • It says bring old and get new. For eg-: mehindpurwala in Indore bring old arm chair n get new at half cost

18. 3. Contest

  • A contest calls for customer to submit an entry to be examined by a panel of judges who will select the best entries. It can be in the following forms-:
  • Inviting slogans on a product
  • Suggesting a new name for a product
  • Suggesting a new usage for the product
  • Participating in a game fora product

19. Inviting slogans on a product

  • Amul
  • The taste of India

20. Suggesting a new name for the product

  • Uti bank is now known as axis bank

21. Suggesting new usage for product

  • Vaseline was earlier used as oil in organizations but is now used as a cosmetic item

22. Participating in a game for the product 23. 4. Point of purchase display

  • It offers an extra amt. of a product at a regular price by proving larger containers or extra unit. for eg-: big bazar

24. 5.Coupons

  • They are the certificates that gives buyer a saving when they purchase specified products. for eg.

25. 6.Refund

  • They are the offers by the manufactures to return a portion of price after the consumer supplies some proof of purchase. for eg-:

26. 7.Bonus packs

  • It offers an extra amt. of a product at the regular price by providing larger container or extra units. For eg. Shoes 1+1

27. 8. Free trial

  • It refers to inviting prospective purchasers to try the product without cost in the hope that the customer will buy. For eg-: cars

28. 9. Free training

  • It refers to the training which is given to the customers regarding the product usage before they use it. For eg-: scooty pep

29. 10.Trade fares & exhibitions

  • Industrial associations organize them which includes free demonstration of the product & various schemes to attract customers. For eg-:

30. 11.Sponsoring games & teams

  • Organizations sponsor certain activities in order gain customers attraction. For eg-: reliance 20-20world cup

31. 12. After sales service

  • After selling the product the organization provides benefit of various free services on the product. For eg-: cars

32. 13.Warranty & guarantee

  • Explicit or implicit promises by the seller that the product will perform as specified or that the seller will fix it or refund the customers money during a specified period. For eg-: computer

33. 14. Frequency programs

  • Programs providing rewards relating to consumer frequency & intensity in purchasing the cos product. For eg-: airlines

34. 15.Event sponsorship

  • It includes-:
  • Cultural
  • Social
  • Educational event
  • For eg-: polio vaccination

35. 16.Advertising specialty

  • The co. gives some or the other item on which cos name is given. For eg-:

36. 17.Honoring brilliant people

  • People who have won some special awards are being honored by the co. for eg-:

37. 18.Promoting through celebrities 38. Advantages

  • It offers low price to the customer.
  • It increases the standard living of the customer.
  • It increases the saving
  • It helps in personal selling
  • It increases the goodwill of the co.
  • It increases the demand of new product.
  • It is a motivating factor for retailers & salesman

39. Disadvantages

  • Continuous sales promotion leads to loss of perceived value of the brand.
  • The brand image & loyalty may erode if the sales promotion are continuously used.
  • It is useful mostly in mature markets.
  • There is no visible increase in the market share since is just a borrowing from the future sales.
  • It also increases the overall cost of the organization.
  • It has a negative effect on brand.