Sales Promotion in Marketing

A tool in Marketing Communication that manifest immediate purchase with the help of impulsive buying decision. learn about various methods of sales promotion and key techniques.

1. Sales Promotion

2. SALES PROMOTION • Sales promotion Marketing activities other than personal selling, advertising, and publicity that enhance consumer purchasing and dealer effectiveness. • Goal is speeding the sales process and increasing sales volume. • Produce best results when combined with other other marketing activities, such as advertising. • Cannot overcome poor brand images, product deficiencies, or poor training for salespeople .

3. CONSUMER-ORIENTED SALES PROMOTIONS •  Goals: Encourage repurchases by rewarding current users, boost sales of complementary products, and increase impulse purchases. •  Coupons: most widely used form of sales promotion. •   Refunds Or Rebates: help packaged-goods companies increase purchase rates, promote multiple purchases, and reward product users. •  Samples, Bonus Packs, And Premiums: a “try it, you’ll like it” approach. •  Contests: require entrants to complete a task such as solving a puzzle or answering questions in a trivia quiz. • Sweepstakes: choose winners by chance; no product purchase is necessary. • Specialty Advertising: sales promotion technique that places the advertiser’s name, address, and advertising message on useful articles that are then distributed to target consumers.

4. TRADE-ORIENTED PROMOTIONS • Sales promotion that appeals to marketing intermediaries rather than to final consumers. • Accounts for half of typical firm’s promotion budget. • Trade allowances—special financial incentives offered to wholesalers and retailers that purchase or promote specific products. • Point-of-purchase advertising—display or other promotion located near the site of the actual buying decision. • Trade shows—vendors who serve the industries display and demonstrate their products for members. • Dealer incentives, contests, and training programs.

5. Sales Promotion Consumer Sales Promotion Trade Sales Promotion Consumer market Marketing channel Drive immediate purchase Influence behavior Goal

6. The Objectives of Sales Promotion

7. LO 1 Objectives of Sales Promotion Type of Buyer Loyal Customers Competitor’s Customers Brand Switchers Price Buyers Desired Results Reinforce behavior Increase consumption Change purchase timing Break loyalty Persuade to switch Persuade to buy your brand more often Appeal with low prices Supply added value Sales Promotion Examples Loyalty marketing Bonus packs Sampling Sweepstakes, contests, premiums Price-lowering promotion Trade deals Coupons, price-off packages, refunds Trade deals

8. Tools for Consumer Sales Promotion Coupons and Rebates Premiums Loyalty Marketing Programs Contests & Sweepstakes Sampling Point-of-Purchase Promotion

9. Tools for Consumer Sales Promotion Coupon Rebate Premium A certificate that entitles consumers to an immediate price reduction. A cash refund given for the purchase of a product during a specific period. An extra item offered to the consumer, usually in exchange for some proof of purchase.

10. Tools for Consumer Sales Promotion Loyalty Marketing Program A promotional program designed to build long-term, mutually beneficial relationships between a company and key customers. Frequent Buyer Program A loyalty program in which loyal consumers are rewarded for making multiple purchases.

11. Tools for Consumer Sales Promotion Contests Promotions that require skill or ability to compete for prizes. Sweepstakes Promotions that depend on chance or luck, with free participation.

12. Tools for Consumer Sales Promotion Sampling A promotional program that allows the consumer the opportunity to try a product or service for free.

13. Methods of Sampling Direct mail Door-to-door delivery Packaging with another product Retail store demonstration

14. B2B -- Trade Sales Promotion Trade Allowances Push Money Training Free Merchandise Store Demonstration Conventions & Trade Shows

15. Trade Allowance Trade Allowance A price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers.

16. Push Money Push Money Money offered to channel intermediaries to encourage them to “push” products--that is, to encourage other members of the channel to sell the products. E.g. Nike gives bonus to sales staff of retailers for meeting quotas

17. Benefits of Trade Promotions Help manufacturers gain new distribution Obtain wholesaler and retailer support for consumer sales promotions Build or reduce dealer inventories Improve trade relations

18. Forms of Trade Sales Promotion

19. Kiosk Marketing Information and ordering machines called kiosks (in contrast to vending machines which dispense actual products) are used heavily in recent years at airports, stores and other locations. Kiosks at Hilton hotels help customers to see their reservations, get room keys, view pre - arrival messages, check in and out . Kiosks can read customer data from encoded registration badges and produce useful data that can be printed. Kiosks can give people information about the current schemes and sales promotion