Sales Promotion | meaning| Promotion | types of Promotions | promotion strategies |

Sales Promotion

1. Welcome

2. Sales promotion

3. Definition : Media & Non media marketing pressure applied for a predetermined, limited period of time in order to stimulate trial, increase consumer demand or improve product quality .

4. Meaning: Sales promotion is one of the elements of the promotional mix. The primary elements in the promotional mix are advertising, personal selling, direct marketing and publicity/ public relations. Sales promotion uses both media and non-media marketing communications for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability.

5. Sales promotion is used not only for products or brands; it can be extended to technology and service. Samsung launched a scratch-card promo for its CTVs in June 1999. Thums Up used the same strategy. What differentiates the promotions is the industry? One was in the durable sector, which was aimed at growth. The other was in the FMCG sector, with the aim of increasing short-term sales.

6. Focus Areas : • “Public” & not just consumers. • Action oriented. E.g: “Buy Now”. • 3 Party involvement: üConsumers üSales Representatives üThe Trade • Limited Period. E.g. offer closes 1st December

7. Goals Of Sales Promotion : Increase immediate customer sales Support from marketer’s sales force. Gain the support of the trade in marketing the product.

8. Consumer Promotio n: Price Deals: E.g. “More for Less”, 50% Off, Buy One Get One Free offer. Coupons: E.g: VLCC coupons for discount. Contests: E.g: Answer a simple question and win a Color TV Sweepstakes: E.g: Name is selected for query form for lucky draw. Premiums: E.g: Buy Pepsodent & collect G.I Joes’; Win a Mercedes Benz, the more you use your ICICI credit card. Sampling: E.g: Consumer sample new products for free .

9. Benefits of Sales Promotion It helps to generate new leads Allows re-engaging with your existing audience Skyrockets revenue Increases brand awareness

10. Drivers of SP in Marketplace : •Consumer Behavior: Consumers better educated, low brand loyalty & Selective. •Pricing: Festivals, major events in sports still draw a huge crowd. Indians are still price conscious. •Market Share: Brand switching, the name of the game. •Parity Products: Differentiation strategy in a world of ‘me too’ product. •Power of the Retailer: The place where it all happens. Consumers directly in touch with them.

11. Trade PromotionsGoals Stimulate in store merchandising. Manipulate the inventory held by a retailer. Expand product base geographically. To create a high level of excitement for the product

12. Types of Promotions : Consumer Promotion Trade Promotion

13. Trade Promotion Point of Purchase (POP): E.g: Banners, Danglers & Posters at the retail outlet. Dealer/Retailer Kit: All the information about the product that the retailer should know. Contests & Sweepstakes: Specials offers to the retailer so that he pushes that brand. Trade Shows & Exhibits: E.g: Auto Expo at Pragati Maidan in Delhi. Trade Incentive: The more ‘cut’ is given to the retailer, the more he pushes your product.

14. Promotion Strategies 3 broad objectives: Ø Stimulate demand by consumers Ø Improve marketing performance of resellers Ø To supplement and coordinate advertising, personal selling & public relations activities.

15. Help in creating & sustaining brand value. • Managing brand image • Cut into brand loyalty of other brands. • Promotion to be more brand focused. • Co-branding, a key tool.

16. PROMOTION EFFORT Manufacturer Reseller Consumer

17. Difference Between Advertising Creates an Image over time •Relies on Emotional appeals •Adds Intangible value to the product / service •Contributes Moderately to short term profitability Sales promotion Creates immediate Action •Relies on Rational appeal •Adds Tangible value to the product / service •Contributes Greatly to short term profitability

18. “The manufacturer who finds himself up the creek is the short-sighted opportunist who siphons off all his advertising dollars for short-term promotions.” - David Ogilvy, Ogilvy on Advertising (1985), New York: Vintage Books, p. 169.

19. Thank you