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Sales Promotion

Sales Promotion. Sales Promotion. Sales promotion consist of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker and/or greater purchase of particular products/ services by consumers or the trade. Purpose of sales Promotion. To stimulate Consumer trials

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Sales Promotion

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  1. Sales Promotion

  2. Sales Promotion • Sales promotion consist of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker and/or greater purchase of particular products/ services by consumers or the trade.

  3. Purpose of sales Promotion • To stimulate Consumer trials • To obtain shelf space in the retail stores • Cementing a long term relationship with customer/ retailer • To reward the loyal customers • To increase the repurchase rate of occasional users

  4. Major decisions in Sales Promotion • Establishing the Sales Promotion Objectives • Selecting the Sales Promotion tools • Developing the Sales Promotion Program • Pre-testing the Sales Promotion Program • Implementing & Controlling the Sales Promotion Program • Evaluating the Sales Promotion Results

  5. Establishing the Sales Promotion Objectives • Encouraging purchase of larger-size units • Building trial among non users • Attracting switchers away from competitor’s brands • Persuading retailers to carry new items • Persuading retailers to carry higher levels of inventory • Encouraging off-season buying • Encouraging stocking of related items • Off-setting competitive promotions • Building brand loyalty • Gaining entry into new retail outlets • To stimulate the sales force for off-season sales • To encourage and motivate the sales force

  6. Selecting the Sales Promotion Tools • Consumer Promotion Tools • Manufacturer promotions • Retailer promotions

  7. Major Consumer-Promotion Tools • Samples • Coupons • Cash refund offers • Premium (gifts) • With pack/inside pack premium • Reusable package/container • Free in the mail premium • Price Packs • Reduced-price pack • Banded pack

  8. Major Consumer-Promotion Tools • Prizes (contests, sweepstakes, games) • Patronage awards • Free trials • Product warranties • Tie-in promotions • Gross-promotions • Point of purchase displays and demonstrations

  9. Major Trade Promotion Tools • Trade promotion tools • Price offs • Allowance • Free goods • Contests

  10. Major Business & Sales Force Promotion Tools • Trade Shows • Sales contest • Specialty Advertising

  11. Developing The Sales Promotion Program • Deciding the incentive and its size • Establishing the conditions for participation • Deciding the duration of promotion • Deciding the Distribution vehicle • Deciding the Timing of the promotion • Deciding the sales promotion budget • Ground up method • Percentage method

  12. Pre testing the sales program • Rating or ranking by consumers • Trial tests

  13. Implementing and Controlling the Sales Promotion Program • Lead time • Initial planning , design, approval of package modifications or material to be mailed or distributed. • Preparation of advertising and point of sales materials, notification to sales personnel • Establishment of allocations for individual distributors, purchasing and printing of special premiums or packaging materials • Production of advanced inventories , distribution to the retailer • sell in time • Launch of Promotion to 95 % distribution of deal merchandise

  14. Evaluating the Sales Promotion Results • Sales Data • 6%-10%-5%-7% • Consumer Survey • How many Recall the offer • What they thought of it • How many took advantage of it • How it has affected subsequent brand choice behavior

  15. Evaluating the Sales Promotion Results • Experiments • Vary the incentive value, duration, and distribution media

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