Promotion and other toolsNavneet KaurAbhishek GroverGagan Kaur

Sales Promotion Sales promotion is one of the seven aspects

of the promotional mix. Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability.

Examples include contests, coupons, freebies, loss leaders, point of purchase displays, premiums, prizes, product samples, and rebates.

Sales Promotion Sales promotions can be directed either

at the customer, sales staff, or distribution channel members (such as retailers).

Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions

Why is Sales Promotion used?

Objectives Free samples stimulate trials Free management advisory service aims at long

term relation Incentive type promotion reward royal customers

and increase repurchase rates To attract brand switchers. Used in markets of high brand similarity It enables manufacturers to adjust to short term

variations in supply and demand.

Types of sales promotions

Types of Sales Promotions1. Consumer promotions2. Trade promotions3. Business and sales force

promotions

Tools Consumer promotion tools- the

promotion planner should take into account the type of market, sales promotion objectives, competitive conditions, and each tool’s cost effectiveness. The main consumer promotion tools are:-

Different Tools Samples Coupons Cash refund Price packs Premium/gifts Frequency programs Prizes Free trials Product warranties Tie in promotion Cross promotions Point of purchase display & demonstrations

Trade Promotion

Why is Trade Promotion Used? To persuade retailer or wholesaler to

carry the brand To persuade retailer or wholesaler to

carry more inventory To induce retailers to promote the

brand by featuring display and price reductions

To stimulate retailers and sales clerks to push their products.

Tools Used Price Off- A straight discount off the list

price on each case purchased during a stated time period.

Allowance- An amount offered in return for the retailer’s agreeing to feature the manufacturer’s products in some way.

Free goods- offers of extra cases of merchandise to intermediaries who buy a certain quantity or who feature a certain flavor or size.

Business or Sales Force Promotion

Business or sales force promotions Companies spend large amount of

money on business and sales-force promotion tools to gather business leads, impress and reward customers, and motivate the sales force to greater effort. They develop budgets for tools that remain fairly constant from year to year.

Sales force promotion tools1. Trade shows and conventions2. Sales contests3. Specialty advertising

Trade Shows & Conventions

Trade Shows & Conventions Industry associations organize annual

trade shows and conventions. Business marketers may spend as much as 35% of their annual promotion budget on trade shows.

Participating vendors expect several benefits including-

Benefits … Generating new sales leads Maintaining customer contacts Introducing new products Meeting new customer Selling more to present customers Educating customers with

publications/videos Other audio visual materials

Sales Contests

Sales Contests A sales contest aims at inducing the

sales force or dealers to increase their sales results over a stated period, with prizes(money, trips, gifts, or points) going to those who succeed.

Specialty Advertising

Specialty Advertising It consists of useful, low cost items

bearing the company’s name and address and sometimes an advertising message that sales people give to prospects and customers.

Common items are ball point pens, calendars, key chains, flash lights etc.

Market oriented P.R. and sponsorships

Why P.R.? Companies cannot survive in isolation they

need to have a constant interaction with customers, employees and different stakeholders. This servicing of relation is done by the public relation office.

The major function of the public relation office is to handle press releases, support product publicity, create and maintain the corporate image, handle matters with lawmakers, guide management with respect to public issues.

Functions PR involves a variety of programs designed

to promote or protect the company’s image or its individual products. The best PR departments perform the following functions

Press relations Product publicity Corporate communications Lobbying Counseling

Marketing public relations

M.P.R. The old name for MPR was PUBLICITY,

the task of securing editorial space-as opposed to paid space- imprint and broadcast media to promote “HYPE” a product, service, idea, place, person or organization.

MPR goes beyond simple publicity and plays an important role in the following tasks-

Tasks Assisting in launch of new products Assisting in repositioning a mature product

e.g. Onida Building interest in a product category e.g.

eggs Influencing specific target groups Defending products that have encountered

products e.g. coke Building corporate image in a way that

reflects favorable on its products.

Tools Publications- Newsletters, magazines and

journals Events- Castrol gives away free tickets for

Malaysian Moto GP Sponsorship- Complan sponsors under-14

sports events News- Media helps enhance brand image Public service activities- Subway

celebrating RED NOSE DAY worldwide Identity media- Pens, locks, diaries