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    This document provides an overview of sales promotion. It discusses various methods of sales promotion targeted at consumers like product sampling, coupons, rebates, contests and premiums. It also discusses trade promotion methods like trade shows, contests and allowances. The advantages of sales promotion are short-term sales increases and motivation. However, disadvantages include only short-term effects, hidden costs, and price cutting which can damage a brand. Reasons for increased sales promotion include both internal pressures to achieve targets and external pressures from competition and consumers.

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    This document provides an overview of sales promotion. It discusses various methods of sales promotion targeted at consumers like product sampling, coupons, rebates, contests and premiums. It also discusses trade promotion methods like trade shows, contests and allowances. The advantages of sales promotion are short-term sales increases and motivation. However, disadvantages include only short-term effects, hidden costs, and price cutting which can damage a brand. Reasons for increased sales promotion include both internal pressures to achieve targets and external pressures from competition and consumers.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    39 views9 pages

    Sales Promotion Manish

    Uploaded by

    manish
    This document provides an overview of sales promotion. It discusses various methods of sales promotion targeted at consumers like product sampling, coupons, rebates, contests and premiums. It also discusses trade promotion methods like trade shows, contests and allowances. The advantages of sales promotion are short-term sales increases and motivation. However, disadvantages include only short-term effects, hidden costs, and price cutting which can damage a brand. Reasons for increased sales promotion include both internal pressures to achieve targets and external pressures from competition and consumers.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    of 9

    SALES PROMOTION

    AN OVERVIEW

    MANISH KUMAR SHAHI


    IMC
    CLASS-1
    IFIM B SCHOOL
    BANGALORE
    Sales Promotion
    • Short-term incentive to motivate
    consumers/distribution channel to buy
    goods/services immediately
    – Consumer
    – Trade
    Sales Promotion
    Methods for Consumers

    Product sampling, demonstrations

    Coupons, refunds

    Rebates, cents-off-

    Contests, games & sweepstakes


    Sales Promotion
    Methods for Consumers
    Premiums

    Multiple purchase offers,


    Free gifts
    Frequent-user incentives

    Free Gifts

    Product placements/tie-ins
    Classifying Types of Sales Promotion
    Promotional Non-price Sampling
    pricing promotions
    • Price reductions
    • Free goods
    • Tied offers • Most effective in
    • Contests the early stages of a
    • Money off next
    purchase • Free gifts new product launch
    • Loss leader • Self-supporting offers (#1 use for coupons)
    pricing • Multi-brand promos s • Important for food
    products
    • Cheap credit • Guarantees and added
    services • Very expensive
    Sales Promotion
    Methods for the Trade
    • Trade shows
    • Contests, free merchandise
    • Display equipment
    • Cooperative advertising & promotions
    • Allowances (buying vol., buy-back, scan-back,
    merchandise)
    • Premium or push money, slotting allowances
    • Lucky draws
    • Free materials
    Sales Promotion

    Advantages: Disadvantages:
    •Motivation method for •Only short-term
    special efforts •Hidden costs
    •Short-term sales increase •Confusion
    •Defined target audience •Price cutting -Brand image
    •Defined role/objectives •Postponement effect
    •Indirect roles (e.g., wider •Significant government
    distribution) regulation
    •Lack of effectiveness
    sometimes (learning effect)
    REASONS FOR SALES
    PROMOTION
    INTERNAL EXTERNAL
    • Top management is • Increase in number of
    more conducive to brands
    spending on • Consumer is more
    promotions price savvy
    • Line managers under • Greater pressure from
    greater pressure to trade to liquidate
    achieve targets stocks
    • Justification of
    expenditure is easy

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