Sales Promotion-Meaning

• Sales promotion is a part of the promotion mix where the business

uses many short-term customer-oriented strategies to stimulate the
demand for its product by making it look more attractive and/or
worthy.
 Sales promotion
Sales Promotion tools & Objectives: 3 types
• Consumer Promotion tools: Short term sales
increase
• Trade Promotion tools: retailers to stock & sell more
• Sales Force sales promotion tools: add new dealers
to the network
Developing Sales Promotion Program some decisions:
• Size of Incentive
• Conditions for Participation-Each/select group
• Length of Promotion (Short or Long)
• Evaluations-through- Survey
 Sales Promotion Tools
3 Major Tools of Sales Promotion:
1) Consumer Promotion Tools:
-Samples, Free Gifts, Coupons,
-Cash refund offers,
-free trials
-Finance schemes
-Exchange Schemes
-Patronage Rewards (reward points)
-Contests, lucky draws,
-Point-of-Purchase (POP) promotions etc.
 Sales Promotion Tools
2) Trade/business Promotion Tools: consist of
• Point Of Purchase Displays/advertising allowance – This includes providing
free point of purchase (POP) display units to the retailers to increase their sales.
• Trade Shows – Trade shows are a great sales promotion strategy where the
business promotes its product to thousands of traders in the trade show. Trade
shows also witness good discounts.
• Push Money – Also known as spiffs, this technique includes extra payments to
traders to motivate them to meet specified goals. For example, giving them a
Rs.50 bonus per unit for selling product A and Rs.30 for selling product B for a
specified time period.
• Deal Loaders – These are the gifts provided to the traders (wholesalers and
retailers) for ordering a certain quantity of product.
• Trade Deals – These are special concessions provided to the merchants to
encourage them to promote a specific product and increase its sales for a
limited time period.
• Buying Allowances – Special discounts provided to the sellers when they order
a specified number of products.
• Dealer contests
 Sales Promotion Tools
3. Sales force promotion tools
- Bonus
- Honour & recognition
- Sales contests (free travel, holidays)
- Extra commission
- Demonstration kits etc.