Sales Promotions

Principle of marketing
Group members

 Sayed Faiz Ali Shah

 Mohammad Nabi
 Hazrat Bilal
 Kashif shafiq
Sales promotion
 Main aim of sale promotion
◦ to attract new customers
◦ to boost sales of products or services
◦ To hold present customer
◦ To counteract competition in market
History of sales promotions
 history of sale promotion is following:
 Coupons in 1895 by grapes nuts
 Metal coupons in 1920 by proctor and

gamble
McDonald
 In 1979 McDonalds launched happy meal
( toys with burgers)
◦ Barbie doll
◦ Hot wheels cars
Because of this happy meal the supplier of
that toys become world largest manufacturer.
Valve developers company
 A video game selling company, normally they
would not like sales promotion
 But finally they made sales promotion on their
products and the results are outstanding
Sales discount Increase in sales Increase in
in % in % profit in %
10% discount 35% 22%
25% discount 245% 159%
50% discount 320% 110%
75% discount 1470% 293%
total profit was 584%
Washers
 Washers selling Dinner sets, Tea sets, Soup
bowl sets
 With every sale they gave a complementary

product with it as a sales promotion.

 Due to sales promotion they becomes

washers sales promotion company.

 In 2016 they were celebrating 60 years of

passion, WSP managed to pay over $29m as a

promotion in free.
Effects of sales promotion?
 Sales promotion effect is short term.
 Operates normally in the last phase of

process.
 Used as a secondary role.
 Sales promotion has tactical rather than

strategic roles.
 Advertising offers reasons to buy a product

or service, while sales promotion offers

reason to buy it now .
 Rapid growth
•Inside the company product manager facing
greater pressure to increase the current sale
•Externally company faces more competition,

competing brands and less differentiated

•Advertising efficiency has declined because of

rising cost, media clutters and legal constraints.

•Consumers are more deal oriented.
Objectives of Sales Promotion
 To Introduce New Products
Or Services

Usually, free samples are provided through

dealers during such introduction. Similarly,
discounts in cash or goods may also be offered
to dealers to stock new products or deal with
new services
 To Attract New Customers

Sales promotion measures also play an important role in attracting

new customers for an organization
 To Induce Existing
Customers To Buy More

Sales promotion devices are most often used

to induce the existing customers of a firm to
buy more.
 Helps The Firm To Remain
Competitive

Most of the companies undertake

sales promotion activities in order
to remain in the competitive
market.
 To Increase Sales In Off-
seasons

Many products like air-coolers,

fans, refrigerators, air-conditioners,
cold drinks, room heaters, etc. have
seasonal demand.
 To Add To The Stock Of The
Dealers
Dealers like wholesalers and retailers usually deal
with a variety of goods. Their selling activity becomes
easier when the manufacturer supplements their
efforts by sales promotion measures.
 Major Sales Promotion
Tools
• Used to accomplish sales promotion objectives,
• Planner select tools by considering

Sales Promotion objectives, Type of Markets

Main Sales Promotion Tools
 Consumer Promotion Tools
 Trade Promotion Tools
 Business Promotion Tools
Consumer Sales Promotion
 Samples
 Coupons
 Cash refund
 Premiums
 Point-Of-Purchase
 Patronage Rewards
SAMPLES
 Offers to consumers of a trial amount of
product,
 Most effective, But expensive way,
 Are delivered to door, sent by mail, or

handed out in stores

COUPONS
 Certificates that give buyers a saving on
purchasing product,
 Promote early trial of new brand
 Stimulate sales of a mature brand
 Through : text messaging, emails etc
Cash Refund

 Same as coupons, except that price

reduction occur after purchase,
 Consumer sends a proof of purchase to

manufacturer
 Example : Blackberry (AT&T)
Premiums

 Goods offered either free or at low cost as

an incentive to buy a product.
 May come in-side the package
Patronage Rewards

 Cash or other rewards for the regular use of a

certain company’s product or services
 Examples :
Airlines : Air Blue, Emirates etc
Hotels have adopted “Honor Guests” plans.
POINT-OF-PURCHASE

 Displays and demonstrations that take place

at point of purchase or sale.
 In case of complex nature goods,

Examples
Electronic devices such as Mobile Phones
Trade Promotion Tools

Persuade retailers or wholesale dealers to

 Carry a brand
 Give it a shelf space,
 Promote it in advertisement
Trade Promotion Tools

 Manufacturer may offer “discount”

A straight reduction in price on purchase
during a stated period of time.
* encourage dealers to buy in quantity
 Manufacture also offer “Allowance”

* Reduction in price on damaged goods

Business Promotion Tools

 Convention And Trade Show

Many companies organize conventions to
promote their products,
opportunity to find new sales, introduce new
products.
 Sales Contest
to motivate salespeople to increase their
efforts over a given period of time.
receives cash rewards, trips and other gifts.
Developing the sale promotion
program

In order to develop a successful sale promotional

program a marketer must take certain decisions
before applying any tools
 Size of incentive

 Length of promotion

 Conditions for participations

 Promotion and distribution

 Evaluation
Size of incentive
 Marketer must determine the size of
incentive.
 The marketer must ensure that the incentive

is in between the higher and the lower

standards.
 If the incentive is less than the minimum standard, it will
loose its value and the promotion will not boost the sale.
 If the incentive is more than the higher standard, it will
boost the sales of goods but the firm will go into loss.
Time or length of incentive

 Time of incentive or sale is another important

determinant of successful promotional
program
 A marketer have to determine the length of

sale promotions
Promotion an Distribution
 Marketer must determine how to promote
and distribute the promotion itself.
 By mobile
 On internet
 on news paper advertisement
Condition
 The marketer must set condition for
participation.
 Incentive might be offered to every one or

only to select groups.

 Giving discount to everyone
 Selecting users of a specific bank credit/debit card
 Offering only to selected group of profession
Evaluation
 Evaluation is very important for promotional
tools.
Conclusion
 Sales promotion are the incentive to boost
the sales of a firm.
 Sales promotions drives a consumer to buy

now.
 Sales promotion has an important role in a

company sales
Thank you

Any questions?