CONSUMER PROMOTION

CONSUMER PROMOTION
Consumer promotions are tactics or
techniques designed to help a business
find new customers or reward current
customers.
CONSUMER PROMOTION
Sales promotion includes all the
activities that are performed by a
producer, a dealer or a businessman to
increase the sales of goods.
CONSUMER PROMOTION
By Philip Kotler –

“Sales Promotion encompasses all the

tools in the marketing mix whose major
role is persuasive communication.”
CONSUMER PROMOTION
By American Marketing Association –

“Those marketing activities, other than personal selling,

advertising and publicity that stimulate consumer
purchasing and dealer effectiveness, such as displays,
shows and exhibitions, demonstrations and various
non-recurrent selling efforts not in the ordinary
routine.”
 Characteristics of Sales
Promotion
1. It is a part of promotion mix.

2. The primary purpose is to induce customer

for immediate buying or dealer effectiveness or
both.
 Characteristics of Sales
Promotion
3. It is optional. Many companies do not
practice it.

4. It is directed for multiple objectives

 Characteristics of Sales
Promotion
5. It consists of offering, wide variety of tools
and incentives.

6. Sales promotion efforts consist of special

selling efforts for the specific time period.
 Characteristics of Sales
Promotion
7. It involves the non-recurrent selling efforts.

8. Sales promotion incentives are imitative.

Competitors can easily imitate them.
 Characteristics of Sales
Promotion
9. Sales promotion is expensive.

10. Excessive use of sale promotion may affect

sales and reputation of company adversely.
 Characteristics of Sales
Promotion
11. It supports personal selling and advertising
efforts.

10. It includes impersonal incentives. They are

offered openly to all.
 Objectives of Sales Promotions
1. To Introduce New Products

2. Building Product Awareness

3. Creating Interest
 Objectives of Sales Promotions
4. Stimulating Demand

5. Reinforcing the Brand

 Types of Consumer Promotion
tools
1. Samples

2. Coupons

3. Demonstration
 Types of Consumer Promotion
tools
4. Contest

5. Cash Refund

6. Premium
 Types of Consumer Promotion
tools
7. Price-off offer

8. Consumer Sweepstakes
 SAMPLES
• Samples are the offers to consumers a small
amount of a product for trial.
• Free samples are given to consumers to generate
their interest in the product.
• Samples help consumers verify the quality of the
product.
 SAMPLES
• Sampling is effective and quite expensive tool.
• Distributing samples to customers also involves
expenditure.
• Can be offered by companies in different modes.
 SAMPLES
Sampling is not justified in case of
• a well established product
• a product that is not superior in some way to
competing products
• a product with a narrow margin of profit
 Coupons
• A coupon is a certificate that fetches buyers
a saving when they purchase a specified
product.
• Coupons are generally issued along with the
product.
• They entitle the holder to either a specified
saving on a product or a cash refund.
 Coupons
Companies use Coupons to-
• introduce a new product

• promote the sale of an established product

• sell a product in large sizes

 Coupons
Companies use Coupons to-
• stimulate customers to switch brands

• encourage repeat sales.

 Demonstration
• Demonstration is a practical exhibition and
explanation of how something works or is
performed.
• Demonstration is required when products are
complex and of a technical nature.
 Demonstration
• Customers are educated as to how to make proper
use of the product.

• Demonstration of products induces customers to buy.

• Demonstrations are provided free of cost.

Contests