SALES PROMOTION

TOOLS
-VISHAL SAJEEV
AM.MC.U3COM19064
 SALES PROMOTION

 Sales promotion is the process of persuading a potential customer to buy

the product. 
 It is a set of marketing technologies aimed to stimulate the demand in
particular products and increase brand awareness.
 Sales promotion is designed to be used as a short-term tactic to
boost sales – it is rarely suitable as a method of building long-term customer
loyalty.
 Some sales promotions are aimed at consumers.
 SALES PROMOTION TOOLS
EXAMPLES
Customer promotion tools are: Trade promotion tools: Business promotion & sales
 Samples  Price off/off invoice force promotion:
 Conventions and trade
 Coupons
 Advertising allowances shows
 Cash refund
 Display allowance  Sales contest
 Price packs
 Premium  Specially advertising  Sponsored vacations
 Patronage reward
 Contest/sweep stakes
(1)
Sample
 Small quantity, sometimes free of cost or sometimes at minimum price, sent
door to door personally or through mails or with other products etc.
 In this case, small units of free samples are delivered door to door, sent through
direct mail, attached to another product, or given along with the purchase of
some other product.
 Free samples are given to consumers to generate their interest in the product.
Samples help consumers verify the quality of the product
 COUPONS
 A certificate that gives buyers a saving when they purchase specified products
 Coupons are generally issued along with the product. They entitle the holder to
either a specified saving on a product or a cash refund.
 The coupons may be mailed or enclosed along with other products, or inserted
in a magazine or newspaper advertisement.
 Cash Refund
• Cash refund offers are rebates allowed from the price of the product. It is an
offer to refund part of the purchase price of a product to consumers who send
a proof of purchase to the manufacturer.

• if the purchaser is not satisfied with the product, the whole price or part of it
will be refunded. Cash refunded offer is stated on the package.
 Price packs
 Offers consumers saving off the regular price of the product, directly cuts price on
the label, or combination of two products
 Goods are sold at reduced prices during slump season. Reduction in prices
stimulates sale of goods
 Off-price retailers are retailers who provide high quality goods at cheap prices
 A price-off incentive can appear as a direct cash discount or with the use of a
coupon code
 Premiums
 Goods offered either free or at low cost as an incentive to buy a product.
Sometimes premium are costlier than the product it is sold with.
 A premium may be inside the package, outside it or received through mail. The
reusable package itself serves as a premium.

 These can be extra quantities of the same product at the regular price. Premium
offers are used by several firms selling FMCG goods such as detergents, soaps
and food items
 Patronage Reward
 Cash or gift, for the regular use of a particular product of the
company like privilege card membership given by the company to
the regular user of the products. •
 Contests and Sweepstakes
Contests
 Submitting the entry
 Contests are conducted to attract new customers. They introduce new product
by asking the prospects to state the reasons for the purchase of the product.
 The buyer purchases the product and submits the evidence of purchase with
entry form for contest. Entry forms are duly filled by the buyers. A panel of
judges selects the best and buyers are given prizes

Sweepstakes
 Calls for consumers to submit their names for draw
 Names of consumers are included in a list of prize winning contest. The lots are
drawn and the winners get prizes.
 It used as a marketing promotions to reward existing consumers and to
draw attention to a product. the winner is determined by luck rather than skill
(2)
Priceoff/off invoice
 A strategy that involves temporary price reductions to retailers with the intent that
savings will be passed along to customers.
 Advertising Allowance
 Advertising allowance is to advertise a sellers product in local outlets. It
is beneficial to both retailer and manufacturer
 The company may establish requirements for the retailer to receive the
allowance, such as getting the company's approval of the advertisement
before it is displayed and providing proof that the advertisement was
made
 Display Allowance
 Retailers are given a discount in exchanging for either promoting the product in
their own advertising, setting up a product display, or both.
 The payment can be in the form of cash or goods. Retailers must furnish written
certification of compliance with the terms of the contract before they are paid.
Retailers tend to select displays that are easy to assemble and yield high volume
and profits
 Specialty advertising
 It involves giving away free items like keychains, calender etc to retailers to
establish rapport and increase brand awareness.
 Specialty advertising can be used on everything from pens and calendars to
caps, t-shirts, lip balm and thumb drives
(3) Conventions and trade shows
 A Trade show or convention offers a chance for an entire industry to show off
how relevant and vital they are. Their main goal is to connect more and more
people with the company as possible
 For instance, a trade show for the apparel industry will feature companies who
sell fabric, others who sell machinery, and still more who sell clothes directly to
the consumer.
 Sales contest
 A sales contest is a motivational program in which rewards are offered to sales
people based upon their sales and/or result.
• Contests are the promotion events that give consumers the chance to win
something such as cash, trips or goods. 
• Contests are conducted to attract new customers. They introduce new product
by asking the prospects to state the reasons for the purchase of the product
 Sponsored vacation
• Sponsored vacation is a travel expense that has been paid directly for
customers by the company offering it.
• This attracts the customer to buy the product to win a chance to get free
vacations.
THANKYOU