Sales Promotion - Download as PowerPoint

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					Promotion mix
           Sales promotion
It is a key ingredient in marketing campaigns ,
  consists of a collection of incentive tools, mostly
  short term , designed to stimulate quicker or
  greater purchase of particular product or services
  by consumer trade. It includes -:
 Consumer promotion
 Trade promotion
 Sales-force promotion
   To stimulate trial purchase
   To stimulate repeat purchase
   To stimulate larger purchase
   To introduce a new brand
   To compete with the market competitors &
    marketing strategy
   To increase the sale of goods
   To target specific market segment
   To attract new customers
   To increase impulse buying
   To clear excessive inventories
   Samples                        Trade fares & exhibitions
   Premiums                       Sponsoring games & teams
   Contest                        After sales service
   Point of purchase display      Warranty & guarantee
   Coupons                        Frequency programs
   Refund                         Event sponsorship
   Bonus packs                    Advertising specialty
   Free trial                     Honoring brilliant people
   Free training                  Promoting through
           1. Samples
It refers to free amt. of product or service
  which can be delivered in the following
 In store sampling
 Door to door sampling
 Newspaper sampling
 On package sampling
        In store sampling
Free samples are
  distributed within
  the organization.
  For eg-: pepsi
Door to door sampling
Some agents are
  assigned for
  distributing the
  samples for free.
For eg-: agarbatti
Newspaper sampling
Newspaper are
 distributed as free
 samples. For eg-:
 Raj express in
On package sampling
In this the product is
  attached with
  another product.
  For eg-: pepsodant
  tooth paste with
  tooth brush
           2. Premiums
They are offered with goods either free or at a low
  cost as an incentive to buy a product. Types of
  premiums are-:
 In or on package premium
 Purchase privilege plan
 Re usable container
 Additional weight or product
 Exchange offer
In or on package premium
It accompanies the
  product inside or
  on the product. For
  eg-: Tattoos
Purchase privilege plan

When we buy a
 product there are
 no. of alternatives
 available. For eg-:
 soft drinks
Re-usable container
A container is given
  with the product as
  a gift. For eg-:
Additional weight or product

In this it offers
  increase in quantity
  of product or adds
  a new product to it.
  For eg-: bear paws
        Exchange offer
It says bring old and
  get new. For eg-:
  mehindpurwala in
  Indore –bring old
  arm chair n get new
  at half cost
           3. Contest
A contest calls for customer to submit an
  entry to be examined by a panel of judges
  who will select the best entries. It can be
  in the following forms-:
 Inviting slogans on a product
 Suggesting a new name for a product
 Suggesting a new usage for the product
 Participating in a game for a product
Inviting slogans on a product

Amul –
The taste of India
                     Amul ice cream
Suggesting a new name for the product

Uti bank is now known
 as axis bank
Suggesting new usage for product

• Vaseline was
 earlier used as oil
 in organizations but
 is now used as a
 cosmetic item
Participating in a game for the
4. Point of purchase display

It offers an extra
  amt. of a product
  at a regular price
  by proving larger
  containers or extra
  unit. for eg-: big
They are the
 certificates that
 gives buyer a saving
 when they purchase
 specified products.
 for eg.
They are the offers
 by the
 manufactures to
 return a portion of
 price after the
 consumer supplies
 some proof of
 purchase. for eg-:
          7.Bonus packs
It offers an extra
  amt. of a product
  at the regular price
  by providing larger
  container or extra
  units. For eg. Shoes
          8. Free trial
It refers to inviting
  purchasers to try
  the product
  without cost in the
  hope that the
  customer will buy.
  For eg-: cars
        9. Free training
It refers to the
  training which is
  given to the
  regarding the
  product usage
  before they use it.
  For eg-: scooty pep
10.Trade fares & exhibitions

Industrial associations
  organize them which
  includes free
  demonstration of the
  product & various
  schemes to attract
  customers. For eg-:
11.Sponsoring games & teams

 sponsor certain
 activities in order
 gain customers
 attraction. For eg-:
 reliance 20-
 20world cup
12. After sales service

After selling the
 product the
 provides benefit of
 various free
 services on the
 product. For eg-:
13.Warranty & guarantee
Explicit or implicit
  promises by the seller
  that the product will
  perform as specified
  or that the seller will
  fix it or refund the
  customers money
  during a specified
  period. For eg-:
14. Frequency programs
Programs providing
  rewards relating to
  frequency &
  intensity in
  purchasing the co’s
  product. For eg-:
15.Event sponsorship
It includes-:
 Cultural
 Social
 Educational event
For eg-: polio
16.Advertising specialty
The co. gives some or
 the other item on
 which co’s name is
 given. For eg-:
17.Honoring brilliant people

People who have won
  some special
  awards are being
  honored by the co.
  for eg-:
18.Promoting through
 It offers low price to the customer.
 It increases the standard living of the
 It increases the saving
 It helps in personal selling
 It increases the goodwill of the co.
 It increases the demand of new product.
 It is a motivating factor for retailers & salesman
 Continuous sales promotion leads to loss of
    perceived value of the brand.
   The brand image & loyalty may erode if the sales
    promotion are continuously used.
   It is useful mostly in mature markets.
   There is no visible increase in the market share
    since is just a borrowing from the future sales.
   It also increases the overall cost of the
   It has a negative effect on brand.