Description
Describing about basics of sales promotions in brief. What is sales promotions, various vehicles.
Sales Promotion
“A direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale.”
An extra incentive to buy
A tool to speed up sales
Sales Promotion Vehicles
Consumer-Oriented
Samples Coupons
Trade-Oriented
Contests, dealer incentives
Trade allowances Point-of-purchase displays Training programs Trade shows Cooperative advertising
Premiums
Contests/sweepstakes Refunds/rebates Bonus packs Packs Price-off deals Frequency programs Loyalty programs Event marketing
Reasons for Increase in Sales Promotion
Growing power of retailers
Reasons
Declining brand loyalty Increased promotional sensitivity Brand proliferation Fragmentation of consumer markets Short-term focus of marketers Increased accountability Competition Clutter
Growth in sales promotion.
? Growing power of retailers – manufacturers used to have most of the
?
?
? ?
?
?
? ?
power, now retailers through technology, consolidation, and private labeling have more power Declining brand loyalty – consumers are purchasing more on the basis of price and value Increased promotional sensitivity – consumers want to save money and respond well to promotions that provide them the opportunity to do so Brand proliferation – many new brands that offer little differentiation Fragmentation of consumer markets – traditional mass media advertising has become less effective and promotions are a way to reach market segments Short-term focus of marketers – sales promotion is seen as a way of generating an immediate increase in sales Increased accountability – pressure on managers to produce sales results Competition – the use of promotions is seen as way to gain a competitive advantage Clutter – promotional offers can breakthrough and attract attention
Objectives of Consumer-Oriented Sales Promotion
To increase To increase consumption of consumption of an established an established brand To defend (maintain) current customers
To obtain trial and purchase
Objectives
Enhance IMC efforts and build brand equity
To target a specific segment
Consumer-Oriented Promotions and Market Objectives
? Induce Trial –Sampling , Instant Coupons, In Store
Coupons, In Store Rebates
? Customer Retention- Price Off Deals, Bonus
Packages, Loyalty Programs
? Support IMC/Build Brand Equity- Events, Loyalty
Programs ,Contests
Trade-Oriented Sales Promotion Objectives
Obtain distribution of new products Maintain trade support for existing products
Objectives
Build retail inventories
Encourage retailers to display existing brands
Types of Trade-Oriented Promotions
Contests and Incentives Trade Allowances Point-of-Purchase Displays Sales Training Programs Trade Shows Cooperative Advertising Buying Allowances Promotional Allowances Slotting Allowances
Trade-Oriented Promotions
? Manufacturers use a variety of trade promotion tools as
inducements for wholesalers and retailers. These promotions include:
? Contests and incentives – can be directed toward managers and/or
?
? ? ? ? ? ? ?
employees at the wholesale or retail level Trade allowances – discount or deal to stock, promote or display manufacturer’s product Buying allowances – price reduction during a fixed period Promotional allowances – discounts for promotional activities Slotting allowances – retailers charge fees for a slot or position on shelf Point-of-purchase displays – various in-store displays used to sell products Sales training programs – assisting in sales training programs for reseller personnel Trade shows – forum where manufacturers can display products Cooperative advertising – cost of advertising is shared by more than one intermediary
doc_745903653.pptx
Describing about basics of sales promotions in brief. What is sales promotions, various vehicles.
Sales Promotion
“A direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale.”
An extra incentive to buy
A tool to speed up sales
Sales Promotion Vehicles
Consumer-Oriented
Samples Coupons
Trade-Oriented
Contests, dealer incentives
Trade allowances Point-of-purchase displays Training programs Trade shows Cooperative advertising
Premiums
Contests/sweepstakes Refunds/rebates Bonus packs Packs Price-off deals Frequency programs Loyalty programs Event marketing
Reasons for Increase in Sales Promotion
Growing power of retailers
Reasons
Declining brand loyalty Increased promotional sensitivity Brand proliferation Fragmentation of consumer markets Short-term focus of marketers Increased accountability Competition Clutter
Growth in sales promotion.
? Growing power of retailers – manufacturers used to have most of the
?
?
? ?
?
?
? ?
power, now retailers through technology, consolidation, and private labeling have more power Declining brand loyalty – consumers are purchasing more on the basis of price and value Increased promotional sensitivity – consumers want to save money and respond well to promotions that provide them the opportunity to do so Brand proliferation – many new brands that offer little differentiation Fragmentation of consumer markets – traditional mass media advertising has become less effective and promotions are a way to reach market segments Short-term focus of marketers – sales promotion is seen as a way of generating an immediate increase in sales Increased accountability – pressure on managers to produce sales results Competition – the use of promotions is seen as way to gain a competitive advantage Clutter – promotional offers can breakthrough and attract attention
Objectives of Consumer-Oriented Sales Promotion
To increase To increase consumption of consumption of an established an established brand To defend (maintain) current customers
To obtain trial and purchase
Objectives
Enhance IMC efforts and build brand equity
To target a specific segment
Consumer-Oriented Promotions and Market Objectives
? Induce Trial –Sampling , Instant Coupons, In Store
Coupons, In Store Rebates
? Customer Retention- Price Off Deals, Bonus
Packages, Loyalty Programs
? Support IMC/Build Brand Equity- Events, Loyalty
Programs ,Contests
Trade-Oriented Sales Promotion Objectives
Obtain distribution of new products Maintain trade support for existing products
Objectives
Build retail inventories
Encourage retailers to display existing brands
Types of Trade-Oriented Promotions
Contests and Incentives Trade Allowances Point-of-Purchase Displays Sales Training Programs Trade Shows Cooperative Advertising Buying Allowances Promotional Allowances Slotting Allowances
Trade-Oriented Promotions
? Manufacturers use a variety of trade promotion tools as
inducements for wholesalers and retailers. These promotions include:
? Contests and incentives – can be directed toward managers and/or
?
? ? ? ? ? ? ?
employees at the wholesale or retail level Trade allowances – discount or deal to stock, promote or display manufacturer’s product Buying allowances – price reduction during a fixed period Promotional allowances – discounts for promotional activities Slotting allowances – retailers charge fees for a slot or position on shelf Point-of-purchase displays – various in-store displays used to sell products Sales training programs – assisting in sales training programs for reseller personnel Trade shows – forum where manufacturers can display products Cooperative advertising – cost of advertising is shared by more than one intermediary
doc_745903653.pptx