UNIT 11 SALES PROMOTION Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

AFTER LEARNING THIS UNIT YOU SHOULD BE ABLE TO: Define the term “sales promotion”. Identify the reasons for the rapid growth of sales promotion. 3. Understand the tools used for sales promotion. 4. Know the objectives of sales promotion. 5. Understand the limitations of sales promotion. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

I. Warm-up Qs: Besides advertising, what do you know can encourage people to buy ? How do you understand the saying at P129? How important do you think sales promotion is to an enterprise? What tools are likely to be used in sales promotion? Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

II. What is sales promotion? It refers to short-term incentives to encourage the purchase or sale of a product or service. ***Sales promotion offers an incentive for an action. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

III. What are the favorable factors for the rapid development of sales promotion? 1. Consumers have become more and more deal oriented. ***Good deals: special sales, rebates and so on Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

2. Managers find it hard to increase the sales of their products. ***Sales promotion may be helpful in increasing the sales! Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

3. The company faces more competition within the same scope of business. *** Sales promotion may help customers to differentiate the products of a certain company among similar products. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

4.Some unfavorable factors result in the declining effects of advertising . ***The unfavorable factors include: rising costs, media clutter, legal restraint and so on. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

5.The increased retail power contributes a lot to sales promotion *** Huge retailers: Wal-mart, Carrefour and so on . Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

IV. The objectives of consumer sales promotion and trade sales promotion 1. The general objective of consumer sales promotion is to increase short- term sales or to help long-term market share. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

2. The major objectives for trade promotion include: 1) To gain new retailers or maintain existing ones; 2) To Influence retailers to promote the products or services; 3) To Influence retailers to offer a price discount thus increasing the sales Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

4) To encourage retailers to carry new items and more inventories 5) To defend against competitors Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

V. What tools can be used in sales promotion? *** Consumer promotion and trade promotion tend to use different tools to achieve their own objectives. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

1. Consumer promotion tools 1) Price Deals **Two types: cents-off deals and price-pack deals Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

2) Samples ** Sampling is the most effective but also the most expensive way to introduce a new product, as samples are often free of charge or at very low price. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

3) Coupons ** Coupons can stimulate the sales of a mature brand and are particularly useful in encouraging new-product trials. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

4) Cash Refunds ** Difference between coupons and Cash refunds: cash refund is not as convenient as coupons since consumers may forget to send for the rebate or run out of time. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

5) Advertising Specialties (Promotion Gifts) ** A unique specialty advertising item can attract interest among target audience members and perhaps stimulate action. Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

6) Other tools that are often used in sales promotion: ** Point-of-purchase Displays and Demonstrations ** Contest, Sweepstakes and Games Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

2. Trade promotion tools 1) Trade Allowances 2) Trade Shows 3) Training Programs 4) Push Money ( Spiffs) Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

Advantages and Disadvantages of Sales Promotion Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun

Copyright  2010 Qinghua University Press PPTs t/a English for Marketing by Li Dongmei, Tan Ying, Jiang Xia, Wei Aiyun