1. Sales Promotion

2. Definition Sales Promotion broadly refers to all those promotional activities which are undertaken to stimulate interest, trial or purchase of a product by the end user or other intermediaries in between. Besides advertising and personal selling, all other activities undertaken to promote a product can be classified under sales promotion. Sales Promotion broadly refers to all those promotional activities which are undertaken to stimulate interest, trial or purchase of a product by the end user or other intermediaries in between. Besides advertising and personal selling, all other activities undertaken to promote a product can be classified under sales promotion. According to the Institute of Sales Promotion, "Sales Promotion comprises that range of techniques used to attain sales or marketing objectives in a cost effective manner by adding value to a product or service either to intermediaries or end users, normally but not exclusively within a defined time period." According to the Institute of Sales Promotion, "Sales Promotion comprises that range of techniques used to attain sales or marketing objectives in a cost effective manner by adding value to a product or service either to intermediaries or end users, normally but not exclusively within a defined time period."

3. Commonly used Sales Promotion tools Free Samples Free Samples Coupons Coupons Lucky draws, games and contests Lucky draws, games and contests Cash Refund offers Cash Refund offers Free Trials Free Trials Point of Purchase Displays Point of Purchase Displays

4. Advantages of Sales Promotion Increased Buying Confidence for the consumers Increased Buying Confidence for the consumers Product is available at Reduced Rates Product is available at Reduced Rates Enables manufacturers to Enter and capture New Markets Enables manufacturers to Enter and capture New Markets Increased Sales Increased Sales Sales promotion campaigns makes the job of the sales team much easier Sales promotion campaigns makes the job of the sales team much easier

5. Modes of Sales Promotion Consumer oriented Consumer oriented Trade oriented Trade oriented

6. Consumer oriented Coupons – this is one way of providing money-off offers to buyers. The coupon could be found in the manufacturer’s product or using other means such as magazines and newspapers. Some use door-to-door distribution of coupons as well. Eg. Coupons – this is one way of providing money-off offers to buyers. The coupon could be found in the manufacturer’s product or using other means such as magazines and newspapers. Some use door-to-door distribution of coupons as well. Eg. Bonus or multi-packs - It is similar to price discount since if you buy in packs or bulk, there is an additional product at no extra charge. It could either be a bigger product at a similar price or an additional product included in the pack with no extra cost. Eg. Gold Winner Bonus or multi-packs - It is similar to price discount since if you buy in packs or bulk, there is an additional product at no extra charge. It could either be a bigger product at a similar price or an additional product included in the pack with no extra cost. Eg. Gold Winner Free gifts – companies offer free gift items together with the product. Eg. Plastic container with annapoorna atta Free gifts – companies offer free gift items together with the product. Eg. Plastic container with annapoorna atta

7. Consumer oriented Premium Items: Offered free or at minimum cost as a bonus. Used to attract competitors customers, different sizes of established products Eg. Prestige –Pay Rs.5 extra and get a frying pan Premium Items: Offered free or at minimum cost as a bonus. Used to attract competitors customers, different sizes of established products Eg. Prestige –Pay Rs.5 extra and get a frying pan Free mail-ins – this is using proofs of purchase in exchange for a gift item. The customer needs to make several purchases in order to have proofs of purchase and so he/she can redeem the free gift. Eg. Watches and stickers for exchange of milk biscuit wrappers Free mail-ins – this is using proofs of purchase in exchange for a gift item. The customer needs to make several purchases in order to have proofs of purchase and so he/she can redeem the free gift. Eg. Watches and stickers for exchange of milk biscuit wrappers Money Refunds/Rebates or Self-liquidating offers – this is when a consumer will pay for only a fraction of the total price of the item if he/she can present proof of purchase of a product. Eg. Rs. 5 off for coke 2litre Money Refunds/Rebates or Self-liquidating offers – this is when a consumer will pay for only a fraction of the total price of the item if he/she can present proof of purchase of a product. Eg. Rs. 5 off for coke 2litre

8. Consumer oriented Contests and competitions – consumers are offered a prize of sizeable amount. It could be a car or house and lot if he/she purchases certain items. Eg Bru – What is good about the new improved bru Contests and competitions – consumers are offered a prize of sizeable amount. It could be a car or house and lot if he/she purchases certain items. Eg Bru – What is good about the new improved bru Point of Purchase Displays:90% of retailers believe that point of purchase materials sell products. Essential for product introductions Point of Purchase Displays:90% of retailers believe that point of purchase materials sell products. Essential for product introductions Eg. Tion

9. Retailer oriented Trade allowances: short term incentive offered to induce a retailer to stock up a product Trade allowances: short term incentive offered to induce a retailer to stock up a product Allowances and Discounts: Giving discount on cases ordered in a specific period, reimburse for extra retail support, i.e. advertising, shelf space Allowances and Discounts: Giving discount on cases ordered in a specific period, reimburse for extra retail support, i.e. advertising, shelf space Paying for financial costs/losses associated with consumer sales promotions Paying for financial costs/losses associated with consumer sales promotions Cooperative Advertising: Manufacturer agrees to pay a certain amount of retailers media Cooperative Advertising: Manufacturer agrees to pay a certain amount of retailers media Training of Sales Staff Training of Sales Staff Push money also known as "spiffs“: An extra commission paid to retail employees to push products. Push money also known as "spiffs“: An extra commission paid to retail employees to push products.