1. BA230-Marketing Communication
Sales Promotion

2. The Integrated Marketing Communications (IMC) Mix
Integrated Marketing Communications Mix
Public Relations
Direct Marketing
Sales Promotion
Advertising
Personal Selling

3. Sales Promotion
Sales promotions are marketing communications activities that stimulate short term behavioral responses from consumers, the trade (reseller support), or the company’s own sales force in order to encourage the trade and/or end customer to purchase or to take other relevant action by affecting the perceived value of the product being promoted.
Sales promotions are short-term incentives designed to stimulate purchase among consumers or trade.

4. Sales Promotion Advertising Sales Promotion Reasons to buy...
Incentives to buy...

5. Objectives of Sales Promotion
Increasing volume
Encouraging trial
Increase repeat purchase
Increasing frequency and amount of use
Widening use
Increasing loyalty
Reward loyal customers
Extending usage
Creating awareness and intrest
Gaining intermediary support
Deflecting attention from price
Emphasising price
Discriminating among users
Supporting database enhancement

6. Concepts mixed with sales prom.
Merchandising: Range of sales promotions activities intended to ensure that products are easily available; prominently and attractively displayed at point of sale.
Point of Purchase (Sale)-P.O.P: Marcom activities that take place where products are bought and sold.

7. Sales Promotion Activities
Consumer sales promotions
Trade sales promotions
Employee/Salesforce sales promotions.

8. Consumer focused sales promotions activities
Samples
Coupons
Premiums
Money-off
Bonus Packs
Banded Packs
Prize promotions
Tie-in promotions
Cause-related sales promotions
Merchandising/P.O.P displays/demonstrations
Information leaflets/packs and catalogues
“Loyalty” schemes
Free trials

9. Consumer focused sales promotions activities
Sampling: Offer of a free trial amount (size) of a product or service.
Door-to-door sampling
Sampling through the mail
In-store sampling
On-package
Inserts in magazines and newspapers

10. Consumer focused sales promotions activities
Free trials: Inviting prospects to try the product free in the hope that they will buy the product.

11. Consumer focused sales promotions activities
Free trials

12. Consumer focused sales promotions activities
Sampling

13. Consumer focused sales promotions activities
Couponing: Certificates offering a stated saving on the purchase of a specific product.
Media delivery in newspapers and magazines and as frestanding inserts
through direct mail
In-stores and at points of purchase
In or on packages

14. Couponing:

15. Consumer focused sales promotions activities
Premiums: Include free goods and services such as extra item of the product being purchased, a free item of some other product or service such as entry into a leisure park.
Two for one
“buy one get one free” etc.

17. Consumer focused sales promotions activities
Merchandising/P.O.P displays/demonstrations: Displays and demonstrations that take place at the point of purchase or sale

18. Consumer focused sales promotions activities
Information leaflets/packs and catalogues

19. Consumer focused sales promotions activities
Prize promotions: Prizes offer consumer to chance, to win cash, trips or mechandise as a result of purchasing something.
A contest calls for consumer to submit an entry to be examined by judges who will select the best entries.
A sweepstakes asks consumer to submit their names for a drawing.
A game presents consumer with sth. Everytime they buy- bingo numbers, missing letters- that might help them win a prize.

20. Consumer focused sales promotions activities
Prize promotions:

21. Consumer focused sales promotions activities
Money-off:
On pack, immediate price reduction
Money-off voucher, immediate price reduction
Money-off voucher for next purchase
Money-off voucher for other products
Computer-generated immediate price reduction
Computer-generated vouchers

22. Consumer focused sales promotions activities
Bonus Packs: Include an extra quantity of the product in the pack for no extra price increase.
Banded Packs: Multi-packs of the same product, or more than one product “banded” together for an inclusive price.

23. Bonus Packs

24. Banded Packs

25. Consumer focused sales promotions activities
Tie-in promotions: Two or more brands or companies team up
McDonald’s and Disney
McDonald’s and Toys’R’us

26. Consumer focused sales promotions activities
“Loyalty” schemes: It aims to encourage customers to purchase more item from, or make more use of, the organization of which they are “members”.

27. Trade focused sales promotions
Trade promotions are the expenditures or incentives used by manufecturers and other members of marketing channel to help push products through to retailers.
They are aimed at retailers, disributors, wholesalers, brokers, and agents.

28. Trade focused sales promotions activities
Trade allowances:
Discount/price reductions
Additional free products
Special terms
Target pay-backs
Trade contests and incentives:
Cooperative advertising (and vendor support programs)
P.O.P materials and merchandising
Gifts and free merchandise
Information leaflets/packs and catalogues
Training programs, trade shows

29. Trade focused sales promotions activities
P.O.P materials and merchandising:

30. Trade focused sales promotions activities
P.O.P materials

31. Objectives of Trade Promotions
Obtain initial distribution
Obtain prime retail shelf space or location
Support established brands
Counter competitive actions
Increase order size
Build retail inventories
Reduce excess manufacturer inventories
Enhance channel relationships
Enhance the IMC program

32. Objectives of Sales force (Employee) Promotion
Stimulate sales force motivation for new, improved or existing products
Provide extra “assistance” for sales staff e.g. Create extra sales promotion materials for their use
Encourage meeting of sales targets
Help in the management of customer debt, e.g. Reduction of overdue debts
Encourage sales staff to generate leads
Improve the quality of leads/qualified leads
Encourage non-sales staff to generate leads
Encourage all staff to improve customer contact and relations
Complement other marketing communications “push” activities.

33. Business and Sales force Sales Promotion activities
Trade Shows and Conventions
Sales contests
Specialty advertising (calender, desk-office accessories etc.)

34. Push versus Pull strategies
Push strategy: Heavy promotion to channel members, pushes product through the system.
Pull strategy: Heavy promotion to end users pulls product through the system.

35. Mechanics Does the mechanic involve a task that is too much trouble?
Will the mechanics be embarrassing or personally intrusive?
Will the customer understand all the rules?
Should the mechanics be immediate or delayed?
Is the mechanics restricted by law?
Does the offer look too good to be true?

36. Characteristics of successful sales promotions
Attractiveness
Fit to product category
Reception delay
Value.

37. Sales Promotion Advantages Disadvantages
Provides extra incentive to purchase product
Way to appeal to price sensitive consumer
Can generate extra interest in ads
Easier to measure efforts
Often only has short term impact
Often abused
Can lead to promotional wars
Often does not contribute to brand image

38. Reasons for Rapid Growth of Sales Promotion
Growing power of retailers
Declining more brand loyalty
Increasing promotional sensitivity
Brand proliferation/similarity
Price sensitivity,
Fragmentation of consumer market
The short term focus of many marketing plans and reward systems
Use of sales promotion to gain or maintain a competitive advantage
Media: less effective (network TV)
The increasing problem of advertising clutter and the need to use consumer promotions as a way of atrracting attention and interest to advertising

39. Steps in Sales Promotion Program Development
Establish objectives
Select consumer-promotion tools
Select trade-promotion tools
Select business- and sales force promotion tools
Develop the program
Decide on the Size of the Incentive
Set Conditions for Participation
Determine How to Promote and Distribute the Promotion Program
Determine the Length of the Program
Pretest the program
Implement and evaluate the program