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Sales Promotions
Sales Promotion ,[object Object]
Sales Promotion Goals Sales Promotion Has Three Goals That Relate to Its Target audiences: To Increase Immediate Customer Sales. To Increase Support Among the Marketer’s Sales Force. To Gain the Support of the Trade in Marketing The Product.
 
Reasons for the Growth of Sales Promotion Sales Managers are Under  Great Pressure to  Produce Results Quickly. Sales Promotion  Strategies Target  Consumer, Trade, and The Sales Force. Assessment of Sales  Promotion is Relatively Easy. Cost for Results In This Industry Are Relatively Low. Why Are Companies  Spending More and More  Money on Sales Promotion?
Consumer Promotions ,[object Object],[object Object],[object Object],[object Object]
Types of Consumer Promotions Lucky dip Incentives Sampling Contests Rebates Refunds Coupons
Contests and Lucky dip Lucky dip Participants Submit Names To Be Included in Drawing Time Frame Much Longer Contests Compete for a Prize Based On Some Skill or Ability Generates  High Degree Of Consumer Involvement Can Help  Revive Lagging Sales
Refunds, Rebates, and Premiums Refunds and Rebates A Marketer’s Offer to Return a Certain Amount Of Money to the Consumer Who Purchases the Product.  i.e cash rebate + low-value coupon Incentives Tangible Reward for Performing a Particular Act. Direct – Received At Time of Purchase Mail – Proof of  Purchase & Payment Be Mailed In
Sampling Allowing the Customer to Experience the  Product or Service. Very Effective Strategy for Introducing  A New or Modified Product. Most Common Method of Distributing Samples is Through the Mail. 9 Out of 10 Customers Prefer a Sample To a Rupee-Off Coupon to Introduce Product.
Trade Promotions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Types of Trade Promotions Point-of-Purchase Retailer Kits Contests Lucky Dip Trade Shows  Exhibits   Trade Incentives  Trade Deals
Point-of-Purchase Displays Display Distributed to Retailers Used to Call Customer’s Attention to Product Promotions. Some of the Most  Popular POP Tools & Techniques Mechanical Product Dispensers Price Cards Signs Banners Special Racks Carton Displays
Trade Promotions Trade Shows  & Exhibits Allow Product Demonstrations, Provide Information, & Answer Questions. Retailer (Dealer) Kits Materials That Help Reps Make Sales Calls Are Often Designed as Kits. Contain Detailed Product Specs, How-to-Do it Display, etc. Incentives Advertisers Can Develop Contests & incentives to Motivate Resellers. Occasional Use Only is Effective.
Trade Incentives and Deals  Incentive Programs i.e. Used When Introducing  A New Product. Types Include Bonuses & Dealer Loadings Special Trade Promotional Circumstances.  Trade Deals Most Important Reseller Sales Promo Technique. Types Include Buying & Advertising Allowances
Sponsorships and Event Marketing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Sponsorships and Event Marketing ,[object Object],[object Object],[object Object],[object Object]
Other Promotions Interactive Promotions Prepaid phonecards, telemarketing 800- and 900- number  programs, & call-ins (radio FM). Licensing Company with an established brand “rents” that brand to  other companies, allowing them to use its logo on their  products. Loyalty Programs/ Continuity Programs Designed to increase customer retention by rewarding  customers for their patronage. Co-Marketing Programs Designed to build stronger relationships between  manufacturers and retailers i.e co-marketing, co-branding, and tie-ins.
Four Mandates of Loyalty Programs ,[object Object],[object Object],[object Object],[object Object]
Promotion Strategies ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Generalizations about Sales Promotions ,[object Object],[object Object],[object Object],[object Object]
Generalizations about Sales Promotions ,[object Object],[object Object],[object Object]
Have you been lured into buying …… A pack of 3 Lux soaps for the cost of 2 Amul pizza at a discount of Rs.10 after redeeming the coupon Fa shaving cream, for same cost but with 25% extra pack New Year card from Archies’ with free courier offer Pack of 2 AXE deodorant with a free Swiss Knife Akai CTV in exchange offer for old CTV & Rs. 14,000 off Then you are a DEAL PRONE CUSTOMER
Defining Deal Proneness ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Salient Features of Deal Proneness ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Range of Marketing Objectives & Promotional Tools ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],(Source: Blattberg & Neslin)
Brand PLC Effects on Promos
Retailers Perceptions ,[object Object],[object Object],[object Object],[object Object]
Retailers Perceptions ,[object Object],[object Object],[object Object]
Customer Perceptions ,[object Object],[object Object],[object Object],[object Object],[object Object]
Customer Perceptions ,[object Object],[object Object],[object Object]
Reasons For Switching Brands ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Thus, To Sum Up ,[object Object],[object Object],[object Object],[object Object],[object Object]

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Sales Promotions

  • 2.
  • 3. Sales Promotion Goals Sales Promotion Has Three Goals That Relate to Its Target audiences: To Increase Immediate Customer Sales. To Increase Support Among the Marketer’s Sales Force. To Gain the Support of the Trade in Marketing The Product.
  • 4.  
  • 5. Reasons for the Growth of Sales Promotion Sales Managers are Under Great Pressure to Produce Results Quickly. Sales Promotion Strategies Target Consumer, Trade, and The Sales Force. Assessment of Sales Promotion is Relatively Easy. Cost for Results In This Industry Are Relatively Low. Why Are Companies Spending More and More Money on Sales Promotion?
  • 6.
  • 7. Types of Consumer Promotions Lucky dip Incentives Sampling Contests Rebates Refunds Coupons
  • 8. Contests and Lucky dip Lucky dip Participants Submit Names To Be Included in Drawing Time Frame Much Longer Contests Compete for a Prize Based On Some Skill or Ability Generates High Degree Of Consumer Involvement Can Help Revive Lagging Sales
  • 9. Refunds, Rebates, and Premiums Refunds and Rebates A Marketer’s Offer to Return a Certain Amount Of Money to the Consumer Who Purchases the Product. i.e cash rebate + low-value coupon Incentives Tangible Reward for Performing a Particular Act. Direct – Received At Time of Purchase Mail – Proof of Purchase & Payment Be Mailed In
  • 10. Sampling Allowing the Customer to Experience the Product or Service. Very Effective Strategy for Introducing A New or Modified Product. Most Common Method of Distributing Samples is Through the Mail. 9 Out of 10 Customers Prefer a Sample To a Rupee-Off Coupon to Introduce Product.
  • 11.
  • 12. Types of Trade Promotions Point-of-Purchase Retailer Kits Contests Lucky Dip Trade Shows Exhibits Trade Incentives Trade Deals
  • 13. Point-of-Purchase Displays Display Distributed to Retailers Used to Call Customer’s Attention to Product Promotions. Some of the Most Popular POP Tools & Techniques Mechanical Product Dispensers Price Cards Signs Banners Special Racks Carton Displays
  • 14. Trade Promotions Trade Shows & Exhibits Allow Product Demonstrations, Provide Information, & Answer Questions. Retailer (Dealer) Kits Materials That Help Reps Make Sales Calls Are Often Designed as Kits. Contain Detailed Product Specs, How-to-Do it Display, etc. Incentives Advertisers Can Develop Contests & incentives to Motivate Resellers. Occasional Use Only is Effective.
  • 15. Trade Incentives and Deals Incentive Programs i.e. Used When Introducing A New Product. Types Include Bonuses & Dealer Loadings Special Trade Promotional Circumstances. Trade Deals Most Important Reseller Sales Promo Technique. Types Include Buying & Advertising Allowances
  • 16.
  • 17.
  • 18. Other Promotions Interactive Promotions Prepaid phonecards, telemarketing 800- and 900- number programs, & call-ins (radio FM). Licensing Company with an established brand “rents” that brand to other companies, allowing them to use its logo on their products. Loyalty Programs/ Continuity Programs Designed to increase customer retention by rewarding customers for their patronage. Co-Marketing Programs Designed to build stronger relationships between manufacturers and retailers i.e co-marketing, co-branding, and tie-ins.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23. Have you been lured into buying …… A pack of 3 Lux soaps for the cost of 2 Amul pizza at a discount of Rs.10 after redeeming the coupon Fa shaving cream, for same cost but with 25% extra pack New Year card from Archies’ with free courier offer Pack of 2 AXE deodorant with a free Swiss Knife Akai CTV in exchange offer for old CTV & Rs. 14,000 off Then you are a DEAL PRONE CUSTOMER
  • 24.
  • 25.
  • 26.
  • 27. Brand PLC Effects on Promos
  • 28.
  • 29.
  • 30.
  • 31.
  • 32.
  • 33.