Sales Promotions
Principle of marketing
Group members
Sayed Faiz Ali Shah
Mohammad Nabi
Hazrat Bilal
Kashif shafiq
Sales promotion
Main aim of sale promotion
◦ to attract new customers
◦ to boost sales of products or services
◦ To hold present customer
◦ To counteract competition in market
History of sales promotions
history of sale promotion is following:
Coupons in 1895 by grapes nuts
Metal coupons in 1920 by proctor and
gamble
McDonald
In 1979 McDonalds launched happy meal
( toys with burgers)
◦ Barbie doll
◦ Hot wheels cars
Because of this happy meal the supplier of
that toys become world largest manufacturer.
Valve developers company
A video game selling company, normally they
would not like sales promotion
But finally they made sales promotion on their
products and the results are outstanding
Sales discount Increase in sales Increase in
in % in % profit in %
10% discount 35% 22%
25% discount 245% 159%
50% discount 320% 110%
75% discount 1470% 293%
total profit was 584%
Washers
Washers selling Dinner sets, Tea sets, Soup
bowl sets
With every sale they gave a complementary
product with it as a sales promotion.
Due to sales promotion they becomes
washers sales promotion company.
In 2016 they were celebrating 60 years of
passion, WSP managed to pay over $29m as a
promotion in free.
Effects of sales promotion?
Sales promotion effect is short term.
Operates normally in the last phase of
process.
Used as a secondary role.
Sales promotion has tactical rather than
strategic roles.
Advertising offers reasons to buy a product
or service, while sales promotion offers
reason to buy it now .
Rapid growth
•Inside the company product manager facing
greater pressure to increase the current sale
•Externally company faces more competition,
competing brands and less differentiated
•Advertising efficiency has declined because of
rising cost, media clutters and legal constraints.
•Consumers are more deal oriented.
Objectives of Sales Promotion
To Introduce New Products
Or Services
Usually, free samples are provided through
dealers during such introduction. Similarly,
discounts in cash or goods may also be offered
to dealers to stock new products or deal with
new services
To Attract New Customers
Sales promotion measures also play an important role in attracting
new customers for an organization
To Induce Existing
Customers To Buy More
Sales promotion devices are most often used
to induce the existing customers of a firm to
buy more.
Helps The Firm To Remain
Competitive
Most of the companies undertake
sales promotion activities in order
to remain in the competitive
market.
To Increase Sales In Off-
seasons
Many products like air-coolers,
fans, refrigerators, air-conditioners,
cold drinks, room heaters, etc. have
seasonal demand.
To Add To The Stock Of The
Dealers
Dealers like wholesalers and retailers usually deal
with a variety of goods. Their selling activity becomes
easier when the manufacturer supplements their
efforts by sales promotion measures.
Major Sales Promotion
Tools
• Used to accomplish sales promotion objectives,
• Planner select tools by considering
Sales Promotion objectives, Type of Markets
Main Sales Promotion Tools
Consumer Promotion Tools
Trade Promotion Tools
Business Promotion Tools
Consumer Sales Promotion
Samples
Coupons
Cash refund
Premiums
Point-Of-Purchase
Patronage Rewards
SAMPLES
Offers to consumers of a trial amount of
product,
Most effective, But expensive way,
Are delivered to door, sent by mail, or
handed out in stores
COUPONS
Certificates that give buyers a saving on
purchasing product,
Promote early trial of new brand
Stimulate sales of a mature brand
Through : text messaging, emails etc
Cash Refund
Same as coupons, except that price
reduction occur after purchase,
Consumer sends a proof of purchase to
manufacturer
Example : Blackberry (AT&T)
Premiums
Goods offered either free or at low cost as
an incentive to buy a product.
May come in-side the package
Patronage Rewards
Cash or other rewards for the regular use of a
certain company’s product or services
Examples :
Airlines : Air Blue, Emirates etc
Hotels have adopted “Honor Guests” plans.
POINT-OF-PURCHASE
Displays and demonstrations that take place
at point of purchase or sale.
In case of complex nature goods,
Examples
Electronic devices such as Mobile Phones
Trade Promotion Tools
Persuade retailers or wholesale dealers to
Carry a brand
Give it a shelf space,
Promote it in advertisement
Trade Promotion Tools
Manufacturer may offer “discount”
A straight reduction in price on purchase
during a stated period of time.
* encourage dealers to buy in quantity
Manufacture also offer “Allowance”
* Reduction in price on damaged goods
Business Promotion Tools
Convention And Trade Show
Many companies organize conventions to
promote their products,
opportunity to find new sales, introduce new
products.
Sales Contest
to motivate salespeople to increase their
efforts over a given period of time.
receives cash rewards, trips and other gifts.
Developing the sale promotion
program
In order to develop a successful sale promotional
program a marketer must take certain decisions
before applying any tools
Size of incentive
Length of promotion
Conditions for participations
Promotion and distribution
Evaluation
Size of incentive
Marketer must determine the size of
incentive.
The marketer must ensure that the incentive
is in between the higher and the lower
standards.
If the incentive is less than the minimum standard, it will
loose its value and the promotion will not boost the sale.
If the incentive is more than the higher standard, it will
boost the sales of goods but the firm will go into loss.
Time or length of incentive
Time of incentive or sale is another important
determinant of successful promotional
program
A marketer have to determine the length of
sale promotions
Promotion an Distribution
Marketer must determine how to promote
and distribute the promotion itself.
By mobile
On internet
on news paper advertisement
Condition
The marketer must set condition for
participation.
Incentive might be offered to every one or
only to select groups.
Giving discount to everyone
Selecting users of a specific bank credit/debit card
Offering only to selected group of profession
Evaluation
Evaluation is very important for promotional
tools.
Conclusion
Sales promotion are the incentive to boost
the sales of a firm.
Sales promotions drives a consumer to buy
now.
Sales promotion has an important role in a
company sales
Thank you
Any questions?
