How should sales promotion decisions be made?

-Nikunj G Katkoria- NIT Surat

How should sales promotion decisions be made?

Establishing Objectives

Selecting Consumer Promotion Tools

Selecting Trade Promotion Tools

Selecting business and sales force promotion tools

Developing the program

Implementing and evaluating the program

Establishing Objectives

Consumers•Encouraging Purchase of larger-sized units•Building trial among non-users•Attracting Switchers

Retailers•Persuading retailers to carry new items % higher levels of inventory•Encouraging off-season buying•Encouraging stocking of related items•Offsetting competitive promotions•Building Brand Loyalty•Gaining entry into new retail outlets

Selecting Consumer Promotion Tools

Samples Coupons Cash Refund Offers Price Packs

Premiums Prizes Patronage Awards Free Trials

Product Warranties

Tie-in promotions

Cross-Promotion

Point-of-Purchase

Consumer gets a free sample of

the product

Price Packs

Premiums

Prizes

Product Warranties

Tie-in Promotions

Cross-Promotions

Point-of-Purchase

Price-off Allowance Free Goods

Selecting Trade Promotion Tools

A straight discount off the

list price on each case purchased

Get discounts in bulk

Offers of extra cases of

merchandise who buy a certain or

who feature certain flavor or size

Selecting business and sales force promotion tools

Trade shows and

conventionSales Contests Specialty

Advertising

Exhibitions for companies or

ventures to showcase and demonstrate

their new products

Aims at including sales force or dealers to increase their sales

It consists of useful low cost items

bearing the company’s name

Developing the program

•Size•Incentives might be given•Duration of promotion•Distribution vehicle should be chosen appropriately•Timing of the promotion•Total sales promotion budget must be determined

Implementing and Evaluating the program

•Lead Time

•Sell-in Time

Implementing

•Sales Data

•Consumers Survey

•Experiments

Evaluating