Sales Promotion

Sales promotion is one of the elements of

the promotional mix. The primary elements in the
promotional mix are advertising, personal selling, direct
marketing and publicity/public relations.
 The word Promotion derived from Latin word- “Promovere)
which mean To move forward or Push forward.
 Sales Promotion is the combination of two word Sales +
Promotion.
 Sales promotions can be directed at either the customer, sales
staff, or distribution channel members (such as retailers).
Sales promotions targeted at the consumer are
called consumer sales promotions. Sales promotions
targeted at retailers and wholesale are called trade sales
promotions.
Sales promotion: definition

 Sales promotion represents a variety of techniques used to stimulate the

purchase of a product or brand. Sales promotion has a tactical, rather
than strategic role in marketing communications and brand strategy, it is
also a form of advertisement used within a short period of time.
 Researchers Farhangmehr and Brito reviewed the definitions of sales
promotions in marketing texts and journals and identified a set of
common characteristics of sales promotion, including:
 Short-term effects and duration;
 Operates and influences only the last phase of the purchase process;
 Exhibits a secondary role in relation to other forms of marketing
communication;
 Performs an accessory role regarding the products core benefits
 Is not a single technique, rather it is a set of techniques used for a
specific purpose
 Sales Promotion consist of all Promotional activities other
than Advertising, Personal Selling & Publicity which are used
to encourage buyers to make immediate purchase of a
Product or Boost its Sales.
 Definition: Roger A Strong
“Sales Promotion are short term incentives to encourage
purchase or sale of a product or service.”
 Importance of Sales Promotion
 Increase effectiveness of Advertising & Salesmanship.
 Increase Sales volume.
 To meet the challenges of competition.
 Increase in sales by providing extra incentive to purchase. May focus on
resellers (push), consumers (pull) or both.
 Attract customer traffic and maintain brand/company loyalty.
 Reminder functions-calendars, T Shirts, match books etc.
 Impulse purchases increased by displays
 Objectives must be consistent with promotional objectives and overall
company objectives.
 Balance between short term sales increase and long term need for
desired reputation and brand image.
 Contests generate excitement especially with high payoffs
 Nature of Sales Promotion
 Systematic Process
 Pervasive Function
 Goal Oriented
 Continuous Process
 Integration with Marketing Management
 Relationship Selling
 Varying Sales Positions
 Scope of Sales Promotion
 Sales Planning & Policies
 Sales Forecasting
 Sales Budgets
 Designing Sales Organization Structure & Size
 HR Planning
 Recruitment & Selection of Salesperson
 Training of Sales Personnel
 Setting sales-force Objective
 Designing Sales Territories
 Motivation of Sales-force
 Compensation of Sales-force
 Methods of Sales Promotion
 Sample
 Coupons
 Demonstrations
 Contest
 Money Refund
 Premiums
 After Sales Service
Promotion Mix

 Promotion mix is an essential component of marketing

communications. That is why we sometimes call
it marketing communications mix.
 Definition:-Promotion mix is a combination of
promotional tools marketers use to communicate with their
target audience.
 Marketing communications aim to reach the target audience
and influence the customer purchase journey. Its main tasks
include differentiating the product and brand from the
competitors, reinforcing the brand's presence and
message, informing customers about the product's benefits
& features, and persuading them to buy. This process is
known as the DRIP model.
 The DRIP framework stands for: differentiate, reinforce,
inform, and persuade.
Elements of Promotion Mix

 Advertising Campaigns
 Personal Selling
 Sales Promotion
 Public Relations
 Direct Marketing
 Digital Marketing
How to Use Marketing Promotional Mix

 Identify Your Target Audience

 Establish Your Marketing Message
 Set Measurable Promotion Goals
 Set a Budget for Your Promotion Mix Marketing
 Identify the Channels for Promotion
Advertising and sales promotion
Relationship between advertising and
sales promotion
 Advertising and sales promotion are two key components of
marketing strategy that work together to achieve various
objectives in promoting products or services and driving
sales.
 While they serve distinct purposes, they are closely related
and often integrated within marketing campaigns.
 Purpose and Goals:
 Advertising: Advertising aims to create awareness, build brand image,
communicate product features, benefits, and values to the target audience. It
typically operates on a broader scale and is focused on long-term brand
building.
 Sales Promotion: Sales promotion, on the other hand, aims to stimulate
immediate sales or generate a short-term boost in demand. It often involves
incentives, discounts, promotions, or limited-time offers to encourage
purchase behavior.
 Timing:
 Advertising: Advertising efforts are often ongoing and consistent, with the
goal of maintaining brand visibility and presence in the minds of consumers
over time.
 Sales Promotion: Sales promotions are typically short-term initiatives
designed to drive immediate action from consumers, often tied to specific
events, seasons, or product launches.
 Integration:
 Advertising and Sales Promotion:While advertising and sales
promotion serve different purposes and have different timelines, they
are often integrated into cohesive marketing campaigns. For example,
an advertising campaign may introduce a new product to the market
and create awareness, while a sales promotion may offer a discount to
encourage initial purchases.
 Effectiveness:
 Advertising: Advertising is effective in building brand equity,
shaping consumer perceptions, and creating long-term customer
loyalty. It helps in establishing a strong brand presence in the market.
 Sales Promotion: Sales promotion is effective in generating short-
term sales spikes and incentivizing immediate purchase behavior. It
can attract price-sensitive consumers and drive them to make a
purchase decision quickly.
 Cost and ROI:
 Advertising: Advertising campaigns often involve significant investment,
but the returns may be realized over the long term through increased brand
recognition, customer loyalty, and market share.
 Sales Promotion: Sales promotions may require less upfront investment
compared to advertising but can generate immediate returns in terms of
increased sales volume during the promotional period.
 Customer Relationship:
 Advertising: Advertising contributes to building long-term relationships
with customers by fostering brand loyalty and trust over time.
 Sales Promotion: Sales promotions can attract new customers and
incentivize repeat purchases, but they may not necessarily build long-term
relationships in the same way as advertising.
 Sales Promotion Strategies
 The sale promotional Strategy is an important element in the
overall Marketing Strategy, particularly in promotional Strategy.
 It involves :
 Communication
 Objectives & Task
 Media
 Budgets
 Promotional Mix
 Strategic Approach
 Evaluation & Control of Sales Promotional Strategy
 Strategic Approach

 Push and Pull Strategy

 Sustaining Promotional Strategy
 Developmental Promotional Strategy
 Promotional Appropriation