Intro to Sales Promotion

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Transcript Intro to Sales Promotion

Retail Promotion Mix
Advertising Promotion
The Retail Promotion Mix
Is paid, nonpersonal communication
through various media to inform or
persuade members of a particular
audience; includes communication of
products, services, institutions, and
The Retail Promotion Mix
Sales promotion:
Involves the use of media and
nonmedia marketing pressure applied
for a predetermined, limited period of
time at the level of consumer, retailer,
or wholesaler in order to stimulate trial,
increase consumer demand, or improve
product availability.
The Retail Promotion Mix
Is non-paid-for communications of
information about the company or
product, generally in some media
The Retail Promotion Mix
Personal selling:
Involves a face-to-face interaction
with the consumer with the goal of
selling consumer merchandise or
Sales Promotion Examples
Price-off deals
Samples and trials
Phone gift cards
Frequency programs
Event sponsorship
Objectives for Consumer-Market
Sales Promotion
1. Stimulate trial purchase
2. Stimulate repeat purchases
3. Stimulate larger purchases
4. Introduce a new brand
5. Combat or disrupt competitors
Sales Promotion!
What is sales promotion anyway?
Why do it?
Who does it?
How do you do it?
Sales Promotion is a form of
The sale of a product, fashion or otherwise, occurs
only when it meets or satisfies the customer’s
build customer loyalty
disseminate information
Establish or reinforce a company’s
The Objective of Sales Promotion is
To sell an idea, product or service
 arouses the buying impulse by addressing
the customer’s basic needs
 giving reasons to buy
 perking interest
 Encouraging action
Retailers use sales promotion to
bring traffic into their stores, and it
includes advertising, sales
promotion, publicity, and personal
Manufacturers use incentives to induce
the trade and/or consumers to buy a
brand and encourage sales force to
aggressively sell it by creating a
perception of greater brand value.
Targeting and research are
essential FIRST!
Who are you selling to?
What do they want?
What do they care about it?
Who do they want to be?
Sales Promotion vs. Advertising
Short term demand vs. long term demand
Encourage brand switching vs. brand loyalty
Induce trial use vs. encourage repeat
Promote price vs. promote image
Immediate results vs. long term effects
Measurable results vs. difficult to measure
• Advertising spending as a
percentage of total marketing
communications expenditures has
declined in recent years.
• Promotional spending, however,
has steadily increased.
What does A.I.D.A stand for?
Attention – get them to notice you
Interest – make them want to know more
– now they want your product
– they actually purchase it!