Collection of INCENTIVE tools

Mostly SHORT TERMStimulate greater

PURCHASE

What is sales promotion?

Consumer Promotion• Coupons• Samples• Cash refund

offers

Trade Promotion• Prices off• Free goods

Business and sales Promotion• Trade shows• Contests for sales

reps

Stimulate customer trialEstablish long term

relationship with retailerReward loyal customersIncrease repurchase rate

Major DECISIONS in

sales promotion

ESTABLISH OBJECTIVES

Customers Retailers Sales Force

• Encourage purchase of larger units

• Build trial among non-users

• Attract switchers from competitors’ brands

• Carry new items

• Higher level of inventory

• Encourage off season buying

• Support of new product

• Encourage off season selling

Consumer Promotion

Tools

Samples

Coupons

Cash Refund Offers

Price Packs

Premiums

Frequency Programs

Prizes

Patronage Awards

Free Trials

Product Warranties

Trade Promotion

Tools

Price Off

AllowanceFree Goods

Business and Sales

Force Promotion

Trade Shows

Conventions

Sales Contests

Speciality Advertising

DEVELOPING THE PROGRAM

Determine size of programEstablish conditions for participation Duration of promotionChoose distribution vehicleEstablish timing of promotionTotal sales budget

IMPLEMENTATION AND EVALUATION

Implementation and control plans must cover lead time and sell-in time.

Program is evaluated using sales data,consumer surveys and experiments.