Session 27

SALES
PROMOTIO
N


 Sales promotion includes those

sales activities that supplement
both personal selling and
advertising, and coordinate them
and make them effective.


 Examples:
Displays
Shows
Demonstrations
 SALES PROMOTION DIFFERS FROM
ADVERTISING
ADVERTISING
 SALES PROMOTION


 Indirectand Subtle  Direct and open

approach towards inducement
persuading  Immediate task of
 Long-term objectives increasing current
like positioning, sales.
 Selling by temporarily
building brand
changing the
 Adding Long-term value
existing price-value
to the product equation

 Sales Promotion serves a variety of
Marketing Needs:
For facilitating introduction of new
products
For overcoming a unique competitive
situation
For unloading accumulated inventory
For overcoming seasonal slumps
For getting new accounts
For retrieving lost accounts.
As a support and supplement to the
advertising effort.
As a support and supplement to the
salesmen’s effort.
For Persuading salesmen to sell the
full line of products.
For persuading the dealer to buy
more/increase the size of the orders.
 Commonly used Tools and Techniques of Sales
Promotion:
 Demonstrations
 Trade Fairs and Exhibitions
 Coupons, Premiums, Free offers, Price-offs
etc.
 Free samples
 Joint Promotion
 Contests
 Consumer Contests
 Dealer Contests
 Merchandising/Display
 Sales Promotion on the internet
 DEMONSTRATIONS


Demonstrations at retail Store

 Example: Chapathi Makers
School Demonstrations
 Example: Computers
Door-to-Door Demonstrations
 Example: Eureka Forbes Vacuum
Cleaners
Demonstrations to Key People
 Example: Demonstrations to
Community Leaders (Hi-Fi Cars)

  TRADE FAIRS AND
EXHIBITIONS
Bring the Company’s products and
the consumers in direct contact
with each other.
Seeing is Believing is the concept
here.
  COUPONS
Offer Price reduction to consumers
for specified items.
Coupons are distributed through
newspaper and magazine
advertisements, package of
merchandizing
Create enthusiasm of bargaining
and inducement to the trade for
stocking the items.
  PREMIUMS AND FREE OFFERS
Aristocrat luggage:
 If you buy an Aristocrat within the next
week, you get a Philips 2 Band
transistor worth Rs 266 free!
Colgate offered 125 gram for the price
of 100 gram.
Santro:
 Book your Santro Today and take Home
A World space Hitachi Digital Radio
Receiver Wroth Rs. 4990 Absolutely
Free
  DISCOUNTS, PRICE OFF
Hawkins:
 Up to Rs.150 off on a new Hawkins I
exchange for any old pressure
cooker
 

INSTALLMENTS OFFERS
Videocon Air coolers:
 Pay 1999/- now, balance in 24 equal
monthly installments.
 

FREE SAMPLES
Offering free samples to a large
section of a new market, a
company gaining an entry into that
market.
Soaps, Detergents, Tooth pastes,
Coffee
 

 GIFTS
Distribute gifts to customers, dealers
and influential and key people.
Gifts include: pens, calendars, diaries,
table decorations etc.
Gifts carry the company’s name and
logo.
Gifts create goodwill towards the
company and indirectly further the
company’s sales interest.
  EXCHANGE SHEMES
 AKAI exchange scheme
 India’s No.1 CTV The Akai 53 Cm Is
Now Available For A Shocking Rs.
5,990/-


 Bring in your old 51cm or 53 cm color

TV.
 Take Home the AKAI: For Rs 5,990/-
in exchange.
  EXCHANGE SHEMES
 VIDEOCON - Money Back Offer
 Own a Videocon 21” free
 Greatest Money Back Offer
 Bring your old 20” or 21” CTV in
working condition.
 Deposit Rs.8,990/- and take home a
Videocon 21”


 Take Back Rs 8,990/- after 5 years.

 CONSUMERS CONTESTS


Quiz contests – filling up the quiz

Beauty Contests
Scooter rallies and car rallies
Suggesting a Brand name,
Coining a slogan
Suggesting a logo etc.
  CONTESTS
 Contests are classified into 2 groups:

Skill Competition – When the

participant has to suggest a name to a
brand, it involves a skill.
Sweepstakes – When the number of a
coupon claimed by the consumer is
included in a draw, the contest falls
under chance
  CONTESTS
 Examples of Consumer Contests
 Bombay Dyeing Contest:
 25 first prizes – 25 Ambassador cars
 Additionally 60,000 prizes
 Entrants had to rank the top 10 Indian film
stars from a series of 12 names.
 Entrants had to complete a slogan on Bombay
Dyeing fabrics. And each entry had to be
accomplished by a recent cash memo for
Rs.100 worth.
 A panel of judges decided the winners on the
basis of the most popular ranking and the
quality of the slogan.
  CONTESTS
 1 crore towards prizes,
 50 lakhs towards advertisement budget
 Company planned to generate Rs 9
crore worth on immediate sale.
  CONTESTS
 Other Example:
 Bajaj – Scratch the card contest
 Philip – Dare to Compare Contest
 Gold Bonanza by Titan
 JOINT PROMOTIONS


 Centurion Bank and Videocon

Centurion Bank will finance the

purchase of Videocon products.


 Amount financed up to Rs 30000

 Interest Rate 0 percent
 Tenure 12 month
 MERCHANDIZING/DISPLAY
Display at the store level promotes sales.
Prompts the consumer to switch over to
the displayed brand ignoring existing
brand loyalties
Persuades him to buy now rather than
later
Makes him buy more than the originally
intended quality.
Point of Purchase (POP) displays are
one of the most widely used sales
promotional tools.
 GOODS WELL DISPLAYED
ARE HALF SOLD
 Displays can be of various types:
Window display
Wall display
Counter display
Aerial display or floor display
 Displays materials can be of various
types:
Posters
Stickers
Balloons
Mobile
 Display approaches

Illuminated designs
Motion displays
Sky writings
 IDENTIFYING THE REQUIREMENTS

IDENTIFYING RIGHT PROMOTION PROGRAMME

ENLISHTING THE INVOLVEMENT OF SALESMEN

ENLISTING THE SUPPORT OF THE DEALERS

ENLISTING THE ADVERTISEMENTS AGENCY’S SUPPORT

MAINTAINING THE TEMPO

TIMING OF THE CAMPAIGN

COORDINATION WITH OTHER ELEMENTS OF PROMOTION