Sales Promotion

Sales Promotion is very important because:

• Consumers are more responsive to traditional promotional offers

• Retailers have gained considerable power in the supply chain and are demanding more promotional efforts from manufacturers

• Declining brand loyalty

• Emphasis on short-term financial performance

Consumer Promotion: Sales promotion techniques that encourage customers to patronize specific stores or to try particular products

• Urges short-term customer buying, boost brand engagement, and build equity

• Retailer-initiated or manufacturer-initiated

• Examples: Coupons, rebates, loyalty, free samples, premiums, games

Trade Promotion

• Urge retailers to carry new items or greater inventory

• Urge retailers to buy in advance

• Urge retailers to advertise company products

• Urge retailers to get shelf space

• Urge retailers to stimulate purchases

• Examples: Allowances, merchandising, free goods, cooperative advertising

• Retailers have the power to dictate attractive trade deals and manufacturers absorb costs to avoid losing presence

Sales Promotion

• Pros

  • Highly flexible marketing tactic

  • Many options

  • Adaptable to various situations

  • Influences intermediaries

  • Effective method of generating sales increase