Consumer Sales promotion

www.company.com

SALES PROMOTION

• Nabduan D. 5520212002

• Neeranuch Ng. 5520212006

• Raveepitchaya R. 5520212007

www.company.com

Consumer Sales Promotion

Trade Promotion

Using to persuade and encourage customer to buy

products and services in order to increase sales in the

short term (limited time) as a tactical strategy

Building Products Awareness

Create Interest and New Users

Providing Information

Stimulating Demand

Reinforcing the Brand

To persuade and encourage manufacturers, wholesalers

and retailers who buying the products for business to

business purpose but consumer sales promotions

target directly to customers or end user customers.

Consumer

Sales

Promotion

Trade

Promotion

www.company.com

Characteristic of Sales Promotion

• By Prof. Philip Kotler

• There are 3 distinctive characteristics of sales promotion

including Communication, Incentives and Invitation.

Communication can draw attention from customers and provide information to

influence customers to purchase products.

Sales Promotion is incentive to incorporated some

concession, inducement, or contribution that gives value

to the consumer.

Sales promotions have a distinct invitation to

engage in the transaction now or future customer

purchase as soon as possible.

www.company.com

Characteristic of

Good Consumer Sales Promotion

• Able to obtain trial purchase from customers

• Able to encourage customers to buy one brand over another by

introducing samples, coupons, pop promotions etc.

• Able to stimulate sales force enthusiasm

• Able to join force with advertising to

reinforce sales

• Able to prevent competition in advance.

www.company.com

Consumers Sales Promotion Tools

Free Sample

Coupon

Refunds/Rebates

Percent-off

Bonus Packs

Premium

Contest/Sweepstake

www.company.com

Consumer Sales Promotion Tools

Free Sample

Free Sample

• Effective way for new product launching

• Most of customer not confident to buy new products because they are not sure

about product reliability and quality.

Pros Increase the number of new customers

Entice former customers to return

To find ways to drive new users to your

company:

To get permission to turn people into

customers unless you have asked

permission to give them the sample.

To encourage trial to People who are

your target audience

Cons

o Not be as easy to measure as other

promotional strategies, but they can be

measured

o Not effective if the company set the

wrong sampling group

www.company.com


Free Sample

www.company.com


Coupon

Coupon

• One of the most common sales promotion techniques

• To stimulate sales volume and customer intention of purchasing both of new and

existing customers

• Include special price coupon, discounts coupon, free goods and value

added giveaway coupon.

Pros✓Increase the number of new customers. Name on

the coupon even when the coupon is not

redeemed.

✓Entice former customers to return

✓Reward current customers - Customers are

delighted when they receive the gift of savings from

the manufacturer of a product that they buy

regularly.

✓Create the opportunity for the marketer to up-sell

a more profitable product

✓Provide the marketer with a highly measurable

marketing program

Cons

O Unable to judge the effectiveness of

your coupon campaign without testing

and measuring

O The coupon may not best fit for target

audience.

O Many requirement in using coupon

O Have no monetary value

www.company.com


Coupon

www.company.com


Percent-Off

Percent-offs

• Lower price offers of the original price.

• It designs to boost up sales in off-season and first stage of new product

launching to the market.

Pros

✓Increase the number of new customers


✓Maintain current customers

✓Provide product with lower price

✓Allow the company to new segment in price

sensitive group of customers

Cons

O May effect the brand image

O May reflect the dropping in price

quality

www.company.com


Percent-Off

www.company.com


Bonus Packs

Bonus Packs (Banded Packs)

• To persuade consumer by offer in adding amount of package containing

• To introduce a new product by the same manufacturer or to make buyers aware

of a companion product to one they already use.

• Producer use a bonus pack as an incentive to purchase by attaching a sample

size of a product to a full size of the same product.

Pros

Increase the number of new customers


Maintain current customers

Offer customers lower price

Have no redemption or couponing cost

Reduce cost per units

Direct to consumers

Invent competitors to current consumers

Influence in retailers

Increase brand loyalty

Cons

O May affect the brand image

O May reflect the dropping in price

quality

O Increase shelf space

O Increase in cost of transportation

shipment

O No time consuming for customer

www.company.com


Bonus Packs

www.company.com


Refunds and Rebates

Refunds and Rebates

• Consumer able to refund their money after paid full amount of price.

• To refund their money back such as having to write consumer’s name or address

and send the information by mail back to company’s products.

• Take long time to classify till proved then company will paid back in return

Pros

✓Increase the number of new customers



✓Offer customers lower price

✓Easy to measure the effectiveness of the sale

promotion campaign

Cons

O Take a certain amount of time and

effort from the consumer

O Requires such procedures and

assume the out-the-door price when

considering the purchase

O Come up with many regulation

O Customers require more skills to

obtain benefits

O Most of them are exaggerated

promote

O Most of them not guarantee for

satisfaction

www.company.com


Refunds and Rebates

www.company.com


Premiums

Premiums

• Reward given to the existing customers by offering free or low price in return for

product purchase.

• Help increase the sales of the product among the existing customers itself.

Pros


✓Add value and are brand related;

✓no need for elaborate packaging

✓Impact at point-of-sale due to their visibility;

✓Offer immediate consumer gratification;

✓Have no redemption or couponing cost;

✓Provide added value.

Cons

O Not effective if the company set the

wrong target group

O Don't expect premium to increase

profits.

O Not be as easy to measure as other

promotional strategies, but they can be

measured

www.company.com


Premiums

www.company.com


Contests and Sweepstakes


• To persuade consumer buy their product immediately and invite consumer

to join with the sale promotion by created the interesting and exciting

activity.

• Contest, consumer have to use their skill or competence to join the

contest to win the prize

• Sweepstakes, consumer can win the prize by random drawing or

consumer have to send the cap or pieces of product for winning

• Develop to be easy method than previous that call instant winners. By the

way, for instant winners method, producer should aware the gambling as

well.

Pros

Increase the number of new customers


Maintain current customers

Create a buzz about the product

Draw traffic to their website or store

Strengthen their relationship with their

customers

Cons

O Mostly in order to set up event must

rely on sponsorship

O May mislead customer to concentrate

in reward instead of products

www.company.com



www.company.com

Favorable Consumers Sales Promotion

FREE SAMPLE

www.company.com

Unfavorable Consumers Sales Promotion

COUPON

www.company.com

Consumer Sales promotion

Marketing

Transcript of Consumer Sales promotion