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Sales Promotion IBM

Sales promotion aims to boost short-term sales through tactics like discounts, bonuses, and free gifts. It is not intended to build long-term loyalty. Common promotion methods include buy-one-get-one-free offers, coupons, competitions, and cause-related marketing. While promotions can increase awareness and sales volume temporarily, they must be consistent with the brand image to avoid cheapening the brand long-term. Measuring the effects of promotions requires analyzing sales data before and after the promotion period.

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Aprile Margareth Hidalgo
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49 views

Sales Promotion IBM

Sales promotion aims to boost short-term sales through tactics like discounts, bonuses, and free gifts. It is not intended to build long-term loyalty. Common promotion methods include buy-one-get-one-free offers, coupons, competitions, and cause-related marketing. While promotions can increase awareness and sales volume temporarily, they must be consistent with the brand image to avoid cheapening the brand long-term. Measuring the effects of promotions requires analyzing sales data before and after the promotion period.

Uploaded by

Aprile Margareth Hidalgo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Sales

Promotion
Marketing Sales Promotion
• Sales promotion is the process of persuading a potential
customer to buy the product.
• Sale promotion is designed to be used as a short term tactic to
boost sales, it is not really designed to build long-term
customer loyalty.
• Some sales promotions are aimed at consumers
• Others are targeted at intermediaries such as agents and
wholesalers or at the firm's sales force.
• From the financial perspective , sales promotion is any
initiative undertaken by an organization to promote an increase
in sales, usage or trial of a product or service.
SEVERAL FACTORS THAT A BUSINESS
MUST TAKE INTO ACCOUNT :
• 1. WHAT DOES THE PROMOTION
COST?
• 2. IS THE SALES PROMOTION
CONSISTENT WITH THE BRAND
IMAGE?
• 3.WILL THE SALES PROMOTION
ATTRACT CUSTOMERS WHO WILL
CONTINUE TO BUY THE PRODUCT?
EXAMPLES OF POPULAR SALES
PROMOTION ACTIVITIES:

1. Buy-One-Get-One-
Free(BOGOF) - Known
as a premium sales
promotion tactic.
2. Customer Relationship Management
(CRM)- Incentives such as bonus points or
money off coupons
3. New Media- websites and mobile phones
that support a sales promotion.
4. Merchandising- additions
such as dump bins, point-of-
sale materials and product
demonstrations
5. Free gifts
6. Discounted Prices
• e.g., Budget airline such as Cebu
Pacific prints on one whole page
newspaper their latest low-price
deals once new flights are
available, or additional destination
announced.
7. Joint Promotions- between brands owned by
a company, or with another company's brands.
8. Free samples (aka. sampling)
9. Vouchers and coupons- often seen in
newspapers and magazines, on packs.
The "bring this for a discount" practice.
10. Competitions and prize draws- in
newspapers, magazines, on the TV and
radio, on the internet, and on packs.
11. Cause-related and trade fair
12. Finance deals
EFFECTS OF SALES PROMOTION ON
BRANDS
A good sales promotion will build brand equity by
reinforcing a brand's market place position, and
possibly lead to a temporary or permanent lift in
sales. If a sales promotion does not adhere to the
brand standards or appears gimmicky, it can hurt
the brand in the long run.
1. Beneficial Effects
•Awareness
•Retention
•Exclusivity
2. Harmful Effects
•It might cheapen the
brand
10 Steps to a Successful Sales Promotion
• 1. Understand your brand's current brand image,
value and reputation
• 2. Understand your brand's long-term strategies
and adhere to them
• 3. Know your current consumers and target
audience
• 4. Recognize the capabilities of your sales force
• 5. Understand the relationship your brand has
with your wholesalers and retailers.
• 6. Research the results of past sales
promotions
• 7. Have a clearly defined objective for the
promotion
• 8. Make sure there is a benefit to the
consumer.
• 9. Stay within your budget.
• 10. Be creative.
Effects of Sales Promotion on Sales Volume
• Sales promotions
• -generate short-term volume and market share increases.
• -are marketing strategies companies use to increase sales
temporarily to gain sales volume and market share
• - occasionally used to clear out year-end inventory before
new models arrive in showrooms as it often done in the
automobile industry
• - used as a competitive strategy to undercut competition by
offering a lower price or other incentive.
Measuring Effects of Sales Promotion
• Measuring the effect of sales
promotion is relatively easy but
requires careful analysis of sales
data before and after the
promotion.
•Effectiveness Vs. Goals
•Short Vs. Long-Term
Impact
• Sales Promotions in
Highly Competitive
Markets
PUBLIC RELATIONS
• Involve the promotion of favorable relations for
organizations and products with its key public through the
use of a variety of communications channel and tools.
Role of Public Relations is much broader
and includes:
• 1. Building awareness and a favorable image
for company or client
• 2. Closely monitoring numerous media
channels for public comment about a company
and its product.
• 3. Managing crises that threaten company or
product image.
• 4. Building goodwill among an organization's
target market
Objectives of Public Relations
• • Building Product Awareness
• • Creating Interest
• •Providing Information
• •Stimulating Demand
• • Reinforcing the Brand
ADVANTAGES OF PUBLIC
RELATIONS
• 1. Can be Multiplied Easily
• 2. Credible
• 3. Lower in Terms of Actual Cost
• 4. Substantively Better Exposure
DISADVANTAGES OF PUBLIC
RELATIONS
• 1. Easy to be Pushed Out
• 2. Greatly Affected by Technology(in
traditional context)
• 3. Hard to Control
• 4. It's Lighter than News 5. Precision
of Information
What do Public Relations Professionals Do?
• Public relations professionals work
to obtain free publicity for their
client
Prepared by:
• Alondra V. Bantatua
• BSA-I

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