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Sales Promotion Management
Sales Promotion and the Role of
Trade Promotions
Sales Promotions
is marketing activities intended to stimulate quick
buyer action by offering extra benefits to customer
Commonly used to obtain an increase in sales
short term. Could involve using money off
coupons or special offers, contest, trade show, instore displays, rebates, samples, and discounts
Manufacturers use sales promotions to induce the
trader or consumer to buy a brand and to
encourage the manufacturer’s sales force to sell
the product aggressively.
Sales Promotion Management
Sales Promotion and the Role of
Trade Promotions
Sales promotion capabilities and limitations
What sales promotions can accomplish:
1. Stimulate sales force enthusiasm for a new,
improved or mature product;
2. Invigorate sales of a mature brand;
3. Facilitate the introduction of new products to the
trade;
4. Neutralize competitive advertising and sales
promotion;
5. Obtain trial purchase from customers;
6. Hold current users by encouraging repeat
purchases;
7. Increase product usage by loading consumers;
Sales Promotion Management
Sales Promotion and the Role of
Trade Promotions
Sales promotion capabilities and limitations
What sales promotions cannot accomplish:
1. Inability to compensate for a poorly trained sales
force or for a lack of advertising;
2. Inability to give the trade or consumers any
compelling long-term reason to continue
purchasing a brand;
3. Inability to stop a brand’s declining trend or change
the basic non-acceptance of undesired product;
Sales Promotion Management
Sales Promotion and the Role of
Trade Promotions
The role of trade promotions
With the shift in power from manufacturers to retailers, retailers have
pressured the manufacturers that supply them to provide attractive price
discounts and other forms of promotional money as well.
Trade promotions’ scope and objectives
Manufacturers’ trade promotions are directed at wholesalers, retailers
and other marketing intermediaries (rather than consumers). The special
incentives manufacturers offer to their distribution channel members are
expected to be passed through to consumers in the form of price
discounts offered by retailers, often stimulated by advertising support
and special displays.
Sales Promotion Management
Sales Promotion and the Role of
Trade Promotions
The objectives of trade oriented promotions:
1. Introducing new product
2. Increasing distribution of new packages or sizes
3. Building retail inventories
4. Obtaining displays outside normal shelf locations
5. Reducing excess inventories and increasing turnover
6. Countering competitive activity
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