Sales Promotion

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Sharavan Aravind Kumar G

BANKING

Sales Promotion• Sales promotions have become dominant in

many industries, due to support existing brandscreate excitementreflect to market segmentation

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Sales Promotion in the Marketing System

• Due to an institutional setup, sales promotions not only address consumers, but the trade, as well.

• It can support the willingness to carry and merchandise the product by retailers or distributors

Consumer Promotions

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ICICI Bank Loyalty program

Loan offers

Customer Centric promotion

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Consumer promotions

• Product based (bonus packs and samples)

• Price based (price, coupons, rebates, financing, frequency)

• Premiums

• Place based (displays)

• Games and sweeptakes

Referral program by Citi and HDFC for credit cards

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Trade promotions• Product based (free goods, returns)

• Price based (allowances, payment terms)

• Place based (slotting fees, display fees)

• Advertising based (coop ads, selling aids)

• Sales based (incentives, contests, prizes)

Trade promotion by giving cash back if you buy from a network retail store or e-commerce site.

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Promotional Objectives

• Separated by time, consumer segmentation and required impact

• Promotions rarely stop a declining sales curve

• It is very easy to lose the promotional gains made if your promotion has not been effective in retaining new customers. So the product has to speak for itself.

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Promotional Objectives

• Short run

1. Current CustomersBuy MoreBuy Now Be Loyal

2. Occasional Customers

3. Non-Customers

• Long run

1. Increase awareness

2. Change image

Joint Promotion HSBC and Sri Lankan Airlines.

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Criticism of Promotions

• Do not help to build image

• Increase consumer price sensitivity

• Have strong impact on purchase timing

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Image-Building Promotions• Image-building promotions aim to effect

brand image through creating associations, other than low price

• Strategically correct contests and sweepstakes

• Tie-ins with other companies

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A different strategy

• EDLP - Every Day Low Price, as a strategy was pioneered by Procter and Gamble, to overcome production volatility (pantry filling effects)

• HI-LO - High-Low, is practiced by the industry and trade, because it creates higher excitement