Sales Promotion :Sales promotion is one of the four aspects of promotional mix.

(The other three parts of the promotional mix are advertising, personal selling, and publicity/public relations.) Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include contests, coupons, freebies, loss leaders, point of purchase displays, premiums, prizes, product samples, and rebates Sales promotions can be directed at either the customer, sales staff, or distribution channel members (such as retailers). Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions. Some sale promotions, particularly ones with unusual methods, are considered gimmicks by many. Sales promotion includes several communications activities that attempt to provide added value or incentives to consumers, wholesalers, retailers, or other organizational customers to stimulate immediate sales. These efforts can attempt to stimulate product interest, trial, or purchase. Examples of devices used in sales promotion include coupons, samples, premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes Consumer Sales Promotion Techniques:

Price deal: A temporary reduction in the price, such as happy hour Loyal Reward Program: Consumers collect points, miles, or credits for purchases and redeem them for rewards. Two famous examples are Pepsi Stuff and AAdvantage. Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage marked on the package. Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example, 25 percent extra). Coupons: coupons have become a standard mechanism for sales promotions. Loss leader: the price of a popular product is temporarily reduced in order to stimulate other profitable sales Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for delivery. On-shelf couponing: Coupons are present at the shelf where the product is available. Checkout dispensers: On checkout the customer is given a coupon based on products purchased.

On-line couponing: Coupons are available online. Consumers print them out and take them to the store. Mobile couponing: Coupons are available on a mobile phone. Consumers show the offer on a mobile phone to a salesperson for redemption. Online interactive promotion game: Consumers play an interactive game associated with the promoted product. See an example of the Interactive Internet Ad for tomato ketchup.

Example Ad For Online Games 7'UP Dancing Allu Arjun.

Rebates: Consumers are offered money back if the receipt and barcode are mailed to the producer. Contests/sweepstakes/games: The consumer is automatically entered into the event by purchasing the product. Point-of-sale displays:o Aisle interrupter: A sign that juts into the aisle from the shelf. o Dangler: A sign that sways when a consumer walks by it. o Dump bin: A bin full of products dumped inside. o Glorifier: A small stage that elevates a product above other products. o Wobbler: A sign that jiggles. o Lipstick Board: A board on which messages are written in crayon. o Necker: A coupon placed on the 'neck' of a bottle. o YES unit: "your extra salesperson" is a pull-out fact sheet. o Electroluminescent: Solar-powered, animated light in motion. Kids eat free specials: Offers a discount on the total dining bill by offering 1 free kids meal with each regular meal purchased.

Trade Sales Promotion Techniques

Trade allowances: short term incentive offered to induce a retailer to stock up on a product. Dealer loader: An incentive given to induce a retailer to purchase and display a product. Trade contest: A contest to reward retailers that sell the most product. Point-of-purchase displays: Used to create the urge of "impulse" buying and selling your product on the spot. Training programs: dealer employees are trained in selling the product. Push money: also known as "spliffs". An extra commission paid to retail employees to push products.

Trade discounts (also called functional discounts): These are payments to distribution channel members for performing some function . Political issues Sales promotions have traditionally been heavily regulated in many advanced industrial nations, with the notable exception of the United States. For example, the United Kingdom formerly operated under a resale price maintenance regime in which manufacturers could legally dictate the minimum resale price for virtually all goods; this practice was abolished in 1964 Most European countries also have controls on the scheduling and permissible types of sales promotions, as they are regarded in those countries as bordering upon unfair business practices. Germany is notorious for having the most strict regulations. Famous examples include the car wash that was barred from giving free car washes to regular customers and a baker who could not give a free cloth bag to customers who bought more than 10 rolls.

Online Branding A Way Of Business Promotion And More Sales :The online marketing company and the online branding experts have donned a vital part as the popularity and usability of internet increases daily. Most online companies are vying online space today in this highly competitive world. If you need your company to get one better than your competitors then having a online brand name could make the difference. It is required to have an online branding company to guide you to success in online marketing Online branding experts and online marketing company helps you to add the potential customers and the number of quality leads to your website as well. In fact, most organizations make use of online branding company to conceive strategies that will result in a generation of better business and a positive balance to the final revenue sheet. An online branding company brands your company into the specific section of service or products you have to offer to the customers. An online branding company makes sure that the visitors are informed of what your company do and why they should care. A professional online branding company makes sure that your website is engaging and interesting at the same time. The online branding company strives hard to reflect your point of view, your tone and manner and why you are unique from the rest of your competitors.

An expert online branding company adds brand relevant company content to your website. This is sure to lure more visitors to your website thereby producing more business opportunities. An expert online branding company makes use of real world to build Web brands. This does not require a big ad budget. Dealing with the right online branding company can put you in the right frame to bask in the new visitors their expertise brings. A good online branding company looks not at a huge budget but understands what brand attributes your company is trying to build. A online branding company provides your customers with brand based value, which will increase the depth and understanding of your customer relationships. A good online branding company makes sure that the logo and the name suits your product or service provided. A good online branding company is consistent. The online branding company is consistent in terms of approach, approach and treatment given to a viewer. A good online branding company focuses the branding on a section of large consumer and is also at the time innovative. This is the reason why you need an efficient online branding company. That will relieve your mind getting you the best result an online branding company can provide.

Effect of Sales Promotion on Brands

Promotions are an important part of a brand's marketing mix. A good sales promotion will build brand equity by reinforcing a brand's marketplace 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.

Types of Sales Promotions

Sales promotions are usually given the largest percentage of a company's marketing budget because they produce results that occur quickly and are measurable.
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Examples of consumer-focused sales promotions include rebates, coupons, discount pricing, buy-one-get-one-free (BOGO) sales, free samples and contests. These are usually accompanied by advertising in the form of signage, print ads or point-of-purchase (POP) displays. The purpose of a sales promotion can vary. An effective sales promotion can boost sales, build consumer awareness of a new brand, attract new customers to an established brand or reduce excess inventory.

Beneficial Effects
The right sales promotion, especially one that is not price-based, can be a very effective tool in getting a new brand quick consumer awareness or targeting a new consumer demographic.
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Premium-based promotions tend to see longer post-promotional benefits than price-based promotions. These promotions can be in the form of a relevant giveaway with purchase, such as a hairbrush with a hair dryer, or through the use of coupons. Sales promotions that are targeted toward a certain audience tend to have much better and positive results than promotions thrown out to the entire consumer base. For instance, a sales promotion for a minivan that is targeted at women with children should give you fairly good results.

Harmful Effects
If your brand is perceived by consumers as being a value rather than premium brand, it is more likely to receive the most benefit from a price-based sales promotion. However, overuse of price-based sales promotions for any brand can have devastating effects on the brand's image and perceived quality. This is particularly true for premium and super-premium brands or products and services in which the consumer has difficulty judging product quality in other ways, such as legal services or vitamins.
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A recent study by Babson University showed that deep discounts, specifically 20 percent or greater, can hurt a brand more than lower discounts in the long-term. The same holds true for unannounced price reductions in the form of temporary price discounting on everyday retail prices. Most sales promotions are oriented toward short-term gain rather than long-term brand reputation, which is a problem in and of itself as true brand marketing is geared toward the long-term health of a brand. Brands with a small competitive category, such as camera film, tend to benefit less from sales promotions than large categories such as breakfast cereal.

Measurement and ROI

The results of sales promotions are measurable, and it is a relatively easy job to calculate your return on investment (ROI). How you measure the success of a sales promotion will depend on the promotion's goal.
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If you were trying to drive sales or reduce inventory levels, measuring success is simple math. If the goal was to build a brand's image or raise consumer awareness, you will need to conduct post-promotion surveys.
Promotions designed to build customer loyalty can be measured through following repeat purchase patterns of your target consumers.

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.

Sales Promotion Methods

Sales promotion involves any initiative to market a service or product in order to increase sales, according to the Marketing Teacher website. This is done by persuading customers to buy something by offering incentives, or deals, which they find irresistible. Since the goal of sales promotion is to increase the bottom line, businesses have to become creative when marketing their products. They employ various means to achieve this. Discounts Companies often offer discounts to drum up business. Organizations may offer discounts, or "sale prices," on some of their products. These are usually short-term. This promotion is ideal for a product that is due to expire soon and needs to be liquidated, to make seasonal items move faster during the holidays, to promote a new product or attract customers. This promotion method traditionally results in an increase in sales. Buy-One-Get-One Free (BOGOF) Companies make a profit by moving merchandise.

The Buy-One-Get-One Free, or BOGOF, is a sales promotion in which buyers are promised two items for the price of one. BOGOF offers customers an item of equal or lesser value for free with the purchase of a product at full price. The seller doesn't lose money because the wholesale cost of the item is low enough that selling two for the price of one still provides a profit, explains the Marketing Teacher website. Bonus Points and Loyalty Cards A loyalty card promises free gifts or service, like a free car wash. Bonus points offer a sales promotion in which consumers are given credit for each purchase they make with your business. The idea is for the customer to build points to a certain level to gain a reward. A loyalty card works in a similar way. A customer fills up a card with a certain number of proof of purchase stamps that they receive after each transaction. Once the card is completed, the customer is rewarded with a free product or service, like a cup of coffee, free hair cut or car wash. Free Samples Free samples work well to convince customers to buy a product. This could be in the form of food, miniature sachets, bottles or packs of the product. Perfume scents in magazines are an example of this type of promotion. The most common samples are offered in supermarkets or shopping malls. Food items, snacks or drinks are handed out to potential customers at grocery and warehouse stores, while cosmetic marketers offer complimentary make-up or facials at malls in order to motivate customers to buy the product. Tools of Sales Promotion By Chris Joseph, eHow Contributor ?

Various tools are used in conjunction with sales promotions. Sales promotions are short-term marketing techniques used by a manufacturer for a specific purpose, like increasing market share or to encourage sales during off-peak periods. Sales promotions are often one component in an advertising or marketing campaign. A variety of sales promotion tools are available, such as price reductions, product giveaways and special trial periods. Free Samples Free samples are a no-risk way for a customer to try a new product before making a buying decision. A common method used by manufacturers is to send a small package of

a new laundry detergent to households via postal mail. The manufacturer typically includes coupons as a way to encourage purchases in the future. Promotional Periods A promotional period allows a customer to use a product for free for a specified period of time, such as 30 days. Television infomercials use promotional or guarantee periods as an inducement to purchase a product. If the buyer takes no action to cancel the purchase or return the product during the promotional period, the customer is billed automatically or a charge is made to her credit card. Point of Purchase Displays Point of purchase displays are used in retail stores to catch the attention of a shopper. The selected products may be sale items but may also be seasonal or high-demand merchandise. The displays are built in a prominent location such as on an aisle end or at the front of the store near the entrance. The store may also place signs at the product's normal shelf locations. Sales A sale is a reduction in the price of a product for a specified period of time. Sales are used by manufacturers to gain new users or to increase market share. They also generate traffic in a retail establishment. Sales can result in off-season purchases that normally would not occur, such as a hardware store offering snow blowers at 50 percent off in the middle of summer. Rebates and Coupons Rebates provide customers with a return of their purchase price, such as when a cell phone manufacturer offers a mail-in rebate for the purchase of a new phone. Coupons provide a reduction in the price of a product and are applied during the sales transaction. Coupons can be found in newspaper supplements or even on product packages. Sales Promotion Techniques By Daryn Edelman, eHow Contributor ?

Sales promotion techniques can be specialized to certain industries, but most techniques can be intuitive or learned by trial and error as you are in the process of selling. Simple advice for successful promotions like pre-qualifying leads, respecting the client, building a relationship and setting realistic goals are often not implemented in pitches, emails, phone conversations and marketing materials. TV commercials bombard people with information. If you are face-to-face or have a personal contact with your client, your techniques must be different. Continuous Improvement and Tracking

Consider what you can accomplish daily, weekly, monthly or annually. Expectations that are too high will result in failure and stress, which will affect you mentally, physically and emotionally. Examine what sales promotion techniques you are using, if there was something you could have done better, what techniques your competition is using, and how you can implement them. Write what you can accomplish in terms of sales, calls or profit. Keep in mind that sales promotion techniques must be constantly improved. Targeting Many sales promotions try to attack too large an audience. Consider who you would want to talk to. If you are calling, you would not purchase a list of a million phone numbers from around the world. If your goal is to get people to come to your store, you would want to call only people who live within a certain radius of your store. If your product deals with homes, you would want your sales promotion to focus on private homeowners. Questioning Once you have a person in the store or on the phone, your goal is to determine if she has a need (or if you can create a need). If you are talking to a tourist, he will not be interested in coming to your car dealership, no matter what payment options you are promoting. Ask questions. Determine if this is someone who may be interested in your product, then begin your sales promotion. Stories Sell Anyone can make general statements that their product is the best and saves money. A sales promotion for a certain product must answer the question of what makes this product unique. Use numbers, percents and concrete experiences to show the client why they should buy your product and not the thousands of others on the market. Stories of success paint a picture for the client to get excited about the product and think, "If he can do it, so can I." A good sales promotion uses names and describes how the product affected a certain person. Respect Sells Respect the client, his needs and restrictions. A good sales promotion technique solves the client's' problem for him. If he can't pay the full amount, acknowledge his budget constraints and offer payments. If he is concerned with a certain aspect of the product, acknowledge the fear and explain how it can be resolved. Advantages & Disadvantages of Sales Promotions By Alexander Sam, eHow Contributor updated June 27, 2010 ?

The Delicate Balance of Offering Sales Promotions

Sales promotions are vital for businesses who desire to increase sales and interest in the company. When used moderately with careful planning, sales promotions increase sales even after the promotions are finished. When they are used too regularly, the excitement or urgency around them wears off. Advantage--Create Urgency Sales promotions draw attention to a particular product or service being offered. They distinguish a business from competitors through pricing. Dryden Sales, explains that when sales promotions are offered for a limited time, it creates urgency among the customers because they have to act before the promotion expires. As a result, the limited offer reduces the time customers have to think about the product. In most cases, they will stop comparing the alternatives and buy the featured item or service. Advantage--Keep Trade Flowing Keeping stock flowing between distributors and retailers is an advantage of sales promotions. This pertains to commodities that have a certain shelf life, as well as items that dont. For the business it means that stocks are replenished regularly with items that have recently been made. It also encourages distributors to buy more of the items and ensure that they always have adequate supplies, states Dryden Sales. Quite often, suppliers/distributors buy items according to how often they sell out of a commodity. Therefore, if sales of an item are particularly slow, than distributors/suppliers are less likely to buy that item regularly, meaning the potential to run out of it is greater. Disadvantage--Message Miscommunication As with most sales promotions, either the distributor or the business offering the product are not profiting as much as previously. It is a calculated risk, but one that needs to be planned and handled carefully to be truly effective. Sales promotions are usually advertised to inform customers of the special offer. If there is a discrepancy between what's published and the real offer, than it will be viewed negatively by the public, states HKTDC. Retailers and distributors must ensure that whatever promotion is being published is honored or the special offer will work against the company, possibly tarnishing its reputation. Disadvantages--Price Sensitivity Promotions in sales are a disadvantage when they are offered too regularly. The key to making them successful is offering them irregularly, catching the customer off guard and unprepared. If they are provided too regularly then they create price sensitivity among customers. Dryden outlines price sensitivity as intentional waiting by customers to purchase items only when they are promoted in a sale, rather than buying them at the regular retail price. Profits decrease. Pros & Cons of Sales Promotion By Luke Arthur, eHow Contributor updated November 20, 2010 ?

Sales promotions influence customer behavior. Flag this photo Running a sales promotion as a business owner might seem like a natural way to increase sales and improve your bottom line. Sales promotions have the potential to improve relationships with customers as well as your suppliers. These events could also hurt the company's sales at other times of the year. Function As a business owner, there are several ways to run a sales promotion. You could potentially advertise in many venues and visibly mark down the prices of everything in your store for a large sale. You could also market only to specific target markets and discount only certain items. You could also send out coupons so that you have some control over who can take advantage of your sale. With any sale, you will essentially be selling a product for less than the original price. Influence One of the benefits of using sales promotions is that you can influence customer behavior. Consumers like the idea of sales, and they believe that it is to their advantage to act quickly. The idea of the sale could influence the customer to make a purchase when they were otherwise not planning on doing so. The thought of missing out on the sale price is disconcerting for many customers. This leads to an increase in sales for many businesses. Suppliers Another benefit of running sales promotions is that you can often get help from your suppliers. If you have good relationships with your suppliers, they might pay for some additional advertising to drive traffic to your store. They might set up a special display or give you special pricing on merchandise in order to help increase sales. Your suppliers want you to succeed so that they can keep selling you goods. Hurt Other Sales If you get in the habit of running sales promotions, customers will become aware of it. This could then have a negative impact on your sales anytime that you are not running a promotion. Your customers might start waiting until they see that you are having a sale to come in. If they know that they can get a better price at a different time, they might be inclined to hang onto their money. Image Depending on what type of business you are, running sales frequently could hurt your image. Some businesses rely on a reputation of quality in the industry to set themselves apart from others. If this is your calling card, running sales could hurt this image.

Customers will no longer associate your business with quality, but will instead associate it with bargains. This could negatively impact your ability to make bigger sales with higher margins at other times. How to Design a Sales Promotion Campaign By Rose Smith, eHow Contributor updated December 09, 2010 ?

Sales promotions that cause customers to flock to your store and encourage some to become regular consumers, are the building blocks of business success. The right ad mix brings customers in without over spending. Knowing what online marketing to add to the equation makes persuading potential clients even more cost effective. Devising repeatable campaigns to turn into annual events to create ongoing customer enthusiasm is key. Difficulty: Moderate Instructions 1 Calculate sales needs or quotas. Concrete numbers help develop a comprehensive plan. 2 Research past successful sales and document what customers bought. Organize the promotion around a product's popularity. Introduce new products to appeal to the existing client base and bring in new customers. 3 Define the type of promotion to create. Calculate how much of each item needs to be sold to meet quota so you'll know how much inventory to order. Select a theme and define the time line. 4 Entice customers with a themed promotion. Designing around seasons or other wellknown themes allows you to tie in promotions with shopping holidays. Celebrations such as Black Friday -- the Friday after Thanksgiving -- and Christmas -- when customers are shopping for bargains -- provide promotional opportunities. Annual seasonal campaigns often keep customers coming back for more and are cost friendly to duplicate. 5 Keep the promotion simple. An elaborate program pushing too many products overwhelms many consumers. Focus on a few key sales rather than aisles so full, customers have to negotiate just to move around. Seasoned promoters incorporate purchasing incentives such as samples, gifts, rebates, coupons, contests and sweepstakes

to encourage sales, according to the Bureau of Labor Statistics. Select one or two inducements to design the campaign around. 6 Upsell utilizing a loss leader. This technique offers a low-selling product to promote sales of more expensive items, and hopefully create future revenue, according to Alt Concepts. Offering a percentage off a scarf with the purchase of a sweater is an example. Customers who like the promotion may buy for themselves and a friend, or start a collection which creates ongoing revenue. 7 Launch an employee-incentive contest. Engage staffers by encouraging competition during the promotion. Offer rewards such as free movie passes, restaurant gifts cards, even cash. Increase sales by awarding a grand prize, but sprinkling enough prizes throughout the contest so most workers participate. Add the cost of the awards to the total cost to run the promotion. 8 Promote and advertise. Calculate the advertising budget. Balance it with the sales quota. A promotion costing twice as much to advertise than the sales it produces is a disaster. Price shop newspaper, radio and local cable television ads to devise a well-rounded, yet cost-effective campaign. 9 Multiply the ad campaign by publishing online flyers and coupons. Social marketing has revolutionized the way businesses create buzz. Social sites provide individuals with a voice the smart sales promoter engages. Ask online customers to select their favorite promo items. Include the top picks in the sale. Social media can amplify your message when you get customers involved. Ideas for Sales Promotion By Laura Acevedo, eHow Contributor ?

Sale Successful sales promotions increase interest in your products and spur revenue growth. Whether you offer consumer products or services, properly positioned sales promotion is an integral component to your overall marketing plan. The best ideas for sales promotion expand the reach of your products and lead customers to choose your products over your competitors. Cause-Related

Tie your sales promotion to a worthy cause to increase your business profile and sales. Customers like helping a good cause and may choose your product or services over a competitor if you tie a sales promotion to an appropriate cause. Choose a cause that is related to your products for maximum benefit. If you sell makeup, tie your sales promotion to a skin cancer charity. Promote through store signs, information on your website, coupons and direct marketing efforts. Work with the charity you choose to include promotional information on their website and marketing materials for added exposure. For long-term cause marketing, consider international movements such as fair trade products. Finance Deals Offer special financing deals to spur sales on new, underperforming or high-value goods and services. For some customers, financing specials can speed up a planned purchase or increase the value of an order. For service sales, financing deals can be critical to enabling customers to obtain needed equipment or ease into a service contract. For example, a security company that makes most of their revenue off of long-term service contracts can offer financing specials to offset the cost of monitoring equipment. These financing arrangements can help lock in customers to longer-term service contracts that will lead to predictable increases in revenue for your company. Text Promotions Place codes on your products that require customers to text a number to enter a drawing for a significant prize. Text promotions can help you target a younger demographic and can generate a buzz about your products. Use this type of promotion to build a contact list that you can use for future text-based marketed campaigns. Text-based sales promotions work best on consumer products that are frequently purchased like beverages, candy or youth-oriented products. BOGO Buy one, get one at a discount (BOGO) offers are popular with consumers and can have a large impact on your sales volume. Since customers must purchase a second product to receive the discount, your store benefits from increased overall sales. BOGO sales draw in repeat customers and new customers and increase traffic to your store. Make your BOGO sale encompass most of the products you offer for maximum benefit. Increase prices on any product that will not be profitable in a BOGO offer or clearly exclude them from your sales promotion. Depending on your product, consider gradually increasing the prices on all your products before your sales promotion if customers are not highly price sensitive. What Is a "Consumer Sales Promotion"? By JeremyJ, eHow Contributor updated September 08, 2010 ?

A consumer sales promotion influences consumer purchasing decisions and rewards customers for doing business with a company instead of its competitors. Companies have a variety of techniques from which to choose when engaging in consumer promotion. Significance Consumer promotion involves providing incentives not only to influence consumer presale purchasing decisions but also to reward consumers post-sale for purchasing products or services from a particular company. Types Companies use various types of tools for a consumer promotion. The most common ones include coupons, rebates, promotional pricing, demonstrations, personal appearances, sampling and free trials. Function The consumer promotion tools a company employs is contingent upon the overall objective. Companies often use coupons, rebates and promotional pricing to introduce a new product into the market, whereas demonstrations, personal appearances and sampling help build consumer awareness of a new or existing product. What Is a Sales Promotion Schedule? By Daniel Pearson, eHow Contributor ?

Sales promotions should only be one part of your marketing mix. Sales promotions are initiatives an organization decides to implement to promote and increase sales, product usage or to shine a light on a new product or service. Sales promotions can differ greatly by company and industry, so putting together a complete list of common techniques is extremely difficult, at best. Here is an example of a generic approach to creating and executing a sales promotion schedule, which can be used by any company to help increase overall revenue. Establish Promotional Sales Goals Write a list of your company's overall sales promotional goals for the current quarter, year or other established time for completing a particular program. Your sales goals should follow basic marketing principles--get your product or service in front of your target market, and strongly encourage the decision-makers or individuals within that market to give your sales offering a "test run." Establish Promotional Activities Create promotional programs that include, for instance, vehicles such as discount coupons for customers; a sampling booth, table or other type of display at a local store;

networking at trade shows and local after-hours business events with potential vendors, clients and even existing customers; or holding a contest where the winner receives a significant discount--or a free offering--for your product or service. Review Previous Promotion Successes ad Failures Review the success of all previous sales promotions. Based on that information and the list of your company's current sales promotional goals, write out a sales promotion schedule for the rest of the fiscal year that incorporates previous successful sales strategies, with the new information gleaned from up-to-date market research and findings. Create a Detailed Spreadsheet Build a spreadsheet to track every detail of your sales promotion schedule, which will help you clearly see what approaches work, as well as detailed information about each previous sales program. List the following columns--or use similar wording for each spreadsheet column: the planned promotion; the anticipated beginning and ending dates; items or resources that will be needed to execute the sales promotion schedule; projected costs and actual costs; the ongoing effectiveness of the promotion; and detailed notes about the outcome--what worked and what didn't work. Make sure to keep the spreadsheet updated daily with new and existing information. Study a 12-month Calendar Make note of the significant days and seasons, especially celebrations, special events and holidays. These days can be used in concert with your sales promotion schedule and applied to the current plan. You the need to make your sales and marketing team aware of upcoming holidays, and decide how those days can be used to increase your established sales promotion. Put Your Plan into Action State your sales objectives, which should include: increasing revenue; retaining and rewarding existing customers or clients; attracting new customers, clients or first-time buyers; depleting inventories of discontinued items; increasing the overall number of customers or clients; create a sense of urgency with prospects. Then, get everyone in your organization on board--from the chief executive officer to the receptionist, everyone should be aware of and possess intimate knowledge of the sales promotion schedule, because promoting your product or service should become embedded in your company's culture. Review the Results Look over the tracking spreadsheet of your sales promotion schedule and take note of how effective each approach is to the overall sales goals. Once you've reviewed the results and determined what worked and what did not work with your sales promotion schedule, meet with your sales and marketing teams and develop new strategies and new promotions for increasing sales based on all information gathered from the previous sales promotion. It's important to remember that, more often than not, running the same

promotion over a long period of time discourages repeat business. Customers always seek fresh, new and valuable promotions. What Is Horizontal Sales Promotion? By Eric Novinson, eHow Contributor updated February 10, 2011 ?

A horizontal sales promotion is a joint effort between several companies. The horizontal sales promotion reduces the marketing expenses of each individual company because the companies share costs, and its goal is to increase the sales of every company. Sales promotions, such as coupons, sweepstakes, and quantity discounts, attract customers without changing other product features. Legal Protection A company may spend a large amount of time and money creating a sales promotion strategy, but the sales promotion strategy usually has no copyright, patent, or other legal protections, unlike the company's actual products. According to the Massachusetts Institution of Technology, sales promotions typically make up 31 percent of a company's total advertising costs. If a company's purchase discounts, coupon design, or free samples are successful, competitors can simply copy the sales promotion without incurring any design costs. Similar Products A horizontal sales promotion strategy is effective when the partner companies are selling similar products. If several farms are selling milk, creating a sales promotion strategy that gives away coupons for any type of milk, or free milk samples, increases the demand for all types of milk. If a company sells a unique product, such as designer clothing, a sales promotion that encourages more people to purchase cheap shirts and pants from other companies might not increase its sales. Complementary Products Horizontal sales promotion strategies that involve companies in different industries are also effective. The customers of a large retailer may be interested in purchasing prepared food which the large retailer doesn't sell. The large retailer can allow a restaurant franchise to open up inside its store. The restaurant's advertising will also attract hungry customers who would not have visited the retail store otherwise. This strategy also works well with complementary products, such as peanut butter and jelly, or corn chips and salsa. Considerations When a company conducts a sales promotion without partners, part of the sales increase is from attracting new customers, and the company also gains some clients of competing firms. If the company is selling products in a new market, it may gain more customers by

cooperating with other entrants using a horizontal sales promotion strategy to increase the overall size of the market. If the market is already mature, the company may gain more sales by offering better deals than its competitors with its own sales promotion. What Are the Functions of Sales Promotion? By Chris Joseph, eHow Contributor ?

Sales promotion is one aspect of the marketing mix. Sales promotion is a short-term marketing strategy designed to achieve a specific purpose. Sales promotion differs from advertising in that its intent is to create a sense of urgency to encourage immediate action as opposed to building sales or a brand over a long period of time. Sales promotion may take the form of a temporary price reduction or a campaign to introduce an item. Production Differentiation Use of sales promotion techniques helps to differentiate your products from those of your competitors. This is especially beneficial is your products offer essentially the same features and benefits as others on the market. A method often used to make products stand out is to offer them at a slightly reduced price for a short period of time. Attract Customers Sales promotions are used to attract customers during periods of slow sales. For example, if you offer a seasonal product such as barbecue grills, by running a promotion in the middle of winter where the price is reduced by 50 percent may encourage people to buy a grill at a time where it might not otherwise cross their mind. Increasing Market Share Sales promotions can lead to an increase in market share for the manufacturer. The promotion will likely increase your sales by taking away sales from your competitors. As a result, your market share will increase while your competitors' share decreases. New Product Introduction Retailers can use sales promotions to introduce a new product. By offering the new item at a reduced price and placing a "new item" sign in front of it, they can persuade customers to give the new product a try. At the same time they can discontinue a slowmoving item in the same category by marking it down and placing a "reduced for quick sale" sign in front of it. This technique has the effect of keeping the category fresh while freeing up needed shelf space. Inventory Control

Sales promotion can help retailers limit out-of-stock situations by allowing them to purchase large quantities at a reduced price. This can be especially advantageous to the retailer for items that are popular sellers that can be difficult to keep on the shelf.

Role of Sales Promotion By Chris Joseph, eHow Contributor ?

Sales promotion is a short-term marketing strategy. Sales promotion and advertising is a component of the marketing mix, which also includes the product, the method of pricing and the method of distribution. Sales promotion serves the role of enticing a buyer to take a desired action, such as purchasing in multiple quantities or trying a new product. Although sales promotion offers many advantages, there are also some potential pitfalls. Function Sales promotion is typically used to achieve a specific purpose. Some common reasons include introducing a new product to the marketplace, attracting new buyers for an existing product, competing with a manufacturer of a similar product or helping seasonal products sell during their off-peak season. Ultimately, the goal of all of these functions is to maintain or increase product sales. Types Several types of sales promotional methods can be used. For example, salespeople can attempt to entice a store owner to purchase more merchandise by offering her $2 off a case of a product if she purchases in multiple quantities. A product package may contain extra merchandise for free, such as a bundle of bar soap featuring an extra cake. Another type of sales promotion is to place a coupon on a product package that can be used toward the next purchase. Benefits One example of a sales promotion benefit is that it can give a marketer a competitive edge. For example, in the case of the bar soap, the extra cake could make the difference in a customer purchasing one brand over another. It can also generate a sale at a time when customers wouldn't typically think of purchasing a product, such as offering 50 percent off the price of a snow shovel in the middle of summer. Time Frame Sales promotions often occur for a limited time. This can create a sense of urgency for the customer to make a purchase before an offer expires. A sales promotion may also be

designed to exhaust a supply of discontinued or old merchandise and will expire when the existing supply has been liquidated. Warning Although sales promotion offers many benefits, there are also potential drawbacks. Customers may only purchase the products or stock up while the promotion is available, which can lower a company's profit margin. When customers buy the product only for the promotion, they are typically only concerned about price and will not differentiate your products from those of your competition. Sales Promotion Strategies There are three types of sales promotion strategies: Push, Pull, or a combination of the two. A push strategy involves convincing trade intermediary channel members to "push" the product through the distribution channels to the ultimate consumer via promotions and personal selling efforts. The company promotes the product through a reseller who in turn promotes it to yet another reseller or the final consumer. Trade-promotion objectives are to persuade retailers or wholesalers to carry a brand, give a brand shelf space, promote a brand in advertising, and/or push a brand to final consumers. Typical tactics employed in push strategy are: allowances, buy-back guarantees, free trials, contests, specialty advertising items, discounts, displays, and premiums. A pull strategy attempts to get consumers to "pull" the product from the manufacturer through the marketing channel. The company focuses its marketing communications efforts on consumers in the hope that it stimulates interest and demand for the product at the end-user level. This strategy is often employed if distributors are reluctant to carry a product because it gets as many consumers as possible to go to retail outlets and request the product, thus pulling it through the channel. Consumer-promotion objectives are to entice consumers to try a new product, lure customers away from competitors products, get consumers to "load up" on a mature product, hold & reward loyal customers, and build consumer relationships. Typical tactics employed in pull strategy are: samples, coupons, cash refunds and rebates, premiums, advertising specialties, loyalty programs/patronage rewards, contests, sweepstakes, games, and point-of-purchase (POP) displays. Car dealers often provide a good example of a combination strategy. If you pay attention to car dealers' advertising, you will often hear them speak of cash-back offers and dealer incentives.

References

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^ "Dave Dolak, Sales Promotion" ^ Electroluminescent Point of Purchase Signs

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^ Stuart Mitchell, "Resale price maintenance and the character of resistance in the conservative party: 1949-64," Canadian Journal of History 40, no. 2 (August 2005): 259-289. 4. ^ Anonymous, "Handcuffs on the high street," The Economist 355, no. 8170 (13 May 2000): 62.

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