Contents
1. Executive summary ------------------------------------------------------------ 3
2. Introduction and definition of sales promotion----------------------------3
3. Literature review ----------------------------------------------------------------4
4. Couponing ------------------------------------------------------------------------5
A. Introduction &Definition ------------------------------------------------------5
B. Types and distribution method -----------------------------------------------5
i. Point of purchase couponing -------------------------------------------5
1. Instant redeemable coupon ------------------------------------6
2. Shelf delivered coupon ----------------------------------------6
3. Scanner delivered coupon -------------------------------------6
ii. Direct mail couponing---------------------------------------------------6
iii. Free Standing Inserts couponing --------------------------------------6
iv. Online couponing -------------------------------------------------------7
C. Benefits of coupons--------------------------------------------------------------7
i. Price reduction------------------------------------------------------------7
ii. Works as sampling-------------------------------------------------------7
iii. Encourage repeat sale ---------------------------------------------------7
iv. Useful to establish a product--------------------------------------------7
v. Increase immediate sale--------------------------------------------------8
D. Limitations of coupons------------------------------------------------------------8
i. Less estimate and loss of customers ------------------------------------8
ii. Low redemption, high cost-----------------------------------------------8
iii. Mis-redemption -----------------------------------------------------------8
5. Conceptual model -----------------------------------------------------------------9
6. Why coupon are beneficial for sales promotion ----------------------------9
7. Use of coupons in presentation -------------------------------------------------10
8. Conclusion --------------------------------------------------------------------------10
9. Bibliography------------------------------------------------------------------------11
10. Appendix ---------------------------------------------------------------------------12
Description
Sales promotion is the part of 4ps of marketing. For categories of marketing mix are product, Price, Place and Promotion. Sales promotion plays an important role in product sale. In this report I am going to define sales promotion and will focus on couponing system in sales promotion. Coupons are used by manufacturer to increase sale. There are deferent types of coupons in market which has deferent method of delivery. I am presenting these methods in this report. Many writers have written about coupons and writing, some of them are in favour of coupon system and some are against. This report includes some of these writer’s views and present a conclusion.