From the 1984 film Santa Claus Conquers The Martians.
Martians, upset that their children have become obsessed with TV shows from Earth which extoll the virtues of Santa Claus, start an expedition to Earth to kidnap the one and only Santa. While on Earth, they kidnap two lively children that lead the group of Martians to the North Pole and Santa. The Martians then take Santa and the two children back to Mars with them. Voldar, a particularly grumpy Martian, attempts to do away with the children and Santa before they get to Mars, but their leader Lomas stops him. When they arrive on Mars, Santa, with the help of the two Earth children and a rather simple-minded Martian lackey, overcomes the Martians by bringing fun, happiness and Christmas cheer to the children of Mars.
http://imdb.com/title/tt0058548/
That image can’t be from 1984, look at the blaster the middle martian is carrying. Its a Zero Toys, smoke ring blaster which came out sometime after 2000 IIRC. Clever remake image though.
The best way to watch this stinker is the old MST3k send-up of it.
http://www.imdb.com/title/tt0776520/
Holy crap. The whole MST3K-enhanced movie is up on youtube
http://www.youtube.com/watch?v=zT6akoSCzpw
This is a pic from a group in Orange County… they act it out live every Christmas.