Description
It covers the basics of Sales Promotion in a very simple manner. Sales promotion refers to many kinds of incentives and techniques directed towards consumers and traders with the intention to produce immediate or short-term sales effects.
SALES PROMOTION
MEANING OF SALES PROMOTION
? Sales promotion refers to many kinds of incentives
and techniques directed towards consumers and traders with the intention to produce immediate or short-term sales effects.
? Sales promotion includes incentive-offering and
interest-creating activities which are generally shortterm marketing events other than advertising, personal selling, publicity and direct marketing. The purpose of sales promotion is to stimulate, motivate and influence the purchase and other desired behavioral responses of the firm’s customers.
Promotional mix
? Advertising- Presentation & promotion of ideas,
goods or services by an identified sponsor. ? Personal selling- A process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation ? Sales promotion- 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.
Continue…..
? Public relations- Paid intimate stimulation of supply
for a product, service, or business unit by planting significant news about it or a favourable presentation of it in the media. ? Corporate image- The Image of an organization is a crucial point in marketing. If the reputation of a company is bad, consumers are less willing to buy a product from this company as they would have been, if the company had a good image.
Continue….
? Direct marketing- is a form of advertising that
reaches its audience without using traditional formal channels of advertising, such as TV, newspapers or radio. Businesses communicate straight to the consumer with advertising techniques such as fliers, catalogue distribution, promotional letters, and street advertising ? Exhibitions- are try-outs. You make your product, and let potential buyers try the product, this way, you know directly what people see in your product. The downside, your competitor can see exactly what you are doing.
Difference between SP & other approaches
? PS involves face to face contact with specific
individuals, while advertising is directed towards a large no. of potential customers. ? They also help in increasing sales of goods. ? Thus, advertising can be used as means of communication to inform potential customers about the incentives offered for SP. PS can as well include communication of the incentives to individual customers.
Whereas advertising gives a reason to buy, SP gives an incentive to buy
? But, SP differs from advertising and PS in terms of its
approach & technique. ? SP adopts short term method to boost up sales in different ways. ? These offers are not available to the customers throughout the year. These schemes are generally found in the market during festivals, end of seasons, year ending or some other occasions. ? Thus, SP consists of all activities other than advertising & PS that help to increase sales of a particular product.
OBJECTIVES OF SALES PROMOTION
? To introduce new products
? To attract new customers and retain the existing ones
? To maintain sales of seasonal products ? To meet the challenge of competition
TOOLS OF SALES PROMOTION
? Sales promotions are incentives tools used to
temporarily boost sales. They are targeted at three types of audiences:
Customers
? Offering Price offs ? Extra grammage
? Freebies
? Coupons ? Samples ? Money back offer ? Exchange schemes ? Prizes / Contests ? Scratch and win ? Buy one get one free
Intermediaries
? Credits ? Bulk discounts ? Free goods ? Shelf- space display incentives ? Advertising and other promotion allowances ? Co-operative advertising ? Shop salesman incentives ? Distribution awards
Internal customers (Sales force)
? Bonuses ? Contests ? Awards and prizes
Importance of Sales Promotion
? The business world today is the world of competition.
A business cannot survive if its products do not sell in the market. Thus, all marketing activities are undertaken to increase sales. Producers may spend a lot on advertising and personal selling. ? Still the product may not sell. So incentives need to be offered to attract customers to buy the product. Thus sales promotion is important to increase the sale of any product.
Point of view of manufacturers
It is important for manufacturers because: ? It helps to increase sales in a competitive market and thus increases profits ? It helps to introduce new products in the market by drawing the attention of potential customers ? When a new product is introduced or there is chance of fashion or taste of consumers, existing stocks can be quickly disposed off ? It stabilizes sales volume by keeping its customers with them
Point of view of consumers
It is important for consumers because: ? The consumer gets the product at a cheaper rate ? It gives financial benefit to the customers by the way of providing prizes and sending them to visit different places ? The consumer gets all information about the quality, features & uses of different products ? Certain schemes like money back offer creates confidence in the mind of customers about the quality of the product
Promotion at different stage
? Introduction – wise to use heavy promotion to induce
trials and promote brand franchise
? Growth – promotion should be limited ,if any ? Maturity – Higher promotions required since the brand is
under attack from competitors or product quality or advertising effectiveness is tapering off
? Decline – Heavy promotions. Used only to retain a set of
loyal customers. Prior to withdrawal of the product, it could be used as a one time stock clearance from the trade
Essential elements for an effective SP programme
? Significant value before promotion is effective ? Promotions must be part of an overall plan ? Every brand must have a promotion objective and a
strategy statement ? A written tactical plan – time frame, costs, evaluation yardsticks ? Factual knowledge must be gathered to plan ? Specialised professional skill and knowledge must be applied to every promotion operations
Final considerations
? Don’t promote if the product is not good ? 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. ? The objective of the promotion is to wean away users from competition and create new users. ? Excessive promotions lead to diminishing returns and may devalue the brand
Continue
? Promotions may be used in conjunction with advertising
? ? ? ?
and other marketing communication tools It should be novel and attractive Ensure supply lines are good and adequate stock is available right through the promotion Trade has to be handled tactfully Must be within the legal boundaries
Activity for you
? Make an enquiry from the neighboring market
retailers at what time they offer stock clearance sale and why. ? Collect information through advertisements in newspapers and magazines regarding various sales promotion schemes introduced by manufacturers
THANK YOU
doc_849067655.pptx
It covers the basics of Sales Promotion in a very simple manner. Sales promotion refers to many kinds of incentives and techniques directed towards consumers and traders with the intention to produce immediate or short-term sales effects.
SALES PROMOTION
MEANING OF SALES PROMOTION
? Sales promotion refers to many kinds of incentives
and techniques directed towards consumers and traders with the intention to produce immediate or short-term sales effects.
? Sales promotion includes incentive-offering and
interest-creating activities which are generally shortterm marketing events other than advertising, personal selling, publicity and direct marketing. The purpose of sales promotion is to stimulate, motivate and influence the purchase and other desired behavioral responses of the firm’s customers.
Promotional mix
? Advertising- Presentation & promotion of ideas,
goods or services by an identified sponsor. ? Personal selling- A process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation ? Sales promotion- 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.
Continue…..
? Public relations- Paid intimate stimulation of supply
for a product, service, or business unit by planting significant news about it or a favourable presentation of it in the media. ? Corporate image- The Image of an organization is a crucial point in marketing. If the reputation of a company is bad, consumers are less willing to buy a product from this company as they would have been, if the company had a good image.
Continue….
? Direct marketing- is a form of advertising that
reaches its audience without using traditional formal channels of advertising, such as TV, newspapers or radio. Businesses communicate straight to the consumer with advertising techniques such as fliers, catalogue distribution, promotional letters, and street advertising ? Exhibitions- are try-outs. You make your product, and let potential buyers try the product, this way, you know directly what people see in your product. The downside, your competitor can see exactly what you are doing.
Difference between SP & other approaches
? PS involves face to face contact with specific
individuals, while advertising is directed towards a large no. of potential customers. ? They also help in increasing sales of goods. ? Thus, advertising can be used as means of communication to inform potential customers about the incentives offered for SP. PS can as well include communication of the incentives to individual customers.
Whereas advertising gives a reason to buy, SP gives an incentive to buy
? But, SP differs from advertising and PS in terms of its
approach & technique. ? SP adopts short term method to boost up sales in different ways. ? These offers are not available to the customers throughout the year. These schemes are generally found in the market during festivals, end of seasons, year ending or some other occasions. ? Thus, SP consists of all activities other than advertising & PS that help to increase sales of a particular product.
OBJECTIVES OF SALES PROMOTION
? To introduce new products
? To attract new customers and retain the existing ones
? To maintain sales of seasonal products ? To meet the challenge of competition
TOOLS OF SALES PROMOTION
? Sales promotions are incentives tools used to
temporarily boost sales. They are targeted at three types of audiences:
Customers
? Offering Price offs ? Extra grammage
? Freebies
? Coupons ? Samples ? Money back offer ? Exchange schemes ? Prizes / Contests ? Scratch and win ? Buy one get one free
Intermediaries
? Credits ? Bulk discounts ? Free goods ? Shelf- space display incentives ? Advertising and other promotion allowances ? Co-operative advertising ? Shop salesman incentives ? Distribution awards
Internal customers (Sales force)
? Bonuses ? Contests ? Awards and prizes
Importance of Sales Promotion
? The business world today is the world of competition.
A business cannot survive if its products do not sell in the market. Thus, all marketing activities are undertaken to increase sales. Producers may spend a lot on advertising and personal selling. ? Still the product may not sell. So incentives need to be offered to attract customers to buy the product. Thus sales promotion is important to increase the sale of any product.
Point of view of manufacturers
It is important for manufacturers because: ? It helps to increase sales in a competitive market and thus increases profits ? It helps to introduce new products in the market by drawing the attention of potential customers ? When a new product is introduced or there is chance of fashion or taste of consumers, existing stocks can be quickly disposed off ? It stabilizes sales volume by keeping its customers with them
Point of view of consumers
It is important for consumers because: ? The consumer gets the product at a cheaper rate ? It gives financial benefit to the customers by the way of providing prizes and sending them to visit different places ? The consumer gets all information about the quality, features & uses of different products ? Certain schemes like money back offer creates confidence in the mind of customers about the quality of the product
Promotion at different stage
? Introduction – wise to use heavy promotion to induce
trials and promote brand franchise
? Growth – promotion should be limited ,if any ? Maturity – Higher promotions required since the brand is
under attack from competitors or product quality or advertising effectiveness is tapering off
? Decline – Heavy promotions. Used only to retain a set of
loyal customers. Prior to withdrawal of the product, it could be used as a one time stock clearance from the trade
Essential elements for an effective SP programme
? Significant value before promotion is effective ? Promotions must be part of an overall plan ? Every brand must have a promotion objective and a
strategy statement ? A written tactical plan – time frame, costs, evaluation yardsticks ? Factual knowledge must be gathered to plan ? Specialised professional skill and knowledge must be applied to every promotion operations
Final considerations
? Don’t promote if the product is not good ? 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. ? The objective of the promotion is to wean away users from competition and create new users. ? Excessive promotions lead to diminishing returns and may devalue the brand
Continue
? Promotions may be used in conjunction with advertising
? ? ? ?
and other marketing communication tools It should be novel and attractive Ensure supply lines are good and adequate stock is available right through the promotion Trade has to be handled tactfully Must be within the legal boundaries
Activity for you
? Make an enquiry from the neighboring market
retailers at what time they offer stock clearance sale and why. ? Collect information through advertisements in newspapers and magazines regarding various sales promotion schemes introduced by manufacturers
THANK YOU
doc_849067655.pptx