Marketing Term Paper

TERM PAPER OF MARKETING MANAGEMENT TOPIC- The overall objective of promotion is

to stimulate demand for a product. Identify five television

Submittd to; Mr. krishan gopal

submitted by; rohit kr. Ranjan Roll no. –a07 Reg-10903042 Mba 1st

Lovely professional university

ACKNOWLEDGEMENT

In the creation gestation and parturition of this project work several person of the tremendous height and repute offered their valuable assistance and shared with me their scholastic marvel and expertise, vision and whipped up my sagging morale to their kind and sincere encomiums and choicest blessing. Hence with a sense of profound humility, extend my sincere gratitude to all those unsung persons, authorities and academicians who have cooperated me in one way or their giving this project the final shape. For this project, I owe a great deal of indebtedness to my research project guide Mr. Krishnan Gopal for his guidance and providing all help under all circumstance whenever I approached him. I express my deep sense of gratitude for that provided me all the necessary information, guidance and encouragement with whom I was able to solve my problem. So I salute gesture and pay any thanks to him for the ore my heart. I also gratitude my all friends who provide me morale support and information regarding project, I am very thankful to them. I also Extremely to all those person who have supported their valuable time cooperation to work with me on this project. Thanks.

EXECUTIVE SUMMARY

Promotion and Advertising and are an integral part of our social and economic system. In our complex society, advertising has evolved into a vital communication system for both consumers and business. The ability of advertising and other promotional methods to deliver carefully prepared messages to target audiences has given them a major role in the marketing programs of most organizations. Companies ranging from large multinational corporations to small retailers increasingly rely on advertising and promotion to help them market products and services. In market based economies, consumers have learned to rely on advertising and other forms of promotion for information they can use in making purchase decisions. The project emphasizes a lot on the recent trends in promotion activities that are now-a-days full flow to attract customers by new varieties of media and promotion. It emphasize on the consumers different perception about the advertising trends and objectives, and different types of promotion. It shows how consumers react to a certain promotion activity. Efforts have been made to make this record of practical help to those involved in the strategic thinking in similar field/industry. The presentation has been intentionally kept brief for easier understanding and retention of the facts. Illustration has been added where necessary for better presentation and support facts.

SALES PROMOTION

Sales promotion can be gimmicky come-ons or solid marketing strategies. They can attract new customers to your business or keep loyal customers from being wooed by the competition. This project defines sales promotions and discusses the way by which sales promotions help in rewarding the loyal customers. D

O sales promotion deserves a place in your marketing plan? If you are interested in keeping the customers you’ve got, the answer is yes. It costs much more to acquire a new customer than it does to retain one you’ve already got. So reward their loyalty. Sales promotions are an excellent way to stay in touch with current customers and to give them incentives for containing their relationship with your business.

Sales Promotion consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker and/or greater purchase of particular products/services by consumers or the trade. Most sales promotions have a specific duration. They produce result quickly, but once the promotional period is over, those incentive-induced sales tend to taper off. A properly designed sequence of sales promotions can accomplish several marketing objectives: • Encourage an initial purchase. • Foster increased purchases. • Reward repeated purchases and thus encourage even more shopping activity.

In some professions, sales promotions are rare – you hardly ever see a lawyer offer a two –for-one price on divorce, even in services professions. Most service business rely on long term customer relationship. Whereas advertising offers a reason to buy, sales promotion offers an incentive to buy. Sales promotion include tools for consumer promotion (samples, coupons, cash refund offers, prices off, premiums, prizes, free trials, cross promotion, pointof purchase displays, and demonstrations); trade promotion (price off, advertising and displays allowances and free goods); and business and sales-force promotion (trade shows and conventions, contests for sales representatives, and specialty advertising). These tools are used by most organizations, including nonprofit organizations.

Over the past two decade, the popularity of sales promotion has been increasing. Two reasons for this increased popularity are doubtedly the increased increase pressure on management for Short-term result and the emergence of new purchase tracking Technology. For example, many supermarket cash register are now equipped with a device that dispenses coupons to a

Existing Customer are often the best prospects for future sales growth

Customer at the point of purchase. The some objectives of Sales promotion type, and cash amount of the coupon will Very from customer to customer based on their purchases. In essence, it is now possible for the Coca-Cola company to dispense coupons will vary from customer who purchase Pepsi Cola, thus avoiding spending promotional dollars on already-loyal Coke drinkers.

SOME OF THE TARGETS OF SALES PROMOTION ARE: The objective of the sales promotions are different for different targets. The objectives for the consumers, sales people and resellers are as follow:

When directed at consumers: 1. To obtain the trial of a product. 2. To introduce a new of improved product. 3. To encourage repeat or greater usage by current users. 4. To bring more customers into retail stores.

When directed at sales people: 1. To motivate the sales force. 2. To educate the sales force about product improvements. 3. To stabilize a fluctuating sales pattern.

When directed at resellers: 1. To increase reseller inventories. 2. To obtain display and other support for products. 3. To improve product distribution. 4. To obtain more and better shelf space.

5.TOOLS FOR SALES PROMOTION:

Aimed at final consumers or users:  Contests  Coupons  Aisle display  Samples  Trade shows  Point-of-purchase materials  Banners and streamers  Sponsors

Aimed at middlemen:  Price deals  Promotion allowances  Sales contests  Gifts  Trade shows  Meetings  Catalogs  Merchandising aids

Aimed at company’s own sales force:  Contests  Meetings  Portfolios  Displays

 Sales aids  Training materials

PROMOTION STRATEGIES: Sales promotion encourages consumers to seek more promotion rather than more products. For instance, several TV manufacturers gave a 14-inch TV free when a bigger TV was bought. Schemes like this prod the consumers to look at the gift rather than the product. Sometimes companies are taken to court by competitors for giving gifts costlier than the product itself. At others, companies fall into what might be called “Festival Promotion Trap”. The customers know that the company gives a hefty discount on festival sales. So, he/she waits till Diwali and buys the product. Unwittingly, the company trades down its own product.

CONCLUSIONPromotion schemes have to be carefully configured. They should be relevant. The promotional gifts should hold synergies with brand and the product. It is better if it has strategic value like SAMSUNG. But, ultimately, no promotion scheme can salvage a product. Eventually, the product has to fend for itself. A support should not be mistaken for a crutch.

TRENDS IN SALES PROMOTIONThe trends in sales promotion can widely be divided into two parts, trends in trade promotions and trends in consumer promotion. The objective of both the promotion are same, to fasten the sales of the goods and services, they differ in their promotional tools and procedures. These are discussed in detailed below:

Objectives of Trade Sales Promotion: Trade promotions are those promotions aimed at distributors and retailers of products who make up the distribution channel. The major objectives of trade promotion are to: 1. Convince retailers to carry the manufacture’s products, 2. reduce the manufacturer’s and increase the distributor’s and retailer’s inventories, 3. support advertising and consumer sales promotions, 4. encourage retailers to either give the product more favorable shelf space or place more emphasis on selling the product, and 5. serve as a reward for high past sales efforts. Promotions built around price discounts and advertising or other allowances are likely to have higher distributor/retailer participation levels than other type promotions because there is a direct economic incentive attached to the promotion. The importance attached to individual types of promotions may vary by the size of distributor/retaile

Objectives of Consumer Promotion: Consumer promotions can fulfill several distinct objectives for the manufacturer. Some of the more commonly sought-after objectives include: 1. Including the consumer to try the product, 2. rewarding the consumer for brand loyalty, 3. encouraging the consumer to trade up or purchase larger sizes of a product, 4. Stimulating the consumer to make repeat purchase of the product.

Some Commonly Used Forms of Consumers Promotion:  Sampling. Customers are offered regular trial sizes of the product

either free or at a nominal price.  Price deals. Customers are offered discounts form the product’s

regular price.  Bonus packs. Additional amounts of the products are given to buyers

when they purchase the product.  Rebates and refund. Customers are given reimbursements for

purchasing the product either on the spot or through the mail.  Sweepstakes and contests. Prize are available either through chance

selection or games of skill.

 Premium. Probably the most familiar and widely used of all

consumer promotions now often available at point of purchase. In addition to developing pricing policies to cut back on short-term promotion, some consumer products companies are starting to institute frequently marketing programs in which they reward consumers for purchases of products or services over a sustained period of time. These programs are not technically considered sales promotion due to their ongoing nature. Frequency marketing originated in 1981 when American Airlines launched its frequent-flyer program with the intention of securing the loyalty of business travelers.

What Sales Promotion Can and Can’t Do: Advocates of sales promotion often point to it growing popularity as a justification for the argument that we don’t need advertising; sales promotion itself will suffice. Marketers should bear in mind that sales promotion is only one part of well constructed integrated marketing communications program. There are several compelling reason why sales promotion should not be used as the sole promotional tool. These reasons include sales promotion’s inability to 1. Generate long term buyer commitment to a brand in cases, 2. change, except on a temporary basis, declining sales of a product,

3. convince buyers to purchase an otherwise unacceptable product. In addition, promotions can often fuel the flames of competitive retaliation far more than other marketing activities. When the competition gets drawn into the promotion war, the effect can be a significant slowing of the sharp sales increases predicted by the initiator of the promotion. Worse yet, promotions can often devalue the image of the promoted brand in the consumer’s eyes.

SALES PROMOTION

Consumer-Oriented Promotions: 1. Samples 2. Coupons 3. Premiums 4. Refunds/Rebates 5. Bonus Packs

6. Price-Offs 7. Contests/Sweepstakes 8. Frequency programs 9. Event Marketing

Sampling: Sampling involves a variety of procedures, whereby consumers are given some quantity of no charge to induce trial. Sampling is generally considered the most effective way to generate trial, although it is also the most expensive. As a sales promotion technique, sampling is often used to introduce a new product or brand to the market. Manufacturers of packaged-goods products such as food, health care items, cosmetics, and toiletries are heavy users of sampling since their products meet the three criteria foe an effective sampling program:  The products are of relatively low unit value, so samples do not cost too much.  The products are divisible, which means they can be broken into small sample size that are adequate for demonstrating the brand’s features and benefits to the user.

 The purchase cycle is relatively short, so the consumer will consider an immediate purchase or will not forget about the brand before the next purchase occasion.

Couponing: The oldest, most widely used, and most effective sales promotion tool is the pricesoff coupons. Coupons make it possible to offer a price reduction only to those consumers who are price-sensitive. Coupons also make it possible to reduce the retail price of the product without relying on retailers for cooperation. Coupons can encourage repurchase after initial trial. The product category where coupons are used most is disposable diapers, followed by cereal, detergent, and deodorant. Some of the product categories where coupons are used the least are carbonated beverages, candy, and gum. But there are a number of problems with coupons. It can be difficult to estimate how many consumer will use a coupons and when. Response to a coupon is rarely immediate; it typically takes anywhere from two to six month to redeem one. However, coupons remain less effective than sampling for including initial product trial in a short period. Another problem with coupon promotions is misredemption or fraud which can occur in a number of ways, including:  Redemption of coupons by consumers for a product or size not specified on the coupons.  Redemption of coupons by salesclerks in exchange for cash.

Premiums: A premium is an offer of an item of merchandise or services either free or at a low price that is an extra incentive for purchases. The two basic types of offer are the free premium and the self-liquidating premium. Free premium are usually gifts or merchandise included in the product package or sent to consumers who mail in a request along with a proof of purchase. Free premium have become very popular in the restaurant industry, particularly among fast-food chains such as McDonald’s and Burger King, which use premium offers in their kid’s meal to attract children. Self-Liquidating Premium require the consumer to pay some or all of the cost of he premium plus handling and mailing costs. The cost marketers usually purchases items used as self-liquidating premiums in large quantities and offers them to the consumers at lower-than-retail prices. The goal is not to make a profit on the premium item but rather just to cover costs and offer a value to the consumer. In addition to cost savings, self liquidating premium offer several advantages to marketers. Offering values to consumers through he premium products can create interest in the brand and goodwill that enhance the brand’s image.

Contests & Sweepstakes: A contest is a promotion where consumer competes for prizes or money on the basis of skill or ability. The company determines winners by judging the entries or ascertaining which entry comes closest to some predetermined criteria. Contests

usually provide a purchase incentive by requiring a proof of purchase to enter or an entry form that is available from a dealer or visit a store display to gather information needed to enter. Marketer must be careful not to make their contests too difficult to enter, as doing so might discourage participation among key prospects in the target audiences.

Sweepstakes is a promotion where winners are determined purely by chance; it cannot require a proof of purchase as a condition for entry. Entrant needs only submit their names for the prize drawing. While there is often an official entry form, handwritten entries must also be permitted. One form of sweepstakes is a game instant winner is a popular promotional tool. Some games occur over a longer period and require more involvement by the consumers. Promotions where consumers must collect game pieces are popular among retailers and fast-food chains as a way to build store traffic and repeat purchase.

Refunds & Rebates: Refunds are offers by the manufacturer to return a portion of a new product purchase price, usually after the consumer supplies some proof of purchase. Consumers are generally very responsive to rebate offers, particularly as the size of saving increase. Rebates are used by the makers of all types of products, ranging from packaged goods to major appliances, cars, and computer software. Packaged-goods marketers often refund offers to induce trial of a new product or encourage users of another brand to switch. Consumers may perceive the savings

offered through a cash refund as an immediate value that lowers the cost of the item, even through those savings are realized only if the consumers redeems the consumers redeem the refund or rebate offer.

Rebate have become a widely used form of promotion for consumer durable s. products such as cameras, sporting goods, appliances, television, audio and video equipment, computers, and cars frequently use rebate offers to appeal to price conscious consumers. Rebates are now common not only in the auto industry and other durable products but for packaged-goods products as well.

Bonus Packs: Bonus packs offers the consumer an extra amount of product at the regular price by providing larger containers or extra units. Bonus packs result in a lower cost per unit for the consumer and provide extra value as well as more products for the money. There are several advantages to bonus pack promotions. First, they give marketers a direct way to provide extra value without having to get involved with complicated coupons and refund offers. The additional value of a bonus pack is generally obvious to the consumers and can have a strong impact on the purchase decision at the time of purchase. Bonus packs can also be an effective defensive maneuver against a competitor’s promotion or introduction of a new brand.

Event Marketing:

Another type of consumer oriented promotion that has become very popular very in recent years is the use of event marketing. Event marketing is a type of promotion where a company or brand is linked to an event or where a termed activity is developed for the purpose of creating experiences for consumers and promoting a product or service. Marketers often do event marketing by associating by associating their product with some popular activity such as a sporting event, concert, fair, or festival. However, marketers also create their own events to use as a promotional purpose.

Price-Off DealsAnother consumer oriented promotion technique is the direct price-off deal, which reduce the price of the brand price-off reductions are typically offered right on the package through specially marked price packs. Typically price-off range from 10 to 25 percent off the regular price, with the reduction coming out of the manufacturer’s profit margin, not the retailer’s. Keeping the retailer’s margin during price-off promotion maintain its support and cooperation.

Frequency Program:

One of the fastest-growing areas of sales promotion is the use of frequency program (also known as continuity or loyalty programs). Many packaged-goods companies are also developing frequently programs. Pillsbury, Nestle, Kraft, and others have recently introduced frequency program that offers consumers the opportunity to accumulate points for continuing to purchase their brands; the points can be redeemed for gifts and prizes.

Trade-Oriented Promotion:

10.Contests and dealer Incentive 11.Point-of purchase Display 12.Training Program 13.Trade Allowance 14.Trade Shows 15.Cooperative Advertising

Reasons for Increase in Sales Promotion: The reallocation of the marketing budget concerned many marketers who still viewed media advertising as the primary tool for brand building and saw sales promotion program as little more than gimmicks that contributed little to brand equity. However, most have recognized that consumers may love certain brands but often want an extra incentive to buy them. A major reason for the increase in spending on sales promotion is that the promotion the promotion industry has matured over the past several decades. Increased sophistication and a more strategic role and focus have elevated the discipline and its role in the IMC program of many companies. In the past, sales promotion specialists would be brought in after key strategic branding decisions were made. Promotional agencies were viewed primarily as tacticians whose role was to develop a promotional program such as a contests or a coupon or sampling program that could create a short term increase in sales. there are also number of factors that have led to the increase in the importance of sales promotion and the shift in marketing dollars from media advertising to consumer and trade promotion. Among them are the growing power of retailers, declining brand loyalty, increased promotional sensitivity, and brand proliferation, fragmentation of the consumer market, short term focus of many marketers, increased accountability, competition, and clutter.

RESEARCH METHODOLOGY:-

METHODOLOGY The purpose of methodology is to describe research procedure. A research can not be conducted abruptly. Several steps are to be taken in a systematic manner in order to make research effective. These steps are:

1. Research Design A research design is basic framework for a particular research process. It is of two types: 1. Explanatory

2. Conclusive 2. Data Collection Method: There two methods of data collecting first one is Primary method and second one is Secondary method. In this research Data was collected from secondary source because the objective of the study was to find out the recent trends in sales promotion and advertising. We can find these information through books, magazines, journals, & Internet etc.

FindingsPerhaps because coupons and temporary price reduction are most common form of sales promotion, most research has assumed that monetary savings is the only consumer benefit of sales promotions. Consequently while many studies have examined the cost of promotion usages comparatively few have examined their benefit to the consumer. The first purpose of this research was, therefore, to provide an integrative framework of the consumer benefits of sales promotions. In a second step, we examined the implications of the existence of multiple hedonic and utilitarian benefit for the effectiveness of sales promotion offering different benefits. Before detailing these implications, consider three conclusions of this research: 1. Sales promotion can provide consumers with an array of hedonic and utilitarian benefit beyond monetary savings. Hedonic benefits include valueexpression entertainment, and exploration. Along with simple monetary savings, utilitarian benefit also include product quality and shopping convenience. 2. Non-monetary promotions provide more hedonic benefits and fewer

utilitarian benefits than monetary promotions. All benefits, except quality, contribute to the overall evaluation of monetary and non-monetary promotions.

3. For high-equity brands, sales promotions are more effective when they

provide benefits that are congruent with those provided by the product being promoted. Specifically, monetary promotions are more effective for utilitarian products than for hedonic product than for utilitarian products. Understanding consumer response to sales promotions. The multi-benefit framework provides new insights into the question raised earlier in the paper. Why do consumers respond more to an on-self coupons than to a similarly advertised temporary price reduction offering the same monetary incentives?

One explanation may be that coupons offer stronger value-expression benefits since collecting and redeeming coupons requires more skill and effort than buying products on sale. Coupons usages, therefore, more clearly signals that “smart shopping” skills values of their user, and may superiorly enhance her social prestige and help her fulfill her personal values and moral obligations. Sales promotion can provide perception of monetary savings by lowering the unit price of the promoted product, by offering more of the same product for free, or buy providing refunds or rebates on subsequent purchases of the same or other products. Both the size of the price reduction and the deviation from a reference price can create perceptions of monetary savings and can reduce the pain of paying. “A promotion is a price cut or a larger package size for same price.” “A promotion is like new money in your pocket that you can to buy something else.”

By reducing the price of the product, or the product, or by offering a smaller package size, sales promotions can relax budget constraints and enable consumers to upgrade to a better product. Sales promotions can improve shopping efficiency by reducing search costs. This is done by helping consumers find the product they want or buy reminding them of a product that they need to buy. Sales promotion can also improve shopping efficiency by reducing decision costs. This is done by providing consumers with an easy decision heuristic for purchase quantity, and by signaling product price and quantity.

Recommendations• This study help us to find out the best and cheapest advertising and sales promotion methods. • This study save our valuable time and money to choose a best advertising method • Benefits of products can be demonstrated most effectively by advertising. • Advertisement gets the full attention of the people. • Advertising is done with a positive objective of awareness, persuasion or reinforcement. • Advertising is the most visible marketing tool which seeks to transmit an effective message from the marketer to a group of individuals. • Including the consumer to try the product,

• rewarding the consumer for brand loyalty, • encouraging the consumer to trade up or purchase larger sizes of a product, • Stimulating the consumer to make repeat purchase of the product.

Why do consumers respond to sales promotion? Behavioral research on sales promotions has tended to focus on the demographics of deal-prone consumers and on the identification of personal traits such as “coupons proneness,” “value-consciousness,” or “market” mavenism”. These studies offer a coherent portrait of the demographic and psychographic characteristics of deal-prone consumers. However, because of their focus on individual variables, these studies do not examine the nature, and the number, of the specific consumer benefits of sales promotions. As a result, most analytical and econometric model of sales promotions simply assume that monetary savings are the only benefit motivating consumers to respond sales promotions.

Why do consumers respond to insignificant price reductions? The surprisingly strong response to sale promotion signals in the absence of significant price reduction may be explained by the convenience benefit. Promotion signals can increase shopping convenience by reducing search costs (because the brand is more visible at the point of purchase), and by reducing

decision costs (because it provides a simple justification for the choice of the promoted product).

HOW TO INCREASE THE DEMAND OF FIVE TELIVISION In present scenario top player for colour television are • LG • VIDEOCON • SAMSUNG • ONIDA • BPL

LG ELECTRONICS LG Electronics rightly understood the consumer motivations to create magneti cproducts, price them strategically, position them sharply and keep making them agnetism more potent. Having understood the finer differences in consumer motivations, it opted for sharp- arrow ‘reasons-to-buy’ differentiation over the ‘blanket-all approach’ taken by most of the other players. It is an aggressive marketer. It focuses on low and medium price products.

SAMSUNG Initially the strategy of Samsung in India was to create premium image by emphasising global brand. After facing stiff competition from another Korean major- LG, Samsung also started playing price game. In 2004 it reverted back to its premium positioning, although it resulted in some loss of market share. In line with the Global Digital Initiative of the Parent Company, Samsung India is seeking to acquire digital leadership in India by introducing its digital ready televisions like the 40" LCD Projection TV, 43" Projection TV and the Plano series of Flat Colour television

VIDEOCON Videocon has always been a price player and has an image of a low price brand. This entails providing more features at a given price vis-à-vis competitors. It has taken over multinational brands to cater to unserved segments, like Sansui- to flank the flagship brand Videocon in the low to mid priced segment, essentially to fight against brands like BPL, Philips, Onida and taken over Akai- tail end brand for brands like Aiwa. Videocon is one of the largest manufacturers of television and its components in India and thus has advantages of economies of scale and low cost due to indigenisation. It has the widest distribution network in India with more than 5000 dealers in the major cities. It also has a strong base in the semi-urban and rural markets. Due to its multi-brand strategy, it has at present multiple brands at the same price point. This has led to a state of diffused positioning for its brands. It has also led to a cannibalisation of sales among these brands. The flagship brand Videocon has lost market share due to the presence of Sansui in the same segment. Because of reduction in import duties on CPT the cost advantage of Videocon is also on the decline. Hence it is facing rough weather and also trying to boost exports. Besides understanding the strategy adopted by different players, several other factorsindustry growth, concentration and balance, corporate stakes, fixed cost, and product differences need to be analysed to determine the extent of rivalry between the existing Players.

ONIDA Its popular devil ad although had engendered a strong emotional pull towards the brand, technologically it represented no advancement. The company plugged the gap by touting its digital technology. Like Videocon, it has also been able to hold its market share. The world-class quality of Onida has enabled the company to make a breakthrough on the export front. It has technical tie- up with the Japan Victor Company, better known as JVC. So focused is Onida on positioning itself on the premium, high- tech plank that it is even planning to push its own envelope on obsolescence, much. The strategy is aimed at further broad basing the product

offering of the company, which has largely dominated the top-end of the television market, across multiple market segments.

Objective OF PROMOTIONAL ACTIVITIES OF TELIVISIONS To have an overview of Televisions. • To know the reputation of T.V. in the market. • How the consumer preference towards the brand Televisions. • The main objective how to increase the reputation of Televisions brand in the market. • To understand its competitors in business. • How Televisions will create a good image in the market. • To understand the 4 Ps used by the Televisions in business.

COMMON PURPOSE FOR INCREASE SALES Sample unit: Generally customers as a source of primary data collection have been surveyed for the purpose of obtaining information.

Sample size

For this research work due to time constraint the sample size taken is 250.

Sampling procedure: Consumers have been surveyed through the questionnaire in personnel.

EFFECTIVENESS OF PROMOTIONAL ACTIVITIES The main purpose of the study is to know the effectiveness of the promotional Activities in the home appliances (TELEVISION) industry. From the study we Expect to know to what extent the promotional activity benefited to the industry and what the things are that customer expects to do from the industry to improve sales. The effectiveness of promotional activities helps the company to increase the sales and encourage the repeat purchase. We also try to know the awareness of the sales promotional activities as advertising plays an important role in sales Promotion.

Particulars L.G SAMSUNG ONIDA VIDEOCON BPL

No of respondents 107 55 53 50 48

Percentag 43 22 21 19 17

Sales Promotions Outcomes The simplest way to promote your product or service is to cut the price. The best way to promote the product is by adding value to it. So to add the value, sales promotions become the strategic tools when its not utilize for immediate response solution. The actual saving on any promotions is determined by the original retail price which can vary significantly between retailers. A sales promotion ‘trap’ develop when the competition start to imitate each other activities often based upon price reductions. In general, sales promotions work best when they attract competitors, customers to try a superior product and the switched customers. So using the Sales Promotions, the company must establish their objectives and select the strategic sales promotions tools.

CONCLUSION

Sales promotion is a most important aspect in any company, the studywa conducted in the home appliances industry regarding sales promotion. The Researcher was helpful to gain some knowledge about the organization and also about sales promotion conducted in the organization. The company is getting the feedback from the respondents who are using the television. Based on the study made the researcher has given few findings and suggestions regarding the sales promotions of the industry. All the five companies that are LG, SAMSUMG, ONIDA, VIDEOCON and B P L companies will be able to face the steep competition from the local manufacturers who are also quite competent with the Television manufacturing technology. Since price is the main factor for most buyers, companies will be able to stay in the market with competitive price and may be with a lower profit margin, which can be compensated through flat screen. This technology is not readily available with the local manufacturers. Companies will be able to convince the customers in a dignified manner rather than buying their minds through gift schemes.

BIBLIOGRAPHY Reference Books :-

 Krishnaswamy K.N., Research methodology, II Edition, Published by Dorling Kindersley (India) Pvt. Ltd .  Kotler Philip, Marketing Management, IX Edition, Published by Ashok K. Gosh prentice hall of (India) Pvt. Ltd.  Belch & Belch, Advertising & Promotion, III Edition, Published by TATA McGraw-Hill Edition.

Magazines : Business Toady  Advertising Express

News Papers: Economic Times

Websites:Http: www.videconworld.com • http: www.google.com • http: www.wikipedia.org • www.in.lge.com http://en.wikipedia.org/wiki/Sales_promotion

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