Sales Promotion

Sales Promotion Assignment - 1

Submitted By Kamta Prasad ID No. -0808004 PGDM - V 10/24/09

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Definition It

is a part of promotional mix. The other three parts of the promotional mix are advertising, personal selling, and publicity/public relations. Sales promotion Consists of Diverse Collection of Incentive Tools, mostly short term designed to stimulate quicker or greater purchase of particular product or Services by Consumers or the Trade. 

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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.

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Characteristics Communication:

They gain

attention and usually provide information that may lead the customer to the product. Incentive: They incorporate some concession, inducement, or contribution that gives value to the consumer. Invitation: They include a distinct invitation to engage in 10/24/09

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Objective  To

 To modify attitudes increase sales  To attract new  To create an image customers  To position a  To retain existing product ones  To improve  To encourage position in the customer loyalty market  To create  To pull the product awareness through channels  To inform  To push the product through  To remind channels  To ensure 10/24/09 5

Sales promotion decisions Establishing Objectives

Selecting Trade promotion Tools

Selecting consumer Promotion tools

Selecting Business & Sales Force Promotion Tools

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Promotion mix Sales

Promotion Advertising Personal selling Publicity 

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Sales promotion Tactical

point of sale material or inducements designed to stimulate purchases Short term incentives to increase sales Some promotions are aimed at consumers, some at intermediaries and others at the salesforce E.g.: coupons, leaflets, demonstrations, samples, free gifts, point of sale10/24/09

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Sales promotion Incentives

provide a quick boost

to sales Effects maybe short term only Excess use of some incentives may adversely effect brand image

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Advertising “Advertising is telling and selling” Advertising thus denotes the means

employed to draw attention to any object or purpose. “It is a paid form of non personal presentation an promotion of ideas, goods or services by an identified sponsor.”   10/24/09

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Advertising STRENGTHS

WEAKNESSES

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- Expensive - Impersonal - One way communication - Lacks flexibility -

Wide coverage Awareness/Hype Control of msg Can be used to build brand loyalty

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Personal Selling Promotion

on a person to person

basis Two way communication Carried out through telephone, at meetings, at retail outlets & door to door selling High priced, low volume and highly technical products rely heavily on personal selling 10/24/09

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Personal Selling STRENGTHS

WEAKNESSES

 Great

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attention  Msg is customized  Persuasive impact  Potential for development of relationship  Adaptable  Opportunity to close sale call

High cost Labor intensive Expensive Can only reach a limited no. of customers

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Publicity Release

of a commercially significant news about a particular product or service Purpose is to obtain a favorable presentation of such news via a medium not paid for by a sponsor Involves getting media coverage of an event or product launch / articles in newspapers 10/24/09

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