In the store, red or yellow sale signs on labels denote sale products with reduced price points. Hire an advertising agency, public relations firm or marketing specialist to analyse your current advertising strategy or develop one for you. These are some of the commonly found sales promotion measures practiced by the modern small business enterprises. (i) Where incomes are lower, people are usually even more interested in “something for nothing,” such as free samples, premiums or contests. They prefer direct mailing to customers in foreign countries or to participate in fairs and exhibitions. A sales manager is interested in any approach that will help persuade customers to buy. Firm’s level of commitment to international operations will determined its promotion strategy. Unlike long-term advertising, sales promotions are driven by a price orientation. According to L.K. Sales promotion is an important and specialised function of marketing. Price-Off Promotion – This device of consumer oriented sales promotion provides an opportunity to the purchasers to get the product at a reduced price. Salesmen can report about the effects of the different advertising and other promotional appeals as they are in close touch with the market conditions. (i) The customer becomes deal-prone rather than advertisement prone. In such circumstances, the promotional message, theme and other properties of the media may be adjusted. 2. (vii) Promotions to motivate sales force and channel members. Sales revenue is the important source of income also. In designing its promotion policy or strategy for the target market, a firm should not ignore the promotion strategies, policies, program and promo tools undertaken by the competitors in the market. It is said that “nothing happens until somebody sales something.” Sales promotion is, there. Philips Kotler has classified sales promotional activities into three kinds: Sales promotion directed towards consumers may be done either to increase the use of the product among the existing consumers or to attract the new customers or to retaliate against the competitor’s sales activities. 2. In short, Sales Promotion is any activity which supplements or improves the effectiveness of personal selling and advertising. Advertising and sales promotion, being parts of the marketing mix, should be integrated with the marketing objectives and coordinated with other selling effort such as the efforts of salesmen. Pamphlets are small booklets often used for educational or instructional purposes. Assurance to return money is given and price is reduced. The analysis of such information may help to know the following conclusions relating to the consumers: (i) The number of consumers who have remembered the technique used. Compute the CPT (Cost per thousand) for different communication media. In such cases standardized promotional strategy can be used throughout the world. For example soft drinks like coca cola, satisfy the same basic need – thirst of the consumers in different countries. Thus techniques are generally used to convert the awareness of the consumer created by advertising into a concrete buying decision. But firms having large financial resources, on the other hand, prefer to use advertising and other sales promotion methods to promote their products in world markets. Money Refund Offer – Offer of a refund of money to consumer, for mailing in a proof of purchase of a product. Features 6. Sales promotions bring advantages to the providers, the middlemen and to the consumers. Promotion means to increase. Display of Products – The retailers organize attractive display of certain products in the windows of their shops. A media which is easily available in domestic country need not necessarily be available in the foreign market. Many middlemen work in business. Points to be Considered for a Successful Promotion. According to Philip Kotler – “Sales promotion consists of a diverse collection of incentive tools, mostly short-term, designed to stimulate quicker and/or greater purchase of particular product/services by consumers or the trade.” Effective sale is coordinated with different promotional tools. (v) Do they suggest for any change or improvement in the technique used? Local newspapers and weekly print mailers are also common, as retailers of all sizes use these to promote sales promotion events or to offer specific promotions on select items each week. 6. Countries having low rate of literacy, may not have sufficient number of journals for advertisements. Sales promotion refers to the activities which supplement and co-ordinate personal selling and advertising to attract customers to buy a product. J. Stanton, “Sales promotion is an exercise in information persuasion and influence”. Image Guidelines 5. Increased volume of sales results in large scale production which ultimately lowers the unit cost. Hence it is possible for a firm selling soft drink to use common promotional themes in all the markets. Elements of a Sales Promotion. Different sales promotion policies are directed towards achieving certain objectives like maintaining sales during off season, to increase sales during a festive season, to combat competition, to clear stocks, to improve image, to promote new products, etc. When the expected results are not achieved, the expenses made on sales promotion increase the marketing costs, thereby increasing the price of the product. Sales Organisation: 4 Forms of Sales Organisation – Explained. Content Guidelines 2. vi. 3. What Are the Characteristics That Distinguish a Sales Promotion From Advertising. Finally, the firm should evaluate the environmental factors like the level of economic development of a country, the disposable income of the people, consumer’s preferences and attitudes towards advertising and sales presentation, competitor’s promotion strategies and the legal requirements in a given foreign market. Before publishing your articles on this site, please read the following pages: 1. Some of them are discussed below. Excessive use of sales promotion may affect sales and reputation of company adversely. In general, all the efforts made by a firm to increase its sales are included in sales promotion. Premium as a promotional tool is used for various purposes like to introduce a new product, to attract new customers, to improve off season sale, to discourage competitions, etc. Sales promotions are a common tool used by retailers to attract customers in short order. Point-of-Purchase Displays are displays which help the customer make a selection without help from the salesperson. 11. Share Your PPT File, Sales Promotion in Marketing – Meaning, Definitions, Concept, Features, Types, Functions, Methods and Other Details. In countries where such legislations do not exists the trade has developed its own code of advertising which acts as a self-disciplinary system of control. For instance a frequent offering of discount on purchase to customer, or discount at a specific time during the year or after a specific time interval may result into a speculative attitude amongst customers, as they may hold back their purchases till the discount is offered and purchases only when discount is offered thus damaging the regular sales. Inserts are printed pieces inserted in the daily newspapers. Brochure is book bound or stitched or stapled in semi-permanent form carrying a complete presentation. It makes advertisement and personal selling more effective. The sales promotion manager has to identify whether the change in demands were due to the use of promotional techniques or due to some other factors like competition, economic condition, or change in customer characteristics. (b) Certain words or expressions that may be mis­interpreted by consumer or may deceive them are prohibited to use. The better way in such cases may be to localize the product. 5. It is easier for the middlemen to sell the product popularly advertised and promoted. Neil Kokemuller has been an active business, finance and education writer and content media website developer since 2007. He has been a college marketing professor since 2004. The promotion prompted more consumers to buy Happy Meals in an effort to add to their Smurf collections. 545/- Free. Incentive – They incorporate some concession, inducement, or contribution that gives the value to the consumer. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. (The other three parts of the promotional mix are advertising, personal selling, and publicity/public relations). Louis J. Haugh defined sales promotion as “a direct inducement that offers an extra value or incentive for the product to the sales force, distributors, or the ultimate consumer with the primary objective of creating an immediate sale.”, As analysed by L. Percy “sales promotion, or what we call traditional promotion, is usually defined as any direct purchasing incentive, reward, or promise that is offered for making a specific purchase or taking a specific purchase-related action.”, As expressed by John F Luick and Willim L. Zeigler, “sales promotion includes those activities, which enhance and support mass selling and personal selling and which help to compete and/or coordinate the entire promotional mix and make the marketing mix more effective.”. Visual aids are that part of the sales presentation which demonstrates by being seen, such as- charts, slides, and the like.

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