Sales Promotion & Methods ADV

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SALES

PROMOTION

Prepared by Vimal Rajbanshi


Steps In Promotion
Mix
Steps In Promotion
Mix
1. Identify Target Audience :-
The target audience is a major
influence factor in promotion decisions as what to say, how to
say it, and whom to say it.
2. Determine The Promotion Objectives :-
In this stage,
communication objectives are determined which may vary in
different situations.
3. Design The Message :-
In this step, the effective message is
designed according to targeted audience.
4. Determine Marketing Promotion Budget :-
It is one of the
most crucial decision in which it is decided how much to
spend on promotional activities.
5.Selecting Communication Channels:-
At this stage efficient
communication channels are selected to transmit the
message.
6. Deciding Communication Mix:-
Keeping in view the different
environment decision is taken about appropriate
communication mix.
7. Measuring Communication Results:-
In this stage the results of
communication are measured members of target audience are
asked whether they recognize or recall the message, how
Prepared by Vimal Rajbanshi
Sales
Introduction:-Promotion
• Sales promotion techniques were firstly used in
the year 1930. When the global recession started
from the United States of America. It was the
time of transformation of “SELLERS’ MARKET”
into the “BUYERS’ MARKET” at the global level.
• It refers to the short term incentives.
• To encourage purchases or sales of a product
or service
• Its aim is to inform, to persuade and to
remind.
SALES PROMOTION
•The set of marketing activities
undertaken to boost sales of the
product or service

•Process of persuading a
potential customer to buy the
product.

Prepared by Vimal Rajbanshi


Definitions :
-
“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”.
:-“ Philip Kotler”
“Sales promotion is an organized effort applied
to the selling job to secure the greatest
effectiveness for advertising and for dealers”.
:-“ G.W. Hopkins”
Characteristic
s
Sales promotion is useful for new as well as existing
products.
Sales promotion are marketing events.

Sales promotion are design to have a direct impact


on consumer behavior.
Sales promotion are designed to influence consumers
or marketing intermediaries.
Sales promotion has become the fastest-growing
method
Techniques of Sales
Promotion
1.Consumer
Promotion
1.Sample
Samples are as
trial of a product. This is generally the most powerful
form of promotion for “new products”. It simply means offer of a
free product or service.
2.Coupon
Coupons s
are a certificate which offer price reduction to consumers for
specified items. Coupons bear a date of expiry and can't be redeemed
after the cut off date.
3.Contests
Consumers contests are organized to attract the
participation of a widely scattered consumers base.
The success of a contests is depends on the prizes.
4.Advertising Specializes
Advertising Specializes useful articles imprinted
with the advertisers names ,logo or message that
are given as a gift to consumer. It is also known
as promotional product.
5.Event Sponsorship
Events like TV shows, matches and sitcoms
are sponsored by various products to increase
demand.
6.Sweepstakes
It gives customers chance to win like scratch and
win offers. The winners are determined by a
drawing from all entry forms.
7.Premium (gifts)
A premium (gifts) is a reward given to the
customers for purchasing a product. Premiums
are offered at low cost or for free.
8.Cash Refund
It is a scheme in which customers are promised
to get refund of money on submission of cash
memo of the product.
Seven Most Popular Consumer
Promotion Techniques
S.NO. NAME OF TECHNIQUES USING PERCENTAGE OF
MARKETERS
1 COUPONS IN RETAIL ADS 90

2 IN-STORE COUPONS 88

3 REFUNDS 85

4 DISPLAYS 83

5 SAMPLES 78

6 PRMIUMS 75

7 SWEEPSTAKES 70

Source:- Marketing Management (Kothari,


Mehta, Sharma) R.B.D. Publications
2..Trade/Middleman
Promotions
1.Discount
It is also known as price-off. The discount is
provided on the bases of amount of purchase by
the whole seller or retailer.
2.Allowanc
e
In this method allowances are offered to
wholesalers and retailers for purchasing or
promotion specific products.
3.Trade Shows
In this scheme vendors display their products.
These trade shows are organized by industry
trade associations.
4. Free Goods
It is in the form of extra quantity of
purchased product, "free”. Free goods
encourage sellers to stock more during
promotion period.
5. Cash Rebate
It is an incentive that gives retailsales people
cash rewards for every unit of a product they
sell. It is a monetary reward given to the sales
force of the dealers.
6. Dealers
Contest
• These are run by the manufacturers to induce
retailers and their salespeople to increase
sales and to promote product.
3.Sales Force
Promotions
1. Sales
Sales contests Contests
are organized by the manufacturer in
this scheme and rewards are provided to
salesmen who have achieved exceptional targets.
2. Sales Training Manuals
Training materials such as manuals, visual aids, flip
charts, programmed learning books, etc. , are useful
to sales people.
3. Sales Meetings
Sales meetings are generally organized
for sales people from one area, region,
or district.
4. Demonstration
Demonstration of technical product clarify many
points to the salesmen which is useful when queries
are made to the salesmen by the prospects.
1.
8. Demand Competitive 2. Increase
Creation Advantage In Sales

3. Brand
7. Product Advantage Switching
Life s
Cycle

5. Reduced 4. Specific
6. Goodwill
Costs
Objectives

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