Q.1 Define sales promotion? What is the nature, role & importance of salespromotion?ORWhat is sales promotion? Discuss the nature, role & importance of salespromotion.Ans.:
Sales promotion is a key factor & strategy for marketers within the promotionalmix. Sales promotion refers to many kinds of incentives & techniques directedtowards consumers & traders with the intention to produce immediate or shortterm effects. Sales promotion helps in stimulating trial or purchase by finalcustomers or others in the channel. A marketer can increase the value of itsproduct by offering an extra incentive to purchase a product or brand. A fewdefinitions are quoted below:-1.
American Marketing Association - Sales promotions is media & non mediamarketing pressure applied for a predetermined, limited period of time in order tostimulate trial & impulse purchases, increase consumer demand or improveproduct quality.2.
Council of Sales Promotion Agencies – sales promotion is a marketing disciplinethat utilizes a variety of incentives techniques to structure sales related programstargeted to consumers/trade/ and or sales level, that generate a specific measurableaction or response for a product/service.3.
Institute of sales promotion, U.K. – “Sales promotion comprises that range of techniques used to attain sales/marketing objectives a cost effective manneradding value to a product or service either to intermediate or end users, normallybut not exclusively within a definite time period”.Sales promotions have 3 distinct characteristics –(a)
Communication – They gain attention & usually provide information that maylead the consumer to the product.(b)
Incentive – They give certain concession, inducement or contribution thatgives value to the consumer.(c)
Invitation – They invite a distinct invitation to engage in the tre.
Nature of sales promotion:-
Irregular / non recurring activity- Sales promotion is an irregular & non recurringactivity to increase the sales & this technique is used for specific situations only
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