ems. a ss gales method, the base is the physical yo or anticipated sales, This figure of units is ¢ by a fixed amount of money to reach the budget am For example, the manufacturer might allocate Re. 4 allocation oe SPen unit for sales promotion, eee 4 di tined by the Netanetig! 3, Competitive parity method INE the mone may one oth Many marketers match or base their sales promotion, °5 relevant ¢ 'y Alec budget to that of the major competitors. This method Renae 'ACtors Such a evaluates the sales Promotion strategies of the competitors to CYcle, the She, prepare the sales promotion budget. y, etc, inate All these ai. Affordable method : ig, Inusing this approach to budget allocation, the amount ES PROMOTION pep that is leftover after all other relevant allocations have been BI made, is allotted for sales promotion. This approach is used, tate Comm) generally, by companies with small budget. locate funds to salespromsix 5 nt techniques th Objective end task method ethod Objective end task method is driven by strategy. The pular among compais it by making a thorough study of b j the market, the product, competition and consumer i y taking afi p : P ‘ etermined by taking promotion ma Jd petit behaviour in order to setup appropriate promotion objectives. s figure taken o ast These objectives may relate to increasing short-term sales OF everal past rage of 5 : casted d on the fore (i Mtoducing a new product. Next step is to determine how much money would be necessary to accomplish each task involved in achieving the objectives. If the costs happen to bemore than the money available, then either the promotion gt “biectives are adjusted or more funds are made available by — “ tional activities. ly used by oe 7 Teducing the budgets of the other promot sume! ally consum™ nd goal! g machines= different Methods to n A '€ Most common. during and after a sales promotion camp: SALES PROMOTION BUDGET Sales promotion budget refers to the amount of Set aside for sales promotion activities. A sales promotion budget estimates the cost of sales promotion campaign so as to avoid over spending and under spending on sales Promotion activities. The allocation of monetary resources tp sales promotion is determined by the promotional strategy of the firm. Before deciding the money allocated to sales promotion, a firm evaluates relevant factors such as type of product, its stage in product life cycle, the market situation, level of competitive activity, etc. All these factors influence the sales promotion budget. PREPARATION OF SALES PROMOTION BUDGET There are five important techniques that are commonly used to prepare budget and allocate ds to sales promotion; 1. Percentage of sales method The method is most popular among companies. Inthis approach, the budget is determined by taking a fixed percentage of sales. The sales figure taken could pertain to the previous year, or the average of several past years. This percentage could also be based on the forecasted sales ofthe year under consideration, 2. Unit of sales method 5 dealing in high-priced products, generally consumer er such as refrigerators, washing machines and many This method is commonly used by companies other padget | evaluate: prepare | 4 Afi Int that is le made, is generally 5. Ob Ob; Promotic ‘he mar ®haviou Se ob Atoduc; Nuch m, ‘ Velveg Tore j Yective “teingACerS ANd Sts Premon Age fi 6 Sales promotion, pep ; ders avid PUbILCRelations) a oan Diet Marketing im oq t 4, Formulati; ese ofthe markt, ‘Ula, by, ey mn the sales Promotion ee i eS th ne % In this stage, the firm has tp ee OM ei strategies to be followed. The i may nS Promtion 3 04 ti pull SHatEBY OF a combination state) no) Oe Push sta are 5 i 5. Designi a hi Maj Ney mS. esigning sales Promotion schemes ion can ” ten My The firm has to develo, lk i Paign, by accordance with the sales pone cise Po ‘ ae e devised to indy texan, Pt distributors and retailers to sell the Products dl lea veloping the i Hall ‘nea Uti, © Developing the promotion budget derstand. wt The firm has to deterr nie tan, bog he has to determine the total Promotion budget, aUWate pay, This involves determining cost ver nn vill tsa hy Pu A cost per market and promotional Ul help the fim fie |Z clements. The firm eak down fund allocations among different promotion elements to determine the | * Percent of sales. By breaking down these motion ol e firm wi better idea on measuring the success potential o: i tives should beste tives shou ae Execu mpaign | y people wy Intl These These OF nication motion plemented effectively n effectively implemented sales campaign. Th: to attract the cu: Promotion camp; r and an efficient response in sales than othe 8, Evaluation of the campaign effectiveness at After the on of the sales promotion | ‘ampaign, th lement e firm has to measure its effectiveness. Firmsee strategy o ime The promotional message reaches the targeted audience rites : an ‘ message is understood by the audience, wie + The message stimulates the recipients to take action The # STEPS IN A SALES PROMOTION CAMPAIGN secordance Wi The following are the major steps in developing *P4=" aa successful promotion campaign; : le. 1. Assessment of marketing opportunities 5, Develop’ The firm has to first examine and understand the needs ee of its target market. It has to understand the current users, This involves ¢ influencing group etc. and evaluate past sales to know what mix elements. will help the firm to calculate future among differ afordability a ng the promotion objectives tosts the firm \ Potential of th or short-term behaviours by people who have been exposed T Executig to the promotional communication. These objectives are to be clearly stated on the basis of different phases of market a Inthis pl Introduction, Growth, Maturity and Decline). ‘s Paign. The attract the otional objectives should be stated in terms of long development ( 3. Deciding the promotion mix i t Stion can The information derived obtained from the assessmen' Ses i, sist a firm in deciding the an ¢ of marketing opportunities will as ; o be used. The firm may decide on the Balad (Advertising, (Adv: Attey Spt : 80, the promotion mix t combination of different promotion elementsAertsng And Sales Promotion stressing the practices, Policies, and organisation. This can te accomplish donations to charitable Organisations causes OF events, contributions societal well-being, and s, with the consumers shareholders, government, suppliers, creditors industry. The basie prine; ciple of promotion is that inere, ase | Good relationships with all environment of a co: ‘act increase sales, Parties in the internal and external mbany help it carry out ity marketin, activities smoothly. Through good relationships, the products ofthe firm get a unique image in the markey, PRis toeamn public support anattempt t and acceptance for the company and iis products, : ay Customer. Successful diene 1d maintaining a lage dia: stones Ti | o about potential custom di 1 shared with other¢ or shar roc Salk thep ydu