Interrelationship of Sales Promotion and Advertising:

Sales promotion includes all those activities which promote sales

such as distribution of samples, discount coupons, contests, display
of goods, fairs and exhibitions, etc. Advertising, on the other hand,
is any paid form of non- personal presentation and promotion of
ideas, goods and services. The objectives of both sales promotion
and advertising are similar and they complement each other.

They are interrelated in the sense that they are integral parts of the
‘promotion mix’ of the business. Advertising supports sales
promotion activities by informing the public about such efforts of the
company. Similarly, sales promotion activities remind the people of
the message advertised by the business firm. Comparison of
Retailer’s and Manufacturer’s

Advertising Strategies
Manufacturer’s advertising strategy
It has the geographically more concentrated target The market is widely dispersed.
markets.
Retailer can adapt better to local needs, habits, and It has to take into account the preferences of its
preferences. target customers rather than the local needs.

Only the largest retailers and chains can advertise on All branded products use a suitable media as per
national TV programs their financial abilities, with certain frequencies.

Retail ads stress – individual items are placed for sale Manufacturers are more often concerned with
and advertised over short periods. developing favourable attitudes.

Retailers usually stress prices of products in ads.
Often several products are shown in the ad
Media rates tend to be lower for retailers.
Due to lower ad rates for retailers many manufacturers
or distributors join hand with retailers for advertising
their brands. Sometimes even more than one retailer
may join hands for advertising about their products.
These are called co-operative advertising.
Manufacturers usually stress on key product
attributes.
Manufacturers normally talk of few products in a
single ad.
Manufacturers have to pay normal rates.
Manufacturers can rarely get into co-operative
advertising, because of competitive nature of
products or diverse interests of manufacturers;
unless there is some kind of complementary nature
of products of two manufacturers along with good
business understanding.

Sales Promotion Tools

Many tools can be used to accomplish sales promotion objectives. Descriptions of the main

promotional tools are as follows;

 Consumer Promotion Tools

The main consumer promotion tools are as follows;

 Samples:

They are offers of a trial amount of a product. It consists of inviting prospective

purchasers to try the product without cost or at a lower cost in the hope that they will

buy the product. Samples may be free or discounted.

 Coupons:
Coupons are certificates that give buyers a saving when they purchase a specified

product. Coupons can be mailed, placed in advertisements or included with other

products.

 Rebates:
Rebate is also known as cash refund offers. Rebates are offers to refund part of the

purchase price of a product to its customers who send a proof of purchase to

the manufacturer. These are like coupons except that the price reduction occurs

after the purchase and not at the point of sale.

 Price Packs:
Cents-off deals or price packs offer consumers savings by way of reducing prices

that are marked by the producer directly on the package.

 Premiums:
These are the goods offered either free or at a low cost as an incentive to buy

a product. Premiums may be in-pack or on-pack (outside the pack).

  Prizes:

They are offers of chance to win something such as cash, trips or goods – by luck or

through extra efforts. Contests of talent and sweepstakes or draws the most popular

prize offering promotions.

 Tie-in Promotions:

Tie-in promotions involve two or more brands or companies that team up on coupons,

refunds or contests to increase their pulling powers.

 Cross Promotions:
Cross promotions involve using one brand to advertise non-competing brand.

 Advertising Specialties:
These are useful articles imprinted with an advertiser’s name, given as gifts to

consumers.

 Patronage Rewards:
They are cash or other awards for the regular use of company’s products or services.

They are values (in cash otherwise) that are proportional to one’s patronage of a certain

vendor or a group of vendors. They aim at building brand loyalty.

 PoP Promotions:

Point of purchase (PoP) includes displays and demonstrations that take place at the

point of purchase or sale.

Trade Promotion Tools

More money is spent by companies on trade promotion (58%) than on consumer promotions

(42%). The major trade promotion tools are as follows;

 Discounts:
It is also known as price-off or off-invoice or off-list. Discounts price cut off the list price

on a particular quantity purchased during a stated time.

 Allowances:
They are the amount offered in return for an agreement by the retailer to feature the

manufacturer’s products in some way; displays, advertising or otherwise.

 Free Goods:
Free goods are the extra merchandise offered to middlemen who buy a specific amount

of a product.

Companies also offer push money and specialty advertising items to the middlemen.

Business Promotion Tools

Companies spend huge amount on promotions focused on industrial consumers. The major

business promotion tools are as follows;

 Trade Shows and Conventions.

 Sales Contests.

Clearly, sales promotions play an important role in the total promotion mix. To use it well, the

marketer must define the sales promotion objectives, select the best tools, design the sales

promotion program, pretest and implement the program and evaluate its results.
E-retail or online retail is defined
retailing activities done through
internet. We have many online or
e-retailers in India who provide a
variety of merchandise to
customers. In general retail
business is
referred as Business to Consumer
(B2C). Online retail players are
classified into two types category
focused players and multi
category focused. Category
focused players provide
particular
merchandise with deep
assortment. Ex: - Myntra,
Jabbong (Apparels and
Lifestyle products),
Bigbasket, Local banya (Grocery
segment) and Fabfurnish, Pepper
fry (Furniture), Carat
lane,Juvalia
and you (jewellery), First cry, my
baby cart (baby products). Multi
category players provide variety
of
merchandise with limited
assortment. Ex: - Flipkart,
Amazon, Future bazar and
Snapdeal etc. For
better understanding we look at
some of the categories and the
major online retailers in these
categories.
Retailers provide categories like
books, stationery, electronics,
furniture, apparels, personal
care,
grocery, flowers, sports goods
and services also. The major
players in book category includ
E-retail or online retail is defined
retailing activities done through
internet. We have many online or
e-retailers in India who provide a
variety of merchandise to
customers. In general retail
business is
referred as Business to Consumer
(B2C). Online retail players are
classified into two types category
focused players and multi
category focused. Category
focused players provide
particular
merchandise with deep
assortment. Ex: - Myntra,
Jabbong (Apparels and
Lifestyle products),
Bigbasket, Local banya (Grocery
segment) and Fabfurnish, Pepper
fry (Furniture), Carat
lane,Juvalia
and you (jewellery), First cry, my
baby cart (baby products). Multi
category players provide variety
of
merchandise with limited
assortment. Ex: - Flipkart,
Amazon, Future bazar and
Snapdeal etc. For
better understanding we look at
some of the categories and the
major online retailers in these
categories.
Retailers provide categories like
books, stationery, electronics,
furniture, apparels, personal
care,
grocery, flowers, sports goods
and services also. The major
players in book category includ