Marketing Management

Marketing Management _ Sales Promotions

Unit VI

Sales Promotions
 Marketing Management _ Sales Promotions
Learning Outcome (Unit VI)
In this unit, you will learn
• Sales Promotion - Meaning, Types/Kinds, Tools & Techniques
• Push-Pull Strategies of Promotion
• Personal Selling – Concept, Features. Steps/Process
• Publicity – Meaning & Objectives
• PR – Word of Mouth, Sponsorship
• Database Marketing
• Basic concepts of E-Commerce, E-Marketing, M-Commerce, M-
Marketing, e-Networking
• CRM
 Marketing Management _ Sales Promotions

Sales Promotion
AMA defines it as “those marketing activities other than personal selling,
advertising and publicity that stimulate consumer purchasing and dealer
effectiveness such as display shows, expositions, demonstrations and
various non recurrent selling efforts not in the ordinary routine.”
 Marketing Management _ Sales Promotions

Purpose of Sales Promotion

• To attract new customers.
• To reward loyal customers.
• To increase repurchase rates of occasional users.
• Sales promotions accelerate the sales.
 Marketing Management _ Sales Promotions

Objectives of Sales Promotion

• To increase buying responses at the customers’ level.
• To increase the sales effort of dealers and sales personnel.
• To attract new customers.
• To inform the public about the new product or its specialties,
attraction and advantages.
• To capture the major share of the market.
• To create a favorable attitude towards the product.
 Marketing Management _ Sales Promotions

Objectives of Sales Promotion

• To simplify the job of middleman.
• To meet the competition of other firms.
• To effect off-season sales to boost the sales.
• To stock more at the level of traders, through whom aggressive sales
can be affected.
• To stimulate the demand by popularizing the products.
• To establish two maintain communications with large market
segments.
 Marketing Management _ Sales Promotions

Objectives of Sales Promotion

• To create additional talking points to sales persons.
• To create brand image.
• To remove customers’ dissatisfaction.
• To bridge the gap between advertising and personal selling.
• To retrieve lost account.
• To keep the memory alive.
 Marketing Management _ Sales Promotions

Reasons for rapid growth of Sales Promotion

Internal factors
• Top management
• Product managers
• Sales volume
External factors
• Branding
• Competition
• Inflation and recession
• Present stage of trade demands more deals from manufacturers
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Kinds of Sales Promotion

• Consumer Promotions
• Dealer Promotions
• Sales Force Promotions
 Marketing Management _ Sales Promotions

Consumer Promotion
• Sampling
• Coupons
• Demonstrations
• Contests
• Money refund offers
• Premium offers (direct premium-a reusable container, free in mail
premium-a self liquidating, premium-trading stamps)
• Price offs offer
• Sweepstakes
• Buy back allowances
• Free trials
 Marketing Management _ Sales Promotions

Dealer Promotion
• Buying allowances
• Merchandise allowance
• Price deals
• Push money
• Cooperative advertising
• Sales contests
• Dealers listed promotion
• Dealers gift
• Point of purchase
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Sales Force Promotion

• Bonus
• Contests
• Meetings and conferences
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Sales Promotion is effective when:

• A new brand is introduced
• Communicate a major improvement or attraction in a
product
• Enlarge the result of advertising
• Increase the number of retail stores in order to sell out
products
• Engage or embark on aggressive sales campaign
Marketing Management _ Sales Promotions

Pull & Push Strategy of Promotion

Promotional strategies to get the product or service to market
can be roughly divided into two separate camps.

1. PUSH STRATEGY
2. PULL STRATEGY
Marketing Management _ Sales Promotions

Push Strategy of Promotion

A push promotional strategy involves taking the product
directly to the customer via whatever means, ensuring the
customer is aware of your brand at the point of purchase.

"Taking the product to the customer"

Marketing Management _ Sales Promotions

Push Strategy of Promotion

EXAMPLES OF PUSH TACTICS
•Trade show promotions to encourage retailer demand
•Direct selling to customers in showrooms or face to face
•Negotiation with retailers to stock your product
•Efficient supply chain allowing retailers an efficient supply
•Packaging design to encourage purchase
•Point of sale displays
Marketing Management _ Sales Promotions

Pull Strategy of Promotion

A pull strategy involves motivating customers to seek out

your brand in an active process.

"Getting the customer to come to you"

Marketing Management _ Sales Promotions

Pull Strategy of Promotion

EXAMPLES OF PULL TACTICS
•Advertising and mass media promotion
•Word of mouth referrals
•Customer relationship management
•Sales promotions and discounts
Marketing Management _ Sales Promotions

Pull & Push Strategy of Promotion

Marketing Management _ Sales Promotions

Personal Selling
Personal Selling involves oral presentation in conversation with
one or more prospective purchasers for the purpose of making
sales.
 Marketing Management _ Sales Promotions

Advantages of Personal Selling

1. Target-Personal Communication
2. Flexibility
3. Demonstration
4. Close Sale
5. Objections
6. 2 way communication
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Limitations of Personal Selling

1. Costly
2. Scarce
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Personal Selling Advertising

1. Directed at the Individual
2. Personal, Direct contact
3. Working in depth
4. 2 way Communication
5. Direct & Quick Feedback
1. Directed at mass audiences
2. Impersonal, Indirect contact
3. Working in breadth
4. 1 way Communication
5. Organised & Delayed Feedback
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Personal Selling Advertising

6. High level of Adaptability 6. Less directly adaptable
7. Effective 7. Less Effective
8. Less efficient-expensive & time 8. Efficient - cheaper per contact
consuming
9. Push effect 9. Pull Effect
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Personal Selling Process or Steps in Personal Selling
1. Pre-sale Preparation
2. Prospecting
3. Pre-approach
4. Approach
5. Sales Presentation
6. Objections
7. Close
8. Follow-up
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Public Relations
• A public is any group that has an actual or potential interest in or
impact on a company’s ability to achieve its objectives.
• Public relations involve a variety of programs designed to promote
or protect a company’s image or its individual products.
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Role of Public Relations

• Assisting in the launch of new products
• Assisting in repositioning a mature product
• Building interest in a product category
• Influencing specific target groups
• Defending products that have encountered public problems
• Building the corporate image in a way that reflects favorably on its
products
• Crisis Management
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Tools of Public Relations

• Publications: Annual reports, brochures, articles, company news
letter and magazines and audio visual materials
• Events : News conferences, Seminars, outings, exhibits, contests and
competitions, anniversaries and sports and cultural sponsorships
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Tools of Public Relations

• News: Create favorable news about the company, its products, its
people etc.
• Speeches : Give talks at trade associations
• Public Service Activities : Contribute time and money to good causes
• Identity Media: Company logos, stationery, brochures, signs,
business forms, business cards, buildings, uniforms, and dress codes
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Publicity
AMA defines it as “non personal stimulation of demand for a product,
service or business unit by planting commercially significant news about
it in a published medium or obtaining favorable presentation of it on
radio, TV or stage that is not paid for by the sponsor”.
 Marketing Management _ Sales Promotions

Tools of Publicity
• News Releases
• Press conferences
• Appearances (Person marketing)
• Company Websites
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Word of Mouth
Word-of-mouth marketing (WOM marketing) is when a consumer's
interest in a company's product or service is reflected in their daily
dialogues. Essentially, is it is free advertising triggered by customer
experiences—and usually, something that goes beyond what they
expected
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Sponsorships
Sponsoring something (or someone) is the act of supporting an event,
activity, person, or organization financially or through the provision of
products or services. The individual or group that provides the support,
similar to a benefactor, is known as sponsor.
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Database Marketing
Database marketing is the practice of leveraging customer data to deliver
more personalized, relevant and effective marketing messages to
customers (both existing and potential customers).
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E-Commerce
E-commerce (electronic commerce) is the buying and selling of goods and
services, or the transmitting of funds or data, over an electronic network,
primarily the internet. These business transactions occur either as
business-to-business (B2B), business-to-consumer (B2C), consumer-to-
consumer or consumer-to-business.
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E-Marketing
e-marketing allows a business to reach its customers in wide range of
ways viz. website, email, live chat, blog, forums, etc. With new
technologies becoming available every day, this scope can only grow.
Interactivity. Traditional means of marketing are like a monologue.
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E-networking
• E-networking is networking through internet by means of social
networking sites like LinkedIn, Instagram, Facebook etc.
• A social networking service (also social networking site or social
media) is an online platform which people use to build social networks
or social relationships with other people who share similar personal or
career interests, activities, backgrounds or real-life connections.
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CRM
CRM is a management process of
• acquiring customers by understanding their requirements
• retaining customers by fulfilling their requirements more than their
expectations and
• attracting new customers through customer specific strategic
marketing approaches
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MkIS
A marketing information system (MkIS) is a management information
system designed to support marketing decision making. It brings together
many kinds of data, people, equipment and procedures to help an
organization make better decisions. ... It enables managers to share
information and work together virtually.
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MkIS
A marketing information system (MKIS) is a management information
system (MIS) designed to support marketing decision making. Jobber
(2007) defines it as a "system in which marketing data is formally
gathered, stored, analysed and distributed to managers in accordance
with their informational needs on a regular basis."
Marketing Management _ Sales Promotions

Thank You