Sales Promotion at different Level and different programme

One of the most difficult marketing decisions facing companies is how much to spend on promotional John Wanamaker, the departmental - store magazine, said, "I know that half of my advertising is wasted but I don't know which half." Thus it is not surprising that industries and companies vary considerably in how much they spend on promotion. Promotional expenditures might amount to 30-50% of sales in case in cosmetics industry and only 10-20% in the industrial equipment industry. Within a industry, a low and high spending companies can be found. How do companies decide on their promotion budget? There are mainly four methods of this : ‡ Affordable Method : Many companies set the promotion budget at what they think the company can afford. One executive explained this method as follows : "Why, it¶s simple. First I go upstairs to the controller and how much they can afford to give us this year. He says a million and half. Later, the boss comes to me and asks how much we should spend and I say µOh about a million and half." It is a method which is uncertain one and makes long term planning difficult. ‡ Percentage of Sales Method : Many companies set their promotion expenditures at a specified percentage of sales. Accordingly the sales is set on the basis of sales.

In this a specified sales percentage is decided for the promotional budget Advantages of this method : First, its use means that promotional budget vary with what a company can afford. Second, it encourages the management to think in terms of the relationship among promotion costs, selling price, and profit per unit, Third, it encourages the competitive stability to the extent that competing firms spend approximately the same % of their sales on promotion. Inspite of the advantages, the % sales method has little to justify it. Its reasoning is circular : It views sales as the determiner of the promotion rather than as a result. It leads to budget setting by availability of funds rather than by marketing opportunities. ‡ Competitive Parity Method : Some companies set their promotional budget to achieve share-of-voice parity with other competitors. Two arguments are made in support of competitive parity method. One is that the competitors expenditure represents the collective wisdom of the industry. The other is that maintaining a competitive parity helps prevent promotional wars. Neither argument is valid. There are no grounds for believing that competition knows better what should be spent on promotion. ‡ Objective and Task Method : The objective & task method calls upon marketers to develop their promotion budgets by defining their specific objectives, determining the task that must be performed to achieve these objectives, and estimating the cost of performing these tasks. Deciding on the promotion mix :

Companies face the task of distributing the total promotion budget over the five promotional tools : ‡ Advertising ‡ Sales Promotion ‡ Public Relations and Publicity ‡ Sales Force ‡ Direct Marketing. Whatever method a company adopt for promoting its product it must be from above mentioned method.

Sales Promotion
Promotion is the final element in the marketing mix. After the nature of product is decided, its price fixed and the methods of distribution decided, the manufactures has to take effective steps in meeting the consumers in the markets. In the present consumer oriented markets it is the duty of manufacturers to know what is required by the consumer. It is also their duty to make the customers know where, when how and at what prices. The products would be available.

Meaning of Promotion The term promotion is the term and includes mainly three type of sales activity : 1. Mass impersonal selling methods (Advertising). 2. Face to face personal selling (Salesman ship).

O. These efforts pull down the product from the manufacturer. Push Blend. A push blend emphasizes personal selling. This form of activity is called µSales Promotion¶. Basically promotion is an "exercise" . 2. So that they demand the product at the retail level of distribution. 2. Sales promotion. Both of these are closely related to the channel of Distribution. 1. The purpose of pull blend to pre-sell to the final consumers. The firm adopting this strategy would spend more on advertising and sales promotion rather than in personal selling. Naturally firms adopting this method develop a strong sales force at both the distributor and the dealer level. Promotion and Selling The term promotion is very often used as a synonym for selling. sales efforts are given the greatest emphasis. is only a part of the promotion.3. A pull blend is one in which mass impersonal.P. Activities other than personal selling and advertising such as point of purchase display (P. There are two type of promotion blends :1. This method would tends to push the product through the channel of distribution. Promotion on the other hand is broader in its outlook and includes a variety of activities used ultimately for increasing sales volume. demonstrations and other non securing selling efforts. Pull Blend.) show and exhibitions. But selling is a narrow term which includes only transfer of title or personal selling. Promotion and Sales Promotion Similarly the terms sales promotion can not be taken to mean what is commonly does.

It is concerned with the dissemination of information to whole salers. premiums. retailers etc. catalogues. customers (both actual and potential. publicity and public relations. Sales promotion on the other hand.g. Hence a price of product literature distributed by retailers in sales promotion. Acc. Sales Promotion and Advertising There is no universally accepted distribution between these two terms. and to the salesman).). Delons :"Sales promotion means any step that are taken for the purpose of obtaining or increasing sales". includes the form of mass communication directed towards information and influencing the channel of distribution (e. to him the field of sales promotion as a marketing activity is still vaguely defined and organized. Sales promotion is concerned with the creation.H. Application and dissemination of material and techniques that supplement advertising and personal selling. These sales promotion merges on one side in to advertising and on the other in to personal salesman ship. to A. Promotion has come to mean the over all co-ordination of advertising selling. sales contests. retailers. samples.R.in information persecution and influence.Q. To same advertising includes all forms of mass media communication directed towards influencing the end consumer. distributors and dealers to sell a certain brand to make consumers . windows displays and other aids. there exit same difference of opinion on the real connection of the term sales promotion. to W. Acc. Sales promotion makes use of direct mail. distributors. Its purpose is to increase the desire of salesman. Promotion is a helping function designed to make all other marketing activities more effective and efficient. trade shows. Kelly Opines :"Muddled misused misunderstood that is sales promotion Acc. But sales promotion as such helps only the selling activity still.

To check seasonal decline in sales. Sales Promotional at different levels 1. 2. 6. Sales promotion at Dealers Level :It may include various schemes some of which are discussed here. To increase sales directly by publicity through media which are complementary to press and poster advertising. (i) Advertising Materials :- . Sale promotion provides an extra stimulus. To attract new consumer.more eager to buy that brand. To disseminate information through sales man dealers etc. Personal selling and advertising do include prospects to make these decisions. To help salesman in selling more to the retailers and consumers. (b) Services to own salesman. Objective of Sales Promotion 1. 5. So as to insure the product getting in to satisfactory use by the ultimate consumer. 4. 3. Generally speaking sales promotion involves rendering the following services:(a) Services to dealers. To face the competition effectively. (c) Special publicity.

They encourage the retailer to stock the product. Besides effecting sales these shows impress the company¶s name generally on the public. A personal demonstration is good to introduce a new product at its peculiar advantage can be high lightened and the consumer¶s doubt clear. Usually these are arranged along with trade fair and exhibition. The consumers many receive a price reduction of the stated values of the coupon at the time of purchase. It can be used to restimulate an old product. are distributed to sub dealer for display purposes this is in fact a method of advertising. Coupons (A Chit of Stated Value) :These are given directly to the consumer these coupons are in most cases kept inside the package. 1. since they are directly tied with the purchase of the item.The advertising material prepared by the company such as store signs. (ii) Store Demonstration :In the promises of the whole saler or the retailer the products sales personnel will conduct special demonstration for the companies product. banners. shelf signs. The retailer receives reimbursement for the value of the coupon form the manufacturer. A good demonstration with a great dealer of action will draw heavy crowds in to the store and will attract attention to the product. Coupons act as a short run stimulus to the sale of the product. board etc. Sales promotion at consumer¶s level The various schemes of sale promotion at Consumer¶s Level may include. What is important is that a coupon offer does not spoil the named price of the brand nor does it un pair the margin of the dealers. But it is not easy to measure the effectiveness of a coupon offer. (iii) Special Display and Shows :These are in seasonal in character but could be arranged in an elaborate manner and for all the products of an company. One over knows how many customer would have .

3. It is also difficult to find out how many customers were held after the coupon offer expired. Price-off-offer (Also known as bargain offer price packs) :This offer is intended to stimulate the sales during a slump season. Disadvantage of Sampler :Offering sample in quit expensive. Many experts on sales promotion fed that µOff Schemes¶ are among the weaker and less desirable methods of promotion. Sample have to be mailed to potential customers or to be distributed through retail shops. These can be trade resentment particularly when the retailer raises the price to retain his margin. Samples :In the hope of converting a prospect into a customer a sample (Some quantity of the product) may be given. In this method the customer is offered a reduction from the printed price list.bought the product without the incentive. The distribution costs are also high. Sampling is a fast method of demand creation because one knows the result as soon as the consumer has had time to use the sample and buy the brand. There are also problems when the real product does not resemble the sample supplied. For developing brand loyalty this method is quite useful. Secondly that is not conductive to building up brand loyalty. 2. It is also used when a substitute for competing product enters the market. Consumers may simply shift to the products that offer this scheme. Money Refund Offer :- . 4. Various pair manufacturing companies offer this method. This helps the consumer to verify the real quality of the product. There is the cost of producing samples.

Trading Stamps :A premium in the form of stamps is given by the sellers to consumers while selling goods. 5. These stamps are redeemable through premium catalogues at the stamp redemption centres. This is . Spoons. 6. Measuring. Cups. The Binaca Toothpaste packs contain animal shape toys.An offer usually stated on the package is that manufacturers will return with in a stated period part or all of the purchaser¶s money if he is not completely satisfied with the product. It greatly strengthens the buyer¶s motivation to co-operate on the first deal. Glass etc. Buy-Back Allowance : This an allowance following a previous trade deal not offer a certain amount of money for new purchases based on the quantity of purchases on the first trade deal. It extends the life of a trade deal and helps to prevent part deal sales decline. The number and value of stamp that the buyer receives depends on the values of the purchase. These are very attractive and qutie popular among the children. Factory in pack premium are particularly goods for product meant for children. Premium :There are various forms of premiums provided by the manufacturer as sales promotional devices :(a) Coupons are supplied for effecting price reductions. 7. (b) Factory in pack premium these are popular in the case of Body food and Tin food items. (c) Self Liquidating Premiums :The cost of the premium is collected from the buyer himself. and such other items are packed with the product in the box itself. But when the buyers pays for it he has to pay only a considerably low price for the premium.

substitutes etc. Supplying suitable packages and useful things. By taking the return back. the monetary incentive evokes immediate response. Offering Reasonable Terms of Sale :Of all the forms of encouragement. By furnishing them with sales literature and display materials. 5. 2. 6. 4. Other Steps by Manufacturer for Promoting Sales Dealers can be helps in different ways :1.possible for the manufacturer purchases the items in bulk at a premium and his cost per unit as is substantially low. their like and dislike complaints and criticism. Inviting to Sales Conference and Convention :The gestures of regard and respect pave the way for better relation and co-operation. 3. Hence every producer must offer the most responsible terms of sale such as longer periods of credit and higher rates of descants. Communicating Market News :Often this service is reciprocal the manufacturer may acquaint his dealer with the fact relating to his production and prices while the dealer may familiarize him in return with the information bearing on charges in the consumer's demand. Aggressive Selling .

if the market for the product is static. When Aggressive selling is resorted ? Usually manufacturer of a new product has to do aggressive selling :1.e. In contrast to this aggressive selling is concerned with the sales efforts made with the express objective of selling more by expanding the market for the product of the selling firm.e. 2. When the product has been improved. Aggressive Selling and Defensive Selling :Aggressive selling is based on the answer to the question how much does the firm gain (in term of sales with profit) by using this method defensive selling is based on consideration as to how much the firm will lose if it does not use this method increase of sales can be obtained from two sources:1. Whitehead :"In case of an expanding market all the firm may stand to gain by following the methods of aggressive selling but if the market is static manufacturer of a new market will have to be much more aggressive to capture the established market of competitors". those consumers who were purchasing similar product of competiting firms. Manufacturers have to make efforts to sell all they produce. New customers if the market is expending. The sales efforts which a manufacturer makes to retain his customers i. to protect his already established market against against his competitors is termed as defensive selling. Acc. From the competitors i.Meaning :Goods are produced for market. When the manufacturers uses various sales efforts to obtain increased sales volume for his product it is called aggressive selling or offensive selling. to H. .

When the total market for the product or line of product to expanding. Such incentive may take one or more of the following firm :(a) Cash Allowance :A definite percentage of discount is allowed on the purchase of given unit of a product. When the manufacturer¶s product is supervisor in quality to the product of the established competitor. 2. Method of Aggressive Selling :Sales promotion efforts use for aggressive selling may be divided in two classes. Consumer Promotion. Trade Promotion. and 6.2. 3. 1. (b) Extra Product :- . 4. If the manufacturer¶s share of the market is comparatively small. If the manufacturer has unused production capacity with heavy investment in plant and equipment he will like to develop the demand for his product rapidly so that demand for his product is equal to the optimum production capacity of his plant . 1. 5. Trade Promotion :Under trade promotion methods special incentives are offered to the trader to buy products of the firm. When primary demand for a product must be created and provision must be made in the channel of distribution to educate consumers regarding the new product and to instruct them in its use.

The more prominent amongst such incentives are as following. The retailer sells the products mentioned. For instance if a box normally contains 20 Cakes of Soap. the firm offers an article at an attracting price if the consumer send a given sum of money accompanied by a given number of box tops from the packages of a particular product the benefit to the consumer is that he receives the articles at a bargain price. By presenting this coupon to the retailer consumers can purchase a particular product mentioned on the coupon at a reduced price. (b) Self Liquidating Offers :Under this system. 2. special box contains 25 cakes may be made and sold at the same price as that of the box of 20 cakes. (c) Gifts :Various gifts are awarded in return for an order of a particular magnitude. In the coupon to such consumer (consumers presenting the coupons) under and agreement with the manufacturer at a price lower than the user retail price. (c) Bargain Packs :- . (a) Coupons :A coupon of a giving value is sent to the consumer. Consumer Promotion :Under consumer promotion method special incentives are offered to the consumers to buy the firms product.Instead of giving any cash allowance extra product is given with each unit of product ordered. Thus the consumer get the benefit of reduced price to the extent of the value of the coupons.

Also a firm whose market is hold by competitors whose free sampling almost expensive. Other Methods of Aggressive Selling :(i) Employment of µMissionary Salesman also known as Promotional Salesman¶. (ii) Instead of using wholesalers. (iii) The firm may follow a compromise method by employing a manufacturer¶s agent and giving him a large enough commission to encourage him to sell product intensively and aggressively. (iii) Hire purchase and installment payment methods of selling and by forming combination. It is also helpful in obtaining large displays in the shops. the firm may develop its own sales force to call directly on retailers. (d) Sampling :The method involves giving the product or a small quantity of the product to a consumer free with the hope that the customer will be favourable impressed with its actual use and will eventually become a regular purchaser of the product. These salesman call upon retailers and aggressively promote a product.Under this system a product is sold at a reduced price for a short period Bargain pack method encourages new consumers to try the product. (ii) Offer of door to door selling. . (i) Direct method of selling through. A firm selling new product or an extensively improved product finds this methods useful. The above mentioned methods may be reinforced by adopting.

Promotion on the other hand is broader in its outlook and includes a variety of activities used ultimately for increasing sales volume. the manufactures has to take effective steps in meeting the consumers in the markets. when how and at what prices.) show and exhibitions. an ingenious sales manager can devise any number of incentives schemes for promoting the sales volume. In the present consumer oriented markets it is the duty of manufacturers to know what is required by the consumer. is only a part of the promotion. 2. (v) Increment and promotions. Sales Promotion Sales Promotion is the final element in the marketing mix. In fact.(iv) New territory exploitation sales promotion has a particularly important role in developing the company¶s product in new territories. Promotion and Selling The term promotion is very often used as a synonym for selling. its price fixed and the methods of distribution decided. (vi) Letters to dealer and Customer. The products would be available. Basically promotion is an "exercise" in information persecution and influence. Meaning of Sales Promotion The term Sales promotion is the term and includes mainly three type of sales activity : 1. Promotion has come to mean the over all co-ordination of advertising selling. publicity and . Promotion and Sales Promotion Similarly the terms sales promotion can not be taken to mean what is commonly does. demonstrations and other non securing selling efforts.P. But selling is a narrow term which includes only transfer of title or personal selling. Mass impersonal selling methods (Advertising). Face to face personal selling (Salesman ship). After the nature of product is decided. Sales promotion. It is also their duty to make the customers know where. This form of activity is called µSales Promotion¶.O. Activities other than personal selling and advertising such as point of purchase display (P. 3.

R.g. trade shows. Delons :"Sales promotion means any step that are taken for the purpose of obtaining or increasing sales". To attract new consumer. Hence a price of product literature distributed by retailers in sales promotion. Application and dissemination of material and techniques that supplement advertising and personal selling. Personal selling and advertising do include prospects to make these decisions. To help salesman in selling more to the retailers and consumers. Sales promotion on the other hand. customers (both actual and potential. Its purpose is to increase the desire of salesman. to him the field of sales promotion as a marketing activity is still vaguely defined and organized. Acc.Q. to A. Promotion is a helping function designed to make all other marketing activities more effective and efficient.). and to the salesman). retailers. 6.public relations. samples. 4. Kelly Opines :"Muddled misused misunderstood that is sales promotion Acc. 5. Objectives of Sales Promotion 1. So as to insure the product getting in to satisfactory use by the ultimate consumer. 3. distributors. retailers etc. To face the competition effectively. Sales promotion is concerned with the creation. Generally speaking sales promotion involves rendering the following services:(a) Services to dealers. includes the form of mass communication directed towards information and influencing the channel of distribution (e.H. catalogues. It is concerned with the dissemination of information to whole salers. Acc. to W. windows displays and other aids. To check seasonal decline in sales. 2. To disseminate information through sales man dealers etc. But sales promotion as such helps only the selling activity still. distributors and dealers to sell a certain brand to make consumers more eager to buy that brand. To increase sales directly by publicity through media which are complementary to press and poster advertising. Sales Promotion and Advertising There is no universally accepted distribution between these two terms. premiums. Sale promotion provides an extra stimulus. . These sales promotion merges on one side in to advertising and on the other in to personal salesman ship. sales contests. there exit same difference of opinion on the real connection of the term sales promotion. Sales promotion makes use of direct mail. To same advertising includes all forms of mass media communication directed towards influencing the end consumer.

(i) Advertising Materials :The advertising material prepared by the company such as store signs. (c) Special publicity. A good demonstration with a great dealer of action will draw heavy crowds in to the store and will attract attention to the product. Sales promotion at consumer¶s level The various schemes of sale promotion at Consumer¶s Level may include. . are distributed to sub dealer for display purposes this is in fact a method of advertising. Sales Promotional at different levels 1. It can be used to restimulate an old product. But it is not easy to measure the effectiveness of a coupon offer. Usually these are arranged along with trade fair and exhibition. board etc. The retailer receives reimbursement for the value of the coupon form the manufacturer. since they are directly tied with the purchase of the item. It is also difficult to find out how many customers were held after the coupon offer expired. (iii) Special Display and Shows :These are in seasonal in character but could be arranged in an elaborate manner and for all the products of an company. Coupons (A Chit of Stated Value) :These are given directly to the consumer these coupons are in most cases kept inside the package. The consumers many receive a price reduction of the stated values of the coupon at the time of purchase. shelf signs. A personal demonstration is good to introduce a new product at its peculiar advantage can be high lightened and the consumer¶s doubt clear. 1. Coupons act as a short run stimulus to the sale of the product. (ii) Store Demonstration :In the promises of the whole saler or the retailer the products sales personnel will conduct special demonstration for the companies product. Sales promotion at Dealers Level :It may include various schemes some of which are discussed here. What is important is that a coupon offer does not spoil the named price of the brand nor does it un pair the margin of the dealers. Besides effecting sales these shows impress the company¶s name generally on the public. banners.(b) Services to own salesman. They encourage the retailer to stock the product. One over knows how many customer would have bought the product without the incentive.

2. Various pair manufacturing companies offer this method. Sampling is a fast method of demand creation because one knows the result as soon as the consumer has had time to use the sample and buy the brand. In this method the customer is offered a reduction from the printed price list. It extends the life of a trade deal and helps to prevent part deal sales decline. Buy-Back Allowance : This an allowance following a previous trade deal not offer a certain amount of money for new purchases based on the quantity of purchases on the first trade deal. Secondly that is not conductive to building up brand loyalty. Premium :There are various forms of premiums provided by the manufacturer as sales promotional devices :- . These stamps are redeemable through premium catalogues at the stamp redemption centres. There are also problems when the real product does not resemble the sample supplied. 4. The distribution costs are also high. Money Refund Offer :An offer usually stated on the package is that manufacturers will return with in a stated period part or all of the purchaser¶s money if he is not completely satisfied with the product. It greatly strengthens the buyer¶s motivation to co-operate on the first deal. 7. It is also used when a substitute for competing product enters the market. For developing brand loyalty this method is quite useful. Sample have to be mailed to potential customers or to be distributed through retail shops. The number and value of stamp that the buyer receives depends on the values of the purchase. This helps the consumer to verify the real quality of the product. These can be trade resentment particularly when the retailer raises the price to retain his margin. 5. Consumers may simply shift to the products that offer this scheme. Disadvantage of Sampler :Offering sample in quit expensive. There is the cost of producing samples. Trading Stamps :A premium in the form of stamps is given by the sellers to consumers while selling goods. 6. Many experts on sales promotion fed that µOff Schemes¶ are among the weaker and less desirable methods of promotion. Samples :In the hope of converting a prospect into a customer a sample (Some quantity of the product) may be given. 3. Price-off-offer (Also known as bargain offer price packs) :This offer is intended to stimulate the sales during a slump season.

This is possible for the manufacturer purchases the items in bulk at a premium and his cost per unit as is substantially low. (c) Self Liquidating Premiums :The cost of the premium is collected from the buyer himself. Within a industry. said. (b) Factory in pack premium these are popular in the case of Body food and Tin food items. it¶s simple. "I know that half of my advertising is wasted but I don't know which half. The Binaca Toothpaste packs contain animal shape toys. Glass etc. a low and high spending companies can be found. He says a million . Factory in pack premium are particularly goods for product meant for children. Cups. and such other items are packed with the product in the box itself. Promotional expenditures might amount to 30-50% of sales in case in cosmetics industry and only 10-20% in the industrial equipment industry. Spoons. Sales Promotion at different Level and different programme One of the most difficult marketing decisions facing companies is how much to spend on promotional John Wanamaker. How do companies decide on their promotion budget? There are mainly four methods of this : ‡ Affordable Method : Many companies set the promotion budget at what they think the company can afford.store magazine. These are very attractive and qutie popular among the children." Thus it is not surprising that industries and companies vary considerably in how much they spend on promotion.(a) Coupons are supplied for effecting price reductions. One executive explained this method as follows : "Why. the departmental . But when the buyers pays for it he has to pay only a considerably low price for the premium. First I go upstairs to the controller and how much they can afford to give us this year. Measuring.

and profit per unit. the % sales method has little to justify it. Two arguments are made in support of competitive parity method. Third. ‡ Percentage of Sales Method : Many companies set their promotion expenditures at a specified percentage of sales. selling price. the boss comes to me and asks how much we should spend and I say µOh about a million and half. it encourages the management to think in terms of the relationship among promotion costs. Later. Second. Its reasoning is circular : It views sales as the determiner of the promotion rather than as a result." It is a method which is uncertain one and makes long term planning difficult. It leads to budget setting by availability of funds rather than by marketing opportunities. . ‡ Competitive Parity Method : Some companies set their promotional budget to achieve share-of-voice parity with other competitors. Accordingly the sales is set on the basis of sales. In this a specified sales percentage is decided for the promotional budget Advantages of this method : First. Inspite of the advantages. Neither argument is valid. There are no grounds for believing that competition knows better what should be spent on promotion. One is that the competitors expenditure represents the collective wisdom of the industry.and half. it encourages the competitive stability to the extent that competing firms spend approximately the same % of their sales on promotion. The other is that maintaining a competitive parity helps prevent promotional wars. its use means that promotional budget vary with what a company can afford.

and estimating the cost of performing these tasks. the manufactures has to take effective steps in meeting the consumers in the markets. In the present consumer oriented markets it is the duty of manufacturers to know what is required by the consumer. when how and at what prices. After the nature of product is decided.‡ Objective and Task Method : The objective & task method calls upon marketers to develop their promotion budgets by defining their specific objectives. its price fixed and the methods of distribution decided. Meaning of Promotion . The products would be available. Deciding on the promotion mix : Companies face the task of distributing the total promotion budget over the five promotional tools : ‡ Advertising ‡ Sales Promotion ‡ Public Relations and Publicity ‡ Sales Force ‡ Direct Marketing. determining the task that must be performed to achieve these objectives. It is also their duty to make the customers know where. Sales Promotion Promotion is the final element in the marketing mix. Whatever method a company adopt for promoting its product it must be from above mentioned method.

Promotion on the other hand is broader in its outlook and includes a variety of activities used ultimately for increasing sales volume. The firm adopting this strategy would spend more on advertising and sales promotion rather than in personal selling. A pull blend is one in which mass impersonal. sales efforts are given the greatest emphasis. The purpose of pull blend to pre-sell to the final consumers. 1. So that they demand the product at the retail level of distribution.) show and exhibitions. This method would tends to push the product through the channel of distribution. Promotion and Selling The term promotion is very often used as a synonym for selling. Both of these are closely related to the channel of Distribution. 3. 2. Face to face personal selling (Salesman ship).P. Mass impersonal selling methods (Advertising).O. But selling is a narrow term which includes only transfer of title or personal selling. Pull Blend. Push Blend. This form of activity is called µSales Promotion¶. There are two type of promotion blends :1. demonstrations and other non securing selling efforts. 2.The term promotion is the term and includes mainly three type of sales activity : 1. These efforts pull down the product from the manufacturer. Naturally firms adopting this method develop a strong sales force at both the distributor and the dealer level. A push blend emphasizes personal selling. 2. Activities other than personal selling and advertising such as point of purchase display (P. .

These sales promotion merges on one side in to advertising and on the other in to personal salesman ship.g. Sales promotion. To same advertising includes all forms of mass media communication directed towards influencing the end consumer. distributors. It is concerned with the dissemination of information to whole salers. there exit same difference of opinion on the real connection of the term sales promotion. is only a part of the promotion. retailers etc. customers (both actual and potential.Promotion and Sales Promotion Similarly the terms sales promotion can not be taken to mean what is commonly does.R. publicity and public relations. and to the salesman). But sales promotion as such helps only the selling activity still. includes the form of mass communication directed towards information and influencing the channel of distribution (e. to W. Acc. Sales promotion on the other hand. Acc. Kelly Opines :"Muddled misused misunderstood that is sales promotion Acc. Promotion has come to mean the over all co-ordination of advertising selling.).Q. to A. Hence a price of product literature distributed by retailers in sales promotion. Sales Promotion and Advertising There is no universally accepted distribution between these two terms. .H. retailers. Promotion is a helping function designed to make all other marketing activities more effective and efficient. to him the field of sales promotion as a marketing activity is still vaguely defined and organized. Delons :"Sales promotion means any step that are taken for the purpose of obtaining or increasing sales". Basically promotion is an "exercise" in information persecution and influence.

3. To attract new consumer. samples. 2. To check seasonal decline in sales. To increase sales directly by publicity through media which are complementary to press and poster advertising. Sales promotion at Dealers Level :- . Its purpose is to increase the desire of salesman. (b) Services to own salesman. Generally speaking sales promotion involves rendering the following services:(a) Services to dealers. Application and dissemination of material and techniques that supplement advertising and personal selling. To disseminate information through sales man dealers etc.Sales promotion is concerned with the creation. sales contests. 4. trade shows. Objective of Sales Promotion 1. 6. Sale promotion provides an extra stimulus. windows displays and other aids. 5. catalogues. Sales Promotional at different levels 1. (c) Special publicity. premiums. Personal selling and advertising do include prospects to make these decisions. distributors and dealers to sell a certain brand to make consumers more eager to buy that brand. So as to insure the product getting in to satisfactory use by the ultimate consumer. To face the competition effectively. Sales promotion makes use of direct mail. To help salesman in selling more to the retailers and consumers.

since they are directly tied with the purchase of the item. They encourage the retailer to stock the product. shelf signs.It may include various schemes some of which are discussed here. Coupons act as a short run stimulus to the sale of the product. The retailer receives reimbursement for the value of the coupon form the manufacturer. The consumers many receive a price reduction of the stated values of the coupon at the time of purchase. (i) Advertising Materials :The advertising material prepared by the company such as store signs. Sales promotion at consumer¶s level The various schemes of sale promotion at Consumer¶s Level may include. (ii) Store Demonstration :In the promises of the whole saler or the retailer the products sales personnel will conduct special demonstration for the companies product. . A personal demonstration is good to introduce a new product at its peculiar advantage can be high lightened and the consumer¶s doubt clear. Coupons (A Chit of Stated Value) :These are given directly to the consumer these coupons are in most cases kept inside the package. A good demonstration with a great dealer of action will draw heavy crowds in to the store and will attract attention to the product. It can be used to restimulate an old product. Besides effecting sales these shows impress the company¶s name generally on the public. 1. banners. board etc. Usually these are arranged along with trade fair and exhibition. are distributed to sub dealer for display purposes this is in fact a method of advertising. (iii) Special Display and Shows :These are in seasonal in character but could be arranged in an elaborate manner and for all the products of an company.

. Many experts on sales promotion fed that µOff Schemes¶ are among the weaker and less desirable methods of promotion. There is the cost of producing samples. Disadvantage of Sampler :Offering sample in quit expensive.What is important is that a coupon offer does not spoil the named price of the brand nor does it un pair the margin of the dealers. Samples :In the hope of converting a prospect into a customer a sample (Some quantity of the product) may be given. Sample have to be mailed to potential customers or to be distributed through retail shops. Price-off-offer (Also known as bargain offer price packs) :This offer is intended to stimulate the sales during a slump season. Secondly that is not conductive to building up brand loyalty. 3. For developing brand loyalty this method is quite useful. Sampling is a fast method of demand creation because one knows the result as soon as the consumer has had time to use the sample and buy the brand. Various pair manufacturing companies offer this method. One over knows how many customer would have bought the product without the incentive. 2. This helps the consumer to verify the real quality of the product. It is also used when a substitute for competing product enters the market. There are also problems when the real product does not resemble the sample supplied. These can be trade resentment particularly when the retailer raises the price to retain his margin. The distribution costs are also high. It is also difficult to find out how many customers were held after the coupon offer expired. In this method the customer is offered a reduction from the printed price list. Consumers may simply shift to the products that offer this scheme. But it is not easy to measure the effectiveness of a coupon offer.

Factory in pack premium are particularly goods for product meant for children. (c) Self Liquidating Premiums :- . Measuring. The Binaca Toothpaste packs contain animal shape toys. Trading Stamps :A premium in the form of stamps is given by the sellers to consumers while selling goods. It extends the life of a trade deal and helps to prevent part deal sales decline. Spoons. These stamps are redeemable through premium catalogues at the stamp redemption centres. 5. Money Refund Offer :An offer usually stated on the package is that manufacturers will return with in a stated period part or all of the purchaser¶s money if he is not completely satisfied with the product. 7. These are very attractive and qutie popular among the children. The number and value of stamp that the buyer receives depends on the values of the purchase.4. It greatly strengthens the buyer¶s motivation to co-operate on the first deal. (b) Factory in pack premium these are popular in the case of Body food and Tin food items. and such other items are packed with the product in the box itself. Cups. 6. Buy-Back Allowance : This an allowance following a previous trade deal not offer a certain amount of money for new purchases based on the quantity of purchases on the first trade deal. Premium :There are various forms of premiums provided by the manufacturer as sales promotional devices :(a) Coupons are supplied for effecting price reductions. Glass etc.

2. Offering Reasonable Terms of Sale :Of all the forms of encouragement. Communicating Market News :Often this service is reciprocal the manufacturer may acquaint his dealer with the fact relating to his production and prices while the dealer may familiarize him in return with the information bearing on charges in the consumer's demand. . substitutes etc. their like and dislike complaints and criticism. 4. Hence every producer must offer the most responsible terms of sale such as longer periods of credit and higher rates of descants. Supplying suitable packages and useful things. the monetary incentive evokes immediate response. 6.The cost of the premium is collected from the buyer himself. 5. Inviting to Sales Conference and Convention :The gestures of regard and respect pave the way for better relation and co-operation. By taking the return back. By furnishing them with sales literature and display materials. But when the buyers pays for it he has to pay only a considerably low price for the premium. 3. This is possible for the manufacturer purchases the items in bulk at a premium and his cost per unit as is substantially low. Other Steps by Manufacturer for Promoting Sales Dealers can be helps in different ways :1.

New customers if the market is expending.e. Acc. those consumers who were purchasing similar product of competiting firms. Aggressive Selling and Defensive Selling :Aggressive selling is based on the answer to the question how much does the firm gain (in term of sales with profit) by using this method defensive selling is based on consideration as to how much the firm will lose if it does not use this method increase of sales can be obtained from two sources:1. From the competitors i.e. to protect his already established market against against his competitors is termed as defensive selling. Manufacturers have to make efforts to sell all they produce. to H. if the market for the product is static. When Aggressive selling is resorted ? Usually manufacturer of a new product has to do aggressive selling :- . 2. When the manufacturers uses various sales efforts to obtain increased sales volume for his product it is called aggressive selling or offensive selling. The sales efforts which a manufacturer makes to retain his customers i. Whitehead :"In case of an expanding market all the firm may stand to gain by following the methods of aggressive selling but if the market is static manufacturer of a new market will have to be much more aggressive to capture the established market of competitors". In contrast to this aggressive selling is concerned with the sales efforts made with the express objective of selling more by expanding the market for the product of the selling firm.Aggressive Selling Meaning :Goods are produced for market.

Consumer Promotion. Method of Aggressive Selling :Sales promotion efforts use for aggressive selling may be divided in two classes. 5. 2. If the manufacturer has unused production capacity with heavy investment in plant and equipment he will like to develop the demand for his product rapidly so that demand for his product is equal to the optimum production capacity of his plant . 1. (b) Extra Product :- . and 6. If the manufacturer¶s share of the market is comparatively small. 1. Trade Promotion :Under trade promotion methods special incentives are offered to the trader to buy products of the firm.1. When the manufacturer¶s product is supervisor in quality to the product of the established competitor. When the total market for the product or line of product to expanding. When primary demand for a product must be created and provision must be made in the channel of distribution to educate consumers regarding the new product and to instruct them in its use. 3. Such incentive may take one or more of the following firm :(a) Cash Allowance :A definite percentage of discount is allowed on the purchase of given unit of a product. 4. Trade Promotion. When the product has been improved. 2.

For instance if a box normally contains 20 Cakes of Soap. Thus the consumer get the benefit of reduced price to the extent of the value of the coupons. By presenting this coupon to the retailer consumers can purchase a particular product mentioned on the coupon at a reduced price. special box contains 25 cakes may be made and sold at the same price as that of the box of 20 cakes. Consumer Promotion :Under consumer promotion method special incentives are offered to the consumers to buy the firms product.Instead of giving any cash allowance extra product is given with each unit of product ordered. The more prominent amongst such incentives are as following. The retailer sells the products mentioned. In the coupon to such consumer (consumers presenting the coupons) under and agreement with the manufacturer at a price lower than the user retail price. 2. (c) Gifts :Various gifts are awarded in return for an order of a particular magnitude. the firm offers an article at an attracting price if the consumer send a given sum of money accompanied by a given number of box tops from the packages of a particular product the benefit to the consumer is that he receives the articles at a bargain price. (a) Coupons :A coupon of a giving value is sent to the consumer. (b) Self Liquidating Offers :Under this system. (c) Bargain Packs :- .

the firm may develop its own sales force to call directly on retailers. (i) Direct method of selling through. (d) Sampling :The method involves giving the product or a small quantity of the product to a consumer free with the hope that the customer will be favourable impressed with its actual use and will eventually become a regular purchaser of the product. (ii) Instead of using wholesalers. It is also helpful in obtaining large displays in the shops. Other Methods of Aggressive Selling :(i) Employment of µMissionary Salesman also known as Promotional Salesman¶. A firm selling new product or an extensively improved product finds this methods useful. (iii) The firm may follow a compromise method by employing a manufacturer¶s agent and giving him a large enough commission to encourage him to sell product intensively and aggressively.Under this system a product is sold at a reduced price for a short period Bargain pack method encourages new consumers to try the product. (ii) Offer of door to door selling. Also a firm whose market is hold by competitors whose free sampling almost expensive. . The above mentioned methods may be reinforced by adopting. (iii) Hire purchase and installment payment methods of selling and by forming combination. These salesman call upon retailers and aggressively promote a product.

hassan y Document Transcript 1. etc.Institute of Higher Education.(iv) New territory exploitation sales promotion has a particularly important role in developing the company¶s product in new territories. The various kinds of sales Promotional tools include coupons. most often organizations spend more money on sales promotions than on advertising. (vi) Letters to dealer and Customer. Baja Auto Ltd Sales Promotion INTRODUCTION Sales Promotion is a Powerful Marketing Tool . discounts. H. The main rationale behind an analysis is to gain realistic corporate knowledge and for the purpose of value addition.R. Thesis results provides the data to know how sales promotion y . It comprises one of the four elements of the marketing mix. Baja Auto Ltd Sales Promotion PROBLEM STATEMENT A STUDY ON SALES PROMOTION CREATIVITY OF ARPITA BAJAJ. Marketing promotion helps marketers communicate information to potential customer about the products existence value and the benefits that can be accrued from it. samples. Sales promotion is a form of attracting the consumers by offering them various benefits in the form of incentives or by adding value to the products. the consumer and the understanding that promotions can and still move more than sales volume. Sales promotions are generally aimed at resellers and final consumers. urge and remind customers of the company s brand. The Findings & Suggestions helps Arpita Bajaj improve their existing strategies and to overcome any obstacles so that it results in long term survival of an organization. The connection must relate to the brand identity. The study is aimed at making an analysis of Arpita Bajaj in order to find out which sales promotional activities are helping them to increase their sales. Designing and effective marketing communication mix helps marketers to attract persuade. an ingenious sales manager can devise any number of incentives schemes for promoting the sales volume. This is not to suggest that the typical sales promotion more for same price or `one free' with a purchase should never be done. To insure an excellent promotion the marketer must create a strong connection between the consumers. (v) Increment and promotions. rebates. Consumers have `something' to look forward to and there is also an opportunity given to them to articulate their experiences associated with the brand. Management thesis helps in every possible way to get knowledge about sales promotion activities and its impact on Arpita Bajaj. In fact. Compared with that communication option available to marketers in the past. the design implementation and evaluation of the communication program in the current business scenario pose a significant challenge to marketers. Thus. there are now a larger and greater diversity of communication options available. A study on promtion activities conducted at arpita bajaj. Hassan 1 2.

improvements required by the customers? What is the effect of Bajaj s Advertising/Promotion Campaign? How does the competitor s influence on the existing customers? METHODOLOGY Both primary and secondary data have been collected to bring this project report.Institute of Higher Education. Hassan 3 4.Institute of Higher Education. Baja Auto Ltd Sales Promotion RESEARCH METHODOLOGY The research conducted is concentrated much on the following information How do customers make a purchase decision? What are the various factors affecting the potential customers during the process of selection? Brand awareness in the minds of the customers about the company? What are the benefits. TECHNIQUES OF DATA COLLECTION A questionnaire is designed to collect data and information from the opinion survey of the product. To understand the marek domination by Bajaj Auto Ltd. To evaluate the market penetration rate and the Strategies of Bajaj Auto Ltd . By conducting this study I came to know about the impact and effect of sales promotional activities on Arpita Bajaj and different sales promotion strategy followed by Arpita Bajaj to increase customer and sales. To know and trace out the effectiveness of different sales promotion activities used by Arpita Bajaj. H. primary data have been collected through the personal interview from the respondents. To analyze the customer s attitude towards the two wheelers manufactured by Bajaj Auto Ltd . To know the competitors of Bajaj Auto Ltd. Hassan 5 6. The interview with respondents with a time span of 5-10 minutes y y y . The survey of the respondents was made on the basis of Random Sampling Method. Reaching the target within a short span of time which increases the productivity & market image. Hassan 4 5. The study is fully fledged in all magnitude here and the same has been collected by using primary data with market survey and by using questionnaires. H. Care is taken to arrange the questions in logical sequence and to form them in a simple and precise manner to enable to collect authentic and accurate response from the customer. To analyze the promotional activities by Arpita Bajaj. two wheelers and their shares in the market.R.R. FIELD WORK The field work was conducted in the month of March in the Hassan city. It is meant to extract useful information about the various factors influencing consumer behaviors.R. To improve the business environment within the organization. Hassan 2 y 3. Customers will get to know about What can be expected from the Organization. Baja Auto Ltd Sales Promotion OBJECTIVES To know and understand various sales promotion activities used by Arpita Bajaj.Institute of Higher Education. H. in two wheelers category. Identifies which sales promotion activities are effective.R. Questionnaire had been issued to the respondents to avoid unnecessary delay and to make filling task easy the questionnaires were prepared in structural manner.Institute of Higher Education. Baja Auto Ltd Sales Promotion SCOPE OF THE STUDY The main scope of the study is to understand about of various sales promotional activities which increase the sales. H. Baja Auto Ltd Sales Promotion The data collected through questionnaire are analyzed and interpreted conclusion in a systematic.activities are building awareness about the organization and its products on a regular basis and what needs to be expected from the customers in return. To analyze the problems faced by Arpita Bajaj.

DATA ANALYSIS TECHNIQUES Tabulation. This led to road trial tests and competition between manufacturers. less often.1 INDUSTRY SCENARIO 2. One of the primary reasons for this has been the robust growth of the rural market. 6.scratched with a modest three per cent growth. Hassan 8 9. the rural market of over six lakhs Indian villages contributes 35 percent to total two wheeler sales.on an average to obtain the required formation for the structured questionnaire was used.WHEELER The Encyclopedia describes a motorcycle as a bicycle or tricycle propelled by an internal-combustion engine (or. it is one if the few industrial sectors in the growth phase today. Graphs are also drawn and complied. carrying loads.propelled bicycle.1 HISTORY OF TWO.Institute of Higher Education. In rural areas. Baja Auto Ltd Sales Promotion LIMITATIONS OF THE STUDY Data collection is bit complicated Lack of co-operation from the staff. The automobile was the reply to the 19th-century dream of self-propelling the horse-drawn carriage.Institute of Higher Education. centrally mounted spark ignition engines. The consumer s who wants to be mobile today considers personal transportation as one of his basic needs. outdoors jobs like selling and the like.R. multivalent engines mounted on aerodynamic.5 to 15 cubic inches) in displacement. it has also become a valuable support for increasing productivity and profits. Today. The year 1997 was a difficult period for the automobile sector with the major sector with major player hit by the recession. Since the sample size is limited. This employed a horizontal single-cylinder gasoline engine mounted between two steer able front wheels and connected by a drive chain to the rear wheel. Baja Auto Ltd Sales Promotion 2. A series of good monsoons and high prices for agricultural commodities have increased the purchasing power of rural customers. The motors on minibikes. percentage calculation. or pedal cycles by adding small. Tourist Trophy (TT) races were held on the Isle of Man in 1907 as reliability or endurance races. it enables people to travel more frequently to nearby towns for their daily needs.1 MOTOR y y .1. 2. Hassan 6 y 7. The two-wheeler industry today has a significant role in the Indian Economy. scooters. two. it may lead to the partial true factor about the research. particularly in urban areas communicating to work. the two-wheeler is used in variety of purposes.2 THE TWO-WHEELER INDUSTRY BASICALLY COMPRISES 2.R. Similarly. COMPANY PROFILE 2. Hassan 7 8.1.cylinder motorcycles have displacements of more than 1. bivariate table. besides helping personal transportation.wheelers came through un. The first commercial design was a three-wheeler built by Edward Butler in Great Britain in 1884. In other words. The reasons for this are not far to seek. H. With an annual turnover of Rs.200 crores and a compounded average growth of 10 per -cent in the recent years. ranking. Baja Auto Ltd Sales Promotion early two-stroke-cycle designs to supercharged.Institute of Higher Education.1. bar diagrams. the invention of the motorcycle created the self.2.300 cubic cm. visiting people. Such were the proving ground for many new ideas from H. and mopeds. The 1900s saw the conversion of many bicycles. H. However. In India.R. Customer response was biased. the multiple. pie charts is the techniques to analyze the data collected from the consumers. There was then felt the need for reliable constructions. by an electric engine). carbon fiber reinforced bodywork. are usually air-cooled and range from 25 to 250 cubic cm (1.

Hero Honda and Bajaj Auto gearing up to strengthen their presence in this segment with a range of new products that will address the needs of specific consumer demand. Baja Auto Ltd Sales Promotion In the 1980 s the only available motorcycles in the Indian market were the conventional indigenously build Rajdoot. As such the scooters segment has grown by 34% . 2. During 1994 H. The segment was dominated by Luna.CYCLES The motorcycles segment grew by 28% in terms of sales in 1995. Most of the leading players such as TVS.72-lakh scooters per annum.95 the scooter segment accounted for 46 . In both the companies (LML Limited and Kinetic Honda) foreign partners enjoyed a majority stake. Reliability.1. During the 1980. H. TVS Scooty.3 MOPEDS In 1972 Indian customers was introduced to the models of two-wheeler.2. The superior styling and better ergonomics led to increase in the market share. reliable and suited for rough roads. modern styling and economy are demanded by the mass segment while convenience the important features for the emerging segment the power and pleasure of riding a two wheeler as well.37%. which become virtually to generic name for mopeds and come to be identified with lower middles class people of the country because it was the cheapest available two wheeler with maximum offered mopeds are for this smallest chunk in the Industry.2. The nest few years will see a flood of new vehicles from various manufactures.80% of two wheeler industries crossed the one million mark. Today customer preferences are driving the industry.000 scooter per annum and Kinetic Honda. the scooters showed a phenomenal growth of 65% during 1980 85. 2. Other Companies.2 SCOOTERS In 94 . However this segment has failed to grow especially compared to Motorcycles and Scooters. Scooterettes are also growing at a fast pace and are being increasingly perceived as a better option providing convenience and modern style. TVS Scooty holds a dominant market share. This changed drastically when Japanese introduced their motorcycle in Indian market. These vehicles will only have not only have to improved aesthetics and comfort but also be y . Hassan 9 y 10.1. which was popularly known as Mopeds. by urban customers. Bullet and Yezdi.2. which is remarkable by all standards. Baja Auto Ltd Sales Promotion mopeds registered a growth of just 13% Kinetic Engineering is one of the leading producers of mopeds in India. considered a basic need.Institute of Higher Education. Rising income levels in both urban and rural markets will ensure a rising market for the two-wheeler. with its elegant looks has definitely spurred the growth of this segment.Institute of Higher Education. launched in 1994. 2. The manufacturers are responding to these customers needs with the introduction of new models and modifying existing models.R. A major part of growth on the two wheeler industry has come from Motorcycles especially the Indo Japanese 100 CC motorcycles which are considered fuel efficient. The most important contribution to the segment is Baja Auto with an installed capacity of 12.R.s mopeds are quite popular in first half of the 1980 s.1. The two-wheeler industry has come a long way from a modest production of 150 units in 1950 to three million units per year in 1998. Hassan 10 11. which involve in manufacturing scooter are LML with a capacity if 20. In this category. In act the company is the largest manufacture of two-wheeler in the country and fourth largest in world. which is one of the segment achievements of industry.3 PROMISING FUTURE The future out look for the industry looks promising.

R. Hassan 14 15.1INTRODUCTION The Bajaj group came into existence during the turmoil and the heady exploria of Indian s freedoms struggle. š Check steering cum ignition lock and other locks e.2 COMPANY PROFILE AN EYE SIGHT ON BAJAJ AUTO LIMITED H.2. As dynamic and ambitions as his illustrious predecessors. Putting the nation before business. ¢ Washing tips. Baja Auto Ltd Sales Promotion 2. ¢ Pre delivery checks.R.3 PRE DELIVERY CHECKS Following are the general guidelines you should follow While selecting a vehicle. Hassan 12 13. at the age of twenty seven. but also diversified into various manufacturing activities. dedication. Jamanlal Bajaj. to currently register an impressive figure of Rs 42. Kamalnayan.Institute of Higher Education. Bajaj has the long left behind its annual turnover of Rs. he put his heart and soil into it. 2. The motorcycle segment will also see many new models introductions from TVS. Hassan 11 y 12. He has been the chairman of Bajaj since 1968is recognized as one of the most out standing business leaders in India. Bajaj and escorts.Institute of Higher Education.R.Institute of Higher Education. the eldest son of Jamanlal Bajaj. The integrity.2. be devoted himself to the latter only after India achieved independence in 1947.4 TIPS ON USING A NEW VEHICLE ¢ Do not cross the 40 Kmph limit (up to 500Km) to Kmph (up to 200 Km) ¢ Do not race the engine too much. elevating the group to the status it enjoys till this day. founder of the Bajaj group.Institute of Higher Education. š Check front and rear brakes for effective working. are often traced back to its birth during those long days of relentless devotion to a common cause. 2. But when be did so.environmental friendly.2. 72 million (1968). š Check for smooth operation of fuel coak lever and accelerator. he has been recognized for his achievements at various national and international forums.16 billion (US$ 936 million). succeeded his father in 1942. was a confident and disciple of Mahatma Gandhiji and was deeply involved in the effort for freedom. Bajaj is currently India s largest two and three wheeler manufacturer and one of the biggest in the world. Baja Auto Ltd Sales Promotion ¢ Pollution control. ¢ Free service checks. The twowheeler industry is geared up and going full steam ahead into the next century. ¢ Regular service checks.2 CONSUMER AWARENESS ENRICHMENT TIPS To keep your vehicle up to date. H. Within a short while. few maintenance tips are as follows. Hassan 13 14. he not only consolidated the group. see if any past is making an unwanted noise. Rahul Bajaj heads the group.2. 2. ¢ Ideal maintenance schedule. H. speedometer and fuel meter i Operations for satisfactory working. ¢ Daily checks.g. š Check engine idling and get it adjusted.R. The market will see higher capacity vehicles in the 125 CC to 175 cc range compared to the predominantly 100 CC motorcycles sold now. resourcefulness and determination to succeed which are characteristic of the company today. š Check whether switches. Baja Auto Ltd Sales Promotion 1990 91 CHANGING PROFILE OF TWO WHEELRS INDUSRTY 26% 50% Scooters Mopeds Motorcycles 24% 1997 98 H. Hero Honda. ¢ Do not start moving or y y y . ¢ Tips on using a new vehicle. š Test drives the vehicle. š Check gear shifting and clutch lever for proper. i Adjustment and Working. Baja Auto Ltd Sales Promotion 37% Scooters 39% Mopeds Motorcycles 20% 2. i Luggage box. toolbox etc for proper working.

2.Institute of Higher Education. Hassan 17 18. Initial customer H.1 MOTORCYCLES SALES A total of 74. Hassan 15 y 16.2. 2.R. ¢ Keep the sparkplug clean and maintain specified gap Between electrodes. Baja Auto Ltd Sales Promotion 2. ¢ Grease all unpainted parts. every fortnight. Baja Auto Ltd Sales Promotion B) Bajaj Allianz 74 % Insurance Life Joint venture General Insurance Company Ltd C) Allianz Bajaj 74 % Insurance Life Joint venture Life Insurance Company Ltd D) Maharashtra 24 % Automotive and Joint venture Scooters Ltd Investments E) Bajaj Auto 46. ¢ Do not run the engine at constant speed for along time.3.2 THREE WHEELERS Demand for 3 wheelers.Institute of Higher Education.2. Vary the speed from time to time. 09. Such growth was enable by the strong product line up of the company-entry level CT 100 BYK. 2.Institute of Higher Education. ¢ Avoid use of adulterated fuel.9%. ¢ Engine. ¢ Empty the fuel tank.117 units of two and three wheelers in March 09.R. ¢ Keep the air filter clean.5 FREE SERVICE CHECKS H. ¢ Follow the specific instructions given in owner s manual it dry with a Clean cloth. Commercial production of GC 1000- y y y . 2. ¢ If the vehicle is fitted with battery. Hassan 18 19.2.924 units in March 2009 a growth rate of 5. the new Pulsar 150cc of take of 10. as against a sale of 69. 2003: This growth has been achieved despite very tough market conditions triggered by war. has been strong and over 16000 3 wheelers have been sold in March. 2. Keep the engine during a few minutes to let the flow to all the engine parts. silencer decarburization ¢ Tightening and adjustments of all major bolts / nuts.R. Control cables. ¢ Use the correct percentage of 2T oil. ¢ Fuel filters cleaning. remove it from Vehicle and subject it to bench charging. ¢ Inflate tyre to specified pressure.7 NON USE MAINTENANCE ¢ Keep the vehicle thoroughly.754 units.racing the engine immediately after starting. H. ¢ Start the Engine. April 1. ¢ Avoid use of excess oil in fuel. Hassan 16 17. ¢ Dry the vehicle and oil it.Institute of Higher Education. ¢ Oil change The oil level should be between the maximum and Minimum level ¢ Air filters cleaning.15 % Hire purchase and Associate Finance Ltd financing 2. support the vehicle Such that both the tyres are not loaded. ¢ Check the emission level once in 3 months and get the Engine tuned if it is above the prescribed limit.3 A REVIEW ON THE ANNUAL SALES OF TWO AND THREE WHEELERS IN 2008-09 Bajaj Auto records a sale of 140.6 POLLUTION CONTROL Important tips to keep the emission low. VAT related confusions etc.2. ¢ Get the carburetor tuned at an authorized service centre.3. petrol price bikes. Baja Auto Ltd Sales Promotion ¢ Ensure that you get the following checks done in your free service. ¢ Spark plug cleaning and setting.R. ¢ Cover the vehicle properly.031 motorcycles were sold during March 08.7 THE CONSOLIDATED FINANCIAL RESULTS INCLUDE THE RESULTS OF THE FOLLOWING COMPANIES Name of the % Share holding Segment Consolidated as company and voting power of Bajaj Auto Ltd and subsidiaries A) Bajaj Auto 100 % Investment Subsidiary Holdings Ltd H. Baja Auto Ltd Sales Promotion feedback is encouraging and company plans to produce over 30000 units during April 09. consume the fuel inside the carburetor.

new one ton goods carrier powered by high performance Kubota Diesel Engine has commenced a Waluj plant. Company expects to produce over 500 units of this model in April 09. 2.3.3 EXPORTS GROWTH Exports growth continues in March. Exports performance continues to be strong, with 7,119 two and three wheelers exported during the month, a growth of 53.8% over 4,628 units exported in Mar, 09. Export performance during the month would have comfortably crossed 11000 units, but for the Mumbai customers House Agents strike for a few days which bampered shipping of goods. As of 31st March over 4200 units awaiting shipping in Mumbai port. Fiscal Year 08-09 volumes total sales of 2 and 3 wheelers for 08-09 are 14,42,760 units recording a growth rate of 6.2% over last year. Motorcycles sales are 868,089 units against 656,018 units sold during 08-09 recording a healthy growth rate of 32.3%. Despite intense competition, in this all H.R.Institute of Higher Education, Hassan 19
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20. Baja Auto Ltd Sales Promotion rd important segment, for the 3 consecutive year, company has recorded market share improvement, which for 08-09 stood at 23%. Exports have been another high point of the year 94, 133 units have been exported-highest ever by the company and a whopping 112.4% growth over corresponding numbers of 44,311 units exported during the previous fiscal. Fiscal year 08-09 outlook based on product strength in critical motorcycle segment which is expected to contribute over 80% of 2 wheeler sales, company is bullish for the forth coming year. Discover and CT 100 have redefined be respective sub-segments and Pulsar 180 with its best in class performance and fuel efficiency, is making in roads in the Executive segment. Given the current uncertainties explained earlier, 08-09 is projected to be a difficult year. Despite this general back drop, based on its products, positioning and exports, company expects to sell over 1.6 million units in 08-09, achieving a 10% plus growth rate. 2.3.4 Following table shows the sales in March 2009 with comparison to previous year march 2008. March 09 March 08 Growth Motorcycles 868.089 656.018 32.3% Total 2 Wheelers 1.24.043 1.197.922 4.3% 3 Wheelers 193.717 160.684 20.6% H.R.Institute of Higher Education, Hassan 20 21. Baja Auto Ltd Sales Promotion Total 2 & 3 1.442.760 1.358.606 6.2% Wheelers Exports out of 94.133 44.311 112.4% above total 2 & 3 Wheelers 2.4 BOOK PROFIT OF THE FIRM Reflective of the growing competitive pressure in the Two wheeler industry. Bajaj Auto reported a marginal increase in turnover and net profit for the year ended Mar 2009. Aided by 6% increase in sales volume, the total income from operations rose 15% to Rs. 4,895.3 crores. For the year ended Mar 09 motorcycle sales rose 32% to 8.68 lakh units while 3 wheeler sales 21% to 1.94 lakh units. However the other two wheeler segment such as scooter and step they saw a net decline in sales volume. As a result, the total two wheeler sales inched up by 4% deposit a robust 21% increase in motorcycle sales. 2.4.1 FINANCIALS The operating profit margin rose to 18.9% from 17.5%. The cost control measures undertaken by the company along with the increased off take of higher value products such as Pulsar, CT 100 and 3 Wheeler helped the company to achieve a higher OPM. The increase in turnover and profitability helped Bajaj to record a 3.3% increase in post tax earnings to 5,38,42 crores. The company has maintained the dividend at 140% for the year ended Mar, 03. H.R.Institute of Higher Education, Hassan 21

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22. Baja Auto Ltd Sales Promotion The impact of the competitive forces is evident in the fourth quarter of the previous fiscal. The turnover for this period rose by just 10% while the OPM saw a net decline. Over the past few years Bajaj has been fairly successful in segmenting the motorcycle market. It took the lead be launching CT 100 at the lower price spectrum and, with Avenger and Pulsar, which were positioned in the premium price band. However Hero Honda and TVS Motor have launched a product that competes with Bajaj s range in almost all price segments. As a result, the company might find its growth rates getting stalled. 2.4.2 FORWARD LOOK For the financial year 2008 BAL is targeting two wheeler sales of 1.6 million units, inline with the 12% industry growth rate. But is motorcycle growth rate is 30%, with volumes crossing one million units, including projected Pulsar volume of 240,000 units. Final 2009 3 wheeler volumes are seen at 216,000 units while total 2 & 3 wheeler export is projected at 126,000 units. In July, the 124cc exceed launched. Its first year export volume is pegged at 6000 units, understanding with Bajaj being for an eventual 50000 units mostly to Indian markets. 2.5 ORGANIZATIONAL STRUCTURE BOARD OF DIRECTORS RAHUL BAJAJ Chairman MADHUR BAJAJ H.R.Institute of Higher Education, Hassan 22 23. Baja Auto Ltd Sales Promotion Vice Chairman RAJIV BAJAJ Managing Director SANJIV BAJAJ Executive Director RAKESH SHARMA CEO (International Business) R C MAHESHWARI CEO (Commercial Vehicles) S SRIDHAR CEO (Two Wheelers) 2.5.1 BOARD OF DIRECTORS Board of directors Managing Director H.R.Institute of Higher Education, Hassan 23 Executive V.P President Purchase Marketing Sa Sales 24. Baja Auto Ltd Sales Promotion Operations R&D Production Quality HRD& Industrial Business Finance Engineer Assurance TQC Relations Planning Information Industrial Program Program Program Corporate Systems Business Scooty Motorcycle Moped Communication 2.5.2 SALES & SERVICE DEPARTMENTS Senior Vice President Vice President H.R.Institute of Higher Education, Hassan 24 Sales Head Territory Mgr NationalMgr Area Mgr TerritoryMgr National Mgr Area Mgr TerritoryMgr National Mgr Area Mgr National Mgr TerritoryMgr Area Mgr 25. Baja Auto Ltd Sales Promotion 2.5.3 FUNCTIONS OF SALES & SERVICE DEPARTMENTS i Improved Customer Satisfaction i Customer Relation Management i Build the Auto Bajaj Ltd i Improve Channel Management i Expand dealer network 2.5.4 HUMAN RESOURCES DEVELOPMENT (HRD) Head of BAL H.R.Institute of Higher Education, Hassan DGM HRD 25 26. Baja Auto Ltd Sales Promotion Senior Manager (HRD) 3 Senior Administrative Assistants H.R.Institute of Higher Education, Hassan 26 27. Baja Auto Ltd Sales Promotion FIRM S PROFILE A BIRD VIEW OF ARPITA BAJAJ 2.6 FIRM S PROFILE 2.6.1 A BIRD VIEW OF ARPITA BAJAJ 2.6.2 BIRTH Arpita Bajaj has taken its birth in the year may 1, 2000 by appointing as a authorized dealer of Bajaj Auto Ltd. For the sales, service spares of two wheelers. A new showroom was started in Hassan in the heart of the city of the BM Road. In the early stages of the firm there were only 20 workers who were working. Due to the increase of sales and profit of the firm, they wanted to increase the scale of the business. So

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the purchased asset (site) in 1983, Hassan at BM Road. In that place, they constructed an exciting showroom for the purpose of business. It consists of 3 divisions. H.R.Institute of Higher Education, Hassan 27
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28. Baja Auto Ltd Sales Promotion 2.6.3 THEY ARE a. A department for sales. b. A department for service. c. A department for spares. a. The sales department contains a head count of 13 members. b. The service department contains a head count of 25 members. c. The spare part department also contains a head count of 04 members to work. It is having computer facility for billing and charging the amount. 2.6.4 NATURE OF THE FIRM Arpita Bajaj is a sole trading firm. The founder of Arpita Bajaj.Was Vishwanath Patil who developed the firm into a greater extent. 2.6.5 INFRASTRUCTURAL FACILITIES The firm is having a total area of 2000 sq.ft. It is having a fabulous and an attractive showroom of 950 sq. ft. The spare part section is having on area of 1000 sq.ft. It is having a well equipped workshop with an area of 1800 sq.ft. The remaining area is using for parking and test riding of vehicles. The firm is having a separate counter for sales and for Bajaj Auto Finance. Bajaj Auto Finance is providing a good facility for customer like loans, free service etc. The customers will have the facility of loan by Bajaj Auto Finance Ltd., in Pune at an attractive rate of interest. The customer has to clear the installment within 12, 18, 24 & 36 months. H.R.Institute of Higher Education, Hassan 28 29. Baja Auto Ltd Sales Promotion 2.6.6 TABLE SHOWING THE TOTAL SALES OF TWO WHEELERS ACHIEVED BY ARPITA BAJAJ, IN THE LAST 2 YEARS. YEAR TOTAL SALES OF 2 WHEELERS 2008-09 79 2009-10 120 The above table clearly shows that the sales of two wheelers are in cumulative increase except in the year 2008-10. So that Arpita Bajaj performing its function in a competitive way. 2.6.7 PROMOTIONAL STRATEGY OF THE FIRM Arpita Bajaj emerged as a fast moving seller of two wheelers of Bajaj Auto Ltd, it has undertaken various promotional tools to retain the existing customers and to forecast the prospective and failure customer. Following are the sales promotional tools adopted by the firm to increase its sales. 2.6.8 NEWS PAPER The firm has adopted the newspaper as an advertisement media for the promotion of its two wheelers. If give the Add in the all English newspapers like Times of India, Vijay Times, Indian Express, Deccan Herald etc. It also gives Add in local newspapers such as Vijaya Karnataka, janatha madhyama, etc. 2.6.9 TELEVISION The firm displays its Add in different channels of television. It is an effective media of advertisement which is adopted by the firm to induce the prospective customers. H.R.Institute of Higher Education, Hassan 29 30. Baja Auto Ltd Sales Promotion 2.6.10 MAGZINES The firm subscribes its Add in various souvenirs and magazines of reputed colleges, educational institutions and in other institutions. 2.6.11 WINDOW DISPLAY The firm is having an exciting showroom and a large place for the display of vehicles. The vehicles will to display through windows. So it attracts the attention of the customers when they enter into the showroom. 2.6.12 OTHERS The firm displays its products big banners, posters, boards across the major busy roads and also leaf lets, pomplets issued to the customers. The posters, banners will be displayed in the sports events, drama festivals, youth festivals, exhibitions, fares, and other famous festivals. H.R.Institute of Higher Education, Hassan 30

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6 Bajaj Pulsar DTSi Pulsar 180 DTS-i HIGH BANDWITH LOW BANDWITH Bajaj Pulsar has achieved the status of a cult bike in India.7. The Bajaj Discover has been the highest selling 125 cc bike in India since its inception and far ahead of other bikes in its segment. At present.4 Bajaj Discover DTSi o Discover 135 DTS-i Discover DTS-Si Bajaj Discover DTSi is a 125 cc bike. Bajaj Auto Limited was founded on November 29. India Products: scooters. single cylinder Kawasaki engine. Bajaj Auto is the second largest twowheeler manufacturer in India and one of the largest in the world. The company initially sold imported two.y 31.7.3 Bajaj CT 100 Bajaj CT 100 is a 100 CC entry-level bike from Bajaj Auto.1 Bajaj Avenger Avenger 200 DTS-i HIGH BANDWITH LOW BANDWITH Bajaj Avenger is a cruiser bike from the stable of Bajaj Auto.and three-wheelers in the country. The last few years have seen company's real growth in numbers after it successfully introduced a number of new models in various segments of the fast growing bike market in India. Bajaj Auto obtained license from the Government of India to manufacture two. Baja Auto Ltd Sales Promotion 2.R. Over the last few years. is an important Indian automobile manufacturer. 2. Bajaj CT 100 clearly targets the value-for-money conscious young bike buyer and offers build quality and trim levels of higher-end bikes at a price closer to that of a traditional metal-bodied scooter. Bajaj has incorporated its patented DTSi (Digital Twin Spark Ignition) technology and Exhaust TEC into Bajaj Wave. The company produces and exports scooters.7 PRODUCT PROFILE Type of Company: Public Founded in: 1945 Headquarters: Pune. 2. Waluj and Pantnagar in Uttarakhand. Bajaj Auto has smartly and successfully transformed its image from a scooter manufacturer to a two wheeler manufacturer. Bajaj Auto Ltd.7 Bajaj Wind 125 Bajaj Wind* y y y . H. In 1959.7.Institute of Higher Education.Institute of Higher Education. Baja Platina borrows extensively from the Bajaj Wind and Bajaj CT 100 models.2 Bajaj Platina Platina 125 HIGH BANDWITH Baja Platina is a bike built by the Bajaj Auto. Baja Auto Ltd Sales Promotion 2. Bajaj Auto smartly introduced new segments in the motorcycle market to take on its arch rival and market leader Hero Honda. motorcycles and the auto rickshaw. The sturdy and macho looking bike has been hugely popular in the Indian motorcycle market and is largely responsible for changing the 'scooter manufacturer' image of Bajaj Auto. It is equipped with world s first 125cc DTSi engine which gives best in class power of 8. H.7. the product range of Bajaj Auto includes Scooters and Motorcycles. Hassan 32 33. In 1960.R. 2. Hassan 31 32. Hassan 33 34.51Ps).and three-wheelers in India. Bajaj Auto is based in Pune. It is also the earliest one in India to venture into automobile manufacturing. Maharashtra. 2.Institute of Higher Education.5 Bajaj Wave Bajaj Wave scooterette borrows heavily from the old Bajaj Safire in terms of the overall design but it comes with several new refinements.7. 1945.47kW (11.7.7. Baja Auto Ltd Sales Promotion 2. At that time it was known as M/s Bachraj Trading Corporation Private Limited. H.R. Baja Auto Ltd Sales Promotion 2. Bajaj Avenger is modeled along the lines of Kawasaki Eliminator as it draws the styling and other design cues from Bajaj Eliminator which had an air-cooled. motorcycles and auto rickshaw. Bajaj Auto became a public limited company. In fact. with plants in Akurdi and Chakan.

55.9 SWOT ANALYSIS H. 4. They are neither good for short sellings nor for long trades. More than 50% of the targeted customer are youngsters 2. H. 5. Bajaj Wind 125 is available only for select international markets. 4. Hassan 37 38.000 by BBC World Wheels Award. Ever time more demand. THEY ARE 2005 Bajaj Discover DTS-I was chosen as Bike of the Year and Indigenous Design of the Year by Overdrive Awards. Baja Auto Ltd Sales Promotion A choice for the trader is not an easy one these days.Institute of Higher Education. Government will provide local market facility to producer 3. Bajaj Pulsar 150 DTS-I chosen as Best Two Wheeler between Rs.9. Bajaj Pulsar chosen as Bike of the Year by ICICI Bank OVERDRIVE Awards. 2001 Bajaj Eliminator chosen as Most Exciting Bike of the Year by OVERDRIVE Awards. Hassan 35 36. 2. Government and bank will give y y y y .Institute of Higher Education. 2.000 to Rs. Though manufactured in India. It is because most scrip s have zoomed up sizeably and therefore are of doubtful nature for recommendation for further gain. Baja Auto Ltd Sales Promotion Bajaj Boxer AT KTEC chosen as Best Two Wheeler under Rs. 2.Institute of Higher Education. 2004 Bajaj Auto was chosen as Bike Maker of the Year by ICICI Bank Overdrive Awards.Institute of Higher Education. 2002 Bajaj Pulsar chosen as Most Exciting Bike of the Year by OVERDRIVE Awards. Baja Auto Ltd Sales Promotion 2.7. Wind 125 chosen as the Bike of the Year by Business Standard Motoring. 30.R. Inconsistency in delivering quality products and service 3. fuel efficient bike from Bajaj Auto. The company has a strong portfolio of products spread across almost the entire spectrum of the two-wheeler market.3 OPPORTUNITIES H. Baja Auto Ltd Sales Promotion 2. Hassan 36 37. DTS-I Technology was chosen as Auto Tech of the Year by ICICI Bank Overdrive Awards. H. Hassan 34 y 35. The degree of success enjoyed by model introduction would be critical performance determinate. Opportunity to adopt modern techniques 2. Government Bank giving more attention to installation loan improvement 3. 2003 Bajaj Pulsar 180 DTS-I chosen as Wheels Viewers Choice Two Wheeler of the Year and Best Two Wheeler by BBC World Wheels Award.1 BAJAJ AUTO LTD ACHIEVE SOME AWARDS FROM SOME COMPANIES. 2.R.R.8 Auto rickshaws Bajaj Auto rickshaw Rear Engine 2 stroke petrol Auto rickshaw WH175ZK Auto rickshaw passenger and goods carrier Star Auto rickshaw 4 stroke petrol Gasoline Motor Tricycle 3 Wheeler Auto rickshaws with Powerful 200cc Engine WZMT2001. upright postured. Bajaj Pulsar chosen as Motorcycle Total Customer Satisfaction Study by NFO Automotive. Bajaj Eliminator chosen as Bike of the Year by OVERDRIVE Awards.1 STRENGTH H.125 is an executive segment. 1.000 by BBC World Wheels Award.9.9.R. Bajaj Pulsar DTS-I became Bike of the Year by ICICI Bank Overdrive Awards. Minimal response time due to good teamwork.8. There are others who are resisting a fall.R.2 WEAKNESS 1. Wind 125 chosen as the Two Wheeler of the Year by CNBC AUTOCAR Awards. 45. 2. Focus on customer delight besides customer satisfaction. Baja Auto Ltd Sales Promotion 1.Institute of Higher Education. Hassan 38 39. Latest Hi-tech core concepts of production & quality.8 ACHIEVEMENT 2.

Bajaj Auto re. Liberalisation brought the threat of cheap imports and FDI from top companies like Honda.9. effectively ignoring scooters. as it is for many small businesses. The scooter sails plummeted as people were more interested in motorcycles and the rival Hero Honda was a pioneer in it. Rahul Bajaj became famous as the head of the Bombay Club. Sales promotion acts as a competitive weapon by providing an extra incentive for the target audience to purchase or support one brand over another.R.1 SALES PROMOTION ACTIVITIES Sales promotion is an important component of a small business s overall marketing strategy. established a world-class factory in Chakan. and contributes highly to profitability. Hassan 40 41. invested in R&D and came up with Bajaj Pulsar Motorcycle.financial help to improve technology 2.R. REVIEW OF LITERATURE 3.off deals.9. and they use sales promotion to change this price-value relationship by increasing the value and/or lowering the price. and remind target customers about the business and its marketing mix. trade shows. H. Businesses can target sales promotions at three different audiences: consumers. persuade. in-store displays.Institute of Higher Education. and the company s own sales force. the leading scooter manufacturer. Compared to the other components of the marketing mix (advertising. limited period of time in order to stimulate trial. Baja Auto Ltd Sales Promotion 3. Most marketers believe that a given product or service has an established perceived price or value. But this definition does not capture all the elements of modern sales promotion. the stage of the product in its life cycle. fosters an immediate sale. One should add that effective sales promotion increases the basic value of a product for a limited time and directly stimulates consumer purchasing. It is particularly effective in spurring product trial and unplanned purchases.invented itself. Natural calamities 2. sales promotion usually operates on a shorter time line. and the nature of the product. faced a crisis. The recession and stock market collapse of 2001 hit the company hard and it was predicted that the days of Bajaj Auto were numbered. premiums. which opposed liberalization. the nature of competition in the market. For example. price. publicity. y . The American Marketing Association (AMA) defines sales promotion as media and non media marketing pressure applied for a predetermined.5 Bajaj Auto s smart move ¾ Faced with tough competition. and personal selling. ¾ In the late 1990s. Baja Auto Ltd Sales Promotion In determining the relative importance to place on sales promotion in the overall marketing mix. Urban youth as well as rural markets were patronizing the motorcycles. public relations. sales promotion can be an effective tool in a highly competitive market. coupons. However.Institute of Higher Education. along with advertising. H. sales promotion and direct mail are particularly attractive alternatives when the marketing budget is limited. or the effort of the sales force. increase consumer demand. contests. 1. and rebates. and personal selling).4 THREATS The initiation of liberalization in India posed great challenges for Bajaj Auto. or improve product quality. It can be used to inform. Price fluctuation 2. a small business should consider its marketing budget. In addition. selling effectiveness. Some common types of sales promotion include samples. sweepstakes. returns a tangible or real value. resellers. Hassan 39 y 40. Bajaj Auto. There was a shift from scooters to motorcycles. uses a more rational appeal. the target of the promotion.

sponsorship. product line. historically.2 PRODUCT: The marketing mix concept has its roots in the 1950s U. and how much money to budget for each.) Promotion is generally sub-divided into two parts: Above the line promotion: Promotion in the media (e. TV. trade shows H. and the practice of marketing has obviously evolved tremendously since this term was invented.g. expensive items that might require hands-on demonstration. competitive retaliations. sales promotion is often used in the growth and maturity stages of the product life cycle to stimulate consumers and resellers to choose that product over the competition rather than in the introduction stage. if a bit general. 3. Either way. the marketing mix is a he term marketing mix refers to the primary elements that must be attended to in very useful.Institute of Higher Education. brand. Much of this is intended to be subtle enough for the consumer to be unaware that promotion is taking place. merchandising. Pricing..1. Finally. Mobile Phones. creation of brand equity. endorsements. corporate marketing world.g. when mass advertising to build awareness might be more important. Hassan 41 y 42. H. positioning. such as those available online. Or. product here refers to products or services. A promotional plan can have a wide range of objectives. Getting the marketing mix right for your product or service means you are covering all of the important bases in your marketing campaign. 3. It is one of the four key aspects of the marketing mix. Baja Auto Ltd Sales Promotion The specification of these four variables creates a promotional mix or promotional plan. Similarly. One of the changes is that there are a lot more services available nowadays. is a Web-based software application a product or a service?). illustrated songs) in which the advertiser pays an advertising agency to place the ad Below the line promotion: All other promotion. The product or service you offer needs to be able to meet a specific. Pricing for products or services that are more commonly y . you need to be able to create a market niche through building a strong brand. new product acceptance. direct mail. personal selling.1 Promotion It involves disseminating information about a product. To order to properly market a product or service. existing market demand. E. (The other three elements are product marketing. Baja Auto Ltd Sales Promotion 3. radio. guideline for understanding the fundamentals of what makes a good marketing campaign. Hassan 42 43.S. A promotional mix specifies how much attention to pay to each of the four subcategories. sales promotion.1. public relations.when the objective is to convince retailers to carry a product or influence consumers to select it over those of competitors. the distinction between product and service has become more blurry (e.R.1. Internet. rather than more complex. Here is a brief description of each component of the 4 Ps of the marketing mix. newspapers. but not normally to the public or the market phrases like special offer are more common. or company. Place. Also. Also known as The 4 Ps of Marketing. The term promotion is usually an in expression used internally by the marketing company.3 PRICE: The price you set for your product or service plays a large role in its marketability. Here is a definition of marketing mix and a description of its main components. or creation of a corporate image.Institute of Higher Education.R.g. including: sales increases. product placement. sales promotion tends to work best when it is applied to impulse items whose features can be judged at the point of purchase. and.

on a cruise ship. ¾ Advances in tech. H. Marketing has come a long way from the 4 Ps of yesteryear. etc. Hassan 43 y 44. 3. Your choice of a promotional strategy will be dependent upon your budget. public relations. meaning that unit sales will go up or down more responsively in response to price changes. meaning that price changes will not affect unit sales very much. Why? ¾ Companies are looking to get a competitive edge. The ease and options through which you can make your product or service available to your customers will have an effect on your sales volume.Institute of Higher Education.4 PLACE: This term really refers to any way that the customer can obtain a product or receive a service.1. ¾ 9000 trade shows containing 10 exhibits or more/year. ¾ $15-20 billion/year spent on point of purchase material in stores. TV Newspapers Radio Magazines Marketers need to communicate.200/household). the type of product or service you are selling.R. TV commercials. make SP easier y .7 Scope and importance of sales promotion ¾ 323 billion coupons were distributed 1993 nationally annually (3. Advertising Agencies creating radio commercials. and availability of said promotional vehicle. groups or organizations to directly or indirectly facilitate exchanges by informing and persuading one or more audiences to accept an organization's products. therefore provide funds for Event Sponsorship. 3. Message New Car. go to the showroom etc. The marketing mix serves as an excellent touchstone for continually checking that you are covering all of the bases in your marketing campaign. Promotion can be seen as a way of closing the information gap between would-be sellers and would-be buyers. Cirrus. 3. ¾ Quick returns are possible for short term profits. those products that have a generally more limited availability in the market (but with strong demand) are more inelastic. Response--Reactions of the receiver buy or not to buy.5 Nine elements to the communication process Sender Chrysler and Receiver Target Market (35-50yr aspire BMW/Lexus) are the major parties in the communication process. such as in a retail store. 3. Baja Auto Ltd Sales Promotion Encoding--putting thought into symbolic form. Understanding the target market's perception process is critical. take next step down AIETA. point-of-sale displays. direct mail. therefore need a medium to facilitate communication. ¾ Channel members putting pressure on manufacturing for promotions. in a hair salon. Baja Auto Ltd Sales Promotion 3. Brooks Brothers etc are the major communication tools. sales pitch etc Decoding--consumer interprets message. Advertising. and yet understanding this marketing mix is for your product or service remains very relevant today.1. The price elasticity of your product or service can be determined through various market testing techniques.6 More major functions H.4 Promotion and Society Marketers need to communicate. comfort of a Lexus and handling of a BMW for less money and the media TV.5 PROMOTION: Promotion is concerned with any vehicle you employ for getting people to know more about your product or service. ¾ More consumers are looking for promotions before purchase. via downloadable files. 3.available in the market is more elastic. only 2. through the mail. Provision of a product or service can occur via any number of distribution channels. and word-of-mouth promotion are all traditional ways for promoting a product. By contrast.2 Role of Promotion To communicate with individuals.3% are redeemed.R.Institute of Higher Education. Hassan 44 45. New York auto show attracts more than a million people per year. prepare direct mail pieces. 3.

Sales promotion often attracts brand switchers. coupon redemption). customers may stock up during the promotion.R. 3. the meaning is to move forward or to advance an idea. ¾ Reminder functions-calendars. In markets of high brand dissimilarity. H. ¾ Impulse purchases increased by displays ¾ Contests generate excitement esp. to reward loyal customers and to increase the repurchase rates of occasional users. Sales promotion methods aim to capture the market and increase the sales volume. The aim of production is sales. ¾ Attract customer traffic and maintain brand/company loyalty. therefore no product differential advantage.8 Sales Promotion Opportunities and Limitations ¾ Increase in sales by providing extra incentive to purchase. because H.R. ¾ Shift focus away from the product itself to secondary factors.(i. match books etc.Institute of Higher Education.10 Sales Promotion The word promotion. attraction and advantages To create favorable attitude towards the product To create additional talking points to sales persons To establish and maintain communication with large market segments Sales promotion includes those sales activities that supplement both personal selling and advertising to co-ordinate them and help them make effective such as displays shows and expositions.R. Baja Auto Ltd Sales Promotion 3. sellers use incentive type promotions to attract new customers. Sales and promotion are two different words and sales promotion is the combination of these two words. 3. Hassan 45 y 46.e.Institute of Higher Education.12 Marketers take sales promotion activities for the following reasons For introducing new product For overcoming unique competitive situation For unloading accumulated inventory H. Sales promotion yields faster responses in sales than advertising. T Shirts.9 Limitations ¾ Consumers may just wait for the incentives ¾ May diminish image of the firm.6%. represent decline in the product quality. Sales promotion consists of a diverse of innovative tools. demonstrations and non-recurrent selling efforts not in ordinary routine. 3. A free sample stimulates consumer trail and while a free management advertising service cements a long-term relationship with a retailer. Brand switchers are primarily looking for low price. consumers (pull) or both. Today sales promotion has been accounted for 60% to 70% of the combined budget. Sales promotion expenditure has been increasing 12 annually compared with advertising in of 7.11 Sales promotion has dual objectives To increase buying response by ultimate consumers To increase selling efforts and intensity by dealers as well as by sales a personnel To capture the major share of the market To meet the competition of other firms To inform the public about the new product and its specialties. with high payoffs. Sales promotions are unlikely to turn them into loyal brand users. ¾ Reduces profit margins. good values or premiums. mostly short term.Institute of Higher Education. ¾ Balance between short term sales increase and long term need for desired reputation and brand image. designed to stimulate quicker or greater purchase or particular products/services by the consumers are the trade. ¾ Objectives must be consistent with promotional objectives and overall company objectives. Hassan 46 47. 3. Baja Auto Ltd Sales Promotion users of other brands and categories do not always notice or act on a promotion. May focus on resellers (push). Hassan 47 y . originates from the Latin word promovere . Sales promotion tools vary in their specific objectives.

Coupons can be mailed.15.13.1 PRICE OFF/OFF LIST: a price off is a straight discount of the list price on each case purchased during a stated time period.16 Brand Brands are names generally assigned to a product or service or a group of complementary products while a corporate image covers every aspect of the company. To enter.13 Major consumer promotional tools 3.4 PREMIUM OFFER: It is a temporary price reduction.R.4 DEALER S CONTEST: This is an indirect way of boosting the sales.3 FREE GOODS: Free goods are offers of extra cases of merchandise to middlemen who buy a certain quality or who feature a certain flavour or size.2 SAMPLES: Free samples are given to consumers to increase the product. These are given to the people in the hope that they will buy the goods when they are satisfied with the sample.6 DEMONSTRATION: It is the instructions to educate the consumers in the manner of using products. which increases the instinct of the buyers. 3.6 CO-OPERATIVE ADVERTISING: Dealers spend money in advertising manufacturer s product with the consent of manufacturers. H.1 BONUS TO SALES FORCE: The manufacturers set a target of sales for a year.14.15 Sales force promotion tools Trade shows and convention: Industry associates organize annual trade shows and conventions. Baja Auto Ltd Sales Promotion 3.14 Dealer s promotion tools 3. 3. store or in trade fairs.3 MONEY REFUND OFFERS: If he purchaser is not satisfied with the product. It gives a temporary discount to the customers. 3.Institute of Higher Education. enclosed in the packets or printed in the advertisements.5 CONTESTS: The customers are asked to state in a few words why they prefer a particular product.13. Hassan 48 49. bonus is offered to them. or some combination.15.13. 3.1 COUPONS: coupons are supplied along with a product. 3. It is arranges at the retail. for the winner attractive prizes are given in the form of cash or valuable articles. 3. a part or all of the entire purchaser s money will be refused.13. special discount are also allowed to dealers for a special quantity of purchased. 3.14.13. It is a certificate that reduces prices.3 SPECIALTY ADVERTISING: It consists of useful.2 SALES CONTESTS: A sales contest is a contest involving the sales force or dealers. This type of contest is conducted at the level of retailers and wholesalers. Baja Auto Ltd Sales Promotion 3.15. 3. low cost items given by sales people to prospectus and customers bearing the giver s name and address and sometimes an advertising message. 3. A successful brand is a name.R.7 PRICE OFF OFFERS: It stimulates sales during slump reasons. Baja Auto Ltd Sales Promotion For getting new accounts For persuading dealer to buy more/increase size of orders For retrieving cost accounts 3.13. Brands are drivers of competitive edge.2 ALLOWANCE: An allowance is an amount offered in return for the retailers agreeing to feature the manufacturer s product in some way. Hassan 49 50.13. symbol. the consumer must purchase a product and submit the evidence with the entry forms to contests. aimed at inducing them to increase their sales results over a stated period.5 PRICE DEALS: Apart from the regular discount. 3. 3.y 48. 3.14. Products are offered free or at a reduced cost as an inducement for purchasing.Institute of Higher Education. H.14. with prizes going to those who succeed. 3. which identifies the product of a particular organization as having a sustainable differential advantage 3. 3. 3. If the sales force sells the product above the targeted sales.17 Branding It is the practice of giving a specified name to a product or group of products of one seller branding is the process of finding y y .14.14. design.

Hassan 52 53. Hassan 51 52. Packaging an activity. purpose. ¾ It should be easy to advertise and identify ¾ Should be of a permanent nature ¾ It should be capable of being registered and protected legally ¾ It should economical to reproduce ¾ It should create a good image ¾ It must have a pleasing sound to the ear when pronounced.Institute of Higher Education. Advertisement is that activity by which visual oral messages are addressed to the general public the aim is to persuade people to buy more. 3. coloring or lettering it is designed to easy identification of a product. A brand loyalty gives seller some protection from the competitors and greater control in market program.R. Some importance of branding is as follows: ¾ Branding helps the seller segment market each formulated differently and aimed at specific benefits seeking segment. advertising is non-personal form of communication conducted through paid media under clear sponsorship.R. Baja Auto Ltd Sales Promotion Promotion of new product Support of personnel selling To create brand patronage For dealers support Advertising appears effective in increasing y y .and fixing the means of identification naming a product like naming a baby. which is concerned with protection economy convenience and promotional consideration? The wrapper of the container is celled package. which appears in the form of a symbol.Institute of Higher Education. or it may be a tag attached directly to the product. Baja Auto Ltd Sales Promotion Selling is the personnel or interpersonal process of assisting and persuading a prospective customer to buy a commodity or service and to act favorably upon an idea that has commercial significance to the seller . 3.21 Packaging Packaging of a consumer product is an important part of the marketing plan. is known as branding. Its purpose is to inform or influence then in order to increase of the sales.18 Forms of promotion ¾ Personnel selling ¾ Advertising ¾ Sales Promotion ¾ Publicity ¾ Propaganda and Public Relation 3. ¾ Brand should suggest something about the product. It may be part of package.20 Labeling Label is a part of the product which carries verbal information about the product or the seller.23 Advertising is mainly for the purpose of H. goods or services by an identified sponsor. Baja Auto Ltd Sales Promotion ¾ Advertising can be directed more effectively and linked with other communication programs ¾ Branding leads to a more ready acceptance of a product by wholesalers and retailers ¾ The importance of price differentials may be diminished ¾ Brand loyalty may give a manufacture greater control over marketing strategy and channels of distribution ¾ Branding makes market segmentation easier ¾ Brand mark is that part of the brand. Packing means wrapping of goods before they are transported or stored o4 delivered to a customer.Institute of Higher Education. quality and benefits etc.R. Branding gives seller the opportunities to attract profitable set of customers. According to Philip Kotler. 3. ¾ Good brand helps in building corporate image ¾ Memory recalls is facilitated H. 3. Hassan 50 y 51. The act of attaching or tagging the label is known as labeling.22 Advertising Advertising as any paid form of non-personal presentation and promotion of ideas. 3.19 Selling H. design or distinctive. It creates desire for new products the success of advertising greatly depends upon effective advertising programme.

It must satisfy the following. relating to farm products 3.4 Noncommercial Advertising Non-profit organizations adopt this type of advertisement.3 Commercial Advertising May be trade advertising relation to trade industrial advertising. Each advertiser has good many media for his selection. This advertising message is delivered to the audience like print and broadcast media. Baja Auto Ltd Sales Promotion Outdoor advertising passes the message to those people who are moving audience. park visit etc. It demonstrates directly about the product by presenting them than by telling and selling the points directly. 3. 3. 3. by which the message is to be conveyed.24.26 The following factors govern the choice of advertising medias ¾ Nature of y .25 Kinds of Media 3. Here the massage reaches the audience indoors when it is easy and interceptive mood because house is the resting place for inmates for relax.2 Outdoor advertising media H.3 Direct mail advertising The object of direct advertising is to create a direct contact with the customers. Hassan 54 55. relation to industrial professional.R. T. A particular product with its brand is promoted through advertisement. The advertiser contacts customer and keeps a close touch with them through mail advertising.Institute of Higher Education. This is hinged on concepts of display. the absence of correct decision will waste the money without result. It is the means to deliver the advertising message. It has to reach maximum prospects It must gain the attention of readers It must have wide coverage at least cost.24.. A medium is the carrier of advertising message.1 Product Advertising It aims at selling a particular product. It needs a prudent calculation.2 Institutional Advertising It is displayed to create goodwill for the firm rather than to sell its product it gives importance to the firm and wants to create a good impression about a particular manufacturer. This media represents the use of those vehicles by the advertisers that carry the message right into the houses or indoors of the audiences. magazine.25.5 Selection of Advertising Media H.25.V program or cinema program in video etc. The advertiser can keep a close touch with the customers or the public who are supposed to have interest in his products. 3. 3. sightseeing.24. 3.25. it is known as indoor advertisement.24. almost all people go out on some purpose or other-office walk.24. must achieve the pre-determined goals.Institute of Higher Education.R. 3. Baja Auto Ltd Sales Promotion It is a means through which advertises communicate their idea to likely customer to influence them with a view to know and decide about the product or service advertised.24 Kinds of Advertising 3.1 Indoor advertising media When advertising is made through newspapers. relating profession form. Hassan 53 y 54. 3.4 Display advertising Media The object of this media is to increase the sales.24. The proper selection of the medium. Display is the systematic arrangements of sample of saleable products to catch the imagination as well as to attract the attention and notice of the lookers. It covers all forms of printed advertisements delivered directly to the prospective customers instead of indirect distribution like newspapers and magazines.25. radio.6 Advertising Media Medium is a means through which the advertising message is conveyed to the consumers. 3.the volume purchased by local buyers but less effective in winning new buyers. it eats away the funds. journey. Generally. Rather the message is placed in strategic places exposed to moving audience. This outdoor advertising has the best effects of advertising. 3. so that people can get the message at home.

however. Hassan 57 y . Find out if there's a magazine that focuses on your particular industry.R.27.1 Brochures or flyers Many desk-top publishing and word-processing software packages can produce highly attractive tri-fold (an 8. When you join a group. Netiquette . etc. yet the neighborhood newspapers are often closest to the interests of the organization's stakeholders. You can get your business in the newspaper by placing ads. Contact a reporter to introduce yourself.) 3. (See the groups listed on the right-hand side. voice mail. (See Netiquette Techniques and styles of writing e-mail messages and E-mail vs.2 Direct mail Mail sent directly from you to your customers can be highly customized to suit their nature and needs.R. (See Classifieds of Newspapers and Magazines. and are becoming a common method of advertising. asking them to fill out information cards. then the magazine can be very useful because it already focuses on your market and potential customers.27 Major Methods of Advertising 3.27. Keep the list online and up-to-date. Reporters are often on the look out for new stories and sources from which to collect quotes. (See Classifieds of Newspapers and Magazines.Institute of Higher Education.27.) 3.27. always check with the moderator to understand what is appropriate. you can gain frequent exposure to yourself and your business by participating in online discussion groups and chat groups.R. Today's desktop publishing tools can generate very interesting newsletters quite inexpensively. Design your e-mail software to include a "signature line" at the end of each of your e-mail messages.) 3.3 E-mail messages These can be wonderful means to getting the word out about your business.9 Posters and bulletin boards H.6 Newspapers (major) Almost everyone reads the local. Baja Auto Ltd Sales Promotion This can be powerful means to conveying the nature of your organization and its services. (See Newsletters. Consider placing an ad or writing a short article for the magazine. If there is one. Mailing lists can quickly become out-of-date. 3.Institute of Higher Education. Many e-mail software packages will automatically attach this signature line to your e-mail.4 Magazines Magazines ads can get quite expensive. if you prefer.27.Techniques and styles of writing e-mail messages and E-mail vs. Hassan 56 57.this depends on the buying habits of your customers. that many groups have strong groundrules against blatant advertising. Advertising can get quite expensive. major newspaper(s).5 Newsletters H. Know when to advertise -.27. (See Classifieds of Newspapers and Magazines.7 Newspapers (neighborhood) Ironically.the product ¾ Potential market ¾ Type of distribution strategy ¾ Advertising objectives ¾ Type of selling messages ¾ The budget available ¾ Competitive advertising ¾ Media availability ¾ Change of Media H. Baja Auto Ltd Sales Promotion 3. these are often forgotten in lieu of major newspapers. Hassan 55 y 56.) 3. writing a letter to the editor or working with a reporter to get a story written about your business. (See Writing Brochures. You may want to build a mailing list of your current and desired customers. Newspaper are often quite useful in giving advice about what and how to advertise.27.27.8 Online discussion groups and chat groups As with e-mail.) 3.27.Institute of Higher Education.5 inch by 11-inch sheet folded in thirds) brochures. Note. Brochures can contain a great deal of information if designed well. Collect addresses from customers by noticing addresses on their checks.) 3. voice mail.) 3. Consider using a consultant for the initial design and layout.

and many people still listen to the radio. Using the Web for advertising requires certain equipment and expertise. (See Telemarketing. Note that some businesses and municipalities have regulations about the number of size of posters that can be placed in their areas.2 Editorials and letters to the editor Often. an online store for ecommerce). in a large box on the page.) and maintaining the Website. designing and installing the Website graphics and other functions as needed (for example. businesses might find good deals for placing commercials or other forms of advertisements. They usually have special packages where you get a business phone line along with a certain number of ads. Television ads usually are priced with similar considerations to radio ads.11 Telemarketing The use of telemarketing is on the rise.10 Radio announcements A major advantage of radio ads is they are usually cheaper than television ads. etc. In your article. advertising and promotions on the World Wide Web are almost commonplace. that is.14 Yellow Pages The Yellow Pages can be very effective advertising if your ads are well-placed in the directory's categories of services.28 Promotional Activities through the Media (Reporters. Now. etc. newspapers often take strong interest in information about these needs.) 3.) 3. including getting a computer.27. Hassan 58 59. the length of ads and when they are put on the air.27. the number of ads.28. . promoting the Website (via various search engines. use the opportunity to describe what you're doing to address the issue through use of your business.) 3.). when in their cars. Ads are usually sold on a package basis that considers the number of ads.28. 3. buying (usually renting) a Website name. Baja Auto Ltd Sales Promotion Posters can be very powerful when placed where your customers will actually notice them.) 3.V.) 3. But think of how often you've actually noticed posters and bulletin boards yourself.V. for example. Managing and Promoting Your Website and Online Advertising and Promotions.y 58. They are more expensive than most of major forms of advertising.13 Web pages You probably would not have seen this means of advertising on a list of advertising methods if you had read a list even two years ago. and the name of your business is descriptive of your services and/or your ad stands out (for example. (See Advertising on Radio and T. so staff y . Your best bet is to place the posters on bulletin boards and other places which your customers frequent.Institute of Higher Education.) 3. (See Basic Writing Skills. the length of ads and when they are put on the air. etc. (See Signs and Displays. Newspapers. Baja Auto Ltd Sales Promotion pages sometimes just to appear up-to-date. (See Advertising on Radio and T.) 3. However. and always refresh your posters with new and colorful posters that will appear new to passers by. is bolded. A major consideration with radio ads is to get them announced at the times that your potential customers are listening to the radio.27.1 Articles that you write Is there something in your industry or market about you have a strong impression? Consider writing an article for the local newspaper or a magazine. The phone company will offer free advice about placing your ad in the Yellow Pages.27.R. getting an Internet service provider. Businesses are developing Web H. (See Building. with the increasing number of television networks and stations. directories.27.12 Television ads Many people don't even consider television ads because of the impression that the ads are very expensive. program providers are experts at their service and understanding a particular need in the community.

what. to make it easier for the reporter to develop an announcement or story. pictures.29.R. celebrate it publicly. where.g. METHODLOLOGY 4. commentary from happy customers. is inevitably subjective and samples are small. considering the constraint.) 3. etc.4 Press releases or news alerts They alert the press to a major event or accomplishment and requesting. (See Annual Reports.1.29. The kit usually includes information about your business..Institute of Higher Education. accomplishments. they explain who. coffee cups. Baja Auto Ltd Sales Promotion 3. information about your products. 4. Also. Chamber of Commerce meetings. suppliers. etc.) H.1 Qualitative Research Qualitative research allows you to explore perceptions. etc. print T-shirts. Verbatim quotes are used in reports to illustrate points and this brings the subject to life for the reader. for example. professional organizations and those with whom you interact outside the organizations. some include pictures. T-shirts.29. etc.should regularly offer articles (of about 200 to 900 words) for publication. These can be powerful means of advertising if indeed current and potential customers see the novelties. Hassan 60 61. However. consultants. it relies heavily on H.. (See Presenting.1. Techniques include group discussions/workshop sessions. (See Managing Media Relations.g. As research is related to the study of sales promotion. e. 3. clients. It's amazing that one can send out 500 brochures and be lucky to get 5 people who respond.2 Collaboration or strategic restructuring If you're organization is undertaking these activities.) H. experimental research will not be much effective.29.29. conventions. (See Managing Media Relations. Hassan 61 62. seminars.1 Annual reports Disseminate these to key stakeholders.) 3. paired interviews.R. individual in-depth interviews and mystery shopping (where the researcher plays the role of a potential student.1 TYPE OF RESEARCH Descriptive method has been used in this research for the collection of data.4 Novelties It seems more common to find ads placed on pens and pencils. etc in order to replicate the overall experience). Yet. it get included in the newspaper.Institute of Higher Education. This condition often implies additional costs to mail novelties. Baja Auto Ltd Sales Promotion 3. etc. It provides depth of information which can be used in its own right or to determine what attributes will subsequently be measured in quantitative studies.R. attitudes and motivations and to understand how they are formed. 4. (See Networking.) . educators. etc.28. descriptive research is the most suitable design for this research.Institute of Higher Education. at local seminars. they're ripe with information if they include an overview of your year's activities. Baja Auto Ltd Sales Promotion the skills of the moderator.28. you can give a presentation to 30 People and 15 of them will be very interested in staying in touch with you.29 Other Promotional Activities and Events 3. e. (See Managing Media Relations and Basic Writing Skills. Find ways to give even short presentations.3 Press kits This kit is handy when working with the media or training employees about working with the media.3 Networking Spread the word to peers. why and when.5 Presentations You're probably an expert at something. which can be more effective when its studied through direct questions. quotes.2 Quantitative Research Quantitative research is descriptive and provides hard data on the numbers of people exhibiting y y . (See Organizational Alliances. trade shows.) 3.) 3. 4. Hassan 59 y 60. challenges and financial status.

etc. ¾ Design of procedure for information collection. Baja Auto Ltd Sales Promotion 4. to developmental studies which seek to determine changes over time.1 Primary and Secondary Data The appraiser or market analyst must know what they are and what affects them. secondary data exists in published sources.3 Methods for Obtaining Primary Data The analyst can obtain primary data through the process of direct observation or by explicit questioning of people. and full-scale market studies..2 SOURCE OF DATA Data which is collected for the first time is called primary data. Secondary data has been gathered by others for their own purposes. Observation of an inanimate object is the easier of the two activities. but it is not free from error or misinterpretation. In the study primary data includes the data which is collected from the customer directly with interaction.3 Descriptive research Descriptive research is used to obtain information concerning the current status of the phenomena to describe "what exists" with respect to variables or conditions in a situation. Secondary data-Information from secondary sources.2 Sampling Sampling is a process of learning about the population on the basis of which sample is drawn. The analyst needs to be able to recognize the error. attitudes.1 Observation Observation as a data gathering technique focuses attention on an observable fact or inanimate entity such as a building or on an observable action or behavior by an animate entity such as a homeowner or shopper. not directly compiled by the analyst. The study includes data got with personal interaction. ¾ Statement of the problem. A detailed discussion of this relationship appears later in this paper.3 Sample y . Baja Auto Ltd Sales Promotion 4. Hassan 62 y 63. which is published by the Appraisal Institute. 4. market analysis sections of appraisals. understand its significance and evaluate the applicability of that data in the analysis. i. All data used in appraisals and market studies should be current. A sample is a subset of a population unit. The methods involved range from the survey which describes the status quo. Primary and secondary data are used in appraisals.1. H. Hassan 63 64. "Highest and Best Use and Market Analysis" and in Chapter 5 of Market Analysis for Valuation Appraisals. 4. may include published or unpublished work based on research that relies on primary sources of any material other than primary sources used to prepare a written work. The article then discusses the nature of potential errors that can affect primary and secondary data. ¾ Generalizations and/or predictions. This article presents a discussion of each of these terms and their significance in the context of the data and in the analysis. H. 4. the correlation study which investigates the relationship between variables.3. A conceptual link between these two types of data and their use appears in the "Levels of Study" discussion presented in the Appraisal Institute's Course 520. It provides information in breadth and allows you to sample large numbers of the population.3. In general. 4. ¾ Collection of information.R.Institute of Higher Education.e. ¾ Identification of information needed to solve the problem. accurate. and conceptually correct.3. highest and best use studies. Several categories of errors can exist. but the data could be useful in the analysis of a wide range of real property. 4.certain behaviors . ¾ Identification of target population and determination of sampling procedure. reliable.2.R. relevant. ¾ Selection or development of instruments for gathering the information.Institute of Higher Education. ¾ Analysis of information.

radio. 5.6 The modes of data collection H. 5. They have three years and five years installment facility. 4. But interviewing. It enables us to estimates characteristics of a population by openly observing a portion of the entire population.Design Sampling is a practice a researcher uses to draw data on people. Baja Auto Ltd Sales Promotion media. Dashara and New Year. It can done using any form of media like television. The questionnaire consists of close-ended and open ended questionnaire. 5. It advertises its product/service in the local newspaper to reach a small geographical area. Choosing modes of data collection is a fundamental survey design decision.g. internet. is also by far the most expensive. 4. print H. The whole that the researcher wants to know something about is the population is called a sample. How installment increases y .4 Sampling Tequnique The sampling technique used in the study includes both simple random sampling as well as judgment sampling.R.2 FESTIVAL OFFERS Arpita Bajaj launching special schemes in occasion to the customer likes Deepawali. Hassan 64 y 65. places. Respondent Size: 100 Tool for data collection: Structured questionnaire Geographical area: Hassan 4. If it is looking for national reach. ANALYSIS OF DATA AND INTERPRETATION 5. When survey aims are being defined in detail. 5.3 INSTALLMENTS FACILITIES Arpita Bajaj providing installment facilities to whom having capability of payment of installments. Mainly they targeting to regular income people like Govt employees and also they suggesting them to go bank loan and also many of employees are going to bank loan this is one of the tool helping them to increase there sales. This method of data collection is quite popular. particularly in case of big enquires. Arpita Bajaj promoting their sales through local channel advertising. Sampling allows statisticians to draw conclusions about a whole by examining a part. Hassan 65 66.1 ADVERTISING Advertising is a paid from of non personal presentation of goods or services by an Identified sponsor.1.1 SALES PROMOTION ACTIVITIES ADOPTED BY ARPITA BAJAJ A consumer survey is conducted on the Marketing and consumer attitude towards the sales promotion activities .R. etc. particularly in the field. postal. In this festival offer are if they purchase bike they are giving offer two years service free and sometimes they are offering free Gold coin with purchase of any bike. strengths and limitations of modes must be kept in mind. The amount The complexity The quality of the data they can collect Interviewing is the most powerful mode in all these respects. the firm can advertise its product/service on the television through a national channel like doordarshan or any other television channel depending on the target audience.3.Institute of Higher Education.1. a firm has the flexibility of choosing the target market while advertising.Institute of Higher Education. or things to study. Face-to-face and telephone interviewing are often computer-assisted (CASIC). Baja Auto Ltd Sales Promotion Interviewing face-to-face Interviewing by telephone Remote self-completion e. Various key aspects are taken while conducting the survey.1. These key aspects reveled the attitudes of different type of customers towards sales promotion activities.5 Data collection instrument The primary data collection instrument for the survey is self administrated and structured questionnaire which consists of preference and scaling questions.

Hassan 71 y y y y .Institute of Higher Education. of Style customers. which they do in some other automobiles or in a nearby Hero Honda motors. From this we can say that Bajaj have expand their product variety.Institute of Higher Education.3 Reason No.4. Are you aware of products offered by Arpita Bajaj? Table 5. 34out of 100 customer visits Arpita bajaj once in three week .R. Baja Auto Ltd Sales Promotion No of customer Magazine. 5. Baja Auto Ltd Sales Promotion people are going to installment base purchase and organization also getting profit by this promotion tool. of customers No.4 Response No of customer Yes 69 No 31 Chart 5. followed by 26 customer once in a month. 5. Hassan 69 70. Many of the middle class H. Company tie up with ICICI insurance company. And customers are not pay any extra amount for that company providing it free.4 FREE BIKE INSURANCE This promotional tool helps to the customer while purchasing the bike First time insurance is providing by company itself. Baja Auto Ltd Sales Promotion No. Hassan 67 68. 42% and 26% for the product variety and 24% for the mileage.2 Response No of customer Cable advertisement 18 Friends 25 Magazine 34 News paper 23 Chart 5.4.4.4.2 H. 8 Mileage No..R. They contributing yearly AMOGH city cable award it helps to the organization to make awareness of the organization in city. 34 35 30 Friends. 24 No. 26 Inference: From the data collected we can determine that most of the customer visits the bajaj by perception that product are stylist bike i.3 H. 4. 3. around 65% of customers frequently visits to the store and 45% of the customer visits the Arpita automobiles rarely.e.R.Institute of Higher Education. 59% Inference: From the above pie chart we can ascertain that majority of customers i.4. 45.1. We can conclude that the customer do not visit Arpita automobiles for purchase the bike or servicing bike. 5. Baja Auto Ltd Sales Promotion No of customer No of customer .interest rate also increases.R. Why do you at Bajaj bikes? Table 5. of Quality customers.4.1 H.e. 18 15 10 5 0 Cable Magazine advertisement Inference: From the above table chart we can analyze that the majority of the customer i.Institute of Higher Education. Hassan 66 y 67. Thus we can say that majority of customer visit arpita bajaj once in three week.R. Yes. of customers.4. 25 25 Cable News paper. 42 Product variety No.1 Response No of customer Yes 65 No 45 Chart 5. may be during weekends.R. 65. Are you aware of Arpita Bajaj? Table 5. of customers Style 42 Product variety 26 Quality 08 Mileage 24 Chart 5.Institute of Higher Education. of customers. Hassan 70 71.e.4 Questionnaire to the sales promotion at the Arpita Bajaj 1. 2.4. 23 20 advertisement . No. 41% Yes No of No customer .3 SALES INCREASED AS PER SALE PROMOTION ACTIVITIES ADDOPTED ADVERTISING 33 FESTIVAL OFFERS 17 INSTALLMENTS FACILITIES 39 FREE BIKE INSURANCE 11 H.2 CONTRIBUTION TOWORDS THE SOCIAL SERVICE Arpita Bajaj contributing towards the development of society.Institute of Higher Education.4 H. Hassan 68 69. Baja Auto Ltd Sales Promotion 5. How do you come to know about Arpita Bajaj? Table 5.

4. Hassan 73 74.4. 6. 43 No of customer. we can analyze that the customer choice Better service in Arpita automobiles in spare & part service section . 46 40 No of customer. Baja Auto Ltd Sales Promotion No of customer 10 Better service 19 Better settlements & 42 claims Better returns Others 29 Inference: From the above pie chart .9 H.4.R. Baja Auto Ltd Sales Promotion No of customer Yes No No of customer. 57 Inference: Here from the above pie chart.Institute of Higher Education.R.R.5 Response No of customer Yes 57 No 43 Chart 5.Institute of Higher Education.4.8 H. Rank the service given below according to your satisfaction level? Table 5.6 Response No of customer Yes 72 No 28 H. Hassan 74 75. Yes.4. 31 No of customer. Yes. which shows that providing good service to customer in the Arpita Bajaj by different variety of product that can customer buy.5 H.4.R. Baja Auto Ltd Sales Promotion Chart 5.y 72. No. 9. No. What type of service do you expect from Arpita Bajaj in future? Table 5. Baja Auto Ltd Sales Promotion No of customer No of No of customer. 28 No of customer. 10 10 0 Excellent Satisfied Average Not satisfied No of customer Inference: Most of the customer who visits to the Arpita Bajaj. we came to know that 72 customer s out of 100 customer shop up to the period of 2-3 hour s and by 28 customer shop up to the duration of above 3 hrs . Yes. 16 No of customer. customer. from this we can conclude that Bajaj bike have different variety of product not that much variety of product and they have to rethink about the brand available in their showroom and they have to expand their brand availability. this means Bajaj bikes have more product to Arpita automobiles. we can conclude that majority of the customer that is 69 customer out of 100 customer said that they find different variety of product in Arpita automobiles and 31 customer said they don t. 7. 72 Yes No Inference: From the pie chart . we get to know that most of the customer is somewhat satisfied with y y y y y . How do you consider the service provided by Arpita Bajaj? Table 5. Baja Auto Ltd Sales Promotion Chart 5.4.6 No of customer No of customer. Hassan 75 76. 28 30 No of 20 customer. Was your vehicle delivered within the committed time? Table 5. Baja Auto Ltd Sales Promotion No of customer 12 Information in time 10 Quick issues of re47 imbursement Claim & settlements procedure Good relationship with 31 customers Inference: From the above pie chart. would like to visit to the Bajaj bike first which means it shows customer preference towards pulsar style bike and followed by using Bajaj bikes.8 Response No of customer Better service 42 Better settlements & claims 29 Better returns 19 Others 10 Chart 5. 57 customer said that they find specific brand that they look in Bajaj bikes and 43 customer said No. No.R.4. 8.Institute of Higher Education.7 Response No of customer Excellent 46 Satisfied 16 Average 28 Not satisfied 10 H.4. Did you have any Bajaj company bike? Table 5. Hassan 76 77.Institute of Higher Education.7 No of customer No of 50 customer. Hassan 72 73. . 5. 69 Yes No Inference: From the data collected .Institute of Higher Education.4.9 Response No of customer Information in time 12 Quick issues of re-imbursement 10 Claim & settlements procedure 31 Good relationship with customers 47 Chart 5.

43 40 No of customer 30 No of customer .4. and 11 customer respond are good in Bajaj CT 100 . 25 .Institute of Higher Education.13 Response No of customer Excellent 46 Good 30 Fair 24 Chart 5.4.4.4. Hassan 79 80.10 H.R.e. 10 10 0 Excellent Good Average Poor No of customer Inference: From the data collected with this question. 14 15 10 5 0 Quick response Timely response Delayed No response response Inference: From the above graph chart. 14. Hassan 80 81. Was your vehicle delivered with all accessories & relevant papers? (Except Registration papers) Table 5.13 H.Institute of Higher Education. 43out of 100 customer to respond about excellent of providing registration papers. 13 customer are excellent in platinum.4. Would you suggest your friends y y y y .14 Response No of customer Excellent 43 Good 25 Average 22 Poor 10 H.14 No of customer No of customer 50 . 45 40 No of customer . 36 First Second Others Inference: From the above that. and 10 customer respond are poor. 13 .11 H.4. so to improve the services inside the showroom. the inside the Arpita Bajaj services . Rank the company according to their relationship management with the customers Table 5.11 Response No of customer First 46 Second 36 Others 18 Chart 5. 20 No of customer 20 . we can analyze that the customer prefer the quick response the providing good service to customer in buying process of Arpita Bajaj. And 100 out of 30 are respond is fair to buy the Bajaj bike in the Customers minds. 10: How do you feel about the staff members and their responses towards your queries and doubts? Table 5. 25 customer respond are good. And 20 out of 100 is respond is bad to quick response during buying bikes in the customers minds. 45out of 100 customer to respond about pulsar of Bajaj bikes is ok. Hassan 78 79. Baja Auto Ltd Sales Promotion Chart 5.4. 46 Second.4.12 H.Institute of Higher Education. they are not satisfied with the store lay out present in the Bajaj bikes in the Arpita Bajaj. 22 customer are average.Institute of Higher Education. 22 20 No of customer .4. 18 First . 11 10 0 pulsar Discover Platinum Bajaj CT 100 No of customer Inference: From the data collected with this question.R.modern equipment and good relationship with customer in Arpita Bajaj.12 Response No of customer Pulsar 45 Discover 31 Platinum 13 Bajaj CT 100 11 Chart 5. we can analyze that the customer prefer the excellent the in the Bajaj bikes in mileage is good. Baja Auto Ltd Sales Promotion No of customer 24 46 Excellent Good Fair 30 Inference: From the above pie chart. Hassan 77 y 78. 42 40 35 No of customer 30 No of customer .Institute of Higher Education. Baja Auto Ltd Sales Promotion No of customer No of customer 50 .4. 24 25 . Baja Auto Ltd Sales Promotion No of customer No of customer No of customer 45 . 13: How do you rate Bajaj bikes with mileage? Table 5. Hassan 81 82. 11. we come to know that majority of the customer said that the store layout is not up to the mark. 12: When you think of Bajaj bikes which bike comes to your mind? Table 5.R. 15.R. 31 30 No of customer 20 No of customer . Baja Auto Ltd Sales Promotion No of customer Others . 31 customer respond are discover.10 Response No of customer Quick response 20 Timely response 14 Delayed response 42 No response 24 Chart 5. i.R.

Institute of Higher Education. H.R.4. the company has been able to hold its ground.3 WEBSITES Google com y y y y . 82 Inference: From the pie chart.15 H. No. Baja Auto Ltd Sales Promotion With more than 40% of the motorcycle demand flowing from the rural sector.R. 2-4. No. Kothari Business Research Methodology Second Revised Edition New Age International Publishers Page.R. Winner Product Management Fourth Edition Tata Mc Graw-Hill Publishing Company Ltd Page. we conclude that the most of the customer that is 82% are satisfied with the purchasing with providing suggestion to friends and relatives. 95-105. the two-wheeler industry is passing through a very interesting phase. FINDINGS ¾ Changing the motor bikes as per the taste and changing perceptions of the customers.Institute of Higher Education. complaints if any. ¾ Reduce the interest rate on installment schemes.R. 55-67.1 BOOKS SHH kazmi Satish K Batra Advertising and sales promotion Third Edition Exel Books Page.Institute of Higher Education.Institute of Higher Education. H. No. ¾ Advertising through local channel. Competitive price. ¾ Manufacturing bikes as per the changing generations. Hassan 86 87. 8. ¾ The time schedule for the working of employees should be reduced. ¾ Contribution towards the social development. In India. 6. best products for very least price in the market. Bajaj continues to be the market leader in the motorcycle segment with a 44.7% share.2%). 7.4.Institute of Higher Education. the success or failure of monsoon has a major influence on the sales volume. Baja Auto Ltd Sales Promotion ¾ They are solely concentrated on customers with regular income for installment based sales. And 18% customer are not satisfied. SUGGESTIONS Conducting a detailed survey on the Consumer attitudes towards sales promotion activities it is found with some of the suggestions as below: ¾ Suggestion box should be kept in the organization so that employees can give their point of view. But it has conceded vital market share to competitors such as Hero Honda (23. 31-32. 477 H. a divergent trend in share price and sharp swing in the price earning multiple. fuel economy. instead they must also concentrate on the customers other than them as well. 8. H. ¾ Customers are fully satisfied by Bajaj bikes and Service.2 MAGZINES Over Drive Auto India 8. ¾ Minimum amount of money should be spent on local advertisement. ¾ Avail festive offers. Baja Auto Ltd Sales Promotion No of customer No of customer . CONCLUSION From this analysis I conclude that Arpita Bajaj is using a different promotional activity that is helping them to increase their set target and all the customers are fully satisfied by Bajaj bikes and their after sales service. Hassan 83 84.7%) and TVS motor (19. Yes. Baja Auto Ltd Sales Promotion ¾ One year free service after sales. Baja Auto Ltd Sales Promotion Donald R. ¾ Getting more profit on installment schemes. No. Hassan 82 y 83.15 Response No of customer Yes 82 No 18 Chart 5. more mileage. ¾ Providing loan facility. BIBLIOGRAPHY 8. 359 C R. Lehman Russell S. Development such as the entry for more and more foreign manufacturers.and relatives to opt for Bajaj bikes? Table 5. Hassan 85 86. A lot of changes taking place in the market share.R. 18 Yes No No of customer . Hassan 84 85.

Are you aware of products offered by Arpita Bajaj? a) Yes ( ) b) No ( ) 10. Name : __________________________________________________ 2. Are you aware of Arpita Bajaj? a) Yes b) No y y y y y y y y 7. APPENDICES H. Contact : __________________________________________________ 5. Com ANNEXURE QUESTIONNAIRE METHOD Questionnaire method is used to collect primary data. The questions should be arranged logically. Company : __________________________________________________ 4. A survey being conducted by Vijay Kumar the student of H. which is confidential. pursuing my 4th Semester MBA.E college Hassan. a set of questions pertaining to the survey is prepared by keeping in mind the information required. How do you come to know about Arpita Bajaj? a) Cable Advertisement 8. Hassan 87 y 88. Please co-operate by filling the questionnaire for A study on the effectiveness of various sales promotions activities of Arpita Bajaj for increase sales and Services of Bajaj s two wheeler all the information provided by you will be kept as a confidential by me. Did you have any Bajaj bike? a) Yes b) No 12. Address ___________________________________________________________ _____________________________________________________ 3. Com India Info line.R. Occupation:_________________________________________________ 6. How do you consider the service provided by Arpita Bajaj? a) Excellent b) Satisfied c) Average d) Not Satisfied . 1.R. Was your vehicle delivered within the committed time? a) Yes ( ) b) No ( ) 11. In this method of collecting data.I. Baja Auto Ltd Sales Promotion Dear Sir/Madam.Institute of Higher Education. This method is used to collect information where of investigation is very vast and large samples of information s are selected for the survey before we frame the questionnaire it is essential to set out in detail the information.H. which we desire from the questionnaire. Why do you at Bajaj bikes? a) Style b) Product Variety c) Quality d) Mileage b) Friend c) Magazine d) News Paper y y y y 9.Bajaj Auto.

Rank the service given below according to their relationship management with customers? a) Information in time b) Quick issues c) Claim & Settlement Procedure d) Good Relationship 15. Hassan 89 90.Institute of Higher Education. What type of service do you expect from Arpita Bajaj in future? a) Better Service b) Better Settlements & Claims c) Better Returns d) Others 14. please.R. How do you feel about the staff members and their responses toward your queries & doubts? a) Quick Response b) Timely Response c) Delayed Response d) Not Response 16.y 13. When you think of Bajaj bikes which bike come to your mind? a) Pulsar b) Discover c) Platinum d) Bajaj CT 100 18. If you would like to give suggestion.Institute y y y y y y y y y . Was your vehicle delivered with all accessories & relevant papers? [Expect Registration papers] a) Excellent b) Good c) Average d) Poor 20. How do you rate Bajaj bikes with mileage? a) Excellent b) Good c) Fair 19. _______________________________________________________________ __________________________________________________________ THANK YOU SIGNATURE H. Rank the company according to their relationship management with customers? a) First b) Second c) Others H. Baja Auto Ltd Sales Promotion 17.R. Would you suggest your friends and relatives to opt for Bajaj bikes? a) Yes ( ) b) No ( ) 21.

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