Sales Promotion

Assignment - 1

Submitted By Kamta Prasad ID No. -0808004 PGDM - V
10/24/09 1

Definition
It

is a part of promotional mix. The other three parts of the promotional mix are advertising, personal selling, and publicity/public relations. Sales promotion Consists of Diverse Collection of Incentive Tools, mostly short term designed to stimulate quicker or greater purchase of particular product or Services by Consumers or the Trade.

10/24/09

2

Sales

promotion refers to many kinds of incentives and techniques directed towards consumers and traders with the intention to produce immediate or short-term sales effects.

10/24/09

3

Characteristics
Communication:

They gain

attention and usually provide information that may lead the customer to the product. Incentive: They incorporate some concession, inducement, or contribution that gives value to the consumer. Invitation: They include a distinct invitation to engage in
10/24/09

4

Objective
 To  To modify attitudes increase sales  To attract new  To create an image customers  To position a  To retain existing product ones  To improve  To encourage position in the customer loyalty market  To create  To pull the product awareness through channels  To inform  To push the product through  To remind channels  To ensure 10/24/09 5

Sales promotion decisions
Establishing Objectives Selecting consumer Promotion tools

Selecting Trade promotion Tools

Selecting Business & Sales Force Promotion Tools

10/24/09

6

Promotion mix
Sales

Promotion Advertising Personal selling Publicity

10/24/09

7

Sales promotion
Tactical

point of sale material or inducements designed to stimulate purchases Short term incentives to increase sales Some promotions are aimed at consumers, some at intermediaries and others at the salesforce E.g.: coupons, leaflets, demonstrations, samples, free gifts, point of sale 10/24/09

8

Sales promotion
Incentives

provide a quick boost

to sales Effects maybe short term only Excess use of some incentives may adversely effect brand image

10/24/09

9

Advertising
“Advertising is telling and selling” Advertising thus denotes the means

employed to draw attention to any object or purpose. “It is a paid form of non personal presentation an promotion of ideas, goods or services by an identified sponsor.”
 
10/24/09 10

Advertising
STRENGTHS WEAKNESSES

-

Wide coverage Awareness/Hype Control of msg Can be used to build brand loyalty

- Expensive - Impersonal - One way communication - Lacks flexibility -

10/24/09

11

Personal Selling
Promotion

on a person to person

basis Two way communication Carried out through telephone, at meetings, at retail outlets & door to door selling High priced, low volume and highly technical products rely heavily on personal selling
10/24/09 12

Personal Selling
STRENGTHS
 Great

WEAKNESSES

attention  Msg is customized  Persuasive impact  Potential for development of relationship  Adaptable  Opportunity to close sale call

-

High cost Labor intensive Expensive Can only reach a limited no. of customers

-

10/24/09

13

Publicity
Release

of a commercially significant news about a particular product or service Purpose is to obtain a favorable presentation of such news via a medium not paid for by a sponsor Involves getting media coverage of an event or product launch / articles in newspapers 10/24/09

14

10/24/09

15