SALES PROMOTION & ADVERTISING

MANAGEMENT
 AGENDA
• Sales Promotion
• Concept
• Significance
• Sales Promotion Form
• Sales Promotion Program
• Sales Promotion Strategy
SALES PROMOTION

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 4 Marketing Variables

PRODUCT
PROMOTION PHYSICAL DIST
PRICE
 DEFINATION = PROMOTION
“Promotion, one of the 4 major variables with
which the marketing manager works, is
communicating information between the seller &
buyer to change ATTITUDE & BEHAVIOUR!!!”

• Persuasive Communication
• Informs customers about existence of the product
• Convinces to buy
 PROMOTION MIX

Sales Personal
Promotion Selling

Advertising Publicity
CONCEPT

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 CONCEPT – SALES PROMOTION

• Enhances/increases the sales volume

• Non-personal selling effort
• Aimed at stronger marketing response
• Directed to final consumers
 OBJECTIVE
1. Informing – Educate customers about
 Product benefits
 Product features against compedetion
 Free samples distributed to increase awareness
2. Persuading
 Persuade to buy
 Influence buying behavior
 Comparative information
3. Reminding
 Satisfactory behavior
 Past satisfaction
 Helps in avoiding shifting to compedetion
SIGNIFICANCE

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 SIGNIFICANCE
• Economical – as compared to other forms of
media
• More Effective
• Opportunities for Sales development
• Increases acceptability of the product
• Helps kill competition
• Brand Loyalty
SALES PROMOTION FORM

Company Name
SALES PROMOTION TYPES

SALES FORCE CONSUMER

PROMOTION PROMOTION

TRADE PROMOTION
 CONSUMER PROMOTION
• Samples – Distributed FREE to

CONSUMER
gain acceptance
• Coupons – To offer discounts
on new purchase
• Money Refund – Granted on
cash purchases
• Free in the mail is item mailed
to the consumers
• Contest – To attract customers
by offering price cut
 TRADE PROMOTION
• Encourages buyers to buy in large
quantity – mainly Dealers

DEALERS
• Discount on bulk purchase
• Free goods are offered along with
other products to boost sales
• Merchandise allowance to dispose
products
• Advertising allowance for product
advertising
• Sales Compediaton
 SALES FORCE PROMOTION
• Sales force is motivated through

SALES FORCE
bonus, contests & sales rallies
• Objective is to increase sales & to get
repeat orders
• Reward can be cash, merchandise, or
special honors.
• Travel awards are often offered with
spouses
SALES PROMOTION PROGRAM

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 SALES PROMOTION PROGRAMS
• Sales promotion program include
– Incentive amount
– Distribution Vehicle
– Duration & time
– Budget
• Higher Incentive = Higher Sales
• Certain conditions are agreed
• Duration is decided by Mgmt [usually it is a
month]
 SALES PROMOTION PROGRAMS
• Based on conditions
• Generally during off-season
• Cost benefit is worked before launching
• Administrative costs & incentives costs are
separately calculated
• Trail test is run before launching
• Sales force & dealers should be motivated
SALES PROMOTION STRATEGY

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SALES PROMOTION STRATEGY
Communications

Strategic Tasks &

approach Objectives

Promotional Media
Mix

Budget
 COMMUNICATION
• Promotion program to be effectively
communicated
• Purpose of comm is to persuade prospects
• Different audience perceive the message
differently
• 5 Elements of Comm – Source, Encoding, message
channel, decoding & receiver
• AIDA – Action oriented model is used
 OBJECTIVE & TASKS
• Marketer to clearly decide objective & tasks
• Target buyer response to be achieved
• Task are Inform – Persuade - Remind
• Should show how the product works better
• Aimed to target market to gain product
acceptance
• Identifying target audience
 MEDIA
• Different approach methods used
• Consume promotion has been very effective
• Point of purchase display is the silent strategy
• Retailers use in-store display
• Showroom display helps to familiarize with
features
• Trade promotion helps effective sales through
retailers & traders
• Packaging may also carry promotion message
 BUDGET
• Budget is determined in advance depending on

• Enough budget to achieve sales promotion

objective
• A formula is formulated [generally 0.5% of the
sales]
• Budget depends on expenditure & competition
• Responsiveness depends on the product lifecycle
 PROMOTIONAL MIX
• Promotion mix refers to combination, types &
amount of promotion
• Individual promotion form seldom works
• Sales promotion program along with publicity,
advertising & personal selling is effective
• Trial & error, past performance & corporate
policies determine promotion fix
 STRATEGIC APPROACH
• Promotional mix determines promotional
strategy
• Marketing strategy determines promotional
strategy
Promotion
PUSH & PULL Sustaining Developmental
Appropriation
• Middleman • Stabilize • New product • Form
• To pull market share • Consumers • Cost of each
consumers to • Prevent sales are given component
buy force from after sales • Activities
going to service • Appropriation
compedition
 CONTROL & EVALUATION
• Evaluation at the stages of implementation &
final performance
• Implementation control includes:
– Initial Planning
– Objectives
– Promotional packaging
– Printing of special promotions
– Packaging material
– Distribution to the retailers
 CONTROL & EVALUATION
• Tools to evaluate sales promotions
– Planned objectives
– Consumer panel data
– Consumer survey
– Consumer experiments
 THANK YOU

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