EFFEC T OF ADVERTISING
AND SALES PROMOTION
ON SALES VOLUME
Presented by :- Group 7
MEANING OF ADVERTISEMENT
• Advertising is the technique and practice used to bring products,
services, opinions, or causes to public notice for the purpose of
persuading the public to respond in a certain way toward what is
• It is a marketing tool that lets organization communicate with
potential customers about your products or services through paid
• A key part of advertising is establishing who your target market is.
GOALS OF ADVERTISING
• Advertising has three main purposes:
• To inform: Informative advertising helps build awareness about your brand,
product or service.
• To persuade: Persuasive advertising tries to convince its audience that a
company's offerings are the best for their needs. Its goal is to influence
consumers or businesses to switch brands, try a new service, or stay loyal to
the current brand.
• To remind: Reminder ads prompt people to remember their need for a
product or service, or how it can benefit them if they buy more soon.
EFFECT OF ADVERTISING ON SALE
OF A PRODUCT
• Advertising can have both immediate and long term effects on your company's
sales volume, depending on objective of organization.
• Short-term sales promotions tend to lead to higher sales volume more quickly,
whereas long-term brand management advertising produces higher sales and
profits over time
• As advertising helps to make consumers aware of a product and aims to build
preference for that product over its competitors. If advertising succeeds in those
two tasks, consumers will choose the advertised product when they make their
• However, building awareness and preference through advertising is a cumulative
• A single campaign of advertisement raises awareness for a short period, so it is
important to allocate the budget for advertising over a period of time to
sustain high levels of awareness and use.
Effect of advertising on sales made by making aware consumers on
MEANING OF SALES PROMOTION
• A sales promotion is a marketing strategy in which a business uses
a temporary campaign or offer to increase interest or demand in its
product or service.
• The primary reason for organization to opt sales promotion is to
• Sales boosts may be needed to reach a quota as a deadline
approaches, or to raise awareness of a new product.
BENEFITS OF SALES PROMOTION
• Creating new leads: Sales promotions increase customer acquisition by offering them
discounts, free products, free trials, and more.
• Introducing a new product: Even extremely successful companies need a little help
launching a new product. New customers may need incentives to buy, and long-term
customers may be committed to their usual products. Providing a discount or promotion on
a new product is a great way to create product awareness without doing a sales
• Selling out overstock
• Rewarding current customers: Sales success doesn’t stop at the first purchase. Nurturing
customers over time is essential to keeping brand credibility and loyalty high. Sales
promotions are an easy way to provide loyal customers with a discount, voucher, or free
product that will continue to keep them engaged with your brand.
EFFECTS OF SALES PROMOTION
• Sales promotions are marketing strategies companies use chiefly to
increase sales temporarily to gain sales volume and market share.
• They are occasionally used to clear out year-end inventory before new
models arrive in showrooms as is often done in the automobile industry.
• Sales promotions are also used as a competitive strategy to undercut
competition by offering a lower price or other incentive.
• Although sales promotions usually produce sales volume over and above
what is typically the case, they do not build brand identity and loyalty.