2. SALES PROMOTION
Meaning and Definition:
According to A.H.R. Delens: “Sales promotion means any
steps that are taken for the purpose of obtaining an
increasing sale.”
In the words of Roger A. Strong, “Sales promotion
includes all forms of sponsored communication apart from
activities associated with personal selling.”
3. Objectives Of Sales Promotion
To increase sales by publicity through the media.
To disseminate information through salesmen, dealers
etc.
To stimulate customers to make purchases at the point of
purchase.
To prompt existing customers to buy more.
To introduce new products.
To attract new customers.
To meet competition from others effectively.
To check seasonal decline in the volume of sales.
4. Importance Of Sales Promotion
The importance of sales promotion has increased
tremendously in the modern times. Lakhs of rupees
are being spent on sales promotional activities to
attract the consumers in our country and also in other
countries of the world.
5. SALES PROMOTION MIX
What is Promotion?
Promotions are decisions about advertising, personal
selling, sales promotion, and publicity used to attract
potential customers. Companies use promotion to inform
people about their products and services and also to
enhance their public image and reputation.
6. Methods of Promotion:
Product promotion:
Promotion method businesses use to convince consumers to
select its products or services.
Institutional promotion:
Promotion method used to create a favorable image for a
business, help it advocate for change, or take a stand on trade
or community issues.
7. Promotion Mix Concept
To reach its promotional goals, an organization develops
an effective promotional mix which is a combination of
strategies and a cost-effective allocation of resources.
8. Types Of Promotional Mix
1. Personal Selling
2. Advertising
3. Direct Marketing
4. Sales Promotion
5. Public Relations
9. PERSONAL SELLING
Personal selling is one-to-one communication between
seller and prospective purchaser. It generates direct contact
with prospects and customers. It is one of the most
expensive forms of promotion.
Examples: personal meetings, telemarketing, e-mails, and
correspondence
10. ADVERTISING
Advertising is a form of non-personal promotion. It is
when companies pay to promote ideas, goods, or services
in a variety of media outlets. With advertising, a company
engages in a one-way communication to the prospect or
customer.
Examples: magazines, newspapers, television, websites,
city buses, etc.
11. DIRECT MARKETING
Direct marketing is a type of advertising directed to a
targeted group of prospects and customers rather than to a
mass audience. Two forms of direct marketing are printed
by mail, or direct by e-mail.
Examples: direct mail, e-mail.
12. SALES PROMOTION
Sales promotion basically represents all marketing
activities other than personal selling, advertising, and
public relations. The objectives are to increase sales,
inform potential customers about new products, and
create a positive business or corporate image.
Examples: coupons, product samples, point-of-
purchase displays.
13. PUBLIC RELATIONS
Public relations activities enable an organization to
influence a target audience. Most of the time, public
relation campaigns try to create a favorable image for a
company, its products, or its policies.
Examples: a campaign to encourage businesses to donate
computers to schools, donating to hospitals, donating to a
cause.
14. Kinds Of Sales Promotion
1) Consumer promotion.
2) Trade or dealer promotion.
3) Sales force promotion.
15. CONSUMER PROMOTION
Promotion which directly targets the consumer is known as
consumer promotion.
Types of consumer sales promotions:
Coupons
Demonstrations
Promotional Pricing
Free trials
Loyalty Programs
Sampling
16. TRADE PROMOTION
Promotion which target the dealers directly is known as
trade promotion. also known as Dealer Promotion.
Trade promotions include:
Buying allowances
Push money
Price deals
Dealers gift
Sales contests
Dealers listed promotion
17. SALES FORCE PROMOTION
Sales promotion directed towards the sales people is
referred to as sales force promotions.
Sales force promotions are:
Bonus to Sales Force
Sales Force Contests
Salesmen Meetings and Conferences
18. CONCLUSION
The importance of sales promotion in modern
marketing has increased mainly on account of its
ability in promoting sales and preparing the ground
for future expansion. The main objective of sales
promotion is to attract the perspective buyer toward
the product, and induce him to buy the product at the
point of purchase. At the salesman’s level, its object is
to achieve more sales. At the dealer’s level, the purpose
is to sell a particular product of a manufacturer. At the
consumer’s level the main idea is to enable the
consumer to buy more of a product more frequently
and also to introduce new uses for the product. Thus,
it is a “catch-all” method and is used as an effective
tool of marketing.