Promoters called on about half a million households in this city. Sales promotion includes providing information about the attribution of the products and communicating messages aimed at satisfying its shareholders, government dealers and the like. Sales promotion has a capability to complement and supplement the advertising functions of the marketing. (xii) Point-of-Purchase (PoP) Display Material: Most suppliers produce sales-aid materials which are placed near the products to attract customers and induce them to purchase. A firm that feels threatened would like to protect its loyal customers from switching to the new competing brand. Sales promotion has a capability to complement and supplement the advertising functions of the marketing. The above definitions reveal that sales promotion is a marketing device to stimulate demand for a product. The “satisfied” consumers should feel “delighted” to retain long-term understanding for mutual satisfaction. The main objective of sales promotion is to increase sales volume. Sales promotions are marketing events or sales efforts—not including traditional advertising, personal selling, and public relations—that stimulate buying. 5. Objectives of Sales Promotion. This is called ‘mal-redemption’. Increasing usage rate by present customers. >> increase in sales promotion is motivated by marketing plans and reward systems geared to short-term performance and immediate generation of sales volume >> fixation on market share not only to introduce products >> view consumer and trade promotions as the most dependable way to generate short-term sales, particularly when they are price-related. ‘Nescafe’ as proof of purchase. Particularly, sales promotion serves as a bridge between advertising and personal selling. Short term sales increase is required to reduce inventories, meet budgets prior to the end of the financial year, moving stocks of an old model prior to replacement, increase stock-holding by consumers and distributors in advance of the launch of a competitor’s products. Where advertising offers a reason to buy, sales promotion offers an incentive to buy. For example, the customer could get a jigsaw puzzle inside a ‘ pack of cornflakes, or a free mug with the purchase of a health drink. Consumers develop a new reference price for the product and the increase does not appear to be as high as it was perceived earlier. Display and advertising allowance are granted to dealers to compensate them for the space given for the display of manufactured products. Companies, who have a small market share, cannot match the substantial advertising budgets of market leaders in the same industry. Launch a new product; Attract new clients; Stay competitive; Make existing customers buy more; Sell during off-season; Run clearance campaigns; Although the main goal of sales promotion is to increase demand in a particular product, you can reach several important goals. Sales Promotion includes all activities which promote sales of the company’s product and services. The types of sales promotion techniques used by the company depend upon the sales promotion objectives set by the company. The purpose of sales promotion is to increase sales. To Ensure the Present Market Position and to Gain Additional Market Share: In the event of increasing competition, new products and brands are coming up with intense competitive terms, and the brand proliferation is becoming a common phenomenon. Encouragement for Distributors, Dealers and Sales-Force: Lucrative sales promotion schemes shall encourage the dealers, distributors and sales-force to give more effort to increase sales for mutual benefit of producers and middlemen. Another advantage is that these gifts serve as promotional materials, as the name of the supplier is usually mentioned on them. Consumer-Oriented Sales Promotion, Consumer-Oriented Sales Promotion Techniques, Objectives – Increase in Sales Volume, Stock Clearance, Emphasizing Variety, Tempting Customers, Seeking More Involvement and Introducing New Arrivals, Providing Information, Increase Sales Volume, To Keep the Memory Alive, To Arrest Seasonal Decline, To Induce Middlemen and a Few Others. Contests can help in attaining short-term objectives and improve the company-reseller relationship. In order to provide better facilities the organisations should concentrate on effective distribution system and should establish scientific logistic framework to satisfy the demand of the consumers. The various objectives of sales promotion are as follows: 1. While the primary objective of advertising is to create an enduring brand image the primary objective of Sales promotion is to get a sale quickly or induce trial. (2) Increase’ Sales Volume – The main purpose of all Promotional activities is to increase the sales of the product or products of the company. 4. 4. Companies must consider what they want to achieve through their consumer-oriented sales promotion programs and how to mix these with other promotional activities such as -advertising, direct marketing and personal selling. This means higher margins to the retailer. It would be more appropriate to choose selected markets with high potential. The objectives should be stated to specify the desired type of action because the primary effect of a sales- promotion programme is to stimulate some consumer or dealer action. The objectives of the sales promotion are: Customers passing the store, who have no intention of going in, would be encouraged to enter by a sales promotion in-store, e.g. Or another variant could be that he buys three packets and gets the fourth one free. These new tie-ups mean more branding and sales opportunity for the company as well. 9. Obtaining distribution and support for new products. The following are the objectives of the sales promotion: To announce new products; Encourage customers to buy a new product, complimentary samples may be dispersed, or money and stock allowance can be awarded to business reserve and sell the product. To do that, you could look into your sales reps’ commission packages and provide a heightened incentive to achieve the objective. 5. To increase buying response by ultimate consumers and selling efforts and intensity by dealers as well as by sales personnel, and. Motivate dealers to stock and sell more. Reducing Seasonal Decline – In slack season the promotional activities help in maintaining the sales of the product. To develop favourable consumer experience with the product. The intention is to increase sales, make a large customer base, encourage trial, encourage repeat purchases to stimulate consumers' purchase. It attracts channel members to participate in manufacturer promotion effort. To pre-empt competition, presence of certain favourable conditions is necessary. If Kwality walls want to improve the distribution of its ice cream, it can give 1 ice cream free for every ice cream sold. Sales Promotion Objectives are as follows: 1. For example, a one litre bottle of cola may say Rs 10 off. 8. Sales promotion secures the following objectives: vi. There were 1565 prizes to be won. Well the problem is that marketing without a clear cut strategy is like fishing without bait. 6. Through the use of appropriate means of market promotion, such as advertising, sales promotion, personal selling, and so forth, the company can stimulate demand for the product. Thus, a quicker sales response results from sales promotion. To Add to the Stock of the Dealers. 5. Reminding leads the firms to reinforce the pre­viously satisfactory behaviour of the customer. To Supplement Advertising and Personal Selling Efforts, – The 3 Fundamental Objectives: Informing, Persuading and Reminding, Objective # 1. Major Sales Promotion Techniques Companies use various sales promotion techniques to promote their products. Persuading generally becomes the main promotion goals, when the product enters the growth stage of its life cycle. Trade-oriented sales promotion programs are designed to get the trade support. Sales promotion is the avenue to reach the product or the brand in the mind of the prospective consumers and to develop a brand image with favourable attitude towards the product. tasting a food buying new T shirts and jeans; brass wares, etc. By adopting these practices, companies can increase the margin on promotions by 2 to 5 percentage points and position themselves to win in an increasingly challenging retail environment. Objectives of sales promotion. The objectives for consumers may be to encourage more usage and purchases of a larger number of units and attract competitors’ brand users. For example, companies distribute free samples of their new product. Some common examples of sales promotion marketing communications include consumer coupons, rebates, prizes, and loss leaders (or items sold at cost or a discount in order to attract business). These products are such that customers, if left on their own, would be reluctant to spend money and give them a try. But it can also feel like our days are overrun with sales promotions. store ‘club’ cards, or continuity programmes such as collecting a dinner service. To Attract New Customers. The reasons for the growth of sales promotion is mainly due to: 2. Launch New Products and Increase Trial: 5. Trade promotion: All sales promotion efforts are targeted towards the middlemen to push the product towards the end consumer. (iii) To push stocks of the old brand before the introduction of new model. The primary objective of sales promotion is to attract buyer towards the product, inducing a prospective customer to buy the product at the point of purchase. Deflect customers’ attention from price. For example, Hindustan Lever Ltd., offering with their Brooke Bond BRU 50 gm coffee packs an attractive glass bowl. To Help the Firm Remain Competitive 13. Sales promotions are a great way for your organization to encourage potential customers to buy your product or sign up for your service. It shall attempt to generate a bondage between the awareness and perception of the consumers and the personality of the brand and its features. This will better satisfy their customers and give customers more reason to visit. To generate a favourable attitude towards the brand and to develop the awareness regarding the special attributes of the product, sales promotion devices are adopted effectively. To Increase Sales Volume 2. Reminding the consumers of their past satisfaction will persuade them to stay with the product and prevent them from shifting to competitors. Objectives of Sales Promotion. When consumers see in bold print “FREE”, their attention is focused on the advertisement. activities make the product popular and increase the demand. 60, then a coupon with a face value of Rs. Definition of Sales Promotion A sales promotion is one of seven aspects of the promotional mix. 55. Product’s design, colour, packaging and price, all communicate something. However the marketer may have a number of different objectives for example: ii. 7. The competition may be from manufacturers or sellers of similar products or of substitutes. Sales promotion has a capability to complement and supplement the advertising functions of the marketing. Sales promotion is a $300 billion—and growing— industry. They develop or reinforce a favourable set for attitudes and influence their buying behaviour. This can be achieved by a number of activities; some of them are listed below: (a) Increasing the number of transactions: (i) Sales promotion methods can be used to persuade more people into the store and convince them to buy. (ii) Point-of-sale incentives can be improved to generate quicker sales response. 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