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Marketing Management (FOR COMMERCE PROGRAMME)

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· Concept of sales promotion

Sales promotion is an action which increases the volume of sales and / or decreases the time for sales.

It is not enough for a business to have good products sold at attractive prices. To generate sales and profits, the benefits of

products have to be communicated to customers. In marketing, this is commonly known as "promotion".

Sales promotion aim directly at including purchase to buy a product. It involves demonstrations, contests, prices-off,

coupons, free samples, special packaging and money refund offers. Sales promotion activity are designed to encourage

resellers and sales people on to sell the product. It is different from personal selling and advertising in the sense that slaes

promotion is non-recurrent in natureand is for a short period. This type of promotion mix is complementary to the other

kind of promotion mix.

(1) Personal Selling.

(2) Publicity.

(3) Advertising.

· Definition.

“Sales promotion includes incentive-offering and interest-creating activities which are generally short-term marketing events

other than advertising, personal selling, publicity and direct marketing. The purpose of sales promotion is to stimulate,

motivate and influence the purchase and other desired behavioral responses of the firm’s customers.”

“An activity designed to boost the sales of a product or service. It may include an advertising campaign, increased PR

activity, a free-sample campaign, offering free gifts or trading stamps, arranging demonstrations or exhibitions, setting up

competitions with attractive prizes, temporary price reductions, door-to-door calling, telemarketing, personal letters on other

methods”.

Formally sales promotion is the use of incentive create preparation for greater brand among consumer. The trade &

business buyers. The intent to generate to short term increase in sales by motivating trial use encouraging larger purchase, or

stimulating repeat purchase .

· Sales Promotion Tools.

Many sales promotions tools are available to accomplish these objectives. The promotion planner should take into account

the type of market, sales promotion objectives, competitive conditions, and cost effectiveness of each tool. Hence is an

example of determining the appropriate sales promotion tool given the situation and objective:

1. Consumer Promotion Tools

The main consumer promotions tools include samples, coupons, cash refund offers, price packs, premiums, prizes,

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The main consumer promotions tools include samples, coupons, cash refund offers, price packs, premiums, prizes,

patronage rewards, free trials, product warranties, tie-ins, and point-of-purchase displays and demonstrations.

2. Trade promotion Tools

Manufacturers seek four objectives in awarding money to the trade:

· Trade promotion can persuade the retailer or wholesaler to carry the brand. Shelf space is so scarce that manufacturers

often have to offer price-offs, allowances, buy-back guarantees, or free goods to get on the shelf, and once there, so stay

on the shelf.

· Trade promotion can persuade the retailer or wholesaler to carry more than it normally carries. Manufacturers will offer

volume allowances to get the trade to carry more in their warehouses and stores. Manufacturers believe that the trade will

work harder when they are “loaded” with the manufacturer’s product.

· Trade promotion can induce the retailers to promote the brand through featuring, display, and price reductions.

Manufacturers may want an end-of-aisle display or increase shelf facings or price reduction stickers and obtain them by

offering the retailers allowances paid on “proof of performance”.

· Trade promotion can stimulate retailers and their sales clerks to push the product. Manufacturers complete for retailer

sales effort by offering push money, sales aids, recognition programs, premiums, and sales contests.

3. Business promotion Tools

Among the main business promotion tools are conventions and trade shows. Industry associations organize annual

conventions and typically sponsor a trade show at the same time. Firms selling to the particular industry display and

demonstrate their products at the trade show.

4. Sales force promotion.

Salesmen are motivated to sell products by offering bonuses, contexts and sales rallies. They are offered a bonus if the sales

increases above the minimum level. Sales contests are organized as an effective measure of sales promotion. The main

purpose of sales contests is to increase the sales though sales promotion.

· Sales promotion techniques.

Sales promotion techniques can be specialized to certain industries, but most techniques can be intuitive or learned by trial

and error as you are in the process of selling. Simple advice for successful promotions like pre-qualifying leads, respecting

the client, building a relationship and setting realistic goals are often not implemented in pitches, emails, phone conversations

and marketing materials. TV commercials bombard people with information. If you are face-to-face or have a personal

contact with your client, your techniques must be different.