SALES PROMOTION PART 1

v  SALES PROMOTION 1
BUSINESS STUDIES
MARKETING MGMT
MEANING AND DEFINITION

–           IT IS ONE OF THE ELEMENTS OF PROMOTIONAL MIX. SALES PROMOTION USES BOTH MEDIA AND NON MEDIA MARKETING COMMUNICATIONS FOR  STIMULATING THE DEMAND.

–           SALES PROMOTION IS A TYPE OF PULL MARKETING TECHNIQUE WHICH AIMED AT PERSUADING A POTENTIAL CUSTOMER TO BUY  THE PRODUCT.

–           SALES PROMOTION TARGETED AT THE CONSUMER ARE CALLED CONSUMER SALES PROMOTION AND SALES PROMOTION TARGETED AT THE RETAILERS AND WHOLESALE ARE CALLED TRADE SALES PROMOTION

v    DEFINITION

–           ROGER A STRONG.” SALES PROMOTION INCLUDES:-

•                       ALL FORMS OF SPONSORED COMMUNICATION APART FROM ACTIVITIES ASSOCIATED WITH PERSONAL SELLING

•                       IT THUS INCLUDE TRADE SHOWS AND EXHIBITS,COMBINING,SAMPLING,PREMIUMS,TRADE,ALLOWANCES,SALES

•                       AND DEALER INCENTIVES,SET OF PACKS,CONSUMER EDUCATION AND DEMONSTRATION ACTIVITIES,REBATES,BONUS,PACKS,POINT OF PURCHASE MATERIAL AND DIRECT MAIL.

SALES PROMOTION MEANS ANY STEPS THAT ARE TAKEN FOR THE PURPOSE OF OBTAINING OR INCREASING SALES.

v  OBJECTIVE AND IMPORTANCE  OF SALES PROMOTION

1.       VITAL LINK BETWEEN PERSONAL SELLING AND ADVERTISING

2.       TO MOTIVATE AND ENCOURAGE CUSTOMERS TO PURCHASE AT THE POINT OF TIME

3.       TO FACILITATE SALE HELP OF NEW PRODUCTS

4.       TO MOTIVATE EXISTING CONSUMERS TO BUY MORE

5.       TO  ATTRACT NEW CUSTOMERS

6.       TO MEET THE COMPETITION EFFECTIVELY

7.       TO PROMOTE SALE IN LEAN  SEASON

–           FEATURES

1.       A SHORT TERM STRATEGY

2.       OPERATES AND INFLUENCE ONLY THE LAST PHASE OF THE PURCHASE PROCESS

3.       COMPLEMENTS OTHER PROMOTION MIX

4.       PERFORM AN ACCESSORY ROL REGARDING THE PRODUCT CORE BENEFIT

v    TYPES OF SALES PROMOTION

1.       CONSUMER SALES PROMOTION:-SALES PROMOTION TARGETED AT CONSUMER OR END USERS

2.       TRADE PROMOTIONS:- TARGETED AT TRADE ESPECIALLY RETAILERS TO INCREASE THE SALES AND CARRY THE PRODUCT AND BRAND OR TO SUPPORT THE RETAILERS IN CONSUMER ORIENTED PROMOTIONS.

v  CONSUMER SALES PROMOTION

–           MEANING:-

–           ARE SHORT TERM OBJECTIVES SUCH AS TO STIMULATE A PURCHASE,ENCOURAGE STORE TRAFFIC OR SIMPLY TO BUILD EXCITEMENT FOR PRODUCT

–           TYPES OF CONSUMER SALES PROMOTION TYPES:_

1.       PRICE DEALS

2.       LOYALTY REWARD PROGRAM

3.       CENTS OFF

4.       PRICE PACK DEALS

5.       COUPONS

6.       LOSS LEADER

7.       FREE STANDING INSERT

8.       MOBILE COUPONS

9.       REBATES AND CONTESTS

v    TYPES OF CONSUMER SALES PROMOTION TOOLS

–           SAMPLES:- FREE SAMPLES ARE GIVEN TO CONSUMER TO GENERATE THEIR INTEREST IN THE SALES. DELIVERED AT DOOR/OR BY MAILS BUT IT IS VERY EXPENSIVE AND NOT JUSTIFIED:-

a)       WELL ESTABLISHED PRODUCT

b)       A PRODUCT IS NOT SUPERIOR

c)        A PRODUCT WITH NARROW MARGIN PROFIT

d)       PERISHABLE OR DELICATE PRODUCT

–    COUPON:-THEY ENTITLE THE HOLDER TO EITHER A SPECIFIED SAVING ON A PRODUCT OR A CASH REFUND. THEY  ARE DESIGNED FOR INTRODUCING A NEW PRODUCT OR PROMOTING THE SALE OF ESTABLISHED PRODUCT AND MOTIVE IS TO ENCOURAGE REPEATED SALE. AND THEY ARE USED FOR CONSUMER CONVENIENCE GOODS

–           DEMONSTRATION: MOTIVE IS TO EDUCATE THE CUSTOMERS AND ENCOURAGE AND MOTIVATE TO BUY. GIVEN FREE OF COST

–           CONTESTS:-ARE CONDUCTED TO ATTRACT THE NEW CUSTOMERS. THEY ARE THE PROMOTION EVENT THAT GIVE CONSUMERS THE CHANCE TO WIN SOMETHING SUCH AS CASH ,TRIPS OR GOODS

–           CASH REFUND OFFER:-ARE REBATES ALLOWED FROM THE PRICE OF THE PRODUCT.

–           PREMIUM:-PREMIUM REFERS TO GOODS OFFERED EITHER FREE OR AT LOW COST AS AN INCENTIVES TO BUY A PRODUCT. IT MAY BE INSIDE THE PACKAGE,OUTSIDE IT OR RECEIVED THROUGH MAIL. GENERALLY GIVEN CONSUMER GOODS IN THE FORM OF DIRECT PREMIUM,REUSABLE CONTAINER  OR SELF LIQUIDATING IN THE FORM OF EXTRA QUANTITY.

–           PRICE OFF OFFER:- REDUCED PRICES

–           CONSUMER SWEEP STAKE:- A SWEEP STAKE CALLS FOR CONSUMERS TO SUBMIT THEIR NAMES FOR A DRAW, THE LOTS ARE DRAWN AND THE WINNER GET PRIZES.

–           BUY BACK ALLOWNACE:-: ALLOWANCES ARE GRANTED TO BUYER ON THE BASIS OF THEIR PREVIOUS PURCHASES

–           LOSS LEADER:- THE PRICE OF POPULAR PRODUCT IS TEMPORARILY REDUCED BELOW COST IN ORDER TO STIMULATE THE SALE OF OTHER PRODUCT

–           MOBILE COUPONS

–           ONLINE INTERACTIVE GAME

–           TYPES OF CONSUMER SALES PROMOTION TOOLS

–           MODERN SALES PROMOTIONS:

a)       LOYALTY CARDS

b)       PERSONAL SHOPPING ASSISTANTS

c)        ELECTRONIC SHELF LABELS

d)       MORE PERSONALIZED COMMUNICATIONS

e)       ON LINE COUPONS