Sales promotions have an important role in the marketing programs of retailers. A large percentage of retailer sales is made on promotion, as illustrated by the. The motivation for sales promotion is to persuade a target audience to download a certain Sales promotion aims to achieve results mainly over a short term. Marketing Communication Individual Assignment Student ID: Name: Xuzhen Yuan Module Code: MMM Table of Contents Introduction.
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PDF | This article is designed to assist managers in understanding the current state of define a sales promotion as “an action-focused marketing event whose . Sales promotion is the dissemination of information through a wide variety of activities other than personal selling, advertising and publicity which stimulate. to analyze the effects of sales promotion discounts on consumer download intent, assessing the behaviors of impulsivity (Puri,. ; Ramanathan & Menon.
Sales promotion has a tactical, rather than strategic role in marketing communications and brand strategy, it is also a form of advertisement used within a short period of time. Researchers Farhangmehr and Brito, reviewed the definitions of sales promotions in marketing texts and journals and identified a set of common characteristics of sales promotion, including:  Short-term effects and duration; Operates and influences only the last phase of the download process; Exhibits a secondary role in relation to other forms of marketing communication; Performs an accessory role regarding the products core benefits Is not a single technique, rather it is a set of techniques used for a specific purpose Cokecaps is a manufacturer-sponsored sales promotion targeted at consumers Both manufacturers and retailers make extensive use of sales promotions. Retailer-sponsored sales promotions are directed at consumers. Manufacturers use two types of sales promotion, namely:  1. Consumer sales promotions: Sales promotions targeted at consumers or end-users and designed to stimulate the actual download 2. Trade promotions: Sales promotions targeted at trade, especially retailers, designed to increase sales to retailers, to carry the product or brand or to support the retailer in consumer-oriented promotions Consumer sales promotion types[ edit ] Consumer sales promotions are short term techniques designed to achieve short term objectives, such as to stimulate a download, encourage store traffic or simply to build excitement for a product or brand.
So to neutralize the competition effect the company has 41 to bring sales promotion scheme. If not the products of the other companies would be sold out more. The company may lose the opportunity for selling more would be lost. To push the sales of slow moving products: Some of the products are not in demand due to their old design, features or out of fashion.
Such products are not moving and they are lying in the stores of the company. To increase the sales of such products the suitable measure for promotion are used. Due to these the sales of slow moving products increase. In this the benefits are given of higher value so that the customers are motivated to download.
The company is using different types of sales promotional methods so that the objectives can be fulfilled. It is not necessary that at one time all type of methods would be used. For different parties for different objectives the promotional methods used may differ.
It depends up to the strategy of the company. It can make good appeal to them. Such customers wait for sales promotion scheme to download the products. Provides extra benefits to the customers through sales promotion schemes and create in customers to download the products.
Helps in increasing the sales of the current, seasonal, slow moving, out of use or fashion products. Neutralize the competition effects through sales promotion tools.
The profits and sales of the company are increased with the sales promotion tools time to time. The effect of this method is direct and can be measured easily on sales after sales promotion scheme. It supports the push strategy of promotion. The products are pushed near to the customers to download.
These are following: It is focusing on short-run effect on sale. The sales are to be increased at a particular point of time of promotion efforts. The long term gains are sacrificed for short term gains and do not develop the brand image of the products and company in the market.
It is suitable mainly for price sensitive customers and such customers become habitual to download when sales incentives are given. Sales promotion competition adds costs to the selling budget of the company and profitability goes down. In personal selling the salesmen of the company personally meet the customers, dealers relating to sales.
They go directly to the concerned parties when the nature of the product is such that it cannot be distributed through wholesalers, retailers etc. The need for salesmen is felt depending upon the nature of the products, distribution network and policy of the company. In personal selling there is personal presentation by the firms sales force for the purpose of making sales and building customer relationships. Personal selling is paid personal communication that attempts to inform customers and persuade them to download products or services.
The salesmen approach the customers with all detail information regarding products, company management, features and benefits of the company, knowledge of customers profile, products of competitors and other related information.
Before meeting the customers the salesmen prepare the list of prospects, details of prospects, job of salesmen, products features, management detail, company profile, competitors products etc. Home work is essential for the salesmen for effective selling. He explains all required information to the customers with the efforts to convince them to download.
If the customers agree then he takes the order from them. Later on follow up action is also done by the salesmen. During discussion 43 when demonstration of the products is required then it is also arranged by the salesmen. All doubts, fear, anxiety relating to products and company are clarified by the salesmen during his visits to the customers. The task given to the salesmen is very challenging. Most effective tool for creating and building downloaders preferences, convictions, and actions; through personal interaction between customers and salesmen feedback is possible.
This feedback is helpful is problem handling and developing good customers relationship. No a days the downloaders are more attentive; so to deal with them they expect long term commitment from salesmen. This method of promotion is the most expensive of the promotional tools but most effective also. Through feedback, problem handling and assurance the company is interested to long term relationship, To meet the requirement of personal presentation through personal selling. When demonstration and doubt clarification are required the best suitable method of sales promotion is personal selling.
To meet the requirement of industrial or heavy price products sales. This type of products cannot be sold out through dealers, wholesalers or retailers.
Face to face communication makes the things very clear and fears, doubts confusions are avoided on the spot. Demonstration of products performance is possible in personal selling. This helps in convincing the customers easily to download the products. It gives long term impact on the customers because the assurance is given by the sales men. Contributes in developing good relationship and image of the company in markets.
So he can cover a limited number of customers in a time. It is a very expensive method of promotion because the cost involved per customer is very high in comparison with other methods of promotion.
It is only suitable for high price products only and not for low price or FMCG products. Heavy budget is needed for personal selling activities.
It is not suitable for small and medium size of the companies. In Public relations the efforts are put to create and maintaining good public image for products or services, businesses of the company, non-profit organizations, celebrities, leaders etc.
Public relations is defined as building good relationships with the concerned parties of company out of public so to create good image regarding products, services and business of the company. The public should make positive publicity of the company so that adverse situation can be handled in future. Public relations convey messages to the target public with the help of the media on behalf of a client, with the objective to influence the opinions and create favourable image for products, services and business of the company.
The major parties involved in the public are employees, customers, dealers, bankers, suppliers, consultants and government. The different messages are given focusing on different target segments.
It is very effective when it is supporting the goal of the organization. It is viewed as a strategic management function. The other components of promotions are advertising, sales promotion, and personal selling.
Publicity is closely related to public relations.
In public relations the communication between company and public are managed and the publicity is the management of product or brand related communications between the firm and the general public. It is primarily an informative activity and its ultimate goal is to promote the companys products, services, or brands.
Publicity can be called as a planned programme for obtaining favorable press coverage regarding company, products and services.
The techniques used for creating publicity are press release, telephone press conferences, instudio media tours, multi-component video news releases, newswire stories, and internet releases. These should be used for the interest of the public. For example, when opinion of a customer using car is taken and released in press. This press release in made in favour of the product of the company, the publicity is made by words of mouth gives very good impact on the mind of the other customers.
It gives very good impact on the prospect customers. It spreads very fast.
It is very difficult to find out from where the publicity has originated. It lack of control over the message. If the adverse publicity is there then it is difficult to control it.
It may damage the image of the company. In this case special care should be there so that the adverse publicity should be avoided. Selection of Promotion Mix There are four different methods of promotion methods and each method is having its own advantages and limitation.
Considering strengths and weaknesses of each method and objectives of promotion the resources are applied to make the efforts of promotion successful.
Out of these for promotion purpose any one or more are to be selected. There is no hard and fast rule that a particular method is to be selected. The selection is done by considering the requirement of promotion campaign.
The promotion efforts should be very effective. For this purpose the following factors are to be considered: 46 a Type of products to be sold b Time of selling the products. Generally the leading companies are using two or more or in combination of these methods so that their sales targets, customers relationship and image of the company etc, are maintained properly.
The company is in position to maintain its position in the market. The selection of promotion mix must be in position to give the competitive edge to the company over other competitors.
Introduction 2. Sales Promotion 3. Definitions of Sales Promotion 4. Objectives of Sales Promotion 5. Parties Involved in Sales Promotion 6. Sales Promotion Methods 7. Sales Promotion Process 8. Sales Promotion Strategy 9.
Organizing Consumer Contest Reasons for Growth and Future of Sales Promotion Problems Faced in Sales Promotion Management Advertising and Sales promotion 48 Chapter 3. Introduction The company produces the products or provides the services for the customers. First of all it try to find out the profile of the customers.
The features of the customers are identified such as location, education, income, family size, consumption pattern, availability of products or services in the market, interest or changes in their existing demand, preference, tastes and other features.
The marketing research is carried out to collect the information regarding customers demand, what they are having and not having. The efforts are put to find out the gap between the demand and supply.
They try to operate between that gap. The opportunities are find out through the research. The products or services are designed to fill the gap that is found by the researchers. The products are designed specifically for a segment of customers. Further efforts are put to manage very effectively that particular market segment.
The company is putting its efforts in all these activities so that the customers must download its products. For creating awareness, informing about the availability of products or services, features, benefits, price and availability of products at particular location.
The main objective is to sell the products to the customers. On continuous basis the efforts are put to influence the customers to download their products. The promotional efforts are put by the company. There are different methods used by different companies for promotion of their products or services. One of them is sales promotion method. It is explained in the following paragraphs. When efforts are there other then advertising and personal 49 selling is called sales promotion.
They need to be motivated so that they put their best efforts so they provide proper link between company and traders and customers and company. Sales promotion includes several methods that attempt to provide added value or incentives to consumers, wholesalers, retailers, or other organizational customers to stimulate immediate sales.
These efforts can attempt to stimulate the customers to download the products or avail the services. Examples of sales promotion methods are price or quantity off, coupons, discount, samples, premiums, point-of-download POP displays, contests, scratch cards, gifts, rebates etc.
The sales promotion methods are used for different products with different objectives. The objectives may be to increase the sales of current, obsolete, slow moving, seasonal products so that the profit and profitability can be increased. Quota sampling has its own advantages. It is an easy process to carry out and decipher information once the sampling is done.
It also improves the representation of any particular group within the population thereby ensuring that these groups are not over-represented. Read More Definition of 'Promotions' Definition: Promotions refer to the entire set of activities, which communicate the product, brand or service to the user. The idea is to make people aware, attract and induce to download the product, in preference over others.
Description: There are several types of promotions. Above the line promotions include advertising, press releases, consumer promotions schemes, discounts, contests , while below the line include trade discounts, freebies, incentive trips, awards and so on.
Sales promotion is a part of the overall promotion effort.
There are also: 1. Personal selling: one of the most effective ways of customer relationship. Such selling works best when a good working relationship has been built up over a period of time. This can also be expensive and time consuming, but is best for high value or premium products.
Sales promotions: this includes freebies, contests, discounts, free services, passes, tickets and so on, as distinct from advertising, publicity and public relations.