2. Sales promotion
“Sales promotion represents those
marketing efforts that are supplementary in
nature, which are conducted for a limited
period of time and seek to induce buying”
Davis
4. Tools of sales promotions
Prize schemes.
Trade fares and execution.
Free samples.
Catalogues'.
Sales contest.
Price off
Refunds.
Point of sales materials.
Boosters for dealers.
5. OBJECTIVES
Proactive
To gain additional market share
To expand the target market.
To develop favourable consumer experience with the market.
To add extra value to the customer and develop brand franchise.
Reactive
In response to competitive moves.
When excessive inventory piles up.
To generate shor term cash.
When the decision is to disconinue a product, or close down the
business.
6. Cont.
Speed up the sales of sales of slow moving
products.
To check the fluctuation in sales.
Attract new customer.
Clearance of excessive inventories.
Motivate dealers .
To gain advantage shelf space and increase
store traffic.
Improve relationship with dealers.
Motivate sales force.
7. Increase in sales volume
To reduce inventories before financial year
closing.
To increase the stock holding of retailers,
or even consumers, before the
introduction of a competing brand.
To push stocks of the old brand before the
introduction of new model.
8. Launch new product and increase trial.
Encourage repeat purchase.
To block competitors moves.
Encourage dealers to participate in display
and sales contest.
Deflect customers attention from price.
To supplement advertising and personal
selling efforts.
9. Sales promotion and consumer
behaviour.
Classical conditioning.
Unconditioned stimulous - food
Conditional simulus - sound of bell
Reasponse - salivation
Instrumental conditioning.
12. PULL STRATEGY
In this case, marketing efforts are directed
at the consumer promotions such as
consumer contests and sweepstakes,
rebates, coupons, free samples,
consumer premiums, etc.
The objective of such promotional efforts
would be to create sufficient consumer
demand to pull the product.
13. It works through the channels, in which
the consumers are encouraged to demand
the product from retailers who in turn
place orders with wholesaler or
manufacturer to meet the consumer
demand.
Bajaj Auto Ltd. offered a scheme of taking
home a scooter at Rs 999 was a sales
promotional offer communicated through
effective advertising and was essentially a
15. A pull strategy is appropriate when
The product demand as high.
Brand consumers show high degree of
involvement in the product purchase,
There is reasonably highly brand loyalty and
consumers make brand choice decision before
they go to the store.
16. PUSH STRATEGY
If a firm decides to use push strategy, its efforts
are directed at resellers and the manufacturer
becomes very dependent on their personal selling
abilities and efforts.
The promotional efforts are focused at pushing the
product through the distribution channels; the
resellers may be required to display, demonstrate
and offer discounts, to sell the product.
Push strategies generally appropriate for product
categories where there is low brand loyalty and
18. Manufacturers, who cannot afford to engage in
sustained mass advertising, often use push
strategy and offer effective incentives to dealers.
Retailer promotion: Buy Cadbury’s products
worth Rs.3000/- and get any 30 chocolates
worth Rs.5 each free.
Through this offer the company is pushing its
product to the retailers and now that the retailer
has enough incentive the retailer stocks more
and thus it becomes essential for the retailer to
push the product to the consumers.
19. Perceived Risk & Attitudes
Risks involved in purchase of any new brand .
Major risks faced by consumers fall under the foll.
Categories:-
Financial Risk
Functional risk
Physical Risk
21. Protection from competitors
Easily imitated by competitors,
eg., if a marketer promotes his product and the
competitor do promotion in a similar way then the
advantage is lost.
Develop a promotion strategy which would be complex to
copy.
For example– Ariel and Vimal suitings developed a joint
promotion.
22. Testing The Sales Promotion
Pre-testing
How sales promotion is to be communicated and
what would be communicated to the target groups is
important and can be pre-tested.
Ex; test the consumer behavioural response such as trial
purchase or repeat purchase etc.
Concurrent-testing
This testing is done when the sales promotion is in
progress. It may permit the promotion manager to modify
the sales promotion, if needed.
23. •Post-testing
Post testing is done after the promotion is over.
To asses the change in consumer awareness and attitude,
telephone calls, questionnaires mailed to consumers and
personal interviews can be used.
24. Guidelines to Sales Promotion
It should be used as an offensive weapon in the brands
marketing arsenal.
It should be used as a defensive reaction when a
problem arises.
It should extend and reinforce the brand’s advertising
and positioning, whenever possible.
It should be developed as campaigns, not as single,
unrelated events.
Good sales promotions are built upon sound strategic
planning.
