Download Sales promotion.

Sales promotion.
Concept of sales promotion.
Sales promotion is an action which increase 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, 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:
a) 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.
b) 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.
c) 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”.
d) 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.