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International Journal of Research (IJR) Vol-1, Issue-7, August 2014 ISSN 2348-6848
SalesPromotion–AChangingTrendfrom
ExpensivenesstoEffectiveness
Prof. Kavleen Bharej
S.D.College, Ambala, K.U. India.
the current promotional practices being
Abstract:
carried out in this competitive era,
Though the concept of sales promotion has
especially in Indian corporate scenario.
been evolving for decades, as one of the
most vital tool of marketing, still its
Keywords:
Promotion
mix,
sales
efficiency is doubtful. This paper seeks to
promotion, advertisement, stakeholders.
explore the interrelationship between sales
and promotion in Indian context.
Introduction:
The
paper argues about the implication of
“A type of trade sales promotion in which
these concepts in Indian businesses. The
the retailer is allowed to buy a certain
first part of the paper states the increased
focus
of
marketers
on
amount of product from the manufacturer
promotional
and then pay for that product over a
activities, and its linkage with business
prolonged period of time”.- American
practices. The second part states the
Marketing Association.
recent transformation in the strategies
followed by corporate houses, highlighting
In today’s dynamic world sales promotion
the essential of effectiveness. The third
is the emerging area of interest for
part of the paper discusses the prospects
marketers, entrepreneurs, practitioners and
and challenges faced by the organization
academics. A key ingredient in marketing
following sales promotion as its tool.
campaigns is sales promotion i.e. the need
to promote a product, service or an idea.
The methodology used for the research is
(Obi, 2002) described sales promotion as
secondary and the main objective is to
an activity that becomes necessary as a
outline the shift from the expensive
supplement to personal selling. Sales
promotional tools towards effectiveness.
promotion is the part of promotion mix,
This paper can provide an insight about
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International Journal of Research (IJR) Vol-1, Issue-7, August 2014 ISSN 2348-6848
which is used to influence and persuade
scientific papers
the customers to buy the goods. It consists
knowledge management and IT), states
of free samples, free gifts, exhibitions,
that the consumers are essential and are
trade fair, demonstrations, rebates, cents
effected by the economic environment.
off etc. It is the function of marketing
There are many literatures written on the
which
promotional
is
concerned
with
persuasion
of
the( journal
activities.
of
Consumer
component of communication towards the
promotions are promotions offered by
target audience with intent to exchange
manufacturer
between the marketer and the customer.
(Blattberg and Neslin 1990). Some studies
directly
to
consumers
also showed that it is one of the integral
Sales promotion is the part of promotional
mix
which
consists
of
parts of marketing mix for the consumer
advertising,
products. (Huff and Alden 1998, Chandon
personal selling, publicity and direct
et al. 2000).
marketing. It has been observed now that
sales promotion includes those activities
Objectives:
which not only develop the interest of the
To understand the theoretical and
consumers but also enhance and support
practical perspective of promotion.
mass selling and personal selling. Which
To understand the essentials of
in turn help and compete and make the
moving beyond expensiveness.
process of promotional activities more
To determine the convergence
effective? It helps in offering something
between effective and expensive.
extra to the customers, which built the
To
worth of the product over and above its
highlight
the
changing
developments in promotion and its
normal cost.
implication in Indian context.
To determine the prospects and
Literature Review:
exposed
In this competitive era, it becomes
essential
for
the
businesses
challenges
marketers
to
faced
following
by
sales
promotion.
communicate to the consumers what they
have to offer. (Jobber & Lancaster, 2006)
Methodology:
.Dwyer & Tanner (2006) states that
A
Business consumers are huge in number as
comprehensive
review
of
the
professional and academic literature on
compared to individual consumers; In the
promotional mix and sales promotion was
311
International Journal of Research (IJR) Vol-1, Issue-7, August 2014 ISSN 2348-6848
carried out. An analytical approach was
It is highly essential for the Indian
followed to review the trends and identify
businesses to compete not only with the
the
domestic players but also to stand in their
current
formulating
perspective
and
and
drivers
implementing
own country and against the international
the
promotional practices in India. Reliable
players.
Advertisement
and
personal
secondary sources were used to understand
selling are considered to be expensive
the integration of customers and products.
form of activities which are helpful only at
the time of introductory phase of products.
Finding and Analysis:
With the advent of new technologies and
As, we have seen that the theoretical and
rapid development, companies are trying
practical implications of the concept of
to converge the expensive methods with
sales promotion have achieved a very high
the
status in the marketing concept. The
is
once has shifted its stature towards
difficult
to
fool
them.
The
promotion techniques such as free gifts,
that is a paid form of promotional which
cents off, rebates, coupons etc. A rational
has a wider coverage towards a mix blend
consumer tries to compare the products on
of other form of promotional mix. The
the basis of what extra value is it adding to
changing trend has taken place because of
availability
have
product life cycle also includes the sales
time are moving beyond advertisement
the
Consumers
advertisements at the latter stages of
effectiveness. The companies in today’s
and
ones.
become really intelligent in buying and it
concept which was considered expensive
globalisation
effective
their purchases.
of
product width and line.
312
International Journal of Research (IJR) Vol-1, Issue-7, August 2014 ISSN 2348-6848
As in this diagram it is evident how the
more
effectiveness
that
is
efficient
mix of all the promotional activities is
utilisation of the limited resources than to
carried out. At the introductory phase
follow the expensive ways as ultimately
informative advertisement are clubbed
the consumers have to bear the expenses
with free sample or buy one get the new
and they refuse as they have alternatives
one free offer, so that the consumers can
available at reasonable prices.
use and know about the same. Similarly at
Bibliography:
the growth stage persuasive advertisement
is carried out with increased brand loyalty.
Alpert, Frank (1993), "Consumer Market
And at the maturity and decline phase the
Beliefs and Their Managerial Implications:
percentage off schemes are given to the
An Empirical Examination", Journal of
consumers.
Consumer Marketing, 10(2) pp.26-70.
As the tastes and preferences of the
Blattberg, Robert C. and Scott A. Neslin
customer changes so is the problem which
is
faced
by
the
marketer.
(1990),
The
Sales
Promotion,
Concepts,
Methods and Strategies, Englewood Cliffs,
advertisement world has become quite
New Jersey: Prentice Hall
expensive and its duration is also short, for
all the small budget companies it becomes
Brassington, F. and Pettitt, S. (2000), Sales
a challenge to compete with the same
Promotion. In: Principles of Marketing,
impact as the big business houses.
2nd ed., FT Prentice Hall, Harlow, pp.
642-685
Conclusion:
Hellman Karel (2005), Strategy-driven
At the end it might be said that there is a
B2B Promotion, Journal of Business
changing trend that can be seen between
&Industrial Marketing ,Volume : 20, 4-11
the companies which are shifting towards
313