Implementation of Sales Promotion Campaign : Implementation of Sales Promotion Campaign By Sales Promotion : Sales Promotion Sales promotion consists of a diverse collection of incentive tolls, mostly short term, designed to
stimulate quicker and / or greater purchase of particular products/services by consumers or the
trade: Slide 3: "Sales promotion includes marketing activities, other than personal selling, advertising such as displays, shows and expositions, demonstrations and various non-recurring selling efforts not in the ordinary routine." Slide 4: Sales promotion includes free samples, premium on sales, sales and dealer incentives, contests, fair and exhibition public relations activities etc.
Sales promotion are those activities, other than advertising and personal selling and stimulates market demand for products.
The basic purpose is to stimulate on the spot buying by prospective customers through short term incentives.
These incentives are essentially temporary and no-recurring in nature. Slide 5: Objectives of Sales Promotion
Sales Promotion techniques are used to
(1) Introduction of new products to the market through educating people
(2) Attractive new customers by offering attractive gifts.
(3) Increase Sales through slack season
(4) Create goodwill among the present as well as prospective customers.
(5) Create good public image of the product and the firm. Slide 6: Benefits of sales promotion
(1) Spreads information
(2) Stimulates Demand
(3) Customer Satisfaction
(4) Stabilization of sales volume
(5) Create Product identity
(6) Performance Appraisal Slide 7: Types of Sales promotion
Sales promotional activities may be broadly classified into the following
1. Consumer sales promotion
2. Trade sales promotion
3. Business Sales promotion Major Consumer - Promotion Tools : Major Consumer - Promotion Tools Samples:
Samples are offers of a free amount of a product or service. The sample might be delivered door to door, sent in the mail, picked up in store, found attached to another product, or featured in an advertising offer. Sampling is the most effective and most expensive way to introduce a new product. Slide 9: 2. Coupons:
Coupons are certificates entitling the bearer to a stated saving on the purchase of a specific product.
Coupons can be mailed, enclosed in other products or attached to them, or inserted in magazine and newspapers ads. Slide 10: 3. Discount or price off
In order to increase sale, many producers introduce price off offer to customers. Under this, the product is offered at a price lower than the normal price.
For eg., dining off season (winter), ceiling Fans, Coolers and refrigerators may be offered at 20% or 30% off price. Slide 11: 4. Cash Refund offers (Rebates)
Cash refund offers provide a price reduction after the purchase rather than at the retail shop. The consumer sends a specified "proof of purchase" to the manufacturer, who "refunds" part of the purchase price by mail. Slide 12: 5.Price Packs:
Price packs (also called cents-off deals) are offers to consumers of savings off the regular price of a product, flagged on the label or package.
They can take the form of a reduced price pack, which is single packages sold at a reduced price (such as two for the price of one) or banded pack, which is two related products banded together (such as a toothbrush and toothpaste). Slide 13: 6. Premiums or Gift Offer:
Premiums (or gifts) are merchandise offered at a relatively low cost or free as an incentive to purchase a particular product. There are three types of premium offers
with pack premium
a reusable container
a free in mail premium. Slide 14: 7. Prizes (Contests, Sweepstakes, Games)
Prizes are offers of the chance to win cash, trips, or merchandise as a result of purchasing something.
A contest calls for consumers to submit an entry - a jingle, estimate, suggestion - to be examined by a panel of judges who will select the best entries. Slide 15: 8. Patronage Awards:
Patronage awards are values in cash or in other forms that are proportional to one's patronage of a certain vendor or group of vendors.
Most airlines offer "frequent-flyer plan" providing points for miles traveled that can be turned in for free airline trips. Slide 16: 9. Free Trials:
Free trials consist of inviting prospective purchasers to try the product without cost in the hope that they will buy the product. Thus auto dealers encourage free test drives to stimulate purchase interest.
10. Product warranties are important promotional tools, especially as consumers become more quality sensitive.
11. Tie-in Promotions:
Tie-in promotions involve two or more brands or companies that team up on coupons, refunds, and contests to increase their pulling power. Slide 17: 12. Cross-promotions:
Cross-promotions involve using one brand to advertise another noncompeting brand.
13. Quantity Deals
Some times, sellers devise special package which gives extra quality of the product to the buyer at the same price. These deals came in the form of "Buy three, get one free" offer for beauty soaps like Nirma, Lux.
14. Quiz Contests
There may be customers contest, salesman contest and dealers contest. Contests for salesman and dealers are intended to inducting them to devote greater efforts and for obtaining new sales ideas in the task of sales promotion. Slide 18: 15. Fair Exhibition
Businessmen can demonstrate their products explaining their special features and usefulness.
They can also distribute free literature to introduce their firm and products to the public. Slide 19: 16. Display of products
Goods can be displayed in artificially laid out window at the shop front or at important busy centers like railways station and bus stops. The retailer organize such shares in their own shops. Slide 20: 17. Free offer:
Recently several companies are using free offers to promote their products for instance, 36cms TV free with purchase of 95cms TV.
18. Exchange offer:
Attractive terms are offered to the old item and moreover, consumer finance is a made available for the amount of difference between the price of new item and sale value of the old item. Trade-promotion Tools : Trade-promotion Tools Trade Promotion can Persuade the Retailer or wholesaler to carry the brand:
2. Trade Promotion can persuade the retailer or wholesaler to carry more goods than the normal amount:
3. Trade promotion can induce the retailers to promote the brand by featuring, display, and price reductions:
4. Trade promotion can stimulate retailers and their sales clerks to push the product: Major Trade-promotion Tools : Major Trade-promotion Tools Price-Off:
A price-off (also called off invoice or off-list) is a straight discount off the list price on each case purchased during a started time period. The offer encourages dealers to buy a quantity or carry a new item that they might not ordinarily buy. The dealers can use the buying allowance for immediate profit, advertising or price reductions.
An allowance is an amount offered in return for the retailers agreeing to feature the manufacturers products in some way. An advertising allowance compensates retailers for advertising the manufacturers product. A display allowance compensates them for a carrying a special product display. Slide 24: 3. Free Goods:
Free goods are offers of extra cases of merchandise to middlemen who buy a certain quantity or who feature a certain flavor or size. Manufacturers might offer push money, which is cash or gifts to dealers or their sales force to push the manufacturer’s goods.
Manufacturers might offer free specialty advertising items to the retailers that carry the company's names, such as pens, pencils, calendars, paperweights, memo pads and ashtrays. Slide 25: 4. Store administration
Under it, sale personnel of the manufacturer carryout special demonstrations of their products for the benefit of dealers and consumers. The object is to educate the dealers and consumers about qualities of the product, how it is be used, and so on.
5. Dealer contests
Under this dealers are offered additional incentives for attracting predetermined sales targets or for arranging attractive display and demonstration of the products. Slide 26: 6. Special discounts
During the promotion campaign, a manufacturer may offer special discounts on purchases made by retailers such a campaign may be called price off scheme or off list. Special discounts increase the profit margin of the dealer who gets encouragement to push up sales of the product.
7. Push Money
The dealers may be given a specific amount of money to push the sales of the manufactures products. Cash reward is given for purchasing the product among the buyers when there is tough competition in the market. Business-promotion Tools: : Business-promotion Tools: Companies spend huge amounts on business promotion tools.
These tools are used to gather business leads, impress and reward customers, and stimulate the sales force to greater effort. Companies typically develop budgets for each business promotion tool that stay fairly close from year to year. Major Business-Promotion Tools : Major Business-Promotion Tools Trade shows and conventions
Industry associations organize annual trade shows and conventions. Firms selling products and services to the particular industry buy space and setup booths and displays to demonstrate their products at the tradeshow. Slide 30: Sale Contests:
A sales contest is a contest involving the sales force or dealers, aimed at inducing them to increase their sales results over a stated period, with prizes going to those who succeed. A majority of companies sponsor annual or more frequent sales contest for their sales force. Called incentive programs, they serve to motivate and to give recognition to good company performance. Slide 31: Specialty Advertising:
Speciality advertising consists of useful, low- cost items given by sales people to prospects and customers without obligation and which bear the company's name and address and sometimes an advertising message.
Common items are ballpoint pens, calendars, cigarette lighters and memo pads Conclution : Conclution In order to make a sales promotion campaign effective, a company has to identify and set the right sales promotion objectives to effectively guide the design and implementation of the campaign. Thank u... : Thank u...