sales promotion by ajay kumar

8/2/2019 Sales Promotion by Ajay Kumar

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Sales Promotion is one of the four aspects of promotion

i.e. advertising, personal selling, and publicity/ public

relations.

According to AMA, Sales Promotion includes all thosesales activities that supplement both personal selling and

advertising and coordinate them and help to make them

effective such as displays, shows and exhibitions,

demonstrations and other non-recurrent selling efforts not

used in the ordinary routine.


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According to Philip Kotler ,Sales promotion consists of

a diverse collection of incentive tools, mostly short-term,

designed to stimulate quicker and/or greater purchase of

particular products/services by consumers or the trade.


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According to kotler:-

1. Communication - They gain attention and provide

information to consumer about to the product.

2. Incentive- They incorporate some concession,inducement that provides value to the consumer.

3. Invitation- It provides distinct invitation to customers to

go for transactions.


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1. Improving the marketing performance of middlemen

and sales people.

2. Supplement advertising and personal selling

3. Stimulating demand for the product. 4. To encourage greater use by existing customers.

5. To increase impulsive buying.

6. To attract new customers.


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7. To get retailer cooperation.

8. To expand the target market.

9. To generate short term Cash Flows.

10. Improve relationship with dealers. 11. To induce brand switching.

12. To support and supplement to the salesmens efforts.


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Salespromotiontechniques

Consumerpromotiontechnique

Middlemenpromotiontechnique

Sales forcepromotiontechnique


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Sales promotion directed at the end-user are called

consumer sales promotion .

These promotion are based on pull strategy.

These sales promotion may prove effective whencombined with advertising.


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1. FREE SAMPLES :- ex. This method is used for

cigarettes, hair oil, tooth powder, soaps, detergents etc.

this method is very popular for FMCG category of

goods.

2. PRICE REDUCTIONS :- this scheme is used for

shortterm generally at the time of festivals (BATA

INDIA, MAFATAL, DCM etc.)

3. TRADING STAMPS :- this method is used by largeretailers and companies.


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4. COUPONS :- coupons offered from the manufacturersare redeemable at any retail shop that carries thepromoted product.

5. PREMIUMS (gift) FREE ray-ban sunglasses- with

Suzuki shogun, the most powerful bike of its kind isthe best example of the premium.

6. FAIRS AND EXIBITIONS

7. MONEY REFUNDS ORDERS

8. COMSUMER SERVICES

9. CONTESTS

AND SWEEPSTAKES


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10. POINT- OF-PURCHASE DISPLAYS

11. FREE TRIALS

12. CATALOGUES

13. PRODUCT DEMONSTRATIONS


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14. PRODUCT WARRANTIES

15. SPECIALTY ADVERTISING

16. ROAD SHOWS

17. EXCHANGE OFFERS


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Most of the products come to the market through a

distribution channel comprising of wholesaler and

retailers. Dealers or distributors are the front runners and

the growth of any company largely depends on its channel

network.

By offering incentives to middlemen manufactures may

derive many benefits.


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1. SPECIAL DISCOUNTS

2. SALES ASSISTANCE- under these methodmanufacturer provides assistance to the dealers so thatthey maintain the cordial relation with them.

3. TRADE ALLOWANCES- in this method allowances areoffered to wholesalers and retailers for purchasing orpromoting specific products.

4. POINT-OF- PURCHASE(pop) ADVERTISING

5. TRADE SHOWS

6. DEALER CONTEST AND TRANINGPROGRAMMES


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7. FREE GOODS

8. CASH REBATE

9. ADVERTISING ALLOWANCE

10. BUY-BACK ALLOWANCE

11.COUNT AND RECOUNT ALLOWANCE

12. FORWARD DATING

13. SLOTTING ALLOWANCE


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These techniques are used to motivate sales people to

put in more efforts to increase sales, increase

distribution, promote new or seasonal products and build

up morale and enthusiasm of sales force.

sales force is linking pin between customers and the

firm. Energetic efforts on the part of sales men may

make the firms competitive position sound.


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1. SALES CONTESTSsales contests are organized by

the manufacturer in this scheme and rewards are

provided to salesman who have achieved exceptional

targets.

2. SALES TRAINING MANUALS-training materials

such as manuals, visual aids, flip charts, programmed

learning books, etc., are useful to sales people.

3. SALES MEETINGS- sales meeting are generallyorganized for sales people from one area, region, or

district.


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4. PACKETS WITH PROMOTIONAL MATERIALS

promotional material often used by companies includespaid vacations within or outside the country , cash or kind,

medals, or merit certificates.

5. DEMONSTRATIONS - demonstrations of technical

product clarify many points to the salesmen which isuseful when queries are made to the salesmen by the

prospects.


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PULL STRATEGY - A pull strategy is based around the

manufacturer promoting their product amongst the target

market to create demand. In the case of a pull strategy,

marketing efforts are directed at the ultimate consumer

and consumer promotions such as consumer contests and

sweepstakes , rebates , coupons, free samples, consumer

premiums, etc., are used.


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PUSH STRATEGY- A push strategy is where the

manufacturer concentrates some of their marketing effort

on promoting their product to retailers to convince them to

stock the product. These are promotional efforts by a

seller to members of the marketing channel intended to

stimulate personal selling of the good or services, thereby

pushing it through the marketing channel. They are for

resellers. E.g. Free goods, Trade Coupons, Premiums etc.


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sales promotion by ajay kumar

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