sales promotion dr

8/8/2019 Sales Promotion DR

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SALES PROMOTION


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Meaning

Sales promotion consists of a diverse collection of incentive tools,

mostly short term, designed to stimulate quicker or greater purchase of

particular products or services by consumers or the trade

Sales promotion is an incentive to buy

Objective is to create consumer pull for the brand.


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Growing importance of sales promotion

Helps in securing trial

Defending shelf space

Smoothens out the manufacturing capacities

Opportunity to reach to price sensitive market segments

Adds excitement to the in-store merchandizing of consumer

goods

Motivates trade to push the brands


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Types of sales promotion

Consumer promotion Trade promotion


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Objectives of consumer promotions

Generate consumer interest, leading to trial

Free samples, coupons

New products or mature products

Generate inquiries from the target customer group

Mail in coupon, free catalogue, prizes

Build traffic for a brand at the retail outlet

Westside Sale, Westside week festival


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Objectives of consumer promotions

Motivate customers to repeat the choice

First Citizen Club membership

Aimed at creating brand loyalty

Basically cumulative purchase , which promises some free product

or redemption points

Increase rate of purchase

Multi packs offer

Maggie


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Trade Promotion

The prime objective is to push the product through

marketing intermediaries and also to get them market

the product aggressively


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Trade Promotion objectives

Encouraging trade to build inventory

special margins or extra merchandise at no additional cost or may offer

extra allowances

Getting trades cooperation in promotions

Helps to increase the level of interest & motivation of distributor

Joint promotions

Sales contests

Merchandize allowance

Subsidy for promotional budgets

E.g. Fortune cars with Tata Motors


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Planning the sales promotion process

1. Review of the product market situation

Trends in brand sales, product category sales

Level of involvement

Consumer purchase patterns

Distribution method


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Planning the sales promotion process

2. Identification of opportunities & threats

3. Deciding on sales promotion objectives

4. Deciding on sales promotion budgets

5. Implementing controlling & evaluating


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Commonly used tools

Demonstrations

Trade fairs & exhibitions

Coupons, free offers & price offs

Free samples, gifts

Exchange schemes

Joint promotion

Contests

Merchandising/ displays


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PUBLIC RELATIONS

&

PUBLICITY


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Meaning

Public Relations involves a variety of programs designed to

promote or protect a companys image or its individual products.

PR perform following functions :

Press relations

Product publicity

Corporate communication

Lobbying

Counseling


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PR - Importance

Affect public awareness at a fraction of the cost of advertising

Company does not pay for the space or time obtained in the

media

Consumers are five times more likely to be influenced by

editorial copy than by advertising


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Marketing Public Relations

Old name was publicity

The task of securing editorial space in print & broadcast media

promote or hype a product, service, idea, place, person or

organisation

Directly support corporate or product promotion and image

making


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MPR serves following tasks

Assisting in the launch of new products

Assisting in repositioning a mature product

Building interest in a product category

Influencing specific target groups

Defending products that have encountered public problems

Building the corporate image in a way that reflects favorably on

its products


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DIRECT MARKETING


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Meaning

Is the use of consumer direct channels to reach and deliver

goods and services to consumers without using marketing

middlemen.

Seek a measurable response, typically a customer order

Recently used to build a long term relationship with the

customer (CRM)

E.g Sending birthday cards, information material


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Channels for direct marketing

Face to face selling

Avon, Amway, Mary Kay, Tupperware

Direct Mail

Catalog marketing

Tele marketing

Kiosk marketing

E marketing


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Benefits of direct marketing

Home shopping is fun, convenient & hassle free

Saves time

Introduces consumers to large selection of merchandise

Can do comparative shopping

If timed properly, DM receives higher readership

Less visible to competitors

Cost effective approach

Can measure responses


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PERSONAL SELLING

Sales Management

Managing Sales Force


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Everyone lives by selling something.

Understand that you need to sell you and your ideas in order

to advance your career, gain more respect, and increase your

success, influence and income.


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Personality traits of sales person

Dominance

Achievers

Affiliation

Creativity

Exhibitionism

Problem solving


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To make it in sales, fish for whales!

I asked my former boss what his comment about fishing

for whales actually meant.

He explained:

Jim, if you go fishing and you catch 10 goldfish, you

wont even fill a cup but if you catch 10 whales, you

will fill half the beach!


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Role of Salesperson

Diagnostic

Analyst

Information Provider

Strategist

Tactician

Change agent


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Selling Process

1. Opening a call

2. Need exploration

3. Presentation

4. Managing objections

5. Closing call


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Designing the sales force


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Sales Force Objectives & Strategy

Need to define the specific objectives

Tasks performed by sales people

Prospecting

Targeting

Communicating

Selling

Servicing

Information gathering

Allocating


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Sales Force Structure

Territorial

Territory size

Territory shape

Product

Market

Complex

Territory product

Territory market

Product market


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Sales Force Compensation

Attractive package

4 important aspects

Fixed

Variable commission, bonus, incentives

Expenses Lodging, Boarding, dining, entertainment, mobile,

traveling,

Benefits LTA, sickness, accidents, pension, mediclaim etc.


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Sales Force Size

Work load method

Customers are grouped into classes as per their sales

volume

Desirable number of calls are established for each class

Number of accounts in class X call frequency = Total

workload

Calculate average number of calls / sales person

Sales force = total annual calls / the average annual calls

made by sales rep.


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Managing Sales Force

Recruiting & managing representatives

Training

Supervising

Call norms

Motivating

Salary

Commissions or incentives

Combination

Evaluation


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If the circus is coming to town and

you paint a sign saying

Circus Coming to the Fairground Saturday,

thats advertising.


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If you put the sign on the back of an elephant

and walk it into town,

thatspromotion.


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If the elephant walks through the mayors flower bed,

thats publicity.


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And if you get the mayor to laugh about it,

thats public relations.


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If the towns citizens go the circus, you show them

the many entertainment booths, explain how much

fun theyll have spending money at the booths,

answer their questions and ultimately, they spend a

lot at the circus,

thats sales.


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And, if you planned the whole thing,

thats Marketing!

sales promotion dr

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