Download - How should sales promotion decision be made
How should sales promotion decision be
made?Guided by: Presented by:Prof. Sameer Mathur Smriti Mishra G.E.C Rewa
Sales promotion
• It consist of collection of incentive tools, designed to stimulate quicker or greater purchase of particular product.
Difference between advertising and sales
promotion Advertising offers a reason to buy a product whereas sales promotion offers an incentive.
Major decisions
• Establishing objectives• Selecting consumer promotion tools • Selecting trade promotion tools• Selecting business and sales force promotion tools• Developing the programs• implementing and evaluating the program
Establishing objectives• For consumers-Encouraging purchase of larger-sized unitsBuilding trial among nonusersAttracting switchers away from competitor
brands• For retailers-Persuading retailers to carry new itemsEncouraging off-season buyingBuilding brand loyalty• For sales force-Encouraging support of a new productEncouraging more prospective off-season sale
Selecting consumer promotion tools
Promotional planner should take into account• Type of market• Sales promotion objectives• Competitive conditions• Tool’s cost effectiveness
•Price packs- offers to consumers of savings off the regular price of the product, flagged on the label or package
• Frequency programs- programs providing rewards related to the consumer’s frequency and intensity in purchasing the products.
Selecting business and sales force promotional tool
• Trade show and conventions• Sales contests• Speciality Advertising
Trade show and conventions
• An exhibition for companies in a specific industry to showcase and demonstrate their new products and services
Developing the program
• Marketers must first determine size of the incentive• Marketing manager must establish
conditions for participation• Marketer must decide on the duration of
promotion.• Marketer must choose a distribution
vehicle• Must establish total sales promotion
budget
Implementing and evaluating the program
• Preparing implementation and control plans that cover lead time for each individual promotion• Program can be evaluated
using sales data, consumer surveys, and experiments