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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