Sales promotion

SALES PROMOTION MARKETING STRATEGIES

a

Selling v/s Marketing

Sales is a process or activity of transferring a need satisfier to an individual or an organization against equal value carrying currency.

Selling is an art of persuading people. Selling is to identify market for a product. Selling is a fair exchange for satisfaction of

mutual needs in which a customer expects product or service and a salesperson needs business and profit.

Selling ….

Starting Point

Focus Means End

Selling Concept

FactoryExisting products

Selling and Promotion

Profit through sales volume

Marketing Concept

Market Consumer needs & Satisfaction

Integrated Marketing

Profit through customer satisfaction

Selling vs marketing..

Short term incentive plans (including both  Media and non-media marketing communication )taken by organizations to increase sales ,usage or trial of a product or services.

Sales Promotion

Buy one get one free Contests and prize drawn Free gifts Discounted prices Joint ventures Vouchers and coupons Cause related Finance deals Merchandizing New media

Visual merchandizing

Some Sales Promotion techniques…..

Push promotion strategy.

Pull promotion strategy.

Strategies of Sales Promotion

Push Versus Pull Strategy

Producer

Producer

Interme-diaries

Marketingactivities

End users

Marketingactivities

Demand Interme-diaries

Demand

Push Strategy

Pull Strategy

End users

Marketing activities

Demand

Push marketing is where you develop advertising and promotional strategies geared toward your marketing and distribution channels to entice them in promoting your product.

As consumers, you rarely see this type of marketing when it is directed to the distributors.

"Taking the product to the customer“

Producer Wholesaler Retailer customer

PUSH PROMOTION

Trade show promotions to encourage retailer demand

Direct selling to customers in showrooms or face to face.

Negotiation with retailers to stock your product.

Efficient supply chain allowing retailers an efficient supply.

Packaging design to encourage purchase.

Point of sale displays.

Examples of push tactics

Example of Push Strategy

Pull marketing is where you develop advertising and promotional strategies that are meant to entice the prospect to buy your product or service.

Targeted directly at the customers. They demand the product from retailer, they search for product themselves as they already have the demand.

"Getting the customer to come to you“

Producer Wholesaler Retailer customer

Pull Promotion Strategy

Communication

Supply flow

DemandDemand Demand

Advertising and mass media promotion Word of mouth referrals Customer relationship management Sales promotions and discounts

Examples of pull tactics

Observe

Push strategy is appropriate with low brand awareness in a category and brand choice is made in store. Can be an impulse purchase and product benefits are understood.

Pull strategy works best with high brand awareness and loyalty, or high involvement in category and customers look for product differences.

Summary……

Questions Are distributing drug samples to doctors a push

or a pull strategy?

Name few companies which uses both push and pull strategies?

Assignment- An assignment on Sales Promotion strategies used by companies X and Y.