Sales Promotion & Supplementary Media

Sales Promotion &Supplementary Media

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SALES PROMOTION AND ADEVERTISING

SALES PROMOTIONSales promotion is the process of persuading a potential customer to buy the product.Sales promotion is designed to be used as a short-term tactic to boost sales.

ADVERTISING• Advertising (or

advertizing) is a form of marketing communication used to promote or sell something, usually a business's product or service.

The partnership between Sales Promotion & Advertising

• In today’s competitive environment ,the promotion part of the marketing mix plays a vital role in helping advertisor stay in touch with the prospects and customers. Within promotion , advertising is especially important when you are producing new products and reminding your target audience about the benefits of existing products .At the same time ,consumers faced with many choices sometimes need an e extra incentive to buy a particular products, and retailers sometimes need an extra incentive to buy a particular product. So you can give them extra benefit by using Sales Promotion.

Objectives of Sales promotion

• a. To introduce new products or services:• Sales promotion is often used to motivate prospective consumers to try new products and services. Dealers are

also induced to introduce new products and services in the market. Usually, free samples are provided through dealers during such introduction. Similarly, discounts in cash or goods may also be offered to dealers to stock new products or deal with new services. Free samples, trade discounts, cash discounts are basically sales promotion measures.

• b. To attract new customers:• Sales promotion measures also play an important role in attracting new customers for an organisation.

Usually, new customers are those persons that are won away from other firms. Samples, gifts, prizes, etc. are used to encourage consumers to try a new brand or shift their patronage to new dealers.

• c. To induce existing customers to buy more:• Sales promotion devices are most often used to induce the existing customers of a firm to buy more. Product

development, offering three products at the cost of two, discount coupons, are some of the sales promotion devices used by firms to motivate the existing buyers to buy more of a specific product.

Objectives of Sales promotion• d. Helps the firm to remain competitive:• Most of the companies undertake sales promotion activities in order to remain

in the competitive market. Therefore, in the modern competitive world no firm can escape the responsibility of undertaking sales promotion activities.

• e. To increase sales in off-seasons:• Many products like air-coolers, fans, refrigerators, air-conditioners, cold drinks,

room heaters, etc. have seasonal demand. Manufacturers and dealers dealing with such type of goods make every effort to maintain a stable demand throughout the year.

• In other words, firms try to encourage the purchase of such goods in off-seasons also. That is the main reason behind discounts and off-season price reductions of such items in the market during slack seasons.

Types of consumer promotion

• Samples The practice of offering a small quantity of your product free or at an

extremely low price. Introducing a new product or seeking higher market share. Sampling techniques are hire a firm to deliver door to door, bundle

samples with magazines and newspapers, or distribute almost anywhere your target audience.

• Coupons A coupon is a certificate good for a specific price

reduction when a particular product is purchased. Coupon help you launch a new product or to build

the market share.

• Price promotions and price packs Price promotion is a short term price reduction that’s

available to everyone who purchases the product during the promotional period

Price packs are offering the consumer more value for same money which have something extra with the product package

• Money back offers A refund is a money back offer to return a specific

amount after a particular product is purchase. Discount available to those who actually file the

refund forms. Rebate which refer offers on expensive product such

as cars, trucks and appliances. Okidata offer a $50 rebate to consumer on buying 4

laser printer models.

• Contest and sweepstakes Participants use the skill’s abilities to compete for

prizes. Sweepstakes in which prizes are awarded based on a

random drawing ore some other method of section by chance.

• Premiums Trying a new product, or continuing to buy your

brand you can offer a premium, an item provided free as an incentive to try or buy.

• Frequency programs An on going offer of free merchandise or services designed

to encourage more of a product or purchasing a product more frequently

• Point of purchase display POP DISPLAY in include special merchandise racks, banner,

signs, and other items arranged outside or in front of retail outlet.

Types of trade promotions• Trade Deals A trade deal is a short term arrangement in which

wholesalers and retailers are encouraged to stock and promote products in exchange for special discount, payments, additional merchandise.

A buying allowance is a payment or discount offered to a distribute to encourage the purchase of a certain amount of merchandise during a specified period.

• Trade contests and incentives

A sales contest that rewards distributers for meeting and exceeding sale goals.

Push money the payment of a set of amount to a sales person every time a particular item sold.

• Trade shows Trade show is an event where manufacturers display and sell

their products to current and potential distributors.

• Sales support Efforts of your own sales force and those of your distributors

by providing product information and training programs.

• Cooperate advertising Product awareness trough national or regional advertising, you

have to let your target audience know where the product is available in each market.

Not the same as a Premium

Coffee mugs

Ballpoint pens

Key chains

Watches

T-shirts

Specialty Advertising

Ads by FaxSimple cast

Ads spliced onto video taped moviesCD’s DVD’s Entertainment websites Browsing Music downloadingGamming

Specialty Advertising

Specialty Advertising

Ads on videocassetteShort filmMacintoshMedical Assistant moviesFashion shows

Specialty Advertising Ads on computer disk

Mobile application

Ads on computer based information services

Raw data from a supermarket checkout counter can be processed and organized to produce meaningful information, such as the total unit sales of dish detergent or the total sales revenue from dish detergent for a specific store or sales territoryMarketing Information System (MIS): A structure consisting of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers

Directories & Yellow Pages

An alphabetical listing of households and businesses.

The best known are telephone directories & Pharma guide

Published by…

Phone companies

Trade associations

Industrial groups

Others

They serve as…

Locators

Buying guides

Mailing lists

Target marketing

Directories & Yellow Pages

Merits and Demerits

AdvantagesRelatively inexpensiveCan be used with all demographic groupsAre found in most of the householdsUsually kept for at least a year

DisadvantageOnly printed once a yearSome service business’ are used infrequently; therefore,

directory advertising must be combined with another type.

Businesses are constantly creating innovative means of transmitting their messages

Sports arena billboards, ads in movie theaters, hot air balloons and blimps, skywriting, etc.

Other Advertising Media

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