Sales promotion1

Integrated

Marketing

Communication

AdvertisingSales promotionPersonal sellingDirect marketingPublic relations

Events & ExperiencesWord of Mouth

SALES PROMOTION

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.

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

Types of sales promotion

Consumer promotion Trade promotion

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

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

Trade Promotion

The prime objective is to push the product

through marketing intermediaries and also to

get them market the product aggressively

Trade Promotion objectives

Encouraging trade to build inventoryspecial margins or extra merchandise at no additional cost or

may offer extra allowances

Getting trade’s cooperation in promotionsHelps 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

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

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

Commonly used tools

Demonstrations Trade fairs & exhibitions Coupons, free offers & price offs Free samples, gifts Exchange schemes Joint promotion Contests Merchandising/ displays

PUBLIC RELATIONS

&

PUBLICITY

Meaning

Public Relations involves a variety of programs designed to promote or protect a company’s image or its individual products.

PR perform following functions : Press relations

Product publicity

Corporate communication

Lobbying

Counseling

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

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

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

Events and Experiences

Events and experiences

Sponsoring events provides companies

with opportunities to obtain wider exposure for their brands

In influencing attitudes towards brands

Events objectives

To identify with a particular target market or lifestyle

To increase awareness of company or product/ brand

To create or reinforce perceptions of key brand image and associations

To create experiences and evoke feelings

To express commitment to the community or on social issues

To entertain key clients or reward key employees

DIRECT MARKETING

Meaning Is the use of consumer direct channels to reach and

deliver goods and services to consumers without using marketing middlemen

Direct marketers can use number of channels to reach individual prospects Direct mailCatalog marketingTelemarketing Interactive TVKiosksWebsitesMobile devices

Direct marketing

Seek a measurable response, typically a customer

order

Many direct marketers build long-term relationships

with customers E.g Sending birthday cards, information material

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

Direct Mail

Sending offer, announcement, reminder or other item

to an individual consumer

Popular medium it permits target market selectivity

Can be personalised

Flexible

Allows early testing & response measurement

Catalog Marketing

Companies may send a full line merchandise catalogs, business catalogs or specialty consumer cataloge.g Avon, Amway

Telemarketing

The use of the telephone and call centers to attract prospects, sell to existing customers and provide service by orders and answering questions

Increase revenues, reduce selling costs, improve customer satisfaction

Interactive Marketing

Interactive Marketing

The newest channels for communicating and selling directly to customers

Internet provides individualization and greater interaction

Company can send tailored messages that engage consumers

Word of MouthBuzz marketingViral Marketing

PERSONAL SELLING

• Sales Management

• Managing Sales Force

“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.”

Personality traits of sales person

Dominance

Achievers

Affiliation

Creativity

Exhibitionism

Problem solving

“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 won’t even fill a cup – but if you catch 10

whales, you will fill half the beach!”

Role of Salesperson

Diagnostic

Analyst

Information Provider

Strategist

Tactician

Change agent

Selling Process

1. Opening a call

2. Need exploration

3. Presentation

4. Managing objections

5. Closing call

Designing the sales force

Sales Force Objectives & Strategy

Need to define the specific objectivesTasks performed by sales people

ProspectingTargetingCommunicatingSellingServicingInformation gatheringAllocating

Sales Force Structure

TerritorialTerritory size

Territory shape

Product

Market

ComplexTerritory –product

Territory – market

Product –market

Sales Force Size

Work load methodCustomers 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 X no of weeks = Total workload / total annual calls

Determine expected average number of calls per week per sales person

Sales force = total annual calls / the average annual calls made by sales rep X no of working days.

Sales Force Compensation

Attractive package

4 important aspectsFixed

Variable – commission, bonus, incentives

Expenses – Lodging, Boarding, dining,

entertainment, mobile, traveling,

Benefits – LTA, sickness, accidents, pension,

mediclaim etc.

Managing Sales Force

Recruiting & managing representatives

Training

Supervising Call norms

Motivating Salary

Commissions or incentives

Combination

Evaluation

If the circus is coming to town and

you paint a sign saying

“Circus Coming to the Fairground Saturday”,

that’s advertising.

If you put the sign on the back of an elephant

and walk it into town,

that’s promotion.

If the elephant walks through the mayor’s flower bed,

that’s publicity.

And if you get the mayor to laugh about it,

that’s public relations.

If the town’s citizens go the circus, you show them

the many entertainment booths, explain how much

fun they’ll have spending money at the booths,

answer their questions and ultimately, they spend a

lot at the circus,

that’s sales.

And, if you planned the whole thing,

that’s Marketing!