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RAHULFANTASIA
AN OVERVIEW
SALES PROMOTION DIFFERENT KINDS AND TOOLS TO DETERMINE SP OBJECTIVES & FIX BUDGETS STEPS IN DESIGNING A SP CAMPAIGN EVALUATE THE EFFECTIVENESS OF SP CAMPAIGN
RAHULFANTASIA
Sales promotion
Sales promotion is one of the four aspects of promotional mix. (The other three parts of the promotional mix are advertising, personal selling, and publicity/public relations.)
Media and non-media marketing communication are employed for a predetermined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include: contests point of purchase displays rebate (marketing) free travel, such as free flights
Sales promotion consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker and/or greater purchase of a product/service by consumers or the trade
PHILIP KOTLER
RAHULFANTASIA
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Disadvantages
Excessive use can shift the focus on Pruduces immediate results. Short term marketing planning. Excessive use can erode the brand Prevent competitor entry or offset equity. competitor promotions and thus help Increasing sales promotion activity maintain the brands current market share. has led to clutter. Rupee-for-rupee immediate and measurable In mature markets sp doesnt do much in attracting new customers but results can be produced. only switchers Gain channel support. Both consumers and trade can Easy to design and implement. engage in forward buying, ie stocking Relatively inexpensive. up. Some sp techniques can be abused Help build database.(mail-in-coupons or by the trade as well as consumers. contest forms).
Sales promotion can be targeted to:consumers of the product Trade of the product Sales force which promote the product
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Trade promotions:
1. On consignment sales: pay only when the product moves. 2. Dealer contests: 3. Dealer gifts: 4. Display contests: ITC 5. Point-of-sale material: cadbury gives attractive dispensers. 6. Shop board painting: ITC, chandrika soap, Tide etc. 7. Dealer discounts: buy 10 get one free, etc. 8. Trade fair participation: 9. Dealer meets: 10. Cooperative ads.: sharing the ad. Cost.
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Star awards: as in insurance field f.cs are given attractive awards like visiting abroad, etc.
Sales meets: in some attractive places for their sales force. Local ad budgets: sales staff will be given the budget and will negotiate with ad agencies and release ads. Promotional aids: leather bags, T-shirts, caps, etc.
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Advertising the SP
Eg: Rasna spiderman ads.
In a nutshell
SP is the process of engaging with the consumer on a one to one to one basis with the objective of stimulating sales. SP is of 2: consumer & trade promotions. Consumer promotion is a pull strategy as it tries to get the consumer buy certain products with attractive offers. Trade promotion is a push strategy where the trade attempts to push the products to the consumer.