TECHNIQUES OF SALES PROMOTION
BY
SMART LEARNING WAY
CONTENTS
·
Introduction
of Sales Promotion
·
Definition of
Sales Promotion
·
Objective of
Sales Promotion
·
Techniques
of Sales Promotion
·
Conclusion
·
Bibliography
Introduction of sales Promotion
Sales promotion is an important
instrument in marketing lubricate the
marketing efforts. Today Sales promotion is a necessity and not merely luxury or a fashion It is not an expenditure;
it is an investment which can pay rich dividends. It is an integral part of the
marketing effort.
Sales promotion is referred to the
promotion activities other than personal salesmanship advertising and
publicity, which stimulate consumer purchasing and dealer effectiveness, e.g. ,displays, exhibitions ,and showrooms,
demonstrations, free samples coupons
premiums, contests and various other non- recurrent selling efforts not in the
ordinary routine It is a plus ingredient
in the marketing mix, whereas advertising and personal salesmanship, are
essential and basic Ingredients in the marketing mix.
In short sales promotion is a bridge
or a connecting link covering the gap between advertising and personal
salesmanship, the two wings of promotion
The manufacture or wholesaler may
have a good product, reasonable price, attractive package, etc. He may have a
good sales force. He may have spent a lot on advertising. Even then he knows
that the product may not sell by itself. He can get orders from dealers or
retailers. But many more things than orders are required to be achieved.
The
sales of the product has to be promoted through a number of influences at the
place where retailers and prospective product has to be promoted through a
number of influences at the place where retailers and prospective buyers must
be attracted, urged and even persuaded to buy your product. Sales promotion is
a vital link between advertising and field-selling.
It aims at stimulating
consumer purchasing at the point of sale and dealers effectiveness at the
retail channel of distribution, particularly because retailing is a highly
competitive field.
DEFINATION OF SALES PROMOTION
American Marketing Association Defined :
1) “Sales promotion, in a specific sense refers
to those sales activities that supplement both personal selling and advertising
and coordinate them and help to make them effective, such as displays, shows
and expositions, demonstrations, and other non- recurrent selling efforts not
in the ordinary routine.”
2) “Sales promotion
moves the product toward the buyer, while advertising moves the buyer toward
the product .’’
3) According to George W.Hopking
“Sales promotion is an organized effort
applied to the selling job to secure the greatest effectiveness for advertising
and for dealer's help”
4) According to L.K. Johnson,
“Sales
promotion includes incentive offering and interest-creating activity which are
generally short term marketing events other then advertising,personal selling,
publicity and direct marketing .The purpose of sales promotion is to
stimulate,motivate and influence the purchase and other desired behavior
responses of the firm’s customers”
Why Use Sales Promotion ?
Objective of Sales Promotion
•
Increase sales volume
•
Speed up the sales of slow moving product
•
Attract new product and increase trial
•
Encourage repeat purchase
•
Motivate dealers
•
To gain advantageous shelf – space
•
To increase store traffic
•
Improve relationship with dealers
•
To block competitors’ moves
•
Motivate sales force
•
Deflect customers’ attention from
price
Techniques of Sales Promotion
1
Dealer
Promotion
2
Consumer
Promotion
3
Sales-Force
Promotion
4
Internal
organization Promotion
5 5
Industrial
promotion
1.) Dealer Promotion
It may include various schemes.
a)
Advertising Material.
The advertising materials prepared by the company such as
store sings,banners,shelf sings,boards, etc.,are distributed to sub - dealers
for display purposes.
b)
Store demonstrations.
A personal demonstration is good to introduce
a new product as its peculiar advantage can be highlighted and the consumer’s
doubts cleared. It can be used to restimulate an old product. A good
demonstration with a great deal of action will draw heavy crowds into the store
will attract attention to the product.
c)
Special displays and shows.
These are seasonal in character but could be
arranged in an elaborate manner and for all the product of a company. Usually,
these are arranged along with trade fairs and exhibitions.
d)
Dealer contests.
This is an indirect way of increasing sales.
It is conducted by the manufacture at a whole sales or retail level. Such
contests may take the form of window display, internal store display, sales
contests, etc. The winners are rewarded either in cash or in some other
interesting forms. This certainly involves financial commitments.
e)
Dealer premia.
The dealer is offered a gift every time he
purchases a given number of units of the company’s brands. The scheme is also
financial in nature as the dealer is given cash/kind discount for such
purchases.
2.) Consumer Promotion
The consumer or user promotion
techniques are the various devices directly used to motivate and stimulate the
consumer towards larger purchases. The techniques may be executed by house to
house visits of the customers or by visiting their offices, or by distributing
them to the shops of the middleman. Some important consumer/user promotion
techniques are briefly stated below:
a)
Coupons :-
Coupons (a chit of stated value) are given directly to the consumer. These
coupons are, in most cases, kept inside the package. The consumer may receive a
price reduction of the stated value of the coupon at the time of purchase.
b)
Price - off offer’ (also known as
‘bargain offer’, ‘Price Pace’)
This
offer is intended to stimulate the sales during a slump season. in this method
the customer is offered a reduction from the printed price list . It is also
used when a substitute or competing product enters the market.
c)
Money refund offer
An offer, usually stated on the manufacturers
will return, within a stated period, part or all of the purchaser’s money if he
is not completely satisfied with the product.
d)
Samples
In the hope of converting a prospect into a
customer, a sample (small quantity of the product) may be given. This helps the
consumer to verify the real quality of the product. Sampling is a fast method
of demand creation, because one knows the result as soon as the consumer has
had time to use the sample and buy the brand.
e)
Trading Stamps.
A premium in the form of stamps is given by
the seller to consumers while selling goods. The number and value of stamps
that the buyer receives depend on the purchase. These stamps are redeemable
through premium catalogues at the stamp redemption centers.
f)
Factory - in - pack- Premium
These are
popular in the case of Baby Food and Tinned Food items.The premium item is
packed with the product in the box itself or it may be appended to the outside
box (spoons, cups, measuring glass ,etc.)
Such premia are inexpensive since they go along with the product.
3.) Sales-Force Promotion
This may also be termed ‘sales force
sales promotion’. A significant amount of a company’s sales promotional efforts
is aimed at the company’s own sales force. The idea behind such activity is to
make the salesman’s efforts more effective. Sales promotion at this level may
include contests, premiums, visual aids be used in sales presentations.
The following
promotion aids are used for sales-force promotion
a) Sales meeting :
producers
often organize annual meetings for the sales-force, for giving them necessary
information about any new product to be introduced, new sales plans and
techniques, and the new sales programme of the producer.
b) Sales rally:
Large
companies organize sales relies for internal and travelling salesman,
supervisors and other sales employees engaged in sales activity.
c) Sales letter :
Sales
letters are used to know the problem of buyers. On the basis of which the sales
programme could be made more effective keeping in view of the changing needs of
consumers.
d) Bonus :
Bonus
is paid to salesman from the portion of profit of the firm every year to
motivate him for better efforts.
e) Gift :
In addition to bonus, gifts are also be given
to the salesman in special occasions, like Diwali, New year, etc.
4.)
Internal Organization Promotion
Promotion of internal organization is
concerned with the steps to be taken for making a sound promotional programme.
According to Gross and Houghton, the elements of internal promotion are the
following:
a) Approval of promotional philosophy
:
The success of a promotional programme depends
largely on the philosophy and attitude of the top management. Therefore, the
approval of the top management is necessary for undertaking a promotional
programme.
b) Product development for marketing :
The success
a sales promotion programme also depends on the quality of the product. The
modern consumer is largely quality conscious. He compares the product with that
of other product before making a final decision to purchase the product of a
new seller. Therefore, before introducing the promotion techniques in a market,
the reactions of the distributors, middleman, and consumer, are known in
advance, by establishing contacts with them.
c) Cooperation with sales department :
For
the successful implementation of sales promotion programme, cooperation of
sales department is essential. Gross and Haughton have suggested the following
activities that are to be undertaken with the cooperation of sales department.
-
Organization
of contests for salesmen
-
Formation
of sales slogans
-
Organization
of sales relies
-
Organizing
of sales exhibitions
-
Training
to sales personnel
5) Industrial
Promotion
The characteristics of industrial
product are entirely different from that of the consumer product. Therefore,
their sales promotion method may also differ from that of consumer products.
Since the industrial products are too costly items; except for chemical
product; free samples or premium methods are not used for sales promotion of
industrial goods. Further, the number of customers for industrial products is
limited. Therefore, contests or special selling methods are also not used.
The major tools of sales promotion of
industrial Products include:
1
Conventions and trade shows.
2
Advertising and promotional novelties.
3
Demonstration.
4
Free trials.
5
Free training.
6
Credit facilities.
7
After sales services.
8
Product
demonstration model kit.
CONCLUSION
The importance of sales promotion in modern
marketing has increased mainly on account of its ability in promoting sales and
preparing the ground for future expansion. The main objective of sales
promotion is to attract the prospective buyer toward the product, and induce
him to buy the product at the point of purchase. At the salesman’s level, its
object is to achieve more sales. At the dealer’s level, the purpose is to sell
a particular product of a manufacturer. At the consumer’s level, the main idea
is to enable the consumer to buy more of a product more frequently and also to
introduce new uses for the product. Thus, it is a “catch-all” method and is
used as an effective tool of marketing.
BIBLIOGRAPHY
(1) Marketing Management
By
Dr. C.B. Gupta
Dr. N.R. Rajan Nair
Sultan Chand & Sons
(2) Marketing Management
By
S.A. Sherlekar
Himalaya Publishing House
(3) Sales Management and Sales Promotion
By
Dr. M.J. Mathew
R B S A Publishers
4) Marketing Management
By
J. C. Gandhi
Himalaya publishing house
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