Sales Promotion

Assignment - 1

Submitted By
Kamta Prasad
ID No. -0808004
PGDM - V

10/24/09 1
Definition
Itis a part of promotional mix. The other
three parts of the promotional mix are
advertising, personal selling, and
publicity/public relations.
Sales promotion Consists of Diverse
Collection of Incentive Tools, mostly
short term designed to stimulate quicker
or greater purchase of particular product
or Services by Consumers or the Trade.


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Sales promotion refers to many
kinds of incentives and
techniques directed towards
consumers and traders with the
intention to produce immediate
or short-term sales effects.


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Characteristics
Communication: They gain
attention and
usually provide information that
may lead the customer to the
product.
Incentive: They incorporate
some concession, inducement,
or contribution that gives value
to the consumer.
Invitation: They include a
distinct invitation to engage in
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Objective
 To increase sales  To modify attitudes
 To attract new  To create an image
customers  To position a
 To retain existing product
ones  To improve
 To encourage position in the
customer loyalty market
 To create  To pull the product
awareness through channels
 To inform  To push the
 To remind product through
 To ensure channels
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 Sales promotion decisions

Establishing Selecting consumer

Objectives Promotion tools

Selecting Trade promotion Selecting Business & Sales

Tools Force
Promotion Tools

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Promotion mix
Sales Promotion
Advertising
Personal selling
Publicity


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Sales promotion
Tactical point of sale
material or inducements
designed to stimulate
purchases
Short term incentives to
increase sales
Some promotions are
aimed at consumers,
some at intermediaries
and others at the
salesforce
E.g.: coupons, leaflets,
demonstrations, samples,
free gifts, point of sale10/24/09 8
Sales promotion
Incentives provide a quick boost
to sales
Effects maybe short term only
Excess use of some incentives
may adversely effect brand
image

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Advertising
“Advertising is telling and selling”
Advertising thus denotes the means
employed to draw attention to any object
or purpose.
“It is a paid form of non personal
presentation an promotion of ideas,
goods or services by an identified
sponsor.”



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Advertising
STRENGTHS WEAKNESSES
- Wide coverage - Expensive
- Awareness/Hype - Impersonal
- Control of msg - One way
- Can be used to communication
build brand - Lacks flexibility
loyalty -

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Personal Selling
Promotion on a person to person
basis
Two way communication
Carried out through telephone, at
meetings, at retail outlets &
door to door selling
High priced, low volume and
highly technical products rely
heavily on personal selling

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Personal Selling
STRENGTHS WEAKNESSES
 Great attention - High cost
 Msg is customized - Labor intensive
 Persuasive impact - Expensive
 Potential for - Can only reach a
development of limited no. of
relationship customers
 Adaptable
-
 Opportunity to
close sale call

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Publicity
Release of a
commercially significant
news about a particular
product or service
Purpose is to obtain a
favorable presentation
of such news via a
medium not paid for by
a sponsor
Involves getting media
coverage of an event or
product launch / articles
in newspapers 10/24/09 14
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