1 fundamentals of sales promotion

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Practically there are dozens of marketing mix tools ,however Prof. Jerome McCarthy first populated the idea of “marketing mix variables” in terms of 4 p’s –product,price,place and promotion. This last term promotion is basically the idea from where the different promotional techniques were evolved and actually put forward in the market. The promotion mix generally includes the following activities as Advertising Personal selling Publicity Direct marketing Sales promotion 1

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Page 1: 1 Fundamentals of Sales Promotion

Practically there are dozens of marketing mix tools ,however Prof. Jerome McCarthy first populated the idea of “marketing mix variables” in terms of 4 p’s –product,price,place and promotion.

This last term promotion is basically the idea from where the different promotional techniques were evolved and actually put forward in the market. The promotion mix generally includes the following activities as• Advertising• Personal selling• Publicity• Direct marketing• Sales promotion

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Page 2: 1 Fundamentals of Sales Promotion

The central idea with any promotional activity is to communicate the benefits or the reasons or benefits why customer should buy a particular product or service. The perceived benefits of any product or service can be considered under one or more of the following three categories.• Product function.• image of the product.• Extra benefits.

So generally the sales promotion method are always employed along with the combination of other four available promotion tools i.e. advertising, personal selling, publicity, direct marketing. It is only the method among all available promotional tools which can make use of a combinations of push-pull strategy to motivate consumers ,trade people and the sales people simultaneously in transacting sales. 2

Page 3: 1 Fundamentals of Sales Promotion

Sales promotion can be defined as many kinds of incentives and techniques directed towards consumers and traders with the intention to produce primarily immediate or short term sales effects. There is no single definition of the sales promotion that is universally acceptable by one and all.

Consult the various definitions of sales promotion given in the text book on the page 482.For the sake of convenience cover specifically the three definitions discussed as• AMA definition .• The Philip kotler definition.• The Don E. Schultz and William A. Robinson definition.• Kazmi and batra definition.

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Page 4: 1 Fundamentals of Sales Promotion

Sales promotion tools have got three distinctive characteristics .As suggested by Philip kotler. 1. Communications(Gain attention and provide information).2. incentives(incentives paid for the process of buying).3. invitation(it show sense of urgency to buy).Difference between advertising and sales promotion- the major difference between sales promotion and advertising is that -on one hand where advertising gives reasons to buy to the customers the sales promotion gives the incentives to buy .-advertising shows emotional appeals whereas the sales promotion shows the rational appeal in its presentations. -Time frame of advertising is long term whereas in sales promotion it is short term. -Sales promotion is a direct approach whereas advertising is an indirect approach.-Primary objective of sales promotion is to build sales whereas of advertising is to build image(consult table 22.1 on page 484)

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Page 5: 1 Fundamentals of Sales Promotion

Also consult table 22.2 for understanding the various types of sales promotion techniques and their objectives. Page 485 to 488. Factors influencing sales promotion growth• Increasing competition.• customers have become more price sensitive.• It generally creates immediate positive impact on sales .• Consumer acceptance(Want to be called Smart buyer).• products have become more standardized.• expectation of price decrease • Advertising has become more expensive and less effective• Trade has become more powerful• Emphasis on sales volume• it maximizes profits.• introduces an element of interest.• Impulse buying is increasing• sales promotion specialists are available• Excess stocks

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Page 6: 1 Fundamentals of Sales Promotion

The various sales promotion tools, their description and the objectives are discussed in the table 22.2 on page no

485 in the text book.

Consult page 485

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