Slide 1

Submitted to :-
Ms. Anjali Sharma

Business Definitions

1. Profit Oriented:- Business is a human activity directed towards producing or acquiring wealth through buying and selling of goods. :- HANEY & L.H.2. Customer Oriented:- Business is the organized activities designed to satisfy peoples wants for goods and services. :- Hopkins & Duff

3. Social Oriented:- Business is a system created to satisfy societys needs and desired. :- Buskirk Green & Rodyers Promotion Mix Promotion is an integral part of a marketing strategy and often forms a very significant linkage between the firm and the market. Marketing communication is a continuing dialogue between buyers and sellers in a market place.

Steps In Promotion Mix

Steps In Promotion Mix

1. Identify Target Audience :-

The target audience is a major influence factor in promotion decisions as what to say, how to say it, and whom to say it.

2. Determine The Promotion Objectives :- In this stage, communication objectives are determined which may vary in different situations.3. Design The Message :- In this step, the effective message is designed according to targeted audience.

4. Determine Marketing Promotion Budget :-

It is one of the most crucial decision in which it is decided how much to spend on promotional activities.

5.Selecting Communication Channels:- At this stage efficient communication channels are selected to transmit the message.6. Deciding Communication Mix:-

Keeping in view the different environment decision is taken about appropriate communication mix.

7. Measuring Communication Results:-

In this stage the results of communication are measured members of target audience are asked whether they recognize or recall the message, how many times they saw it what points they recall and their previous and current attitude towards the product and the company.

The Elements Of Promotion Mix

Sales Promotion

Introduction:-

Sales promotion techniques were firstly used in the year 1930. When the global recession started from the United States of America. It was the time of transformation of SELLERS MARKET into the BUYERS MARKET at the global level.

It refers to the short term incentives.

To encourage purchases or sales of a product or service

Its aim is to inform, to persuade and to remind.

Definitions :-

Sales promotion consists of a diverse collection of incentive tools, mostly short-term, designed to stimulate quicker and/or greater purchase of particular products /services by consumers or the trade.

:- Philip Kotler

Sales promotion is an organized effort applied to the selling job to secure the greatest effectiveness for advertising and for dealers.

:- G.W. Hopkins

Characteristics

Sales promotion is useful for new as well as existing products.

Sales promotion are marketing events.

Sales promotion are design to have a direct impact on consumer behavior.

Sales promotion are designed to influence consumers or marketing intermediaries.

Sales promotion has become the fastest-growing method of promotion.

Techniques of Sales Promotion

1.Consumer Promotion

Samples are a trial of a product. This is generally the most powerful form of promotion for new products. It simply means offer of a free product or service.

1.Samples

Coupons are a certificate which offer price reduction to consumers for specified items. Coupons bear a date of expiry and can't be redeemed after the cut off date.

2.Coupons

3.Contests

Consumers contests are organized to attract the participation of a widely scattered consumers base. The success of a contests is depends on the prizes.

4.Advertising Specializes

Advertising Specializes useful articles imprinted with the advertisers names ,logo or message that are given as a gift to consumer. It is also known as promotional product.

5.Event Sponsorship

Events like TV shows, matches and sitcoms are sponsored by various products to increase demand.

6.Sweepstakes

It gives customers chance to win like scratch and win offers. The winners are determined by a drawing from all entry forms.

7.Premium (gifts)

A premium (gifts) is a reward given to the customers for purchasing a product. Premiums are offered at low cost or for free.

8.Cash Refund

It is a scheme in which customers are promised to get refund of money on submission of cash memo of the product.

Seven Most Popular Consumer Promotion Techniques

S.NO.

NAME OF TECHNIQUES

USING PERCENTAGE OF MARKETERS

1

COUPONS IN RETAIL ADS

90

2

IN-STORE COUPONS

88

3

REFUNDS

85

4

DISPLAYS

83

5

SAMPLES

78

6

PRMIUMS

75

7

SWEEPSTAKES

70

Source:- Marketing Management (Kothari, Mehta, Sharma) R.B.D. Publications

2..Trade/Middleman Promotions

1.Discount

It is also known as price-off. The discount is provided on the bases of amount of purchase by the whole seller or retailer.

2.Allowance

In this method allowances are offered to wholesalers and retailers for purchasing or promotion specific products.

3.Trade Shows

In this scheme vendors display their products. These trade shows are organized by industry trade associations.

4. Free Goods

It is in the form of extra quantity of purchased product, "free. Free goods encourage sellers to stock more during promotion period.

5. Cash Rebate

It is an incentive that gives retail sales people cash rewards for every unit of a product they sell. It is a monetary reward given to the sales force of the dealers.

6. Dealers Contest

These are run by the manufacturers to induce retailers and their salespeople to increase sales and to promote product.

3.Sales Force Promotions

1. Sales Contests

Sales contests are organized by the manufacturer in this scheme and rewards are provided to salesmen who have achieved exceptional targets.

2. Sales Training Manuals

Training materials such as manuals, visual aids, flip charts, programmed learning books, etc. , are useful to sales people.

3. Sales Meetings

Sales meetings are generally organized for sales people from one area, region, or district.

4. Demonstration

Demonstration of technical product clarify many points to the salesmen which is useful when queries are made to the salesmen by the prospects.

Advantages

8. Demand Creation

7. Product Life Cycle

1. Competitive Advantage

2. Increase In Sales

4. Specific Objectives

6. Goodwill

5. Reduced Costs

3. Brand Switching

Conclusion

The key to affective sales is through all the promotional techniques. Both consumer and trade promotions are profit builder tools.

A Presentation By :-