sales promotion

Promotion mix

Sales promotion

It is a key ingredient in marketing campaigns , consists of a collection of incentive tools, mostly short term , designed to stimulate quicker or greater purchase of particular product or services by consumer trade. It includes -:

Consumer promotion Trade promotion Sales-force promotion

Objectives To stimulate trial purchase To stimulate repeat purchase To stimulate larger purchase To introduce a new brand To compete with the market competitors &

marketing strategy To increase the sale of goods To target specific market segment To attract new customers To increase impulse buying To clear excessive inventories

Tools Samples Premiums Contest Point of purchase display Coupons Refund Bonus packs Free trial Free training

Trade fares & exhibitions Sponsoring games &

teams After sales service Warranty & guarantee Frequency programs Event sponsorship Advertising specialty Honoring brilliant people Promoting through

celebrities

1. Samples

It refers to free amt. of product or service which can be delivered in the following way-:

In store samplingDoor to door samplingNewspaper samplingOn package sampling

In store sampling

Free samples are distributed within the organization. For eg-: pepsi

Door to door sampling

Some agents are assigned for distributing the samples for free.

For eg-: agarbatti

Newspaper sampling

Newspaper are distributed as free samples. For eg-: Raj express in Indore

On package sampling

In this the product is attached with another product. For eg-: pepsodant tooth paste with tooth brush

2. Premiums

They are offered with goods either free or at a low cost as an incentive to buy a product. Types of premiums are-:

In or on package premium Purchase privilege plan Re usable container Additional weight or product Exchange offer

In or on package premiumIt accompanies the

product inside or on the product. For eg-: Tattoos

Purchase privilege plan

When we buy a product there are no. of alternatives available. For eg-: soft drinks

Re-usable container

A container is given with the product as a gift. For eg-: Bournvita

Additional weight or product

In this it offers increase in quantity of product or adds a new product to it. For eg-: bear paws

Exchange offer

It says bring old and get new. For eg-: mehindpurwala in Indore –bring old arm chair n get new at half cost

3. Contest

A contest calls for customer to submit an entry to be examined by a panel of judges who will select the best entries. It can be in the following forms-:

Inviting slogans on a productSuggesting a new name for a productSuggesting a new usage for the productParticipating in a game for a product

Inviting slogans on a product

Amul – The taste of India

AmulAmul ice creamice cream

Suggesting a new name for the product

Uti bank is now known as axis bank

Suggesting new usage for product

• Vaseline was earlier used as oil in organizations but is now used as a cosmetic item

Participating in a game for the product

4. Point of purchase display

It offers an extra amt. of a product at a regular price by proving larger containers or extra unit. for eg-: big bazar

5.Coupons

They are the certificates that gives buyer a saving when they purchase specified products. for eg.

6.Refund

They are the offers by the manufactures to return a portion of price after the consumer supplies some proof of purchase. for eg-:

7.Bonus packs

It offers an extra amt. of a product at the regular price by providing larger container or extra units. For eg. Shoes 1+1

8. Free trial

It refers to inviting prospective purchasers to try the product without cost in the hope that the customer will buy. For eg-: cars

9. Free training

It refers to the training which is given to the customers regarding the product usage before they use it. For eg-: scooty pep

10.Trade fares & exhibitions

Industrial associations organize them which includes free demonstration of the product & various schemes to attract customers. For eg-:

11.Sponsoring games & teams

Organizations sponsor certain activities in order gain customers attraction. For eg-: reliance 20-20world cup

12. After sales service

After selling the product the organization provides benefit of various free services on the product. For eg-: cars

13.Warranty & guarantee

Explicit or implicit promises by the seller that the product will perform as specified or that the seller will fix it or refund the customers money during a specified period. For eg-: computer

14. Frequency programsPrograms providing

rewards relating to consumer frequency & intensity in purchasing the co’s product. For eg-: airlines

15.Event sponsorship

It includes-:CulturalSocialEducational eventFor eg-: polio

vaccination

16.Advertising specialtyThe co. gives some

or the other item on which co’s name is given. For eg-:

17.Honoring brilliant people

People who have won some special awards are being honored by the co. for eg-:

18.Promoting through celebrities

http://www.youtube.com/watch?v=jjt99iAUmjc

Advantages

It offers low price to the customer. It increases the standard living of the

customer. It increases the saving It helps in personal selling It increases the goodwill of the co. It increases the demand of new product. It is a motivating factor for retailers &

salesman

Disadvantages

Continuous sales promotion leads to loss of perceived value of the brand.

The brand image & loyalty may erode if the sales promotion are continuously used.

It is useful mostly in mature markets. There is no visible increase in the market share

since is just a borrowing from the future sales. It also increases the overall cost of the

organization. It has a negative effect on brand.