If the promotion objectives have consumer and trade orientation the sales promotion strategies focus on different consumer promotions and trade deal. Securing additional shelf-space and added display, 8. 24.3 Objectives of Sales Promotion You have learnt that the main objective of sales promotion is to increase sales. Objectives Of Sales Promotion. Rapid growth: A decade ago, ad-to-sales promotion ratio was about 40:60, now is like 25:75 & growing. Sales promotion measures help to attract new customers. After the sessions over, they are not demanded any more. While brand awareness is a key promotional objective, a number of other important business objectives are served by promotional activities. Sales promotion secures the following objectives: Sales promotion has a capability to complement and supplement the advertising functions of the marketing. As soon as the company decides to enter the market, all marketing mix elements reinforce the decisions or the position. They induce buyers to purchase a new product. Through this effort push and pull strategy may be effectively introduced. Then, the hotel operator needs to come up with a promotion that can coincide with the event, ultimately allowing them to earn an influx of bookings that they may not otherwise have had. Which type of sales promotion is the men's store is using? Sales promotional tactics include contests, coupons, freebies, loss leaders, point-of-purchase displays, premiums, prizes, product samples, and rebates. The objectives should be stated to specify the desired type of action because the primary effect of a sales- promotion programme is to stimulate some consumer or dealer action. Sales promotion objectives could be either proactive or reactive. The advantage to the supplier is that the budget is known well in advance, the requisite number of prizes being prearranged. In some conditions, they have to start sales promotion plans because competitor sellers also start such plans. To … money-off vouchers, trade-in allowances. Sales promotion is usually targeted toward either of two distinctly different markets. vii. Product developments, offering three products at the cost of two are some of the devices used to encourage customers to buy more. 8. In order to establish high brand equity and to generate brand loyalty, the promoted brands or the products should be easily accessible and readily available to the consumers. Marketing planning and reward systems may lead to an increase in the use of sales promotion because sales promotions encourage: the use of price-oriented promotions to generate short-term sales. Objectives of Sales Promotion. This is usually an in-store activity. Even if they are aware, their tradition and culture may prevent them from using it unless it is adapted to suit them and such changes are communicated to them effectively. In some cases, the suppliers and retailers collaborate to produce a mutually acceptable point-of-sale display material. Fast Sales Boost. A number of personal care products, such as shampoos, cosmetics, toilet soaps or laundry products, such as detergent powders and cakes etc., have been introduced successfully in the last few years. A free sample is generally welcome to almost all consumers and increases the probability of trial and, in some cases, purchase as well. We all wait for the summer/winter clearance sale to finally buy items we’ve spotted but couldn’t afford to buy during the season. Persuading generally becomes the main promotion goals, when the product enters the growth stage of its life cycle. 9. In the present market condition to face the challenges of increasing competition, the marketers develop different promotional schemes to augment sales to satisfy the need of the prospective consumers. of the product plus some money. To Promote a New Product: In a large and decentralized market, market promotion is an inevitable … Middleman (Distributors and retailers) and consumers offered attractive discounts and free gifts to lure them to purchase more and more. Sales promotion encourages dealers and distributors to sell the product more. One study suggested the following reasons for undertaking actively all forms of sales promotion: 1. Other sale techniques are used to the customers to purchase the product even in the off season. Learning Objective . 5. Content Guidelines 2. 55/- whereas the MRP is Rs. Consumers get points on every purchase and get the offers from the companies as points accumulate. The sales-promotion objectives formulated should reflect the basic contribution that a sales-promotion programme makes in implementing the marketing strategy. Promotional activities increase or help increase the sale by making effective upward change in the elasticity of demand of the product or service through various techniques i.e., by distributing samples, free gifts, purchase premium, discounts etc. Welcome to EconomicsDiscussion.net! For example, a one litre bottle of cola may say Rs 10 off. For example, people who buy spices rarely, or in small quantities, decide to buy more often or in larger volume if they received free recipes in return. Such contest should be held infrequently and not become a routine feature, which would reduce their importance and lead to decline in interest. Generally, proof of purchase (may be in the form of empty packs) is required to participate in the competition, but not necessarily so. Informing is to educate the consumers about the product. vi. The techniques may be used which can measure the results easily or may be difficult to measure in a straightforward manner. Bridge between Advertising and Personal Selling: Sales promotion consists of those activities other than personal selling, advertising, and publicity. And since every supplier has his distinct looking stand, the store would lose its consistency in appeal. Speed up the sales of slow moving products, ix. 11. The various objectives of sales promotion can be summed up as follows:-, 1. Sales promotion efforts are necessary to create awareness in the beginning, later on it seeks to develop brand image and product preferences among the buyers so that they may switch over to the company’s product. In the broad sense of the term marketing communication mix includes all the four marketing P’s – Product, Promotion, Packaging and Price. Thus, the per unit purchase price is low enough to be covered by the profit on all extra sales made. (iii) To push stocks of the old brand before the introduction of new model. The promotion objectives relate to the Promotion-mix only and on the sales promotion uses “Pull-Push” strategy while advertising uses “Pull” strategy only. Objective # 6. 2. He does not play any role in designing such activities. Offer Details: The basic purpose of sales promotion is to increase the sales of a product by creating demand. There could be specific incentives, such as ‘get one free on purchase of four.’ Some promotions offer free merchandise or cash refund offer by collecting tokens on purchases of a specified value. The positive aspects and the limitations of the promotions should be scanned properly to attain the pre-set target and to fulfil the desired objectives. a. The inter-purchase interval, that is, the interval between two successive purchases should be long for the consumers. Under the situation, the organisation may decide to dispose of the excess stock in a short period of time, introducing different promotional schemes to attract the prospective consumers to sell the products immediately. The idea being that the customer would be attracted towards purchasing the product. To keep the memory alive through promotional activities. Frequent-flier offer by some airlines is one such scheme, where the customer is allotted certain number of points, and on collecting specified points, gets a free offer of value. The objectives for retailers may be to carry new items, encourage off-season buying, and offset competitive promotions, build brand loyalty, and so on. To Supplement Advertising and Personal Selling Efforts, – The 3 Fundamental Objectives: Informing, Persuading and Reminding, Objective # 1. To Attract New Customers. Everything about contest, whether display or sales, should convey the idea that it is something special. Sales promotion objectives are consistent with marketing objectives. Share Your Word File
Many companies use show-business personalities to endorse their products. Frequency Programs – One of the fastest growing areas of sales promotion is the use of frequency programs also known as continuity or loyalty programs. Many retailers use the display material provided by suppliers very selectively due to the danger of producing a cluttered and uncoordinated retailing environment. Objective # 4. Determining strategic sales objectives lets you examine which initiatives in the marketplace will give you the desired results. Improving the Public Image of the Firm: Huge amounts are now being spent on determining appeals for arresting the attention of the prospect towards the product. The final aim is to persuade customers to return again and again to the store trading on the goodwill and loyalty that previous purchases have, hopefully, instilled, e.g. To encourage consumers to buy from the promoters, a stainless steel teaspoon was given with only one cake of ‘Palmolive’ soap; subsequent cakes were sold on a marginal discount. The space available for displays in retail stores and in showrooms is limited and expensive depending on the size of the store and display material, number of displays is limited. The sales volume of any product depends on many basic factors of marketing such as product quality, its price, distribution, effectiveness of marketing communications and macro-environmental factors (demographic, economic, technological, political/legal, and competitive, etc.). The objectives of sales promotion may be analysed as follows: Objective # 1. 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