Demand of the distributors, dealers and sales force to introduce and enhance promotions. The focus was on an incentive, which would ensure trial of even one cake. Short term incentives offered to the buyers stimulate sales. Consumers get points on every purchase and get the offers from the companies as points accumulate. The customer can get two units of the product at the price of one. Price-off reductions are typically offered right on the package through specially marked price packs For example, on Palmolive shaving brush Rs. Encouragement for Distributors, Dealers and Sales-Force: Lucrative sales promotion schemes shall encourage the dealers, distributors and sales-force to give more effort to increase sales for mutual benefit of producers and middlemen. There are three main objectives of sales promotion: Informative promotion tends to convert existing needs into want. It is required at all stages of product life cycles. It informs the customers and dealers all about the product i.e., attributes, colour, size, design, uses, price, packaging etc. Market research studies revealed that the cause of below-level acceptance was inherent conservatism of the consumers in this market. Deflect customers’ attention from price. These fittings make the product prominent compared to other .products, kept in normal racks. Generally these displayed items generate a higher sales volume. 4. Free samples may be distributed to leading consumers who may be a source of advertisement for other prospective consumers. This means higher margins to the retailer. The first prize was Rs. 200,000. Increasing the inventories of business buyers – Retailers may be induced to keep in stock more units of a product so that more sales can be affected. CODES (2 days ago) An important objective of sales promotion is to encourage re-seller participation in displays and contests. The purpose of sales promotion is to increase sales. Sales promotion programme should be developed to generate the confidence of the consumers regarding the claims focused. 4. Offer Details: The basic purpose of sales promotion is to increase the sales of a product by creating demand. Sales promotion forms all the promotion activities other than personal selling, advertising, direct selling, and public relations. These objectives are for both marketers and traders. — A.H.R. The promotional tools should be administered and controlled in a well-planned fashion to avoid the hazards and complexities. For example, the store could offer a money-off voucher with the hair gel bottle or the customer would be entitled to get a shampoo if they purchase the hair gel. To rate good public image of the product and the organisation, 7. For example, customers who buy a bigger pack may be entitled to enter into a contest or they can get a free gift or customers who purchase merchandise more than a specified amount would get similar benefits. 13. Developing patronage habits among customers – It can be done by popularising goods and services of the producer among the potential consumers and to motivate them towards larger purchases. It is the basis to avoid the duplication of activities as the rights and duties of every salesman, sales department or branch office are clearly defined in advance. Ultimately, they enhance the public image of the firm. Spend one hour each day prospecting to find good-fit leads. They develop or reinforce a favourable set of attitudes and influence their buying behaviour. To Reduce Seasonal Decline 10. Having persuaded customers to enter the shop, they could now be encouraged to buy by presenting the merchandise in such a manner as to create the purchase instinct in the customer’s mind; e.g. However, they may vary with the type of target market and points of channel. But small scale production is not possible only on the methods of promotional activities. Sales promotional devices make products popular among customers. The basic purpose of sales promotion is to increase the sales of a product by creating demand. Competition in similar products may be quality competition or price competition. It shall attempt to generate a bondage between the awareness and perception of the consumers and the personality of the brand and its features. Companies, who have a small market share, cannot match the substantial advertising budgets of market leaders in the same industry. It should be adapted to their needs and requirements. Nature Fresh edible oil 1 liter pack is available at Rs. Salespersons persuade consumers to buy products. Accessibility and availability of the products. The promotional objectives are to be considered and framed by the organisations on the basis of an in-depth study of the economic environment, nature of competitive situations, the attributes of the product, the stage of the product in the product life cycle, consumer’s perception about the product and the image of the organisation. 5. For example, soya bean milk, exotic mushrooms, etc. For example, racks provided by toothbrush suppliers, dry-battery stands, glass case for watches, etc. The main objective of this research is to investigate the influence of sales promotion and physical surroundings that is situational factor on consumer buying behavior. When consumers see in bold print “FREE”, their attention is focused on the advertisement. Among the seven emotions identified in the study, awe, joy, lust and surprise were revealed as the positives, and these could be leveraged by retailers to increase appeal in sales promotions. An important area that concerns sales promotion objectives is directly related to the specific promotional techniques to be used. To Help the Firm Remain Competitive 13. Thus, a quicker sales response results from sales promotion. Therefore, no company can escape from sales promotion activities. The consumer-oriented programmes stimulate the consumers, and evoke the desire to take purchase decision. These provide details of the product the advantages of a particular retailer’s products over the competitor, unique features and benefits, price, etc. For this purpose, it provides suitable knowledge for recollection. FORMS OF SALES PROMOTION. To Increase Sales in Off-Seasons 14. On the other hand, trade-oriented promotions inspire the middlemen like dealers, distributors, wholesalers, retailers to work hard to gear up their business in order to reap more profit. Once the customer shows his interest in the product, the salespersons can take off from there and complete the sale. As a reward, marketer offer something of value to those respondents in the form of lower cost of ownership for a purchased product, example – lower purchase price, money back, inclusion of additional value added material etc. Calling attention to new products and product improvements. (ii) Point-of-sale incentives can be improved to generate quicker sales response. Colgate offers 25gm extra on their 200gm pack at the same price. 2. In an average store, there may not be more than ten or fifteen items that get major display space at any given time. It attracts channel members to participate in manufacturer promotion effort. The objectives for the sales force may be to encourage a new product or model, stimulate off-season sales, and persuade more prospective buyers, and so on. Increasing sales in off season – Buyers may be encouraged to use the product in off seasons by showing them the variety of uses of the product. To acquire conviction on conviction of buyers, promotion efforts of the company must include the act of convincing the buyer about the quality of the product. The trial use, through distribution of samples or demonstration may convince the prospects regarding the positive features of the brand introduced. Reminding promotional scheme is used to complete the promotion activities in the mind of consumers. Such products do not gain much advantage by these sales promotion devices. To Counteract the Moves of the Competitors: The fast growing markets and increased competitions, lead the marketers to give emphasis on sales promotion. 2. It helps marketers to realize a variety of objectives. 55/- whereas the MRP is Rs. To combat or offset competitors' marketing efforts. These schemes are intended to motivate sales people to put in more efforts to increase sales, increase distribution, promote new or seasonal products, sell more deals to resellers, book more orders, develop prospects lists and build up morale and enthusiasm. You might set a sales objective to improve your percentages of upsells. 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. It includes tools for consumer promotion, trade promotion & business & sales force promotion. Regular users of coffee, or even occasional users, responded with enthusiasm, because not only the contest was exciting, the prize money too, were quite substantial. In the total marketing process, the marketing goal of the organisation and the marketing strategy should be formulated at the time of programming the promotional activities. Sales promotion objectives could be either proactive or reactive. Motivate dealers to stock and sell more. To … The main purpose of sales promotion is to introduce a new product among customers. 5. Detergent powders and cakes toilet-soaps, shampoos, oral hygiene products, and many other non-durable products, which are consumed every day, may respond well to such promotions. In order to survive in the market and to retain the market share, the marketers adopt different promotional schemes. iv. Such contest should be held infrequently and not become a routine feature, which would reduce their importance and lead to decline in interest. Big discounts may be as old as the trade industry, but it’s an evergreen method of increasing sales volume. 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. Couponing – Coupon is one of the oldest and most effective sales promotion tools used by marketers. i) To reduce inventories before financial year-closing, ii) To increase the stock-holding of retailers, or even consumer before the introduction of a competing brand, or. Share Your PPT File, Learn about the Sales Promotion Objectives, Sales Promotion Objectives – Top 6 Objectives, Sales Promotion Objectives – 8 Main Objectives. i. Sales Promotion Objectives are as follows: 1. One study suggested the following reasons for undertaking actively all forms of sales promotion: 1. Small budget companies, who cannot afford sustained advertising expenditures to introduce new products, or match the competitive advertising blitz, find sales promotions to be more cost effective and helpful in generating sales volume. Sales promotion is a marketing strategy where the product is promoted using short-term attractive initiatives to stimulate its demand and increase its sales. It would be more appropriate to choose selected markets with high potential. New product launches by competing companies are backed up by aggressive advertising and sales promotion campaigns. Development of the effective distribution systems. This means higher margins to the retailer. The information about these competitions is usually printed on the packs. Encourage dealers to participate in display and sales contests, xv. Usually free samples are given to introduce new products to customers. The target group of consumers, their behavioural patterns, their attitude and perceptions should be given due importance in order to ascertain the effectiveness of the programme. To combat the situation, it is becoming a form of compulsion on the part of the marketer to develop different promotional tools and devices. Why Sales Promotion Increases Sales. Pretty simple, right? The producer generally provides information regarding the quality, uses, different uses of the products and the price, etc. Sometimes, the customers have to send the empty packets to the supplier for getting their free products. To attract new customers distribute free sachets to households. 5. For example, a children’s product may use a person dressed as their logo (for example a teddy bear) in the store. Sales promotional activities serve the following objectives: 1. Informing is to educate the consumers about the product. Objectives Of Sales Promotion. To combat or offset competitors' marketing efforts. iii. Generally these displayed items generate a higher sales volume. The practice of offering off-season discount is in vogue in almost all countries of the world. Gifting. While the primary objective of advertising is to create an enduring brand image the primary objective of Sales promotion is to get a sale quickly or induce trial. viii. Promotional activities help maintaining the sales of the product in slack season when demand is little. Display is a powerful tool to enhance sales. a. 2. For example, the customer could get a jigsaw puzzle inside a ‘ pack of cornflakes, or a free mug with the purchase of a health drink. activities make the product popular and increase the demand. Wholesalers and retailers purchase goods for resale. Effective promotion is generally used to create long-term branding or short-term sales promotion inducements to attract customers. For example, T. N. Sheshan, the former Election Commissioner, was used by Safal vegetables since he did not appear for any other product and he had an honest and upright image. For example, one Maggi noodles packet free with the purchase of four, or one gets three soaps at the price of two. Content Guidelines 2. They must have some knowledge about the product offered by the producer. In business warfare, it is not uncommon that sometimes challengers resort to offering discounts. It increases sales and makes sales of slow moving products faster and stabilize fluctuating sales pattern. To supplement advertising and personal selling efforts. 1. Such activities make the product popular. Contestants were required to suggest one word as a prefix or suffix to describe ‘Nescafe’. Stock clearance of slow moving, non-moving, outdated, defective or inferior quality goods. For example, leaflets providing information about a particular model of a car are kept in a car showroom. For example, shaving foam and after shave lotion. Sales promotion is also used to generate new customers. In particular conditions an institution follows sales promotion policies so that the popularity of the institution may increase. 10. The main objective of a commercial concern is to increase its sale. The goodwill can be created by schemes like continuity programmes or store cards. Sales promotion directed towards the sales people is referred to as sales force promotions. In this situation the sale of product has to be promoted through some influences at the point purchase where prospective buyers meet face to face. As a result it can pay high dividends. Products such as – cameras, sports goods, appliances, television, audio and video equipment, computers, and cars frequently use rebate offers to appeal to price-conscious consumers. Sales Promotion Objectives. The sales-promotion objectives formulated should reflect the basic contribution that a sales-promotion programme makes in implementing the marketing strategy. Display is a powerful tool to enhance sales as it attracts the attention of consumers who are passes-by or window-shoppers. Welcome to EconomicsDiscussion.net! 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. Here two or more packs are attached and sold for a better and attractive price than the price of the items singly. An important objective of sales promotion is to encourage re-seller participation in displays and contests. Promotional activities increases the sales by changing the elasticity of demand of the product through various techniques i.e. The techniques may be used which can measure the results easily or may be difficult to measure in a straightforward manner. (4) To Arrest Seasonal Decline – In slack season, the promotional activities help in maintaining the sales of the product. Such promotions can be particularly useful in new markets, and can also be used to introduce a sense of urgency in consumer or the trade to buy the product now. Page: 545 Learning Objective: 4 190. In these schemes, the customer has to write to the supplier for the gift enclosing empty packets, bottle crowns, etc. Its sales in Chennai, which is one of the largest markets for toilets soaps, were below all India levels. The purpose of advertising is to improve dispositions towards a brand, while the objective of sales promotion is to translate favourable attitudes into actual purchase. A free sample, along with a coupon of attractive value, may prove to be more effective in inducing trial of a new product by consumers and may also lead to purchase of the regular pack from the market. Facilitating co-ordination – Sales promotion facilitates co-ordination and proper link between advertising and personal selling. In the narrow sense of the term marketing communication refers to the marketing tools which are normally classified under ‘promotion’, one of the four P’s they are called ‘promo tools’ and include various forms of ‘advertising’, sales presentations and demonstrations, point of purchase displays, sales aids (catalogue, literature, coupons, free samples) and publicity programs. To motivate and attract the sales force by exhibiting their products in the important markets. In its absence, it is useless to imagine an increase in sales. vii. There are some products whose demand falls badly in a particular season. Encourage Dealers to Participate in Display and Sales Contest  6. Thus, the price per unit of the product is reduced for the customer. Sales promotional devices help introduce new products in the market. Sales promotion keeps and memory of the product alive in the minds of the customers. This is due to managers need to increase sales (inte… Privacy Policy3. 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