The salesforce should know its role and be motivated to do its best. Here are many tools that are used in order to facilitate sales force promotion effectively. Huge Collection of Essays, Research Papers and Articles on Business Management shared by visitors and users like you. Consumer promotions are directed towards the consumer and are strongly prevalent in the FMCG category. Sales-promotion objectives are derived from broader promotion objectives which, in turn, come from marketing objectives. 5. The themes could be creatively chosen. A trade promotion can be easily managed through a company scheme mailer / circular and a one-to-one presentation by the sales force to the distributor and dealers. The Indian consumer still has suspicions about cash rebate. of the total promotional budget. Consumer level sales promotional tools are: (d) Self-liquidating premium (item sold below its normal retail price). It requires a substantial media budget over and above the freebies. (2) Dealer Promotion- Activities to increase the interest and enthusiasm of dealers and distributors. The first difference is Personal Selling is an element of promotional mix, where salesman visits the customer and displays the goods in order to initiate purchase. Objectives 7. The main consumer promotion tools include samples, coupons, demonstration, contests, cash refund offer, premium, etc. These are redeemable at the stamp redemption centres. Producers / retailers may promise free service to consumers for a specified period of time after sales. He has to attract prospective buyers, urge them and persuade them with the above factors to buy his product. It gives direct inducement to take immediate action now rather than later. Each position has different parameters for success, skill requirements, experience requirements, and other distinctions. Before uploading and sharing your knowledge on this site, please read the following pages: 1. Plagiarism Prevention 5. Eight significant differences between personal selling and sales promotion are described in this article. The brand which is constantly on sales promotion is vulnerable to a better offer. Sales promotion is the process of persuading a potential customer to buy the product. However, sales force is expensive and companies are looking forward to managing them in an efficient and effective manner. In other words, buy back allowances are given for new purchases, based on the quantity of goods bought previously. The retailers have also realised that coupons attract customers to their shops, who are likely to buy other commodi­ties and brands as well. Sales Promotion Tools and Techniques – 12 Commonly Used Tools: Coupons, Free Samples, Price-Off Offer, Fairs, Exhibition, Free Gifts, Competitions and a Few Others. Customers are educated as to how to make proper use of the product. Pre-testing is done by panel method, or by mail survey or by a field-study. Sales Force and Promotion 1. Sales promotion is designed to be used as a short-term tactic to boost sales – it is rarely suitable as a method of building long-term customer loyalty. To improve a product’s visibility on the shelf. Promos need mainstream advertising support if they are expected to change brand perception. Those tools which carry a selling message from one category, e.g., free samples, coupons, gifts related to the product, form one category. Goods are sold at reduced prices during slump season. Sampling is likely to result in actual trial of the product in global markets. a highly fragile, perishable or bulky product. Sales-force promotion Manufacturers appoint salespersons to sell or distribute their products. In TV market, the introduction of S-band and hyper-band sets led to the replacement of old 12-channel sets, thus giving rise to exchange offers. To increase selling efforts and intensity by dealers as well as by sales personnel. To help launch a new product (say Cello instead of Hello on telephone and get the gift, identify independent personality and get the Alphonso mangoes). Coupons are used for consumer convenience goods. Advertising has four characteristics: it is persuasive in nature; it is non-personal; it is paid for by an identified sponsor; and it is disseminated through mass channels of communication. The real thrust came in 1999. For example, it is easy to measure the impact of discount offer on sales, but it is very difficult to measure the impact of premium on the perceived value of the promoted brand. 6. (i) Retailers who launch their own scheme can be persuaded to provide a special support to the company’s products. Report a Violation 11. Akai, Daewoo, Philips, Samsung, Rayban, Van Heusen and Maruti have come out with exchange offers. Competitive pressure also calls for the use of SP. Sales is a very fulfilling profession, when you choose the right type of position. Thus, sales-promotion is used at the time of introducing a new consumer product, to secure maximum dealer stocking, display space and attention of consumers. Increase units sold per representative. Types of Programs 7. (iii) The trade is motivated to use POP tools, and price reductions. Direct measurements, if possible, relate the figures of this period to the previous period, and find out incremental sales (rather than gross sales). Perhaps, there is no effect of advertising now. Point-of-purchase displays give a real payoff, sales rising by 25 to 50 per cent or even more. Indeed the contest is brickmanship! Overenthusiastic representatives may resort to dumping, overloading inventories, cheating and neglecting of customer service. Zip Sip brand of flavoured milk? Channel pilferage is very common here. 5. The lots are drawn and the winners get prizes. (b) The terms / schemes should discourage unscrupulous trade practices on the part of trade. Sales promotion is that “something extra” (2+2=5). The focus of advertising to create reason for purchase the focus of promotion is to create an incentive to buy. Companies can offer a car or consumer durables for generating certain percentage of sales in a particular month or quarter. It is also used to keep customers away from the competitive products. The intention is to increase sales, make a large customer base, encourage trial, encourage repeat purchases to stimulate consumers' purchase. Learn about:- 1. Promos have certain limitations. The company’s marketing objectives and strategies influence the development of sales promotion objectives and strategies. Techniques 8. For retailers, objectives include inducing retailers to take up new items, encouraging higher stock levels, etc. Samples help consumers verify the quality of the product. Sales promotions are a marketing communication tool for stimulating revenue or providing incentives or extra value to distributers, sales staff, or customers over a short time period. A coupon with a sample is twice as effective as a coupon alone. Free samples are small and packaged portion of the (main) merchandise distributed for free. All these sales promotion schemes work on the principle that few people can resist a free gift, price reduction or special offer. Apart from inducing trials, coupons are used to retain the existing customers. Sales promotion ideas and examples to increase sales. The rest forms another category, e.g., price-off packs, trade allowances, etc., gifts not related to product. This is called a construct. 2. A push promotional strategy makes use of*a company’s sales force and trade promotion activities to create consumer demand for a product. Meaning and Definitions of Sales Promotion: Sales promotion is said to be a key ingredient in the international marketing campaign. They have seldom reuse values. Retailers have to exert more to handle promos. Binaca used to give those animal replicas. Success of couponing exercise is based upon retailer cooperation. Couponing is used to build a relationship with the customers. Marketers should also know the brand does not need any promo. Many sales promotion campaigns involve the use of incentives. Different methods like bonus, sales-force contest and sales meetings can be applied as sales-force promotion. Implementing and Controlling the Sales-Promotion Programmes, 6. It also builds a top-of-the-mind awareness. Sales promotion is defined by the Institute of Sales Promotion (ISP) as “comprising a range of tactical marketing techniques within a strategic marketing framework to add value to a product or service in order to achieve specific sales and marketing objectives”. These are cost-effective motivators and improve representative’s productivity. Promotions differ from advertising in that advertising offers reasons to buy, while promotions offer incentives to buy. A marketing man today wants a short-term increase in sales of the current year, rather than waiting to build the brand over a period of five years, by which time he may or may not be in the organisation. They are non-recurring in their use. 1. Many were aggrieved when they did not get Madonna’s audio cassette on Pepsi Drink’s Crowns. Types of Consumer Sales Promotion tools 1. 3. What constitutes a new order? Push, Pull or a combination of the two. Conventionally, the glamour in promotion is stolen by advertising. (d) Regular supplies of products / gifts during the pendency of the scheme. As soon as the promo is advertised, there should be action in the marketplace. Contest prizes are becoming attractive. Marketers must be on the lookout for ways to rise above the clutter. Objectives of Sales Promotion 3. Cash refund offers are rebates allowed from the price of the product. The effective execution of sales strategies requires constant monitoring and analysis. Promo should be timed perfectly. Too much of it affects the long-term brand equity. The managerial considerations are discussed along with sales contests. The original price and the bargain price must be stated. (iii) To conduct experiments about incentive value, duration and distribution media. Sales Promotion Strategies. (3) Business Promotion- Through exhibitions, trade fairs and conventions. Options of Promotion Objectives 9. Agencies like Trikaya-Grey, Ad Avenues and Maa Bozell have set up separate divisions to handle events. 2,500 will be given a gift worth Rs. 5. Designing of the Sales Force. Image Guidelines 4. Contests are the promotion events that give consumers the chance to win something such as cash, trips or goods. Since late 2000, there has been a conscious attempt to curtail the promo expenditure and use the funds to build the brands. The most prominent reason is an emphasis on quarterly results expected of senior management. Evaluating the Sales-Promotion Results, Sales Promotion – Managing Trade Promotions, Just as there is advertising clutter because of a large number of a. dvertising messages, we also have a promotion clutter on account of a large number of promotional tools used. (ii) At the level of dealers and distribution, it is called trade promotion, e.g., free goods, display contests, dealer sales contests, push money, etc. 4. In case, they are not linked to purchase, the construct becomes complex. (i) To examine the sales data, before, during and after a promotion, (ii) To examine the consumer-panel data which would reveal the kinds of people who responded to the promotion, and. Advertising is salesmanship in print, but has moved too far from it. Marketing, Products, Promotion, Techniques, Sales Promotion. The programme thus developed should be pretested in order to check the effectiveness of the programme. To reduce post-purchase dissonance, promos can be used. Sales pro­motion is generally broken into two major … Promotion can be launched directed at consumer or trade. One has to communicate with the consumer through advertisements and POPs at the retail level. Rebate is a partial refund to someone who has paid more or extra on purchase of a specified quantity or value of goods within a specified period. A promo should remind the consumer the core values of the brand. Disclaimer 8. There is no ‘fair’ or ‘just’ contest. Sales promotions are a marketing communication tool for stimulating revenue or providing incentives or extra value to distributers, sales staff, or customers over a short time period. To clear unsold stocks of an old product. Promos should be integrated to products and advertising. Terms of Service 7. What part of their arsenal will they use? 4. Prohibited Content 3. A sweepstakes calls for consumers to submit their names for a draw. Incentives are something of financial value added to an offer to encourage some obvious behavioural response. For consumers, the objectives may be to encourage purchases, building trial, etc. Promotions must tie- in well with the brand’s message. This structure can lead to problems if a single l arge customer buys many different company products. 4. Sales reps need to close more sales, and they will more readily accept and execute sales strategies that they feel are designed to help them get lead after lead, and meet and exceed sales quotas and goals. Concept of Sales Promotion 2. If you can sell it, probably you can sell anything. It involves making use of marketing communication and initiatives like seasonal discounts, financial schemes, etc. However, hasty decisions regarding sales promotion objectives may sometimes produce adverse effects for the firm in the long run. Sales promotion is thus a part of promotion, and is restricted to direct inducements on a short-term basis given to consumers or trade so as to stimulate purchases of products and services. The marketer has to determine the size of the incentive, conditions for participation, duration of promotion, the distribution vehicle and timing of promotion, total sales-promotion budget and the incentive cost in order to arrive at a full programme. SP is to be measured by pre-testing it, monitoring it during implementation and by post-testing. Secondly, the premiums advertised must be readily available at retail points during the entire period of scheme. Contests are conducted to attract new customers. Maintaining customer patronage and brand loyalty. Sales promotion is often thought as special selling effort to accelerate sales. The consumers might get alienated from the superior benefit it actually offers. Salesforce promotion techniques. The sales force provides a flow of information to the company which needs to know what is happening ‘in the field’ to keep up with changes in demand or fashion. Sales volume can also be increased through effective mobilization and encouragement to the sales-force. Demonstration of products induces customers to buy. They are generally directed at children. 4. Coupons are used to attract new customers. SP got a little share. Discounting or promotion pricing has traditionally been a function of a competitive market that is in the process of evolving. Mass advertising has its limitations and a certain shift to direct marketing and promos is inevitable. All concepts of brand management are thrown to the wind. The time also determines the success. Above are all the different types of sales promotions. The quality must be specified. Sales promotion is increasingly being used to accomplish an ever-expanding list of marketing objectives. It consists of mostly collection of those short-term incentive tools, which are designed to stimulate purchase of a particular product or service. Hence, sales promotion aims at stimulating the purchasing at the point of sale and dealers’ effectiveness at the retail channel of distribution. Agencies of late have set up BTL divisions, but these lack depth. Couponing gets a boost in a competitive environment. (c) Discounts offered during promotion period become the baseline for future promotions. Free samples are developed for introducing new products. It requires a substantial media budget over and above the freebies. Sales Promotion is a tool used to stimulate sales by employing incentive element to attract customers. Free samples are given to consumers to generate their interest in the product. It is an offer to refund part of the purchase price of a product to consumers who send a proof of purchase to the manufacturer. But it has now come to be used strategically also. 3. Account Disable 12. Direct themes could be obtaining new accounts or improving the market share. 7. Just as there is advertising clutter because of a large number of advertising messages, we also have a promotion clutter on account of a large number of promotional tools used. Uploader Agreement. Not only does it give profit but it also serves other purposes such as provision of information, creation of demand, repeat buyers, sales stabilisation and quick inventory turnover. Under this method, the product is sold and money is received on installment basis at 0% or without interest rate. By themselves, they cannot build brand perception. 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