Sales promotion1


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Sales promotion1

  1. 1. Integrated Marketing Communication Advertising Sales promotion Personal selling Direct marketing Public relations Events & Experiences Word of Mouth
  3. 3. Meaning Sales promotion consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade Sales promotion is an incentive to buy Objective is to create consumer pull for the brand.
  4. 4. Growing importance of sales promotion  Helps in securing trial  Defending shelf space  Smoothens out the manufacturing capacities  Opportunity to reach to price sensitive market segments  Adds excitement to the in-store merchandizing of consumer goods  Motivates trade to push the brands
  5. 5. Types of sales promotion Consumer promotion Trade promotion
  6. 6. Objectives of consumer promotions  Generate consumer interest, leading to trial Free samples, coupons New products or mature products  Generate inquiries from the target customer group Mail in coupon, free catalogue, prizes  Build traffic for a brand at the retail outlet Westside Sale, Westside week festival
  7. 7. Objectives of consumer promotions  Motivate customers to repeat the choice First Citizen Club membership Aimed at creating brand loyalty Basically cumulative purchase , which promises some free product or redemption points  Increase rate of purchase Multi packs offer Maggie
  8. 8. Trade Promotion The prime objective is to push the product through marketing intermediaries and also to get them market the product aggressively
  9. 9. Trade Promotion objectives  Encouraging trade to build inventory special margins or extra merchandise at no additional cost or may offer extra allowances  Getting trade’s cooperation in promotions Helps to increase the level of interest & motivation of distributor Joint promotions Sales contests Merchandize allowance Subsidy for promotional budgets E.g. Fortune cars with Tata Motors
  10. 10. Planning the sales promotion process 1. Review of the product market situation  Trends in brand sales, product category sales  Level of involvement  Consumer purchase patterns  Distribution method
  11. 11. Planning the sales promotion process 2. Identification of opportunities & threats 3. Deciding on sales promotion objectives 4. Deciding on sales promotion budgets 5. Implementing controlling & evaluating
  12. 12. Commonly used tools  Demonstrations  Trade fairs & exhibitions  Coupons, free offers & price offs  Free samples, gifts  Exchange schemes  Joint promotion  Contests  Merchandising/ displays
  14. 14. Meaning Public Relations involves a variety of programs designed to promote or protect a company’s image or its individual products. PR perform following functions : Press relations Product publicity Corporate communication Lobbying Counseling
  15. 15. PR - Importance  Affect public awareness at a fraction of the cost of advertising  Company does not pay for the space or time obtained in the media  Consumers are five times more likely to be influenced by editorial copy than by advertising
  16. 16. Marketing Public Relations  Old name was publicity  The task of securing editorial space in print & broadcast media promote or hype a product, service, idea, place, person or organisation  Directly support corporate or product promotion and image making
  17. 17. MPR serves following tasks  Assisting in the launch of new products  Assisting in repositioning a mature product  Building interest in a product category  Influencing specific target groups  Defending products that have encountered public problems  Building the corporate image in a way that reflects favorably on its products
  18. 18. Events and Experiences
  19. 19. Events and experiences Sponsoring events provides companies with opportunities to obtain wider exposure for their brands In influencing attitudes towards brands
  20. 20. Events objectives  To identify with a particular target market or lifestyle  To increase awareness of company or product/ brand  To create or reinforce perceptions of key brand image and associations  To create experiences and evoke feelings  To express commitment to the community or on social issues  To entertain key clients or reward key employees
  22. 22. Meaning  Is the use of consumer direct channels to reach and deliver goods and services to consumers without using marketing middlemen  Direct marketers can use number of channels to reach individual prospects Direct mail Catalog marketing Telemarketing Interactive TV Kiosks Websites Mobile devices
  23. 23. Direct marketing  Seek a measurable response, typically a customer order  Many direct marketers build long-term relationships with customers E.g Sending birthday cards, information material
  24. 24. Benefits of direct marketing  Home shopping is fun, convenient & hassle free  Saves time  Introduces consumers to large selection of merchandise  Can do comparative shopping  If timed properly, DM receives higher readership  Less visible to competitors  Cost effective approach  Can measure responses
  25. 25. Direct Mail  Sending offer, announcement, reminder or other item to an individual consumer  Popular medium it permits target market selectivity  Can be personalised  Flexible  Allows early testing & response measurement
  26. 26. Catalog Marketing Companies may send a full line merchandise catalogs, business catalogs or specialty consumer catalog e.g Avon, Amway
  27. 27. Telemarketing  The use of the telephone and call centers to attract prospects, sell to existing customers and provide service by orders and answering questions  Increase revenues, reduce selling costs, improve customer satisfaction
  28. 28. Interactive Marketing
  29. 29. Interactive Marketing The newest channels for communicating and selling directly to customers Internet provides individualization and greater interaction Company can send tailored messages that engage consumers
  30. 30. Word of Mouth Buzz marketing Viral Marketing
  31. 31. PERSONAL SELLING • Sales Management • Managing Sales Force
  32. 32. “Everyone lives by selling something.” “Understand that you need to sell you and your ideas in order to advance your career, gain more respect, and increase your success, influence and income.”
  33. 33. Personality traits of sales person  Dominance  Achievers  Affiliation  Creativity  Exhibitionism  Problem solving
  34. 34. “To make it in sales, fish for whales!” I asked my former boss what his comment about fishing for whales actually meant. He explained: “Jim, if you go fishing and you catch 10 goldfish, you won’t even fill a cup – but if you catch 10 whales, you will fill half the beach!”
  35. 35. Role of Salesperson  Diagnostic  Analyst  Information Provider  Strategist  Tactician  Change agent
  36. 36. Selling Process 1. Opening a call 2. Need exploration 3. Presentation 4. Managing objections 5. Closing call
  37. 37. Designing the sales force
  38. 38. Sales Force Objectives & Strategy Need to define the specific objectives Tasks performed by sales people Prospecting Targeting Communicating Selling Servicing Information gathering Allocating
  39. 39. Sales Force Structure  Territorial Territory size Territory shape  Product  Market  Complex Territory –product Territory – market Product –market
  40. 40. Sales Force Size  Work load method Customers are grouped into classes as per their sales volume Desirable number of calls are established for each class Number of accounts in class X call frequency X no of weeks = Total workload / total annual calls Determine expected average number of calls per week per sales person Sales force = total annual calls / the average annual calls made by sales rep X no of working days.
  41. 41. Sales Force Compensation  Attractive package  4 important aspects Fixed Variable – commission, bonus, incentives Expenses – Lodging, Boarding, dining, entertainment, mobile, traveling, Benefits – LTA, sickness, accidents, pension, mediclaim etc.
  42. 42. Managing Sales Force  Recruiting & managing representatives  Training  Supervising Call norms  Motivating Salary Commissions or incentives Combination  Evaluation
  43. 43. If the circus is coming to town and you paint a sign saying “Circus Coming to the Fairground Saturday”, that’s advertising.
  44. 44. If you put the sign on the back of an elephant and walk it into town, that’s promotion.
  45. 45. If the elephant walks through the mayor’s flower bed, that’s publicity.
  46. 46. And if you get the mayor to laugh about it, that’s public relations.
  47. 47. If the town’s citizens go the circus, you show them the many entertainment booths, explain how much fun they’ll have spending money at the booths, answer their questions and ultimately, they spend a lot at the circus, that’s sales.
  48. 48. And, if you planned the whole thing, that’s Marketing!