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In this presentation, we will discuss about the concept of promotion and sales promotion, importance of sales promotion and its tools. We will also talk about the objectives of trade promotions and …

In this presentation, we will discuss about the concept of promotion and sales promotion, importance of sales promotion and its tools. We will also talk about the objectives of trade promotions and its tools.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html

Published in Education , Business
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  • Great presentation! I have a tip for marketers to manage their sales promotions. http://www.circusoffers.com is a startup in its early beta stage, and it is proposing an interesting approach to multichannel sales promotion management.
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  • 1. Chapter No. 17 Page No. 281 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA SALES PROMOTION PROMOTION IS A COMPREHENSIVE TERM, AND COVERS THE ENTIRE GAMUT OF ADVERTISING, PUBLICITY, PUBLIC RELATIONS, PERSONAL SELLING AND SALES PROMOTION. SALES PROMOTION IS THUS A PART OF PROMOTION, AND IS RESTRICTED TO DIRECT INDUCEMENT ON A SHORT TERM BASIS GIVEN TO CONSUMERS OR TRADE SO AS TO STIMULATE PURCHASES OF PRODUCTS AND SERVICES.
  • 2. Chapter No. 17 Page No. 281 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA SALES PROMOTION SALES PROMOTION OPERATES AT THREE LEVELS AT THE LEVEL OF: CONSUMER :CONSUMER PROMOTION DEALER / DISTRIBUTORS :TRADE PROMOTION SALES PERSON :SALES FORCE PROMOTION
  • 3. Chapter No. 17 Page No. 282 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA GROWING IMPORTANCE OF SP TODAY SALES PROMOTION IS ATTRACTING MORE AND MORE OF THE PROMOTIONAL BUDGET. COMPETITIVE PRESSURE ALSO CALLS FOR THE USE OF SP. WITH MORE AND MORE BRANDS FLOODING THE MARKET, THE PRESSURE TO OCCUPY DISPLAY SPACE AT RETAIL OUT IS MORE ( RETAILERS THUS DEMAND MORE SP) ADVERTISING HAS REACHED THE TARGET AUDIENCE WHEN THEY WERE AWAY FROM THE STORE. SP TOOL AT THE POINT OF PURCHASE REMIND THE BUYER.
  • 4. Chapter No. 17 Page No. 282 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA CONSUMER PROMOTION TOOLS CONSUMER CONTESTS WITH PRIZES PRICE-OFF DEALS PURCHASE PRICE REFUND COUPONS SAMPLES PREMIUMS OR GIFTS. CONT……
  • 5. Chapter No. 17 Page No. 282 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA CONSUMER PROMOTION TOOLS REWARDS PLAN ON PURCHASES FREE TRIALS PRODUCT WARRANTIES CROSS PROMOTIONS POINT OF PURCHASE (POP) DISPLAY AND DEMONSTRATION
  • 6. Chapter No. 17 Page No. 283 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA CONSUMER PROMOTION AIMS TO MAKE SLOW MOVING PRODUCTS FAST MOVING TO REGULARISE SALES FLUCTUATIONS TO OVERCOME SEASONAL RECESSION TO CLEAR UNSOLD STOCKS OF OLD PRODUCT TO EFFECT SALES OF A SPECIFIC PACK SIZE CONT…..
  • 7. Chapter No. 17 Page No. 283 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA CONSUMER PROMTION AIMS TO HELP LAUNCH A NEW PRODUCT TO MEET A COMPETITOR’S STRATEGY TO BUILD GOOD WILL BY SHARING THE GAY SPIRIT TO IMPROVE PRODUCT’S VISIBILITY ON THE SHELF TO ENCOURAGE TRADE TO SUPPORT THE PRODUCT
  • 8. Chapter No. 17 Page No. 283 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA ROLE OF COUPONS WHEN NEW PRODUCTS ARE LAUNCHED ADS MAY CARRY COUPONS OF PRICE-OFF COUPONS OF FREE PRODUCTS ARE INSERTED IN ADS COUPONS ARE USED TO RETAIN THE EXISTING CUSTOMERS AND TO ATTRACT NEW CUSTOMERS COUPONS ARE USED AS A TOOL TO PENETRATE THE MARKETS TO KEEP THE CUSTOMERS AWAY FROM COMPETITIVE PRODUCTS TO BUILD RELATIONSHIP WITH CUSTOMERS
  • 9. Chapter No. 17 Page No. 284 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA PROMOTING THE SP SCHEME PROMOTIONAL SUPPORT IS A MUST FOR ANY SP SCHEME THE CAMPAIGN SHOULD BE DIRECTED TO THE CONSUMERS FOR WHOM IT IS MEANT. IT SHOULD ALSO TAKE INTO CONFIDENCE THE TRADE CHANNELS THE SALES FORCE SHOULD KNOW ITS ROLE AND BE MOTIVATED TO DO THEIR BEST.
  • 10. Chapter No. 17 Page No. 285 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA PROMOTING THE SP SCHEME FOLLOW - UP THE MARKET IS TO BE ASSESSED SOON AFTER THE SCHEME BEGINS THE MONITORING COVERS BRANDS / PREMIUM AVAILABILITY, BRAND VISIBILITY, MOVEMENT OF THE BRAND AT RETAIL OUTLET ON DAY TODAY BASIS COMPETITOR’S COUNTER MOVES TIMELY INTERVENTION IN THE FORM OF REMINDER ADS, ADDITIONAL SALES FORCE, AND ADDITIONAL POP.
  • 11. Chapter No. 17 Page No. 285 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA CONSUMER CONTEST ( OBJECTIVES) TO REVITALIZE A TEPID BRAND TO INCREASE PRODUCT USAGE TO INTRODUCE NEW PRODUCTS TO FAMILIARISE CONSUMERS WITH UNIQUE / SPECIFIC ASPECTS OF BRAND TO MEASURE AD EFFECTIVENESS TO GENERATE MAILING LIST & OVERALL GOOD WILL TO GENERATE SLOGANS TO PROMOTE THE BRAND.
  • 12. Chapter No. 17 Page No. 285 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA FACTORS AFFECTING THE CONTEST THE TYPE OF THE CONTEST THE PRIZE OFFERED THE PROMOTION OF THE CONTEST THE RULES GOVERNING THE CONTEST
  • 13. Chapter No. 17 Page No. 286 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA OBJECTIVES OF TRADE PROMOTION THE TRADE IS MOTIVATED TO CARRY THE BRAND THE TRADE IS MOTIVATED TO CARRY A LARGER INVENTORY THE TRADE IS MOTIVATED TO USE POP TOOLS, AND PRICE REDUCTION THE TRADE IS MOTIVATED TO PUSH THE PRODUCT.
  • 14. Chapter No. 17 Page No. 287 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA TRADE PROMOTIONAL TOOLS PRICE OFFS OR OFF INVOICE OR OFF-LIST ALLOWANCES LIKE ADVERTISING ALLOWANCE OR DISPLAY ALLOWANCE FREE GOODS ON A CERTAIN QUANTITY, PUSH MONEY, FREE SPECIALITY ADVERTISING ITEMS
  • 15. Chapter No. 17 Page No. 287 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA TRADE PROMOTION (CONSIDERATIONS) THE CAPABILITIES OF THE PARTIES. THE TERMS / SCHEME SHOULD DISCOURAGE UNSCRUPULOUS TRADE PRACTICES ON THE PART OF TRADE SCHEME SHOULD BE PROPERLY COMMUNICATED. RESULT EXPECTED MUST BE CLEARLY STATED REGULAR SUPPLIES OF PRODUCTS / GIFTS DURING THE PENDENCY OF THE SCHEME BOOKING OF SHELF SPACE OF PROMINENT DEALERS MUST BE DONE SUFFICIENTLY IN ADVANCE CONT…….
  • 16. Chapter No. 17 Page No. 287 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA TRADE PROMOTION (CONSIDERATIONS) THE GIFT SHOULD BE OF GOOD QUALITY SALES CONTEST(TARGET / PRIZE ON ZONAL BASIS) POP MATERIAL AND ITS DISPLAY NEED SUPERVISION RETAILERS WHO LAUNCH THEIR OWN SCHEME CAN BE PERSUADED TO PROVIDE A SPECIAL SUPPORT TO THE COMPANY’S PRODUCTS MRTP PROVISIONS MUST BE RESPECTED
  • 17. Chapter No. 17 Page No. 287 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA PROMOTION (SALES REPRESENTATIVE LEVEL) SP TOOLS ARE : 1. INCENTIVE PROGRAMME : THESE ARE MOTIVATIONAL TOOLS LINKED TO SALES ACHIEVEMENT OF CERATIN LEVEL 2. SALES CONTEST OF REPRESENTATIVE: SALES REPRESENTATIVES ARE MADE TO COMPETE AMONG THEMSLEVES TO ACHIEVE HIGHER GOALS AND BENEFIT THE ORGANISATION.REWARDS ARE GIVEN EITHER IN CASH OR KIND OR BOTH
  • 18. Chapter No. 17 Page No. 289 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA PROMOTION (SALES REPRESENTATIVE LEVEL) REPRESENTATIVE LEVEL PROMOTION MUST HAVE AN ELEMENT OF EXCITEMENT SHOULD BE CAPABLE OF ENTERTAINING THE PARTICIPANTS IN-HOUSE JOURNALS, CIRCULAR LETTERS, PERSONAL LETTERS, MOTIVATIONAL LETTERS REMINDERS ARE USED TO PROMOTE THE CONTEST ON THE CLOSE OF THE CONTEST, WIDE PUBLICITY IS GIVEN TO ACHIEVERS FURTHER ACTIVITIES ARE PLANNED TO AVOID DIPPING SALES, AFTER THE CLOSE OF THE CONTEST.
  • 19. Chapter No. 17 Page No. 289 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA PROMOTION (SALES REPRESENTATIVE LEVEL) PIT FALLS WHICH MANAGEMENT MUST GUARD THE GOALS MUST NOT BE UNATTAINABLE REWARDING JUST ONE PERSON IS TO BE AVOIDED SALES VOLUME SHOULD NOT BE THE ONLY GOAL OF EACH CONTEST SAME PRIZES FOR EACH CONTEST ARE TO BE AVOIDED CONT…..
  • 20. Chapter No. 17 Page No. 289 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA PROMOTION (SALES REPRESENTATIVE LEVEL) PIT FALLS WHICH MANAGEMENT MUST GUARD SOMETIMES STAFFERS OTHER THAN SALES REPRESENTATIVES SHOULD BE INCLUDED IN THE CONTEST YEAR END CONTESTS ARE SEEN AS POOR PLANNING, HENCE ARE BETTER AVOIDED CONTEST IS NOT AN INTELLIGENCE TEST SALES CONTEST HAVE GOALS TO ACCOMPLISH
  • 21. Chapter No. 17 Page No. 289 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA MANAGING PROMOS PROMOS CAN BE USED ANYTIME ANYWHERE TWO PODUCTS WHICH ARE RELATED OR UNRELATED CAN BE BUNDLED TOGETHER, AND EITHER PRODUCT MAY INDUCE A BUYER TO BUY THE PRODUCT. IN A BUNDLE ONE PRODUCT WORKS AS AN EFFECTIVE AWRENESS-BUILDER AND A TRIAL INDUCER FOR THE OTHER PRODUCT. PREMIUM PRODUCTS ARE SOLD ON PULL FACTOR AND A PROMO WORKS ON A PUSH FACTOR.
  • 22. Chapter No. 17 Page No. 290 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA EVALUATION OF SP SP IS TO BE MEASURED BY: PRE-TESTING IT MONITORING IT DRUING IMPLEMENTATION POST- TESTING.
  • 23. Chapter No. 17 Page No. 290 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA EVALUATION OF SP PRE TESTING ASCERTAINS COST-EFFECTIVENESS OF VARIOUS ALTERNATIVES IT ALSO ASSESSES THE MOST PREFERRED TERMS ON WHICH TO OFFER SCHEME PRE TESTING IS DONE BY PANEL METHOD OR BY MAIL SURVEY OR BY A FIELD STUDY.
  • 24. Chapter No. 17 Page No. 290 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA EVALUATION OF SP MONITORING DURING IMPLEMENTATION PRODUCT MOVEMENT TERRITORYWISE SALES OUTLETWISE SALES GOALS SET VS PAST RESULTS COMPETITIVE MOVES MARKET MOOD PROBLEMS ENCOUNTERED
  • 25. Chapter No. 17 Page No. 290 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA EVALUATION OF SP POST TESTING (ANALYTICAL) REDEMPTION RATE OF COUPONS SALES ATTAINED COST EFFECTIVENESS REDEMPTION OF TRADING STAMPS SALES TURNOVER OF SPECIAL PACKS OR SELF LIQUIDATORS NUMBER OF ENTRIES RECEIVED FOR THE CONSUMER CONTEST etc.
  • 26. Chapter No. 17 Page No. 291 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA EVALUATION OF SP POST TESTING POST TESTING IS DONE BY: MARKET RESEARCH STUDIES OBSERVATION METHOD IN STORES DESK ANALYSIS OF COLLECTED DATA
  • 27. Chapter No. 17 Page No. 291 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA FREEBIES TO STIMULATE STAGNANT DEMAND AND TO MOVE ACCUMULATED INVENTORIES BLOCKING HIGH COST, COMPANIES OFFER FREEBIES.
  • 28. Chapter No. 17 Page No. 294 Advertising and Sales Promotion ManagementSALES PROMOTION CONSUMER PROTECTION IN INDIA DECLINE IN SP PROMOS NO LONGER GENERATE EXCITEMENT CONSUMER HAVE STARTED LOOKING FOR VALUE CONSUMERS TAKE PROMOS FOR GRANTED WHEN PROMOS ARE ON PAR AMONGST THE BRANDS, THEY TEND TO PICK THE BRAND ON THE BASIS OF OFFER RETAILERS HAVE TO EXERT MORE TO HANDLE PROMOS
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