Sales Promotion > Arjun K Rajan

What Is Sales Promotion?? Communication strategies designed to act as a direct inducement, an added value, or incentive for the product to customers. Advertising & publicity may create the desire but its conversion into sales can be achieved only by sales promotion through its short-term incentives. Helps to shape the buying patterns, attract new customers, or increase sales.

Communication strategies designed to act as a direct inducement, an added value, or incentive for the product to customers.

Advertising & publicity may create the desire but its conversion into sales can be achieved only by sales promotion through its short-term incentives.

Helps to shape the buying patterns, attract new customers, or increase sales.

Objectives – Aimed @ Buyers Stop & Shop - Customers who are just passing by, with no intention of purchasing would be encouraged to enter the store. Shop & Buy – Once the customers have been persuaded to enter the shop, they have to be convinced to purchase by presenting it in such a manner that the customer feels a desire to buy.

Stop & Shop - Customers who are just passing by, with no intention of purchasing would be encouraged to enter the store.

Shop & Buy – Once the customers have been persuaded to enter the shop, they have to be convinced to purchase by presenting it in such a manner that the customer feels a desire to buy.

Contd.. Buy Bigger – The promotional activity aims to persuade the customer to buy in a greater quantity or buy other products in addition. Repeat Purchase – The activities may be aimed at persuading the customer for repeated buying. Introduce a New Brand – A sales promotion may be engaged to introduce a new brand to customers

Buy Bigger – The promotional activity aims to persuade the customer to buy in a greater quantity or buy other products in addition.

Repeat Purchase – The activities may be aimed at persuading the customer for repeated buying.

Introduce a New Brand – A sales promotion may be engaged to introduce a new brand to customers

Contd.. Counter Competitor’s Strategy – A sales promotion may also be used to counter the promotional activities of a competitor brand or retailer.

Counter Competitor’s Strategy – A sales promotion may also be used to counter the promotional activities of a competitor brand or retailer.

Tools Used for Sales Promotion

Coupons Allows the buyer a reduction in price on specific merchandise or products. Delivered by various channels. Eg: Dominos, Bru Coffee,

Allows the buyer a reduction in price on specific merchandise or products.

Delivered by various channels.

Eg: Dominos, Bru Coffee,

Contests Insists consumer to compete and prizes are on the basis of skill. Winner is decided on the basis of skill rather than luck. Eg: Bids, Josco Jewellers,

Insists consumer to compete and prizes are on the basis of skill.

Winner is decided on the basis of skill rather than luck.

Eg: Bids, Josco Jewellers,

Demonstrations Used to show the customers, the performance capabilities of the product. Videos also used for the purpose. eg: High definition videos played on LCD screens at a home appliance shop.

Used to show the customers, the performance capabilities of the product.

Videos also used for the purpose.

eg: High definition videos played on LCD screens at a home appliance shop.

Referral Gifts Uses word-of-mouth advantage. Highly effective. Cash incentives can also be given Eg: Hero Honda Passport

Uses word-of-mouth advantage.

Highly effective.

Cash incentives can also be given

Eg: Hero Honda Passport

Product Promotions & Schemes Straightforward scheme in which the customer either gets a monetary discount or gets two products of the same type for the price of one. BOGOF Widely used during lot clearance. Also used to increase footfall. Eg: 2 Onida TV’s for the price of 1

Straightforward scheme in which the customer either gets a monetary discount or gets two products of the same type for the price of one.

BOGOF

Widely used during lot clearance.

Also used to increase footfall.

Eg: 2 Onida TV’s for the price of 1

Product Promotions & Schemes Straightforward scheme in which the customer either gets a monetary discount or gets two products of the same type for the price of one. BOGOF Widely used during lot clearance. Also used to increase footfall. Eg: 2 Onida TV’s for the price of 1

Straightforward scheme in which the customer either gets a monetary discount or gets two products of the same type for the price of one.

BOGOF

Widely used during lot clearance.

Also used to increase footfall.

Eg: 2 Onida TV’s for the price of 1

Samples Provides the customer with an opportunity to try the product at o cost. In-store, door to door, mailer, magazines & newspapers. Usually initiated along with introduction of a new product. Sample packs also offered at very low price.

Provides the customer with an opportunity to try the product at o cost.

In-store, door to door, mailer, magazines & newspapers.

Usually initiated along with introduction of a new product.

Sample packs also offered at very low price.

Frequent Shopper Programmes Customer gets benefited in repeated purchases. Special offers for regular shoppers. Invitation to sponsored programmes. EMI schemes, Discount Cards.

Customer gets benefited in repeated purchases.

Special offers for regular shoppers.

Invitation to sponsored programmes.

EMI schemes, Discount Cards.

Point of Purchase (POP) Displays Promotional signs and interior displays, often located at the point of sale or alongside displays of merchandise. Improves in-store branding, sales floor communication and provide information to the customers. Helps retailer to create a buying environment inside the store. Accelerate impulse buying decisions.

Promotional signs and interior displays, often located at the point of sale or alongside displays of merchandise.

Improves in-store branding, sales floor communication and provide information to the customers.

Helps retailer to create a buying environment inside the store.

Accelerate impulse buying decisions.

Promotions Directed @ Trade or Channel Members To interact directly with the members of trade. Done by participating at trade fares, exhibitions and conferences. A platform for manufacturers to exhibit products ad services offered & to interact with buyers. Eg; Garment Fairs, Textile Machinery Exposition

To interact directly with the members of trade.

Done by participating at trade fares, exhibitions and conferences.

A platform for manufacturers to exhibit products ad services offered & to interact with buyers.

Eg; Garment Fairs, Textile Machinery Exposition

Public Relations & Publicity Marketing communications function aimed at fostering goodwill. The retailer strives to create ad sustain a favorable image with consumers, shareholders, suppliers and public at large. Usually undertaken by an outsider firm. Press releases, feature stories, company newsletters, interviews & press conference.

Marketing communications function aimed at fostering goodwill.

The retailer strives to create ad sustain a favorable image with consumers, shareholders, suppliers and public at large.

Usually undertaken by an outsider firm.

Press releases, feature stories, company newsletters, interviews & press conference.

Events Resulting in Publicity Store Openings Store Renovations Celebrity Visits & Affiliations Designer Associations New Product Ranges & Launches Awards Received by Retailer Fashion Shows & Sponsored Events

Store Openings

Store Renovations

Celebrity Visits & Affiliations

Designer Associations

New Product Ranges & Launches

Awards Received by Retailer

Fashion Shows & Sponsored Events