Sales promotion unit 4
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Sales promotion unit 4

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    Sales promotion unit 4 Sales promotion unit 4 Presentation Transcript

    • Sales Promotion
    • Sales Promotion Campaigns• We make use of effective promotional tool Sales Promotion in short term to stimulate quicker or greater purchase of particular products or services by consumer or the trade. We plan promotional other than personal selling, advertising and publicity that stimulate consumer purchasing and dealer effectiveness such as displays, shows and demonstrations, expositions and various non current selling efforts, not in ordinary routine.
    • Cont…• Product Displays We plan and execute effective product displays in retail outlets, multiplexes, trade fairs and other mass gathering places and occasions.• Demonstrations We organize product demonstrations to the direct individual / industry consumers about the features and offers of the product / service.• Promotional Content We prepare and collate the promotional material such as brochures, leaflets, pamphlets and fliers to educate consumers on the products and services.
    • Cont..• Free Gifts We help clients to conduct short term promotional campaign by offering their consumers with attractive free offers and gifts.• Premium Packs We conduct sales promotion campaigns through offering product extra without any additional cost as premium packs to generate more sales in that particular time duration.• Off-SeasonPackage We plan special product packages with discounted price in off-season time to generate sales.•
    • Cont..• Sampling We help and design clients with sampling promotional campaigns specifically for new products and services or new features in existing products.• Coupons We design special coupons such as scratch cards, gift hampers, cash refund offers and so on.
    • How to Design a Sales PromotionCampaign• Sales promotions that cause customers to flock to your store and encourage some to become regular consumers, are the building blocks of business success. The right ad mix brings customers in without over spending. Knowing what online marketing to add to the equation makes persuading potential clients even more cost effective. Devising repeatable campaigns to turn into annual events to create ongoing customer enthusiasm is key.
    • Instructions1. Calculate sales needs or quotas. Concrete numbers help develop a comprehensive plan.2. Research past successful sales and document what customers bought. Organize the promotion around a products popularity. Introduce new products to appeal to the existing client base and bring in new customers3. Define the type of promotion to create. Calculate how much of each item needs to be sold to meet quota so youll know how much inventory to order. Select a theme and define the time line.
    • Cont…4. Entice customers with a themed promotion. Designing around seasons or other well-known themes allows you to tie in promotions with shopping holidays. Celebrations such as Black Friday -- the Friday after Thanksgiving -- and Christmas -- when customers are shopping for bargains -- provide promotional opportunities. Annual seasonal campaigns often keep customers coming back for more and are cost friendly to duplicate.5. Keep the promotion simple. An elaborate program pushing too many products overwhelms many consumers. Focus on a few key sales rather than aisles so full, customers have to negotiate just to move around. Seasoned promoters incorporate purchasing incentives such as samples, gifts, rebates, coupons, contests and sweepstakes to encourage sales, according to the Bureau of Labor Statistics. Select one or two inducements to design the campaign around.
    • Cont….6. Upsell utilizing a loss leader. This technique offers a low-selling product to promote sales of more expensive items, and hopefully create future revenue, according to Alt Concepts. Offering a percentage off a scarf with the purchase of a sweater is an example. Customers who like the promotion may buy for themselves and a friend, or start a collection which creates ongoing revenue. 7. Launch an employee-incentive contest. Engage staffers by encouraging competition during the promotion. Offer rewards such as free movie passes, restaurant gifts cards, even cash. Increase sales by awarding a grand prize, but sprinkling enough prizes throughout the contest so most workers participate. Add the cost of the awards to the total cost to run the promotion.
    • Cont…..8. Promote and advertise. Calculate the advertising budget. Balance it with the sales quota. A promotion costing twice as much to advertise than the sales it produces is a disaster. Price shop newspaper, radio and local cable television ads to devise a well-rounded, yet cost-effective campaign.9. Multiply the ad campaign by publishing online flyers and coupons. Social marketing has revolutionized the way businesses create buzz. Social sites provide individuals with a voice the smart sales promoter engages. Ask online customers to select their favorite promo items. Include the top picks in the sale. Social media can amplify your message when you get customers involved.
    • Design a Sales Promotion CampaignContents• Presentation objective• Sales promotion• Campaign design
    • Cont….Presentation objective• To show the benefits and challenges of sales promotion campaign• To describe the steps involved in designing a promotion campaign
    • Cont…..Sales promotion• Advertising is defined as:• “Any form of communication in the paid media”• Promotion, on the other hand, is defined as:• “An incentive, usually at the point of sale, intended to enhance the intrinsic value of am product or service”
    • Cont…..Campaign design• Set objective• Set budget• Use an agency• Message selection• Media choice• Campaign scheduling• Campaign evaluation• Organization and control of campaign
    • OUT SOURCING SALES PROMOTIONWhy sales promotion is out sourced?• Identification of strengths and weakness amongst your sales team, whatever the size, ensuring you are maximizing return for your spend.• Shorten sales cycles, thus increasing revenue and cash flow.• Optimize the time the sales team spend on given opportunities, so that they can spend more time closing profitable opportunities.• Outsourcing gives a business the flexibility to change third- party vendors whenever necessary. This process is not as time consuming as the normal employee hiring process, because they are not screening individuals, they are considering established companies with proven track records.
    • Cont…..ADVANTAGES:• Identification of strengths and weakness amongst your sales team, whatever the size, ensuring you are maximizing return for your spend.• Shorten sales cycles, thus increasing revenue and cash flow.• Optimize the time the sales team spend on given opportunities, so that they can spend more time closing profitable opportunities.• Accurate information, based on sales both won and lost, which ca be used by product planning and service teams.• Ongoing coaching and training based on your real opportunities, which makes your team the envy of the industry, and thus enables the firm to attract the best.
    • Cont….• Identification of a team member who can take over the role of sales manager, so that he promote form within, which is fantastic for morale and motivation• Outsourcing gives a business the flexibility to change third- party vendors whenever necessary. This process is not as time consuming as the normal employee hiring process, because they are not screening individuals, they are considering established companies with proven track records.• Whether a business chooses to outsources on a temporary basis or permanently, the advantages are well worth the decision to do so. Most business, which set outsource temporarily end up making an ongoing commitment.
    • CONT….DISADVANTAGES:• One of the biggest disadvantages of outsourcing is undesirable results. This is especially true when a company hires a third- party vendor to mass produce a product. In the event that the finished products do not meet quality standars, the must be repeated by a different vendor.• Not only is this a waste of time and materials, it can also be very costly for the company who outsourced the project. They are essentially paying twice for the same job. In addition there is always the possibility that the company may lose sales, during this same period because of the lack of available product.
    • ONLINE SALES PROMOTIONSales promotion through net• Net can be used for sales promotion. It may offer different types of incentives to promote the product, contest, sweep stakes, discount, rebate, coupons etc. These are different forms of promotions that can be offered. For example. www.ebay.in, www.yahoo.com, www.yahoo.co.in etc. are few companies that offer various products and services on discounts and other benefits.
    • CONT….Four challenges• Firstly online sales promotion activities are required to generated awareness about not only their own presence but also accentuate the importance of the brand, constantly emphasizing on the brand, the purchase of which would bring a host of other benefits for customers who but the brand.• Another challenge for online sales promotion that also scores a direct and tangible advantage for the marketer is the prospect of engaging the target market in purchase behavior.
    • Cont…..• The brand should be strong enough and should have enough qualities to motivate the consumer to buy it again once the sales promotion activities have succeeded in enabling the customers to buy the brand.• The third challenge that online sales promotion activities face is the challenge of maintaining the market presence of the brand. This happens through the constant emergence of new sales promotion activities for short time periods that maintain the freshness of the brand.• Last but not the least, online sales promotion activities also have a commitment of reminding the target market constantly about the brand through their frequent reminders and their innovative presence that also enhance the demand of the brand.