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Sales Promotion And Public Relations

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  • 1. Sales Promotion and Public Relations Dr. Anil Mishra [email_address] 9937635059 Asian School of Business Management
  • 2. Sales Promotion
    • Sales promotion can be defined as an activity taken up to boost the sales of a product.
    • it can include distribution of free samples, offering free gifts, conducting trade fairs, exhibitions and competitions, offering temporary price discount, etc.
  • 3. Purpose of Sales promotion
    • Encouraging the customers to try a new product like free samples distributed by different companies.
    • Attract new customers
    • Encourage customers to use the product or service and make them brand loyal.
    • Counter a competitor’s promotional activities.
  • 4. Importance of sales promotion
    • When sellers introduce new products or new brands in the market.
    • When an economy is going through a recessionary phase, customer become more price sensitive.
    • When sellers aims at triggering the impulsive buying behavior of the customers.
    • A company seeks to obtain greater cooperation from its retailers.
  • 5. Decisions in sales promotion
    • Consumer sales promotion: This type of sales promotion is targeted at the end consumers. Customer sales promotion is a “Pull Strategy” and encourages the customers to make a purchase.
    • Trade sales promotion: This type of sales promotion is targeted at the distribution channel. It is a “Push Strategy” and encourages the channel members to stock the product.
  • 6. Consumer sales promotion methods
    • Price promotions: (price discounting)
    • Coupons :
    • Free gifts/ samples: This is also known as “premium promotion” as a consumer gets something in addition to the main purchase.
    • Money refunds
    • Frequent user incentives
    • Point of purchase displays: attractive , informative and well positioned point of purchase displays therefore form an important part of sales promotion
    • Installment offers
    • Consumers contest
    • Consumer sweepstakes: consumer are required to submit their names to be included in a draw for prizes.
    • Trade shows
  • 7. Trade sales promotion methods
    • Buying allowances
    • Buyback allowance: incentive for each additional unit purchased after the initial deal
    • Merchandise allowance: manufacturer agrees to pay the reseller certain amount of money for promoting the company’s product
    • Free merchandise: an additional amount of the product is offered without any additional cost.
    • Dealer loader: reward or gift along with display kit
    • Dealer listing: company in its advertising using name of dealers.
  • 8. Public relations
    • The planned and sustained effort to establish and maintain goodwill and mutual understanding between an organisation and its public.
    • Public includes its employees, stakeholders, trade unions, general public,customers, media, government and politicians etc.
  • 9. Marketing and PR
    • Functions of a marketing manager
    • Functions of PR manager
  • 10. Major decisions in PR
    • Setting objectives
    • Built awareness: take part in social activities.
    • Built credibility: news comes from editorial section.
    • Motivate sales force:
    • Cut down promotional cost.
  • 11. Selecting message and media
    • Message should be timely, interesting, accurate and in the public interest.
    • Media include: newspapers, newsletters, the TV, internet etc.
  • 12. Implement the plan
  • 13. Majors tools of PR
    • News release: usually a single page copy containing not more than 300 words.
    • Feature article: a featured article is prepared for a specific publication and can contain upto 3000 words
    • Captioned photograph: it contains a photograph with a brief description of the picture’s contents. They are commonly used for launching new product.
    • Press conference: where company announces new events.
    • Sponsor a social events
  • 14. Techniques for PR
    • Consumer communication: like customer press releases, promotional videos, product launch events.
    • Business communication: through company videos, direct mailing, trade press release , trade exhibition etc.
    • Employee communication: in house news letter, notice board, company get together.
  • 15. Evaluating PR
    • Monitoring the amount of media coverage obtain
    • Measuring attendance at meeting, conference
    • Measuring the number of inquiries received in response to specific public relations efforts.
  • 16. Thank U