Sales Promotion in Retailing

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A presentation on retail sales promotion - arjun k rajan

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Sales Promotion in Retailing

  1. 1. Sales Promotion > Arjun K Rajan
  2. 2. What Is Sales Promotion?? <ul><li>Communication strategies designed to act as a direct inducement, an added value, or incentive for the product to customers. </li></ul><ul><li>Advertising & publicity may create the desire but its conversion into sales can be achieved only by sales promotion through its short-term incentives. </li></ul><ul><li>Helps to shape the buying patterns, attract new customers, or increase sales. </li></ul>
  3. 3. Objectives – Aimed @ Buyers <ul><li>Stop & Shop - Customers who are just passing by, with no intention of purchasing would be encouraged to enter the store. </li></ul><ul><li>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. </li></ul>
  4. 4. Contd.. <ul><li>Buy Bigger – The promotional activity aims to persuade the customer to buy in a greater quantity or buy other products in addition. </li></ul><ul><li>Repeat Purchase – The activities may be aimed at persuading the customer for repeated buying. </li></ul><ul><li>Introduce a New Brand – A sales promotion may be engaged to introduce a new brand to customers </li></ul>
  5. 5. Contd.. <ul><li>Counter Competitor’s Strategy – A sales promotion may also be used to counter the promotional activities of a competitor brand or retailer. </li></ul>
  6. 6. Tools Used for Sales Promotion
  7. 7. Coupons <ul><li>Allows the buyer a reduction in price on specific merchandise or products. </li></ul><ul><li>Delivered by various channels. </li></ul><ul><li>Eg: Dominos, Bru Coffee, </li></ul>
  8. 9. Contests <ul><li>Insists consumer to compete and prizes are on the basis of skill. </li></ul><ul><li>Winner is decided on the basis of skill rather than luck. </li></ul><ul><li>Eg: Bids, Josco Jewellers, </li></ul>
  9. 11. Demonstrations <ul><li>Used to show the customers, the performance capabilities of the product. </li></ul><ul><li>Videos also used for the purpose. </li></ul><ul><li>eg: High definition videos played on LCD screens at a home appliance shop. </li></ul>
  10. 13. Referral Gifts <ul><li>Uses word-of-mouth advantage. </li></ul><ul><li>Highly effective. </li></ul><ul><li>Cash incentives can also be given </li></ul><ul><li>Eg: Hero Honda Passport </li></ul>
  11. 15. Product Promotions & Schemes <ul><li>Straightforward scheme in which the customer either gets a monetary discount or gets two products of the same type for the price of one. </li></ul><ul><li>BOGOF </li></ul><ul><li>Widely used during lot clearance. </li></ul><ul><li>Also used to increase footfall. </li></ul><ul><li>Eg: 2 Onida TV’s for the price of 1 </li></ul>
  12. 17. Product Promotions & Schemes <ul><li>Straightforward scheme in which the customer either gets a monetary discount or gets two products of the same type for the price of one. </li></ul><ul><li>BOGOF </li></ul><ul><li>Widely used during lot clearance. </li></ul><ul><li>Also used to increase footfall. </li></ul><ul><li>Eg: 2 Onida TV’s for the price of 1 </li></ul>
  13. 18. Samples <ul><li>Provides the customer with an opportunity to try the product at o cost. </li></ul><ul><li>In-store, door to door, mailer, magazines & newspapers. </li></ul><ul><li>Usually initiated along with introduction of a new product. </li></ul><ul><li>Sample packs also offered at very low price. </li></ul>
  14. 19. Frequent Shopper Programmes <ul><li>Customer gets benefited in repeated purchases. </li></ul><ul><li>Special offers for regular shoppers. </li></ul><ul><li>Invitation to sponsored programmes. </li></ul><ul><li>EMI schemes, Discount Cards. </li></ul>
  15. 20. Point of Purchase (POP) Displays <ul><li>Promotional signs and interior displays, often located at the point of sale or alongside displays of merchandise. </li></ul><ul><li>Improves in-store branding, sales floor communication and provide information to the customers. </li></ul><ul><li>Helps retailer to create a buying environment inside the store. </li></ul><ul><li>Accelerate impulse buying decisions. </li></ul>
  16. 22. Promotions Directed @ Trade or Channel Members <ul><li>To interact directly with the members of trade. </li></ul><ul><li>Done by participating at trade fares, exhibitions and conferences. </li></ul><ul><li>A platform for manufacturers to exhibit products ad services offered & to interact with buyers. </li></ul><ul><li>Eg; Garment Fairs, Textile Machinery Exposition </li></ul>
  17. 23. Public Relations & Publicity <ul><li>Marketing communications function aimed at fostering goodwill. </li></ul><ul><li>The retailer strives to create ad sustain a favorable image with consumers, shareholders, suppliers and public at large. </li></ul><ul><li>Usually undertaken by an outsider firm. </li></ul><ul><li>Press releases, feature stories, company newsletters, interviews & press conference. </li></ul>
  18. 24. Events Resulting in Publicity <ul><li>Store Openings </li></ul><ul><li>Store Renovations </li></ul><ul><li>Celebrity Visits & Affiliations </li></ul><ul><li>Designer Associations </li></ul><ul><li>New Product Ranges & Launches </li></ul><ul><li>Awards Received by Retailer </li></ul><ul><li>Fashion Shows & Sponsored Events </li></ul>

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