Sales Promotion And Public Relations


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Sales Promotion And Public Relations

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