This document discusses sales promotions and how companies are allocating larger portions of their marketing budgets to promotional activities. It provides examples of common sales promotion techniques used by companies, such as discounts, contests, lucky draws, quantity gifts, and low interest financing to encourage instant purchases. The document also highlights some specific promotional campaigns run by real estate and automotive companies in India that resulted in significant increases in bookings and sales. It concludes by noting that while sales promotions can initially boost sales, overuse of deals and discounts may undermine brand loyalty and encourage customers to wait for the next promotion rather than making regular purchases. Moderation is advised for healthy, sustainable business.

1. Business Standard- The Strategist
24th June 2013
Rohit Nautiyal

2. PROMOTION
Activities performed by the companies
that involves discriminating information
about product, product line, brand or
company.
Past- 10% of marketers’ budget
Present- 35-45%

4.  Typically consumer sales promotions include
discounts, contests, lucky draws, quantity gifts,
financing at low interests, surprise gifts.
 Sometimes marketers have tried combination of
these activities to lure customers into making
instant purchase decisions.

5.  The project at Noida extension, a new township coming up near
Delhi, next to the already developed Noida-Ghaziabad border.
While opening bookings for the township, the realty firms
GAURSONS & SAVIOUR BUILDERS decided to gove away 60
Hyundai i10 Cars as a part of lucky draw. To give a fair chance to
those who make bookings, a draw is conducted at the end of every
10th booking.
 (APRIL TO JUNE)
 Company claims that more than 400 bookings are done with 23
cars gifted to the customers so far.

7.  “Hungry Kya”- Daily combos
 “Treat of the week”- Happy Meal
 Torque Auto- Skoda dealer promised a free Fabia
hatchback to customers who bought Sedan. (700
bookings- 5 days!!)

10. For every pack of Marie biscuits,
free glass bowl was given.
This led to significant increase in sales.

11. CONCLUSION
In sum, sales promotions may look like the first option
to take when you need to perk up sales but
research has proven it is a strategy fraught with
danger. First, when you offer deals and discounts
too often you may end up alienating the loyal
customer. She will think there's something wrong
with the brand. Worse, you may induce shoppers
to wait for the next deal - bad news for your
round-the-year business.
The bottom line is simple:
Like so many other potentially addictive
behaviours, sales promotions can be
healthy only in moderation.