10. Sales promotions have a significant effect on the behaviour of consumers and trades people. So, for the Tamil Nadu market, they created a special campaign “The Super Star of the House” and made the cine idol Rajnikant their brand ambassador as in that state he is popularly known as “Superstar”. Sales promotion is designed to be used as a short-term tactic to boost sales – it is rarely suitable as a method of building long-term customer loyalty. Rebate programs offer consumers a chance to receive a reward such as a full or partial reimbursement on the purchase price, a free product or a gift card, in exchange for purchasing a specific product and expending some effort. Offer valid only till stocks last. The advantage of sales promotion is that they are not too expensive for the company when compared with ATL advertising mediums like Television or newspaper. “Without promotion something terrible happens… Nothing!”. Sales promotion is the process of persuading a potential customer to buy the product. It is a direct inducement that offers an extra value of incentive for the product sales force, distributors, or the ultimate consumers with the primary objective of creating an immediate sale. Sales promotion helps to remove the consumer’s dissatisfaction about a particular product and manufacturer. The South is generally characterised by greater degree of going out and people tend to drink outside the house. This forward buying ensures that retailers won’t to go out of stocks.  As dealers have more than the normal stocks, they think it advisable to advertise in local media, arranged displays and offer attractive promotion deals to consumers.  These actions help in increasing the store traffic. As everyone knows that high profits result from increased sales, that’s why, all businesses engage in some innovative promotion techniques, from time to time, to increase awareness of their products and to boost the sales. The basic purpose of sales promotion is to increase the sales of a product by creating demand. Taking 25 percent off the price of a good without altering its benefits increases the customer's perception of value. “Without promotion something terrible happens… Nothing!” Some sales promotions are aimed at consumers. Consumer promo­tion methods are those which directly encourage consumers to buy product in more […] Such promotions can bring in more profits for the manufacturers because they permit price discrimination. Both these campaigns became a major success. Various tools of sales promotion, also known as methods of sales promotion may be divided into two parts – (i) Consumers Pro­motion Methods (ii) Dealer Promotion Methods. The concept of promotion means the process of persuading people to accept the products, concepts, and ideas of the company. Social Benefits ; The social advantages of advertising are. When I speak of promotions, I mean it as a noun. The aim of any given business is to increase the profits. Consumer Sales Promotion Methods. When the sales promotion strategies are targeted to the end consumers, it is referred to as consumer sales promotion. Sales promotions are a marketing communication tool for stimulating revenue or providing incentives or extra value to distributers, sales staff, or customers over a short time period. The Tamilian, consumer in particular, is value oriented, rational and looks up to film stars, while the Keralite is more international in his outlook. These objectives are for both marketers and traders. Sales promotion mainly involves short-term and non-routine incentives offered to dealers as well as consumers. Sales promotion acts as a bridge between advertising and personal selling. Maintains contact between the producer and the consumer; Has an educational value. Some sales promotions are aimed at consumers. Samples are one of the most important tools of sales promotion. The Sales Promotion tools are directed towards Consumers (Consumer promotion tools), Dealers or middlemen (Trade promotion tools), and Sales force. addition to that other researchers considered sales promotion as a direct inducement, proposing special added value for goods to target salesperson, customers or resellers (William and Ferrell, 1987; Gardener and Treved, 1998). Whereas, in Andhra Pradesh, they launched their brand as “Mega Star of the House” as Chiranjeevi was taken as their brand representative. 1. The main motive of consumer-oriented promotion is to increase sales directly by attracting new customers and wooing existing ones. Advance Decision to buy Consumers are able to take advance decision to buy in the light of advertisement. Sales promotions draw attention to a particular product or service being offered. Promotion planning compels you to identify something new or different that offers value to your customers; Samples help consumers verify the quality of the product. Creates word of mouth. 3. Sales promotion could not be a substitute to compromise in quality and effectiveness of marketing. A sales promotion is a marketing tactic used by retailers to drive sales. 2. Promotions, when done well, are an effective way for you to market your business or products and services. Sales promotion consists of short-term incentives to encourage purchases or sales of a product or service. Do You Know the 5 Most Powerful Words for Marketers? Instead I mean a well-planned, seasonally relevant focus on themes or solutions wrapped around your products that your customers will take note of and value, and that prospects will be enticed to try for the first time. This effort typically means the customer … How QR Codes Can be Used to Share Your Content, Design Thinking Interview with Clark Kellogg of Collective Invention, If I Owned a Restaurant, Here’s What I Would Do Immediately (in light of Covid-19 shutdowns). It can eliminate idle … So basically, these are different tools with purpose of encouraging consumers, dealers as well as the company’s sales force. Over 51% of marketers claimed that taking the time to develop relationships with consumers showed positive results in sales. Sales promotion covers those marketing activities other than advertising, publicity, and personal selling that stimulate consumer purchasing and dealer effectiveness. Short-term promotions present an opportunity and encourage dealers to forward buy. Promotion is a key element in putting across the benefits of your product or service to the customers. Saving of time and Labour in making purchases as they already know details about product through advertising viz., features, place where available. Everyone loves a bargain, right? Promotion is a combination of various activities to bring information about the merits of the product to potential consumers and to stimulate their desire to buy it. Buy 2 dozen shampoo sachets & get 2 sachets free. The result of an effective total marketing programme is sales success, which entirely depends on positive customer reaction and an intense, well organised selling effort by resellers and salespersons. Often such price discrimination are offered in specific cities in the country,Bajaj Auto Ltd. started the scheme on 20th august 2001, where by if you buy a Bajaj Spirit two-wheeler you get Rs.3000/- off, valid only in Ahmedabad. D. Benefits / Advantages to Consumers: 1. While many consumers cut coupons from the inserts in Sunday newspapers, other consumers find coupons online or on their cell phones. Sales promotion was done by organizing various ‘super shows’ and ‘mega-shows’ for the masses in states of Tamil Nadu and Andhra Pradesh respectively. Consumer Sales Promotion. It’s a planned and coordinated event meant to sell a specific product or service for a limited time and that meets a seasonally relevant consumer need. Due to the diversity of the market, the importance of sales promotion has increased tremendously. When P.T. Producers can introduce price discrimination through the use of sales promotions.  They can charge different prices to different consumers and trade segments depending on how sensitive each segment is to particular prices.Coupons, special sales events, clearance sales and discounts are examples to explain the phenomenon. Get smart with the Thesis WordPress Theme from DIYthemes. Sales promotion has dual objectives; 1. What are other benefits you think of around sales promotions? Free samples are given to consumers to generate their interest in the product. Samples are defined as offers to consumers of a small amount of a product for trial. Well-designed marketing and promotional strategies ensure long-term success, bring in more customers and ensure profitability for businesses. Knowledge about New Products. They distinguish a company from the rest of other in the competition in terms of prices. I’m not talking about promotions where you drop the prices on your existing products significantly, or when you have a blowout sale to move stale inventory. How to Create Word-of-Mouth for Your Local Business, 11 Marketing Tactics You Should Steal From Starbucks. Marketeers can reap the following advantages from the implementation of appropriate sales promotion technique: 1. A sales promotion is a marketing technique that is designed to entice a customer to take a specific action such as make a purchase or request more information. With that in mind, here are nine benefits of running a well-planned sales promotion: Creates differentiation – When you launch a new product or ask customers to engage with your business in a new way, this sets you apart from your competition. Sales promotion helps in increasing sales in a short span of time. It helps marketers to realize a variety of objectives. The short-term orientation of sales promotions contrasts longer-term objectives of advertising to build brand awareness. Increase the Sales. Barnum. A sales promotion allows brands to communicate on packaging and enables them to focus campaigns around an event. Drypen provides action-oriented intelligence for management professionals that's smart, useful, crisp and just a click away. Sales promotion has a capability to complement and supplement the advertising functions of the marketing. Although sales promotion is an important strategy for producing quick, short-term, positive results, it is not a cure for a bad product, poor advertising, or an inferior sales team. Advantage of Sales Promotion 1. Barnum spoke about promotion, he was most likely using the word as a verb. Create Urgency. Advantage: Entice Customers The primary benefit of sales promotions is that they induce customer traffic and sales by offering a lower price and better value proposition. ~P.T. Consumers are able to get better quality products at competitive prices. Disadvantages of sales promotion. In mid 80s, Philips decided to launch a special project in Tamil Nadu and Andhra Pradesh for their rural buyers. Sales promotion activities include special offers, displays, demonstrations, and other nonrecurring selling efforts that aren’t part of the ordinary routine. It involves offering shoppers a deal that would enable them to either purchase a product for a lower price (e.g., $10 off) OR get more value of the sale (e.g., Buy One Get One Free). To increase buying response by ultimate consumer, and 2. Advantages of Sales Promotion. Sales Promotion Advantages. With that in mind, here are nine benefits of running a well-planned sales promotion: Previous post: How QR Codes Can be Used to Share Your Content, Next post: Design Thinking Interview with Clark Kellogg of Collective Invention. ADVERTISEMENTS: Everything you need to know about the tools and techniques of sales promotion. These tools are unique in their way and directed differently to these three groups. Hence, even small businesses use it quite effectively. 4. Advantages of Sales Promotion. 1. Consumer sales promotions are discounts and incentives offered to consumers as an inducement to get them to buy. People prefer to do business with other people, rather than companies. When brands are interactive by sharing content, commenting, and posting statuses on social media, it personifies a brand. Sales promotion can prove useful for marketers in several ways. One study suggested the following reasons for undertaking actively all forms of sales promotion: 1. When sales promotions are offered for a limited time, they create urgency among customers because they have to act before the promotion expires. To increase selling efforts and intensity by dealers as well as by sales personnel. Communication is an art, an art which creates formidable relationships with consumers that make your brand unique. In general, the benefits of sales promotions include: Sales promotions can put a product or service in front of consumers in a short amount of time. – unique in using a socially-based, sales process to attract and retain new customers; Benefits for the Economy, State and Society: Creates earning opportunities (mainly part-time) and facilitate economy; These include: Helps Create Awareness of New Products – Sales promotion is a highly effective methods for exposing customers and business partners to new products and for moving customers to take an action (e.g., sample a product). Measuring the effectiveness of sales promotion can be easy when compared to measuring the effectiveness of advertising and personal selling.. Others are targeted at intermediaries (such as agents and wholesalers) or at the firm's sales force. As the noise of competitors rises, you will find more and more companies using sales promotions techniques. Sales promotions have a significant effect on the behaviour of consumers and trades people.  Such promotions can bring in more profits for the manufacturers because they permit price discrimination. A brand is … Sales promotion is designed to be used as a short-term tactic to boost sales – it is not really designed to build long-term customer loyalty.. An example would be offering 20% off on certain products to the customers. As sales promotions are mostly announced for a short period, customers may feel a sense of urgency and stop comparing the alternatives.  They are persuaded to act now rather than later.With every 500g pack of Tang, you get a free Tang glass. Calling attention to new products and p… The Bangalorean is as Cosmopolitan as his Mumbai or Delhi counterpart. Such factors have to be taken into consideration while providing incentives to the customers. 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