ADVERTISEMENTS: Everything you need to know about the tools and techniques of sales promotion. 4. Promotion is a key element in putting across the benefits of your product or service to the customers. 1. In mid 80s, Philips decided to launch a special project in Tamil Nadu and Andhra Pradesh for their rural buyers. 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). Consumer sales promotions are discounts and incentives offered to consumers as an inducement to get them to buy. Buy 2 dozen shampoo sachets & get 2 sachets free. 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). “Without promotion something terrible happens… Nothing!”. – 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; 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. Sales promotion has dual objectives; 1. Consumer Sales Promotion Methods. Sales promotion activities include special offers, displays, demonstrations, and other nonrecurring selling efforts that aren’t part of the ordinary routine. Barnum spoke about promotion, he was most likely using the word as a verb. Increase the Sales. How to Create Word-of-Mouth for Your Local Business, 11 Marketing Tactics You Should Steal From Starbucks. Sales promotion can prove useful for marketers in several ways. 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. Advantages of Sales Promotion. 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. Consumers are able to get better quality products at competitive prices. D. Benefits / Advantages to Consumers: 1. 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. Marketeers can reap the following advantages from the implementation of appropriate sales promotion technique: 1. The basic purpose of sales promotion is to increase the sales of a product by creating demand. Both these campaigns became a major success. These tools are unique in their way and directed differently to these three groups. 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. Samples are defined as offers to consumers of a small amount of a product for trial. Create Urgency. The aim of any given business is to increase the profits. Advantage of Sales Promotion 1. “Without promotion something terrible happens… Nothing!” Well-designed marketing and promotional strategies ensure long-term success, bring in more customers and ensure profitability for businesses. Maintains contact between the producer and the consumer; Has an educational value. 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. Measuring the effectiveness of sales promotion can be easy when compared to measuring the effectiveness of advertising and personal selling.. Sales promotion could not be a substitute to compromise in quality and effectiveness of marketing. 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. Others are targeted at intermediaries (such as agents and wholesalers) or at the firm's sales force. The advertisers bear the cost of newspapers, magazines and provide the reading material to the consumers at a cheaper price. 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. It can eliminate idle … 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. 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. Drypen provides action-oriented intelligence for management professionals that's smart, useful, crisp and just a click away. Saving of time and Labour in making purchases as they already know details about product through advertising viz., features, place where available. Do You Know the 5 Most Powerful Words for Marketers? Short-term promotions present an opportunity and encourage dealers to forward buy. Hence, even small businesses use it quite effectively. The main motive of consumer-oriented promotion is to increase sales directly by attracting new customers and wooing existing ones. When the sales promotion strategies are targeted to the end consumers, it is referred to as consumer sales promotion. Taking 25 percent off the price of a good without altering its benefits increases the customer's perception of value. An example would be offering 20% off on certain products to the customers. 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. Everyone loves a bargain, right? 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. As the noise of competitors rises, you will find more and more companies using sales promotions techniques. Some sales promotions are aimed at consumers. Creates word of mouth. A sales promotion allows brands to communicate on packaging and enables them to focus campaigns around an event. The short-term orientation of sales promotions contrasts longer-term objectives of advertising to build brand awareness. Samples are one of the most important tools of sales promotion. Barnum. Sales promotion mainly involves short-term and non-routine incentives offered to dealers as well as consumers. Communication is an art, an art which creates formidable relationships with consumers that make your brand unique. This effort typically means the customer … Sales promotion consists of short-term incentives to encourage purchases or sales of a product or service. 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. People prefer to do business with other people, rather than companies. Sales promotion helps in increasing sales in a short span of time. Sales promotion was done by organizing various ‘super shows’ and ‘mega-shows’ for the masses in states of Tamil Nadu and Andhra Pradesh respectively. Over 51% of marketers claimed that taking the time to develop relationships with consumers showed positive results in sales. Advantages of Sales Promotion. When brands are interactive by sharing content, commenting, and posting statuses on social media, it personifies a brand. Due to the diversity of the market, the importance of sales promotion has increased tremendously. What are other benefits you think of around sales promotions? The concept of promotion means the process of persuading people to accept the products, concepts, and ideas of the company. Free samples are given to consumers to generate their interest in the product. 10. Social Benefits ; The social advantages of advertising are. ~P.T. When P.T. 1. Advance Decision to buy Consumers are able to take advance decision to buy in the light of advertisement. Calling attention to new products and p… Sales promotion has a capability to complement and supplement the advertising functions of the marketing. Consumer Sales Promotion. 2. To increase buying response by ultimate consumer, and 2. Sales promotions draw attention to a particular product or service being offered. A sales promotion is a marketing tactic used by retailers to drive sales. 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. It helps marketers to realize a variety of objectives. One study suggested the following reasons for undertaking actively all forms of sales promotion: 1. The Sales Promotion tools are directed towards Consumers (Consumer promotion tools), Dealers or middlemen (Trade promotion tools), and Sales force. They distinguish a company from the rest of other in the competition in terms of prices. 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. Knowledge about New Products. Sales promotion acts as a bridge between advertising and personal selling. Sales promotion is the process of persuading a potential customer to buy the product. While many consumers cut coupons from the inserts in Sunday newspapers, other consumers find coupons online or on their cell phones. To increase selling efforts and intensity by dealers as well as by sales personnel. Sales Promotion Advantages. Such promotions can bring in more profits for the manufacturers because they permit price discrimination. 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. 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. The South is generally characterised by greater degree of going out and people tend to drink outside the house. 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). 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”. 3. 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. Promotion planning compels you to identify something new or different that offers value to your customers; A brand is … 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. 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. Their brand as “Mega Star of the company ’ s dissatisfaction about a particular product and manufacturer forms. 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