Techniques of Sales Promotion

BY
SMART LEARNING WAY
 FLOW OF PRESENTATION

 Introduction of Sales Promotion

 Defination of Sales Promotion
 Objective of Sales Promotion
 Techniques of Sales Promotion
 Conclusion
 Review of the Presentation
 Bibliography
 Introduction of sales Promotion
 Sales promotion is an important instrument
in marketing lubricate the marketing efforts.
Today Sales promotion is a necessity and not
merely luxury or a fashion It is not an
expenditure; it is an investment which can pay
rich dividends. It is an integral part of the
marketing effort.
 Sales promotion is
referred to the promotion activities other than
personal salesmanship advertising and
publicity, which stimulate consumer purchasing
and dealer effectiveness, e.g. ,displays,
exhibitions,and showrooms, demonstrations,
free samples
 coupons premiums, contests and various
other non- recurrent selling efforts not in the
ordinary routine It is a plus ingredient in the
marketing mix, whereas advertising and
personal salesmanship, are essential and
basic Ingredients in the marketing mix.

• In short sales promotion is a bridge or a

connecting link covering the gap between
advertising and personal salesmanship, the
two wings of promotion
CONT……
The manufacture or wholesaler may have a
good product, reasonable price, attractive
package, etc. He may have a good sales force.
He may have spent a lot on advertising. Even
then he knows that the product may not sell by
itself. He can get orders from dealers or
retailers. But many more things than orders are
required to be achieved. The sales of the
product has to be promoted through a number
of influences at the place where retailers and
prospective product has to be promoted
CONT…..

through a number of influences at the place

where retailers and prospective buyers must be
attracted, urged and even persuaded to buy
your product. Sales promotion is a vital link
between advertising and field-selling. It aims at
stimulating consumer purchasing at the point of
sale and dealers effectiveness at the retail
channel of distribution, particularly because
retailing is a highly competitive field.
 DEFINATION OF SALES
PROMOTION
American Marketing Association Defined :

“Sales promotion, in a specific sense refers

to those sales activities that supplement
both personal selling and advertising and
coordinate them and help to make them
effective, such as displays, shows and
expositions, demonstrations, and other non-
recurrent selling efforts not in the ordinary
routine.”
2) “Sales promotion moves the product toward
the buyer, while advertising moves the
buyer toward the product .’’

3) According to George W.Hopking “Sales

promotion is an organized effort applied to
the selling job to secure the greatest
effectiveness for advertising and for dealer's
help”
CONT…..
4) According to L.K. Johnson, “Sales promotion
includes incentive offering and interest-
creating activity which are generally short
term marketing events other then
advertising,personal selling, publicity and
direct marketing.The purpose of sales
promotion is to stimulate,motivate and
influence the purchase and other desired
behavior responses of the firm’s customers”
 Why Use Sales Promotion ?

 Sales promotion and publicity, when combined

with advertising and personal selling programmes,
really add up to more than the sum of the parts.
Sales promotion is that “something extra”(2 + 2 =5)
If can arouse enthusiasm, create a buying mood or
spark an immediate reaction from consumers,
dealers and the firm’s salesperson. Many sales
promotion campaigns involve the use of incentives.
Incentives are something of financial is often
thought as special selling effort to accelerate
sales.Point - of – purchase displays give a real pay
off, sales rising by 25 to 50 per cent or even more.
 Objective of Sales Promotion

 Increase sales volume

 Speed up the sales of slow moving product
 Attract new product and increase trial
 Encourage repeat purchase
 Motivate dealers
 To gain advantageous shelf – space
 To increase store traffic
 Improve relationship with dealers
CONT…..

 To block competitors’ moves

 Motivate sales force
 Deflect customers’ attention from price
 Techniques of Sales Promotion
1 Dealer Promotion

2 Consumer Promotion

3 Sales-Force Promotion

4 Internal organization Promotion

5 Industrial promotion
 Dealer Promotion
It may include various schemes.

a) Advertising Material. The advertising

materials prepared by the company such as store
sings,banners,shelf sings,boards, etc.,are
distributed to sub - dealers for display purposes.

b) Store demonstrations. A personal

demonstration is good to introduce a new product
as its peculiar advantage can be highlighted and
the consumer’s doubts cleared. It can be used to
restimulate an old product. A good demonstration
with a great deal of action will draw heavy crowds
into the store will attract attention to the product.
CONT…..
c) Special displays and shows. These are seasonal
in character but could be arranged in an elaborate
manner and for all the product of a company.
Usually, these are arranged along with trade fairs
and exhibitions.

d) Dealer contests. This is an indirect way of

increasing sales. It is conducted by the
manufacture at a wholesales or retail level.Such
contests may take the from of window display,
internal store display, sales contests, etc. The
winners are rewarded either in cash or in some
other interesting forms. This certainly involves
financial commitments.
CONT……

e) Dealer premia. The dealer is offered a gift

every time he purchases a given number of units
of the company’s brands. The scheme is also
financial in nature as the dealer is given cash/kind
discount for such purchases.
 Consumer Promotion
 The consumer or user promotion techniques
are the various devices directly used to motivate
and stimulate the consumer towards larger
purchases. The techniques may be executed by
house to house visits of the customers or by
visiting their offices, or by distributing them to the
shops of the middleman. Some important
consumer/user promotion techniques are briefly
stated below:
a) Coupons. Coupons (a chit of stated value) are
given directly to the consumer.These coupons
are, in most cases,kept inside the package.The
consumer may receive a price reduction of the
stated value of the coupon at the time of
purchase.
CONT…..

b) Price - off offer’ (also known as ‘bargain offer’,

‘Price Pace’). This offer is intended to stimulate the
sales during a slump season. in this method the
customer is offered a reduction from the printed
price list . It is also used when a substitute or
competing product enters the market.

c) Money refund offer An offer, usually stated on

the manufacturers will return,within a stated period,
part or all of the purchaser’s money if he is not
completely satisfied with the product.
CONT…..
d) Samples In the hope of converting a prospect
into a customer, a sample (small quantity of the
product) may be given. This helps the consumer
to verify the real quality of the product. Sampling
is a fast method of demand creation, because one
knows the result as soon as the consumer has
had time to use the sample and buy the brand.

e) Trading Stamps. A premium in the form of

stamps is given by the seller to consumers while
selling goods. The number and value of stamps
that the buyer receives depend on the
purchase.These stamps are redeemable through
premium catalogues at the stamp redemption
centers.
CONT…..
g) Factory - in - pack- Premium
These are popular in the case of
Baby Food and Tinned Food items.The premium
item is packed with the product in the box itself or
it may be appended to the outside box (spoons,
cups,measuring glass,etc.) Such premia are
inexpensive since they go along with the product.
 Sales-Force Promotion

 This may also be termed ‘sales force

sales promotion’. A significant amount of a
company’s sales promotional efforts is aimed
at the company’s own sales force.The idea
behind such activity is to make the
salesman’s efforts more effective.Sales
promotion at this level may include contests,
premiums, visual aids be used in sales
presentations.
 The following promotion aids are used for
sales-force promotion
a) Sales meeting : producers often organize annual
meetings for the sales-force, for giving them
necessary information about any new product to
be introduced, new sales plans and techniques,
and the new sales programme of the producer.

b) Sales rally: Large companies organize sales rellies

for internal and travelling salesman,supervisors
and other sales employees engaged in sales
activity.
c) Sales letter : Sales letters are used to know
the problem of buyers. On the basis of which
the sales programme could be made more
effective keeping in view of the changing
needs of consumers.

d) Bonus : Bonus is paid to salesman from the

portion of profit of the firm every year to
motivate him for better efforts.

f) Gift : In addition to bonus, gifts are also be

given to the salesman in special occasions,
like Diwali, New year, etc.
 Internal Organization Promotion
 Promotion of internal organization is
concerned with the steps to be taken for making a
sound promotional programme.According to Gross
and Houghten, the elements of internal promotion
are the following:

a) Approval of promotional philosophy : The success

of a promotional programme depends largely on the
philosophy and attitude of the top management.
Therefore, the approval of the top management is
necessary for undertaking a promotional
programme.
CONT…..

b) Product development for marketing :

The success a sales promotion programme
also depend on the quality of the product. The
modern consumer is largely quality conscious . he
compares the product with that of other product
before making a final decision to purchase the
product of a new seller. Therefore, before
introducing the promotion techniques in a market,
the reactions of the distributors, middleman, and
consumer, are known in advance, by establishing
contacts with them.
 CONT…..
c) Cooperation with sales department : For the
successful implementation of sales promotion
programme, cooperation of sales department is
essential. Gross and Haughton have suggested the
following activities that are to be undertaken with the
cooperation of sales department.

- Organization of contests for salesmen

- Formation of sales slogans
- Organization of sales rellies
- Organizing of sales exhibitions
- Training to sales personnel
 Industrial Promotion
 The characteristics of industrial product are
entirely different from that of the consumer product.
Therefore, their sales promotion method may also
differ from that of consumer products. Since the
industrial products are too costly items; execpt for
chemical product; free samples or premium methods
are not used for sales promotion of industrial goods.
Further, the number of customers for industrial
products are limited. Therefore, contests or special
selling methods are also not used.
CONT……
The major tools of sales promotion of industrial
Products include:

1 Conventions and trade shows.

2 Advertising and promotional novelties.
3 Demonstration.
4 Free trials.
5 Free training.
6 Credit facilities.
7 After sales services.
8 Product demonstration model kit.
 CONCLUSION
 The importance of sales promotion in modern
marketing has increased mainly on account of its
ability in promoting sales and preparing the ground
for future expansion. The main objective of sales
promotion is to attract the prospective buyer toward
the product, and induce him to buy the product at
the point of purchase. At the salesman’s level, its
object is to achieve more sales. At the dealer’s
level, the purpose is to sell a particular product of a
manufacturer. At the consumer’s level, the main
idea is to enable the consumer to buy more of a
product more frequently and also to introduce new
uses for the product. Thus, it is a “catch-all” method
and is used as an effective tool of marketing.
REVIEW OF THE PRESENTATION

 Introduction of Sales Promotion

 Defination of Sales Promotion
 Objective of Sales Promotion
 Techniques of Sales Promotion
 Conclusion
 Bibliography
(1) Marketing Management
By
Dr. C.B. Gupta
Dr. N.R. Rajan Nair
Sultan Chand & Sons

(2) Marketing Management

By
S.A. Sherlekar
Himalaya Publishing House
CONT…...
(3) Sales Management and Sales Promotion
By
Dr. M.J. Mathew
R B S A Publishers

4) Marketing Management
By
J. C. Gandhi
Himalaya publishing house