The firm may also announce some attractive trade-deals so that the shell space in retail shops is blocked. Menu. It attracts channel members to participate in manufacturer promotion effort. Consumers often use samples that are distributed free, with or without a coupon, to introduce a new product or induce trial of even an existing product. The product should be such that it can be stocked without occupying much space. Promotional activities such as advertising giving information regarding price and quality of the product as compared to other similar products existing in the market or offering various facilities to middlemen with a view to sell company’s goods in preference to other goods or offering gifts and discounts to customers, help arrest competition. But small scale production is not possible only on the methods of promotional activities. In some cases, the suppliers and retailers collaborate to produce a mutually acceptable point-of-sale display material. 7. (ii) Customers may be encouraged to buy more quantities by offering them various incentives. These new tie-ups mean more branding and sales opportunity for the company as well. 55/- whereas the MRP is Rs. There should be reliable information about the competitive moves, and the inventory holding costs should not be high. Providing information . Obtaining distribution and support for new products. They may read not only the headline but also the copy, and may get exposed to the advantages and benefits associated the brand. Objectives – Increase Sales Volume, Launch New Product, Increase Trial, Encourage Repeat Purchase and Deflect Customers Attention from Price. For example, soya bean milk, exotic mushrooms, etc. In spite of the several objectives of sales promotion, there are three which are fundamental, viz., informing, persuading and reminding. Welcome to EconomicsDiscussion.net! (1) Providing Information – Promotion is an exercise in information, persuasion and influence. 24.3 Objectives of Sales Promotion You have learnt that the main objective of sales promotion is to increase sales. >> increase in sales promotion is motivated by marketing plans and reward systems geared to short-term performance and immediate generation of sales volume >> fixation on market share not only to introduce products >> view consumer and trade promotions as the most dependable way to generate short-term sales, particularly when they are price-related. They do not change brands easily, and consumer awareness and trial was low, despite heavy advertising. Sales promotion secures the following objectives: 1. The promotion objectives relate to the Promotion-mix only and on the sales promotion uses “Pull-Push” strategy while advertising uses “Pull” strategy only. money-off vouchers, trade-in allowances. Basically the consumers are conscious about prices. also gives a hint to sales promotion objectives, the main objective being lifting the sales temporarily. Deflect customers attention from price. Launch new product and increase trial. These fittings make the product prominent compared to other .products, kept in normal racks. These objectives are for both marketers and traders. Persuading generally becomes the main promotion goals, when the product enters the growth stage of its life cycle. 5. For example, the customer could get a jigsaw puzzle inside a ‘ pack of cornflakes, or a free mug with the purchase of a health drink. 3. Sales promotion keeps and memory of the product alive in the minds of the customers. 200,000. 1. Nature Fresh edible oil 1 liter pack is available at Rs. Well the problem is that marketing without a clear cut strategy is like fishing without bait. Helping firm remain competitive – Sales promotions maybe undertaken to meet competition from a firm. As a reward, marketer offer something of value to those respondents in the form of lower cost of ownership for a purchased product, example – lower purchase price, money back, inclusion of additional value added material etc. 1. 8. For example, Hindustan Lever Ltd., offering with their Brooke Bond BRU 50 gm coffee packs an attractive glass bowl. To add extra value to the product and develop brand franchise. One of the most common ways to promote your store during festival time or when there is a … Marketers can develop appropriate sales promotion to accomplish the objective of reducing the negative impact on sales, if the price of the product was Rs. (ii) To increase the stock-holding of retailers, or even consumers, before the introduction of a competing brand, or. The following are the sales promotion techniques: i. They supply comparative information on various products so that consumers may be willing to purchase the products promoted by them. The suppliers can initiate various sales promotion activities at their end. Which type of sales promotion is the men's store is using? Share Your PDF File To motivate and attract the sales force by exhibiting their products in the important markets. These objectives are for both marketers and traders. To combat or offset competitors' marketing efforts. Deflect Customer’s Attention from Price: Sales Promotion Objectives – Top 7 Objectives: Launch New Products and Increase Trail, Encourage Dealers to Participate in Display and a Few Other Objectives, Sales Promotion Objectives – For both Marketers and Traders, Sales Promotion Objectives – The 3 Fundamental Objectives: Informing, Persuading and Reminding, Sales Promotion Objectives – Educating Customers, Stimulating Sales, Facilitating Co-Ordination, Attracting New Customers, Introducing New Products and a Few Others, Sales Promotion Objectives – 7 Main Objectives: Introduction of New Products, Attracting New Customers, Inducing Present Customers to Buy and a Few Others, Sales Promotion Objectives – 2 Most Important Objectives: Consumer-Oriented Sales Promotion and Trade-Oriented Sales Promotion, Sales Promotion Objectives – Increase in Sales Volume, Stock Clearance, Emphasizing Variety, Tempting Customers, Seeking More Involvement and Introducing New Arrivals, Sales Promotion Objectives – Providing Information, Increase Sales Volume, To Keep the Memory Alive, To Arrest Seasonal Decline, To Induce Middlemen and a Few Others, Sales Promotion Objectives – With Reasons for Growth, Sales Promotion Objectives – Increase Sales Volume, Launch New Product, Increase Trial, Encourage Repeat Purchase and Deflect Customers Attention from Price. The information about these competitions is usually printed on the packs. To stimulate maximum sales on special occasions such as Diwali, religious festivals, and other such occasions. This promotion is used selectively, normally in supermarkets, department stores, etc. The promotional objectives are to be considered and framed by the organisations on the basis of an in-depth study of the economic environment, nature of competitive situations, the attributes of the product, the stage of the product in the product life cycle, consumer’s perception about the product and the image of the organisation. Sales Promotion includes all activities which promote sales of the company’s product and services. Sales promotion directed towards the sales people is referred to as sales force promotions. Sales force promotion: It involves efforts targeted towards the sales force to boost the morale of salesmen. Sales promotion encourages dealers and distributors to sell the product more. Its sales in Chennai, which is one of the largest markets for toilets soaps, were below all India levels. To Introduce a New Product 4. 70/-. These are in the form of small gifts that a customer gets on purchasing a product. The gifts are usually attached to the pack, or inside the pack. Then, the hotel operator needs to come up with a promotion that can coincide with the event, ultimately allowing them to earn an influx of bookings that they may not otherwise have had. An important area that concerns sales promotion objectives is directly related to the specific promotional techniques to be used. In the broad sense of the term marketing communication mix includes all the four marketing P’s – Product, Promotion, Packaging and Price. Motivate dealers to stock and sell more. It helps marketers to realize a variety of objectives. However, it reduces the cost of promotion because of the low ‘redemption rate’. Middleman (Distributors and retailers) and consumers offered attractive discounts and free gifts to lure them to purchase more and more. For example, awareness may be generated through advertising but sales promotion may be used tactically to overcome any resistance to purchase. Sales promotional activities serve the following purposes: 1. vii. Promotion Objectives. It is sometimes hard to establish demand for a new product in a market of similar products. Marketers have to consider the impact of sales promotion on brand’s image in the long term while designing sales promotion programs. The following are the objectives of the sales promotion: To announce new products; Encourage customers to buy a new product, complimentary samples may be dispersed, or money and stock allowance can be awarded to business reserve and sell the product. iv. For example, customers who buy a bigger pack may be entitled to enter into a contest or they can get a free gift or customers who purchase merchandise more than a specified amount would get similar benefits. In the month of January 1983, “Nescafe’ announced a consumer contest. It is necessary while introducing the product to the market and thereafter, if there is any change in these elements, through various promotion tools i.e., advertising, salesmanship, publicity, point of purchase etc. The objectives for the sales force may be to encourage a new product or model, stimulate off-season sales, and persuade more prospective buyers, and so on. These encourage the customers to use the product or service and make them brand loyal. The basic goal of most consumer-oriented sales promotion programs is to induce purchase of a brand. The basic purpose of sales promotion is to increase the sales of a product by creating demand. Facilitating co-ordination – Sales promotion facilitates co-ordination and proper link between advertising and personal selling. Such contest should be held infrequently and not become a routine feature, which would reduce their importance and lead to decline in interest. Promotions, such as discount coupons, not only encourage existing consumers but may also stimulate purchase by infrequent buyers, or even new tries. The objectives of sales promotion are described below in detail: 1. Sales promotion can be developed as part of the social media or e-commerce effort just as advertising can, but the methods and tactics are much different. In the total marketing process, the marketing goal of the organisation and the marketing strategy should be formulated at the time of programming the promotional activities. Sales promotion programme should be developed to generate the confidence of the consumers regarding the claims focused. Free samples may be distributed to leading consumers who may be a source of advertisement for other prospective consumers. Consumer-Oriented Sales Promotion, Consumer-Oriented Sales Promotion Techniques, Objectives – Increase in Sales Volume, Stock Clearance, Emphasizing Variety, Tempting Customers, Seeking More Involvement and Introducing New Arrivals, Providing Information, Increase Sales Volume, To Keep the Memory Alive, To Arrest Seasonal Decline, To Induce Middlemen and a Few Others. This objective may also be accomplished for certain consumer durable goods in case of trade segment. These schemes are intended to motivate sales people to put in more efforts to increase sales, increase distribution, promote new or seasonal products, sell more deals to resellers, book more orders, develop prospects lists and build up morale and enthusiasm. These schemes are intended to motivate sales people to put in more efforts to increase sales, increase distribution, promote new or seasonal products, sell more deals to resellers, book more orders, develop prospects lists and build up morale and enthusiasm. Companies, who have small market share, cannot match the substantial advertising budgets of market leaders in the same industry. To Supplement Advertising and Personal Selling Efforts, – The 3 Fundamental Objectives: Informing, Persuading and Reminding, Objective # 1. These objectives are attained through effective communication. Consumers develop a new reference price for the product and the increase does not appear to be as high as it was. These objectives are for both marketers and traders. Sales promotions encourage the customers to try a new product. Sales promotion objectives are consistent with marketing objectives. activities make the product popular and increase the demand. 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