Tanisha Sharma Submitted to: Dr. Rubina Sajid Ma’am Section: MBA IInd Semester WHAT IS SALES PROMOTION
Sales promotion is providing incentives to
customers or to the distribution channel to stimulate demand for a product. It includes non- personal efforts like displays premises, coupons, discounts contests etc. to focus an short-term sales target. SALES PROMOTION TECHNIQUES Sales Promotion Techniques
Consumer Promotion Middleman Promotion Sales force
Techniques Techniques Promotion Techniques
1.Free samples 1. Special discounts 1.Sales contests
2.Price reductions 2. Sales assistance 2.Sales meetings 3.Coupons 3. Trade shows 3.Sales training manuals 4. Premiums 4. Free goods 4.Demonstration 5. Free trials 5. Cash rebate 6.Consumer service 1.CONSUMER PROMOTION TECHNIQUES 1.Free samples - Under this method, the producer distributes free samples of his product among the consumers. Sales representatives distribute these samples from door-to-door.
2. Price reductions - Under it in order to clear the excess
stock, products are offered at some reduced price. For example, giving a rebate by a car manufacturer to the tune of 12,000/- for a limited period of time. 3. Coupons - Coupons are one of the best promotion techniques for inducing trial for the company's products. Free coupons are generally included in the print advertisements.
4.Premiums - A premium is a reward to the
customer for purchasing a product. Premium are offered at low cost or free. 5. Free trials - In this method, prospective purchasers are invited to try the product without any cost.
6. Consumer services – This method is also known as
consumer education. These services may be pre sale services or after sale services. 2.MIDDLEMAN SALES PROMOTION TECHNIQUES 1. SPECIAL DISCOUNTS – In this method manufacturer provides discount facility to retailers and wholesalers on their purchase.
2. Sales assistance – Under this method
manufacturers provides assistance to the dealers so that they maintain the cordial relation with them. 3. Trade shows - A trade show is an event held to bring together members of a particular industry to display, demonstrate, and discuss their latest products and service. 4. Free goods – It is in the form of extra quantity of the purchased product “free” .Free goods encourage resellers to stock more during the promotion period. 5.Cash rebate – It is a incentive that gives retail sales people cash rewards for every unit of product they sale. 3. Sales force promotion techniques 1.Sales contests – Sales contests are organized by the manufacturer in this scheme and rewards are provided to the salesmen who have achieved exceptional targets. 2. Sales training manuals – Training materials such as manuals, visual aids, flip charts , etc., are useful to sales people. These manuals help on spot decisions and make the task of sales men easier. 3. Sales meetings – Sales meetings are generally organized for sales people from one area, region, district. These meetings are considered as a popular way of educating sales people.
4.Demonstrations – Demonstration of technical
product clarify many points to the salesmen which is useful when queries are made to the salesmen by the prospects. This increases the confidence level of the salesmen while dealing with the prospects. ADVANTAGES AND DISADVANTAGES OF SALES PROMOTION