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Assignment - 1
Submitted By
Kamta Prasad
ID No. -0808004
PGDM - V
10/24/09 1
Definition
Itis a part of promotional mix. The other
three parts of the promotional mix are
advertising, personal selling, and
publicity/public relations.
Sales promotion Consists of Diverse
Collection of Incentive Tools, mostly
short term designed to stimulate quicker
or greater purchase of particular product
or Services by Consumers or the Trade.
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Sales promotion refers to many
kinds of incentives and
techniques directed towards
consumers and traders with the
intention to produce immediate
or short-term sales effects.
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Characteristics
Communication: They gain
attention and
usually provide information that
may lead the customer to the
product.
Incentive: They incorporate
some concession, inducement,
or contribution that gives value
to the consumer.
Invitation: They include a
distinct invitation to engage in
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Objective
To increase sales To modify attitudes
To attract new To create an image
customers To position a
To retain existing product
ones To improve
To encourage position in the
customer loyalty market
To create To pull the product
awareness through channels
To inform To push the
To remind product through
To ensure channels
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Sales promotion decisions
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Promotion mix
Sales Promotion
Advertising
Personal selling
Publicity
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Sales promotion
Tactical point of sale
material or inducements
designed to stimulate
purchases
Short term incentives to
increase sales
Some promotions are
aimed at consumers,
some at intermediaries
and others at the
salesforce
E.g.: coupons, leaflets,
demonstrations, samples,
free gifts, point of sale10/24/09 8
Sales promotion
Incentives provide a quick boost
to sales
Effects maybe short term only
Excess use of some incentives
may adversely effect brand
image
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Advertising
“Advertising is telling and selling”
Advertising thus denotes the means
employed to draw attention to any object
or purpose.
“It is a paid form of non personal
presentation an promotion of ideas,
goods or services by an identified
sponsor.”
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Advertising
STRENGTHS WEAKNESSES
- Wide coverage - Expensive
- Awareness/Hype - Impersonal
- Control of msg - One way
- Can be used to communication
build brand - Lacks flexibility
loyalty -
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Personal Selling
Promotion on a person to person
basis
Two way communication
Carried out through telephone, at
meetings, at retail outlets &
door to door selling
High priced, low volume and
highly technical products rely
heavily on personal selling
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Personal Selling
STRENGTHS WEAKNESSES
Great attention - High cost
Msg is customized - Labor intensive
Persuasive impact - Expensive
Potential for - Can only reach a
development of limited no. of
relationship customers
Adaptable
-
Opportunity to
close sale call
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Publicity
Release of a
commercially significant
news about a particular
product or service
Purpose is to obtain a
favorable presentation
of such news via a
medium not paid for by
a sponsor
Involves getting media
coverage of an event or
product launch / articles
in newspapers 10/24/09 14
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