Wednesday, July 29, 2009

Sales Promotion

Sales promotion consists of diverse collection of incentive tools, mostly short term designed to stimulate quicker and or greater purchase of particular product / service by consumers or the trade. These days, sales promotion has been increasingly popular tool for marketing experts. Marketers are using it aggressively. A decade ago, the advertising to sale promotion ration was about 60:40 .Today, in many consumer packaged goods companies, sales promotion accounts for 65 to 75 percent of the combined budget.

Features of Sales Promotion

1. It is short term
2. It provides incentives
3. It aims at quicker response
4. It is directed at target audience

Objective of Sales Promotion

Normally, the basic objective of any sales promotion is to increase sales and achieve faster and higher sales. Thus, the specific objective varies with the target audience which can be consumer, channel members and sales force. Seller use incentive type promotions to attract new tiers, to reward loyal customers, and to increase the repurchase rater of occasional users. Sales promotion often attracts brand switcher, who is primarily looking for low price, good value, or premiums. Sales promotion is unlikely to turn them into loyal users.

Objective for Consumer promotion
a) Encourage greater purchase volume
b) Attract new customers
c) Introduce New Products

Objective of Trade Promotion:

a) Carry and push new items
b) Increase resellers inventories
c) Attract New channels members
d) Offset competitive promotion
e) Better Store Display

Objective of Sales Force Promotion

a) Motivate Sales Force
b) Support New Products

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