session 27 sales promotion

8/9/2019 Session 27 Sales Promotion

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Session 27Session 27

SALESSALESPROMOTIOPROMOTIO

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Sales promotion includes thosesales activities that supplementboth personal selling and

advertising, and coordinate themand make them effective.


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Examples:DisplaysShows

Demonstrations


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SALES PROMOTION DIFFERS FROM

ADVERTISING

Indirect and Subtleapproach towardspersuading

Long-term objectiveslike positioning,

building brandAdding Long-term value

to the product

Direct and openinducement

Immediate task ofincreasing currentsales.

Selling by temporarilychanging theexisting price-valueequation

ADVERTISING SALES PROMOTION


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Sales Promotion serves a variety of Marketing Needs:

For facilitating introduction of newproducts

For overcoming a unique competitivesituation

For unloading accumulated inventoryFor overcoming seasonal slumpsFor getting new accounts

For retrieving lost accounts.


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As a support and supplement to theadvertising effort.

As a support and supplement to thesalesmens effort.

For Persuading salesmen to sell thefull line of products.

For persuading the dealer to buymore/increase the size of the orders.


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DEMONSTRATIONSDemonstrations at retail Store

Example: Chapathi MakersSchool Demonstrations

Example: Computers

Door-to-Door DemonstrationsExample: Eureka Forbes Vacuum

Cleaners

Demonstrations to Key PeopleExample: Demonstrations toCommunity Leaders (Hi-Fi Cars)


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TRADE FAIRS ANDEXHIBITIONS

Bring the Companys products andthe consumers in direct contactwith each other.

Seeing is Believing is the concepthere.


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COUPONSOffer Price reduction to consumers

for specified items.Coupons are distributed through

newspaper and magazine

advertisements, package of merchandizingCreate enthusiasm of bargaining

and inducement to the trade forstocking the items.


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PREMIUMS AND FREE OFFERSAristocrat luggage:

If you buy an Aristocrat within the nextweek, you get a Philips 2 Bandtransistor worth Rs 266 free!Colgate offered 125 gram for the price

of 100 gram.Santro:

Book your Santro Today and take HomeA World space Hitachi Digital RadioReceiver Wroth Rs. 4990 AbsolutelyFree


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DISCOUNTS, PRICE OFF

Hawkins:Up to Rs.150 off on a new Hawkins Iexchange for any old pressurecooker


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INSTALLMENTS OFFERSVideocon Air coolers:Pay 1999/- now, balance in 24 equal

monthly installments.


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FREE SAMPLESOffering free samples to a largesection of a new market, acompany gaining an entry into thatmarket.

Soaps, Detergents, Tooth pastes,Coffee


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GIFTSDistribute gifts to customers, dealers

and influential and key people.Gifts include: pens, calendars, diaries,

table decorations etc.Gifts carry the companys name and

logo.Gifts create goodwill towards the

company and indirectly further thecompanys sales interest.


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EXCHANGE SHEMES

AKAI exchange schemeIndias No.1 CTV The Akai 53 Cm IsNow Available For A Shocking Rs.5,990/-

Bring in your old 51cm or 53 cm colorTV.

Take Home the AKAI: For Rs 5,990/-in exchange.


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EXCHANGE SHEMESVIDEOCON - Money Back OfferOwn a Videocon 21 freeGreatest Money Back OfferBring your old 20 or 21 CTV in

working condition.Deposit Rs.8,990/- and take home a

Videocon 21

Take Back Rs 8,990/- after 5 years.


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CONSUMERS CONTESTSQuiz contests filling up the quizBeauty ContestsScooter rallies and car rallies

Suggesting a Brand name,Coining a sloganSuggesting a logo etc.


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CONTESTSContests are classified into 2 groups:

Skill Competition When theparticipant has to suggest a name to abrand, it involves a skill.

Sweepstakes When the number of acoupon claimed by the consumer isincluded in a draw, the contest fallsunder chance


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CONTESTSExamples of Consumer Contests

Bombay Dyeing Contest:25 first prizes 25 Ambassador carsAdditionally 60,000 prizesEntrants had to rank the top 10 Indian film

stars from a series of 12 names.Entrants had to complete a slogan on Bombay

Dyeing fabrics. And each entry had to beaccomplished by a recent cash memo forRs.100 worth.

A panel of judges decided the winners on thebasis of the most popular ranking and thequality of the slogan.


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CONTESTSOther Example:Bajaj Scratch the card contestPhilip Dare to Compare Contest

Gold Bonanza by Titan


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JOINT PROMOTIONSCenturion Bank and Videocon

Centurion Bank will finance thepurchase of Videocon products.

Amount financed up to Rs 30000Interest Rate 0 percent

Tenure 12 month


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MERCHANDIZING/DISPLAYDisplay at the store level promotes sales.Prompts the consumer to switch over to

the displayed brand ignoring existingbrand loyalties

Persuades him to buy now rather thanlater

Makes him buy more than the originallyintended quality.

Point of Purchase (POP) displays areone of the most widely used salespromotional tools.


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GOODS WELL DISPLAYED

ARE HALF SOLDDisplays can be of various types:Window display

Wall displayCounter displayAerial display or floor display


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Displays materials can be of varioustypes:PostersStickersBalloonsMobile

Display approachesIlluminated designsMotion displaysSky writings


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IDENTIFYING RIGHT PROMOTION PROGRAMME

IDENTIFYING THE REQUIREMENTS

ENLISHTING THE INVOLVEMENT OF SALESMEN

ENLISTING THE SUPPORT OF THE DEALERS

ENLISTING THE ADVERTISEMENTS AGENCYS SUPPORT

MAINTAINING THE TEMPO

TIMING OF THE CAMPAIGN

COORDINATION WITH OTHER ELEMENTS OF PROMOTION

session 27 sales promotion

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