What are Sales Promotion -Methods of Sales Promotion :
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Sales promotion refers to the irregular actions taken to increase sales. Today's market is a buyer's market. Items are available in the market in different designs, colours, varieties. Many substitutes of the same commodity are also available in the market. There is cut-throat competition in the market and there is an abundance of vendors and goods. In these circumstances, various means like advertising, personal selling and sales promotion are used to increase sales.
What is the Sales Promotion:
Meaning and Definition of Sales Promotion Sales refers to motivating the buyers to purchase goods or services in a short period of time. The literal meaning of Vikram Samvardhan is to increase the sales of any goods or services. In the narrow sense, Vikram promotion means such activities which are in personal selling. In the broad sense, sales promotion in the sense of actions means all those things which help in the goal of increasing sales. From this point of view, Vikram promotion includes advertising, personal marketing, innovation in products, improvement in marketing systems, various competitions etc. In a specific sense, sales promotion includes irregular actions taken to increase sales, other than advertising, personal selling and promotion. Some scholars have defined sales promotion as follows:-
Definition of sales promotion
According to the American Marketing Association, sales promotion includes all these irregular actions, such as display, show and exhibition, verbal performance, etc., in addition to personal selling, advertising and publication, which encourage the purchasing power of the consumer and the effectiveness of the seller. "
According to William J. Stanton, sales promotion refers to those promotional activities other than advertising, personal selling and promotion, which are done with the aim of stimulating customer demand and improving the marketing performance of intermediaries.
According to George W. Hopkins, the organized efforts that are used to make the advertising and sales processes effective are called sales promotion.
conclusion :
On the basis of the above definitions of sales promotion, we can say that sales promotion includes only those activities which are done for a short period of incentive to promote the sales of the firm. These sales efforts are erratic which prompts the consumers to buy more and the trader to sell the goods more effectively. This does not include advertisements, personal sales and publications.
Importance of Sales Promotion / Characteristics of Sales Promotion -
Sales promotion is beneficial for consumers, manufacturers, traders and society. This makes them effective by bridging the gap between advertising and personal selling.
(1) Science and effectiveness of marketing
Due to increase in sales promotion schemes (cash discount in prices, sale competition, distribution of free gifts and free samples, coupons, scratch scheme, the customer reaches the merchant himself and demands the item, as a result the seller has to convince the consumer, redress their objections and give them There is no need to be motivated to buy.
In sales promotion advertising message can be converted into sales by giving various incentives and schemes to the consumers and traders. Apart from this, in the sales collection plans, the customers get the opportunity to experiment and test the advertised goods, as a result, the doubt about the advertisement in the mind of the consumer is removed, hence it helps in selling, makes them effective.
(2)
Increase in sales :-
Free distribution of samples/coupons is done under sales promotion, organizing fashion parades, discounting prices, organizing various competitions etc. As a result of doing all these efforts, the confidence of the customers in the brand of the item increases and they are encouraged to buy more items, which increases the sales.
(3) conquering the competition
Today's era is the era of competition, sales promotion has an important role to play in order to achieve success over competition. Through new programs of Vikram promotion, the organization gets ahead of its competitive companies.
(4) Increase in status -
Due to the ongoing sales promotion programs, the popularity of the brand of the product increases and that brand makes its unique identity in the minds of the consumers, which increases the reputation of the organization.
(6) Entry into new markets:- Increase in knowledge and confidence of consumers, by using sales promotion activities, incentive programs, consumers get information about the properties and uses of the commodity as well as create confidence in the use of the commodity. With the help of sales promotion programs, the manufacturer can easily enter new markets for his goods.
(7) Increase in costs
With the help of sales promotion programs, customers are motivated to buy more goods as a result Purchases increase. With the increase in sales, production has to be done on a large scale to meet the increased demand. Large scale production and external economy are achieved, which reduces the cost per unit and increases the profits.
(8) More facilities for intermediaries:-
In sales promotion programs, the producers provide various facilities to the intermediaries, such as advertising in the name of the retailer, decoration of the shop, giving free items and gifts etc.
(9)
improving living standards
In Vikram Promotion Programs, consumers get discounts and consumers get goods at cheaper prices due to reduction in cost per unit, as a result consumers are able to buy more and different items and their standard of living improves.
Methods of Sales Promotion :-
The main objective of sales promotion is to motivate the merchants to sell and to reduce the customers. Broadly, the methods of sales promotion can be classified on three bases. First on the basis of purpose, second on the basis of object, third on the basis of field.
There are two methods of Sales promotion on objective basis.
is type.
(A) Consumer Promotion Methods
(B) Merchant Promotion Methods.
Similarly, on the basis of the nature of the commodity, sales promotion is also classified into two parts, consumer goods promotion methods and industrial promotion methods, on the basis of sales area, manufacturers use domestic trade sales promotion and export trade sales promotion methods. It is not necessary for us to go into the detail of the above classified methods of sales promotion, so we will study the above two methods of sales promotion in detail.
(A) Consumer Promotion Methods
Consumer promotion methods are directly related to consumers and motivate them to buy more and more goods. These promotion methods are implemented at the consumer's residence, office or middlemen's shops. The main methods of consumer promotion are as follows-
1
free samples delivery
When a new brand is brought to market, free samples of the item are distributed to the potential customers. It is an important and effective method of sales promotion. With the help of samples, the consumer can test the properties, use and utility of the commodity and make a decision to buy it. Free distribution of samples can be done by visiting or at offices, shops, squares. Samples can also be sent to potential customers by post.
Today's chemists give medicines to doctors, book publishers, to teachers as sample books. Chitergents, cosmetics and new products are sold by this method. The following points should be kept in mind in the distribution of samples:
(i) Samples represent the object accurately, there is a fear of hurting the reputation of the organization if the sample is different from the whole material.
(ii) The samples should be attractive and checkable
(iii) The sample should not be for sale or should be marked with the words 'copy of the sample' so that it is not misused.
(2) Competitions
Manufacturers organize various competitions for the consumers in order to attract the consumers, introduce a new product in the market, get ahead of the competitors or increase the sales. In order to participate in the competition, the consumer has to attach the silk of the purchased item or any part of the packing of the item. The winners of the contest are given cash, company products or the facility to travel abroad and stay in five star hotels. Competitions can be like completing incomplete sentences related to the object like I
(1)
Videocon TV use because
(2) The title or prize is given to the customers by giving a picture of the item. Asking slogans about the object like- who bathes with ok soap.....
(3) Asking the name Getting the best title / namer to solve riddles from customers Write letters to customers about the item s. M / s. Take.
(4) Developed at reduced value
On special occasions like the foundation day of Deepawali, New Year, Gandhi Jayanti, etc., the manufacturer sells the product at a price less than the price given in the list. Example- Up to 50% discount by a shoe maker or 5040 percent discount by a shirt maker This is the most popular way to sell items that are out of fashion and old stock.
In the coupon, the consumer is given a discount in the price or some free item is given on the purchase of the item. Coupons can be placed in the packing of the item. Or published in the newspaper. After purchasing the item, when the customer opens the packing, the coupon comes out of it. The customer gets a discount of the amount given in the coupon or the item mentioned in the coupon is given to him for free. Rajasthan Patrika Dainik Bhaskar is using the coupon method very well to retain and expand its readers. Incense sticks, tea and soap manufacturers also use the coupon method.
(5) Fairs and Exhibitions
Fairs and Exhibitions Sales Promotion important tool. In these, the items are specially decorated and free distribution of hand bills or literature related to the item is also done. National Book Fair, Shoe Fair, Swadeshi Fair, Fair of Cooperative Goods and Handicrafts are direct examples of this.
6) Rules
Premium refers to the additional item provided by the manufacturer upon purchase of an item by the customer. Some examples of premiums are as follows: giving a milk bush with a packet of tooth paste, giving rubber with a packet of pencil, giving an Agabati stand with a packet of incense sticks, TV. VCD/DPD on purchase Giving coupons with a given item, giving a new item at some price in exchange for the old or used item, due to the prium, customers are motivated to buy the item.
(7)
extra travel gift
Gifting extra quantity of the product This is commonly used by the cosmetics makers. For example paying 40 extra on a fair and lovely cream
(8) functional performance
In this, the manufacturer demonstrates the use of the item at his showroom or in a fair exhibition. Objects of technical nature like TV. It is used in selling refrigerator DVDs, computer mixers, washing machines, etc. Through this, the doubts of the customers are cleared and he himself can also see using the item.
(9) After Sales Service
In this, the seller guarantees the service to the consumer for a certain period after the sale. Due to this, the customer is saved from the income of maintenance, repair etc. for that period. After sales service from machines, fans, bikes, scooters, cars, fridges etc. is an important way of motivating the customers to buy. The customer prefers to buy the product of that company which has good after sales service.
(10)
Attractive and beautiful packaging motivates the customers to buy the item and provides information about the price of the item, brand quality etc. The reason for the high sales of tea and edible oils in glass or plastic cans is their packaging.
B. Merchant Promotion Methods
Merchant promotion methods refer to those methods which encourage intermediaries (wholesalers, retailers etc.) to buy and sell more and more goods. Marketing success depends on intermediaries. Therefore, in order to motivate the producer intermediaries
(1) Sales Contests
Competitions are organized with the aim of encouraging traders to sell more goods. In this, best selling competition, best seller competition, counter decoration competition etc. are organized. Award by the manufacturer to the winning traders and sellers
are given.
(2) Allowances
In order to get the cooperation of the moderators, the producer gives them a variety of votes, the main ones being different.
(I) Purchase Allowance
This allowance is given by the manufacturer on the purchase of certain quantity of goods by the trader in a given period. For example, buying goods worth Rs 150000 together
(II) Objectivity
When merchandise allowance is given by only one manufacturer. For example, instead of keeping clothes of different companies, goods allowance for keeping only Bombay Dyeing cloth.
(iii) Advertisement Allowance
Advertisement allowance means that some expenses of the advertisement being done by the trader are borne by the manufacturer.
(iv) decoration allowance
In this, some part of the expenditure being incurred on decoration by the trader is borne by the manufacturer. By keeping the items beautifully decorated, the customers are attracted towards the shop.
(3) Distinguished Service
Manufacturers can encourage traders to sell more goods by providing credit facilities, buy back, guarantee and repair facilities. Manufacturers provide the facility of purchase on credit to the traders for a fixed period. Due to this the intermediaries do not have to worry about making capital arrangements. Similarly, manufacturers provide sales or return facilities to distributors and traders, sellers try to sell goods, another measure of sales promotion in specialized services is to provide repair facilities. In this, the manufacturer repairs the item properly at the dealer's point of sale when it is damaged.
(4) Management support
The manufacturer gives information and advice to the intermediaries on the matters related to new management techniques, government policies, financial management, decoration of the sales management organization, redressal of the objections of the customers. This improves the efficiencies of the traders and they can make optimum use of money.
(5) Meetings and Conferences
Manufacturers organize meetings and conferences of traders from time to time for sales promotion. From Sama and Sammelan, the mediators put their problems in front of the creator and the solution of these problems is found through mutual discussion. Meetings and conferences The manufacturer informs about new changes and clarifies the sales policy. This type of event increases mutual cooperation between manufacturers and traders, which helps in sales promotion.
(6) training
The methodology of medical representative (drug inactivation) salespeople of financial companies and electronic product companies makes it clear that training is very useful in sales promotion.Provides general and specific training in this regard. In general training, knowledge of sales art, business policy and methodology is made. Specific training is given in relation to technical items, in which information is given about sales art and business policy as well as technical and operational aspects of the product.
(7) Fashion Show
Manufacturers organize fashion shows to promote the goods sold by the merchants. In fashion shows, items are presented in latest and attractive ways so that the customer can be motivated to buy these items. Fashion shows are organized from time to time by the apparel, jewelery and vehicle manufacturers.
(8) Merchant Premium
When the manufacturer sells goods of a certain quantity or fixed price to the traders or buys goods in increased quantity together, valuable goods such as TV are available in the form of premium. Silver sets etc. are given free of cost.
(9) Special Services
Manufacturers can encourage traders to sell more goods by providing credit facilities, buy back guarantee and repair facilities. Manufacturers provide the facility of credit purchase to the traders for a fixed period. Due to this the intermediary does not have to worry about arranging capital. Similarly, manufacturers provide the facility of sale or return to distributors and traders. Vendors try to sell goods in specific services Another measure of sales promotion is by providing repair facilities. In this, the manufacturer repairs the item properly at the dealer's point of sale when it is damaged.
FAQ Sales Promotion
Q.1 Name any four of the consumer promotion methods?
Q.2 Name it? What do you understand by consumer promotion method?
Q.3 What is meant by sales promotion?
Q.4 Any four of the Merchant Promotion Methods
Q.5 What do you understand by Merchant Promotion Method?
Q.6 Mention any two points of importance of sales promotion clearly to the competition method of consumer promotion?