DOCSLIB.ORG

7. Sales Promotion File

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
7. Sales Promotion File 7. Sales promotion 7.1 Sales promotion as a communication tool Sales promotion includes short-term incentives to encourage the purchase of a product or a service. Today, the shift in communication expenditures from advertising to sales promotion is obvious. It is a consequence of changing buying behaviour, advertising overload and processes that have resulted from globalisation, concentration, and diversification in business. Sales promotion includes tools that encourage and stimulate the consumer decision-making process. It consists of short-term incentives that directly support buying behaviour and improves the effectiveness of business intermediaries. Whereas advertising offers reasons to buy a product, sales promotion offers solutions that would achieve immediate sales. It seeks to motivate the customer to buy now. The objectives of sales promotion should comply with the objectives of the company’s communication. The main objectives of sales promotion include sales growth, market share growth and profit growth. The general objectives of sales promotion to raise the interest to try new products at the moment of purchase to increase the level of product awareness, to deepen the knowledge about a product’s attributes to acquire new customers to offer a complimentary gift or incentive (and to encourage immediate purchase) to get the customer interested in a product (expectation of experience, try the fortune, show the knowledge, abilities – contests, lotteries) to increase clearance sales (price reductions, discounts) to improve the selling efforts of resellers 7.2 The basic forms of sales promotion Sales promotion can be classified according to target groups: trade promotion (retailers, wholesalers) consumer promotion (final consumers) sales force promotion (sales force) The sales promotion tools are characterized by the: price reductions (price sales promotion) or improvement of the advantage (non-price sales promotion) Trade promotion Objectives for trade promotion include: motivating resellers to carry new products and more stock; inducing them to promote the products and give them more shelf space. Trade promotion tools price discounts price-off or free goods depending on the quantity sold advertising, special displays at the point of sale sales contests – rewards for increased sales promotional information materials, advertising allowance advertising specialities (pens, mugs, calendars, etc.) refunds Consumer promotion Consumer promotion is used to increase short-term sales, help build long-term market share, hold loyal customers and encourage customers to buy products that are in the maturity stage. Consumer promotion tools free samples coupons premiums - goods offered either free or at a low cost as an incentive to buy a product discounts, price packs (e.g. BOGOF=buy 1 get 1 free), patronage rewards (for regular use of a certain product) competitions, sweepstakes, lotteries advertising specialities (articles with the company’s name that are given as gifts – pens, calendars, caps, mugs…) sampling and product demonstration at the point of purchase Other tools include additional services such as free transportation, free trials, multifunctional packages, extended guarantees, specialty containers (e.g. cosmetics in a Christmas package). A continuity program is another specific tool that is used mostly by retailers to improve customer loyalty. Customers – holders of customer cards - receive special discounts or other services, and at the same time retailers receive detailed information about their customers thanks to the use of electronic media at the point of purchase. Sales force promotion It is designed to motivate the sales force (internal and external) and business partners. sales contests – to increase the selling efforts over a given period (trips, cash prizes, other gifts) business meetings – sharing know-how and experience advertising specialities selling and advertising tools (printed materials, samples, demonstration models) All types of sales promotion can be combined. However, they should be blended smoothly with other promotional activities within the company’s overall integrated marketing communication effort. A modern trend in promotion is cooperative promotion – various brands within a company or related non-rival products from different producers are promoted together. .
Load more

Recommended publications
  • Advertising and the Public Interest. a Staff Report to the Federal Trade Commission. INSTITUTION Federal Trade Commission, New York, N.Y
    DOCUMENT RESUME ED 074 777 EM 010 980 AUTHCR Howard, John A.; Pulbert, James TITLE Advertising and the Public Interest. A Staff Report to the Federal Trade Commission. INSTITUTION Federal Trade Commission, New York, N.Y. Bureau of Consumer Protection. PUB EATE Feb 73 NOTE 575p. EDRS PRICE MF-$0.65 HC-$19.74 DESCRIPTORS *Broadcast Industry; Commercial Television; Communication (Thought Transfer); Consumer Economics; Consumer Education; Federal Laws; Federal State Relationship; *Government Role; *Investigations; *Marketing; Media Research; Merchandise Information; *Publicize; Public Opinj.on; Public Relations; Radio; Television IDENTIFIERS Federal Communications Commission; *Federal Trade Commission; Food and Drug Administration ABSTRACT The advertising industry in the United States is thoroughly analyzed in this comprehensive, report. The report was prepared mostly from the transcripts of the Federal Trade Commission's (FTC) hearings on Modern Advertising Practices.' The basic structure of the industry as well as its role in marketing strategy is reviewed and*some interesting insights are exposed: The report is primarily concerned with investigating the current state of the art, being prompted mainly by the increased consumes: awareness of the nation and the FTC's own inability to set firm guidelines' for effectively and consistently dealing with the industry. The report points out how advertising does its job, and how it employs sophisticated motivational research and communications methods to reach the wide variety of audiences available. The case of self-regulation is presented with recommendationS that the FTC be particularly harsh in applying evaluation criteria tochildren's advertising. The report was prepared by an outside consulting firm. (MC) ADVERTISING AND THE PUBLIC INTEREST A Staff Report to the Federal Trade Commission by John A.
    [Show full text]
  • Product and Technical Demonstrations ----- Two Case Studies
    Product and Technical Demonstrations ----- Two Case Studies PIL Webinar 36 Feb. 15, 2018 1 Three Ways to Receive Information Written Video Oral (includes Product or Capability Demonstrations) 2 FAR Guidance on Each Method (see FAR 15.102) Written Video Oral “Shall”— clearly allowed, “May”— • Reps & Certs but no guidance is • Capability given • Past Performance • Signed Offer • Work Plans or Sheet Approaches • Exceptions to • Staffing Resources T&Cs • Transition Plans 3 More on Oral Presentations (see FAR 15.102) Streamline the Selection Process Lower B&P Costs Opportunity for Dialogue At any Time May Include During the Demonstrations Process and Tests 4 Product or Capability Demonstrations If you were buying a new car, would you rather— • read a hundred page report, or • take the car for a test ride? In some cases, it might make sense to do both – but still, the test ride (product or technical demonstration) is vitally important in a purchase decision... 5 Case Study 1: Customs and Border Protection (CBP) Non-Intrusive Inspection (NII) Density Meters 6 What is a Density Meter? (Think of a stud finder!) • When inspecting a car tire, the meter provides a reading of the density of that tire. • If the reading is much different than what would be expected, then the officer could infer that there was likely narcotics, etc. smuggled in the tires. 7 What is a Density Meter? Lets watch! Customs and Border Protection Officers catch some traffickers at the San Ysidro Port of Entry 8 Density Meter History • CBP began buying these in the 1990s. • Legacy products reaching end of life needed to be replaced.
    [Show full text]
  • Advertising & Marketing 2021
    Advertising & Marketing 2021 & Marketing Advertising Advertising & Marketing 2021 Contributing firm Frankfurt Kurnit Klein & Selz, PC © Law Business Research 2021 Publisher Tom Barnes [email protected] Subscriptions Claire Bagnall Advertising & [email protected] Senior business development manager Adam Sargent Marketing [email protected] Published by Law Business Research Ltd Meridian House, 34-35 Farringdon Street 2021 London, EC4A 4HL, UK The information provided in this publication Contributing firm is general and may not apply in a specific situation. Legal advice should always Frankfurt Kurnit Klein & Selz, PC be sought before taking any legal action based on the information provided. This information is not intended to create, nor does receipt of it constitute, a lawyer– client relationship. The publishers and authors accept no responsibility for any Lexology Getting The Deal Through is delighted to publish the eighth edition of Advertising & acts or omissions contained herein. The Marketing, which is available in print and online at www.lexology.com/gtdt. information provided was verified between Lexology Getting The Deal Through provides international expert analysis in key areas of February and March 2021. Be advised that law, practice and regulation for corporate counsel, cross-border legal practitioners, and company this is a developing area. directors and officers. Throughout this edition, and following the unique Lexology Getting The Deal Through format, © Law Business Research Ltd 2021 the same key questions are answered by leading practitioners in each of the jurisdictions featured. No photocopying without a CLA licence. Our coverage this year includes new chapters on Germany and Turkey. First published 2004 Lexology Getting The Deal Through titles are published annually in print.
    [Show full text]
  • Types of Media Options
    Types of Media Options Print Media: Newspapers and Magazines Magazines and newspapers are an important part of our lives. For many consumers, newspapers are their primary source of product information. They would not think of going shopping without checking to see who is having a sale or clipping coupons from the weekly food section or Sunday inserts. Many people read a number of different magazines each week or month to become better informed, or simply entertained. Individuals employed in various occupations rely on business magazines to keep them updated about trends and developments in their industries as well as in business in general. While most of us are excessively involved with the print media, it is important to keep in mind that only few newspapers or magazines could survive without the support of advertising revenue. The Role of Newspapers and Magazines The role of newspapers and magazines in the advertiser’s media differs from that of the broadcast media because they allow the presentation of detailed information that can be processed at the reader’s own pace. The print media are not intrusive, like radio and TV, and they generally require some effort on the part of the reader for the advertising message to have an impact. For this reason, newspapers and magazines are often referred to as “high involvement media”. Newspapers are received in nearly two-thirds of Indian households daily. Most magazines, however, reach a very selective audience. Like radio, they can be valuable in reaching specific types of consumers and market segments. While both magazines and newspapers are print media, the advantages and disadvantages of the two are quite different, as are the types of advertising each attracts.
    [Show full text]
  • Retail Industry Insights for Today's Retailers and Cpgs
    In-Store Outdoor Insights November 2014 RETAIL INDUSTRY INSIGHTS FOR TODAY’S RETAILERS AND CPGS Retail Insights: The Consumer Demand Opportunity! for Non-Food Demonstrations Look for the opportunity symbol In the latest Retail Perceptions trend report from Interactions Marketing, shoppers throughout the were asked their opinions on non-food demonstrations (think someone showing report and be sure you how to use makeup or a set of power tools)—and the responses were to check out the overwhelmingly in favor of non-food demonstrations. From improving the overall end of the survey retail experience to encouraging impulse purchases, shoppers say demonstrations for actionable opportunities are the tipping point between leaving an item on a shelf to purchasing a product for Retailers and and becoming loyal to that new brand. And get this—nearly half of all shoppers are Manufacturers willing to pay more for a product if it is explained through a product demonstration versus a competitor’s item that is not being demonstrated. The opportunities for retailers and manufacturers to engage with shoppers and drive sales span all Get This! categories. From cleaning products to power tools, shoppers say they’d open We’ve identified some their wallets a little wider if retailers added events to the in-store experience. insightful and sometimes surprising statistics. November 2014 EVERYONE KNOWS THAT FOOD DEMONSTRATIONS DRIVE SIGNIFICANT SALES, BUT THIS SURVEY SHOWS THAT SHOPPERS’ REACTION TO NON-FOOD DEMOS IS SOMETHING THAT RETAILERS AND CPGS CAN’T IGNORE. When given a choice between two retailers and all other things are equal— of shoppers prefer to spend their money at retailers that offer in-store product demonstrations over ones that don’t 1 © 2014 Interactions Consumer Experience Marketing, Inc.
    [Show full text]
  • Teradici Product Demo
    Case Study: Teradici Product Demo Teradici’s Situation: In the company’s early stages, Teradici needed to create a brand image, as well as messaging tools to convey the value and technological foundation of PC-over-IP technology, its desktop virtualization hardware solution. More than just driving sales, Teradici was looking to secure venture capital funding; attract industry leaders as http://www.viewstream.net/vs_portfolio/tera strategic partners and to join its executive team; and quickly gain a significant dici/trueexperience market presence. In building a high-tech company from the ground up, Teradici asked a challenging set of questions, including: How can Teradici explain its innovative technology and its benefits in a clear, concise way? How can this information be conveyed for a diverse audience that includes customers, funders, potential partners and news media? How can Teradici differentiate itself in a crowded, competitive field? Viewstream knew how to use effective content marketing tools to give Teradici instant credibility and valuable market share. Viewstream’s Solution: Viewstream created a website for Teradici that conveyed the company’s offering and served as an Viewstream developed brand imaging in line with short- and long-term business interactive home for engaging content marketing goals, and created a website and product demonstration that speak to a diverse yet targeted audience. These solutions work because they focus on: Messaging Viewstream crafted a brand identity, including company logo and key messaging, to incorporate into the website and the product demonstration. Informative Content Both the website and demo contain valuable information for all targets interested in learning more about Teradici’s technology and solution.
    [Show full text]
  • After Reading and Thinking About This Chap- Ter, You Will Be Able to Do the Following
    After reading and thinking about this chap- ter, you will be able to do the following: 1 CHAPTER 1 Explain why advertising is an essential feature of Advertising as a capitalistic economic systems. Process 2 CHAPTER 2 The Structure of the Describe manufacturers’ dependence on adver- Advertising Industry: tising, promotion, and branding in achieving bal- Advertisers, anced relationships with retailers. Advertising Agencies, and Support 3 Organizations Discuss several important eras in the evolution CHAPTER 3 of advertising in the United States, and relate The Evolution of important changes in advertising practice to Advertising more fundamental changes in society and culture. CHAPTER 4 Social, Ethical, and 4 Regulatory Aspects of Identify forces that may make the next decade Advertising a period of dramatic change for the advertising industry. 76 Part 1 The Process: Advertising in Business and Society The 1935 Lux advertisement shown in Exhibit 3.1 is undoubtedly curious to contemporary audi- ences. It is, however, typical of its time and very likely made perfect sense to its original audience. In the 1930s, in the middle of the Great Depres- sion, anxiety about losing one’s husband—and thus one’s economic well-being—to divorce was not unfounded. Targeted to a new generation of stay-at-home housewives anxious about their exclusion from the modern world of their hus- bands, during a period when losing one’s source of income could mean abject poverty or worse, in a society where daily bathing was still rare but where self-doubt about personal hygiene was on the rise, such an ad may have pushed just the right buttons.
    [Show full text]
  • Overview of Advertising Law Overview of Advertising Law
    Overview of Advertising Law Overview of Advertising Law – False, Misleading or Deceptive Advertising – Types of Advertising Claims – Disclaimers – Puffery – Comparative Advertising – Endorsements and Testimonials – Packaging and Labeling – Social Media – Email Marketing Overview • Special Issues in Advertising Law – Environmental Claims – Advertising to Children – Sector-Specific Regulations – Contests and Sweepstakes – Trademark Notices in Advertising • Advertising Checklist Advertising Law • Protects consumers (by enabling them to make informed decisions) and businesses (by ensuring a level playing field). • Most countries regulate advertising through legislation and regulations. • Self-regulatory bodies in some jurisdictions (e.g., NAD in the US, Advertising Standards Canada). • Check with local counsel for clearance of advertising in foreign countries. False, Misleading or Deceptive Advertising • Generally, untrue, misleading or deceptive statements in advertising are prohibited when the statement is “material,” meaning that it could influence a purchasing decision. • Visual representations may be as misleading as words. • An advertisement may be misleading as a result of the omission of material facts. False, Misleading or Deceptive Advertising • Common examples of misleading advertisements include: – Hidden fees – Inaccurate or misleading claims – Inaccurate comparisons with other products – Prominent claims that are contradicted by fine- print disclaimers Types of Advertising Claims • Express Claim: A statement that is likely to
    [Show full text]
  • A Consumer Behavioral Approach to Resale Price Maintenance
    VIRGINIA LAW & BUSINESS REVIEW VOLUME 12 FALL 2017 NUMBER 1 A CONSUMER BEHAVIORAL APPROACH TO RESALE PRICE MAINTENANCE Thomas K. Cheng† ABSTRACT This Article reexamines the various pro-competitive justifications and theories of harm for resale price maintenance (“RPM”), one of the most controversial practices in antitrust law. It argues that the existing literature overlooks three important issues regarding RPM, namely, the kind of retail service invoked in a justification, the kind of retailer at issue, and the prevailing model of consumer behavior. All three issues have important implications for the plausibility and validity of the various justifications and theories of harm for RPM. It argues that most of the existing literature presumes the inter-brand primacy model of consumer behavior. Once this model is not applicable, much of the prevailing analysis breaks down and the legality of RPM needs to be reconsidered. In particular, this Article demonstrates that many of the accepted justifications for RPM are of doubtful validity or are only valid under limited circumstances. This lends support to a more hostile view of RPM. I. INTRODUCTION ....................................................................................................... 2 II. SOME PRELIMINARY ISSUES ................................................................................ 4 A. The Economic Rationale for RPM .............................................................. 4 B. Single-Brand vs. Multibrand Retailers ........................................................
    [Show full text]
  • Unit 17 Personal Selling and Sales Promotion
    Personal Selling and sales Promotion UNIT 17 PERSONAL SELLING AND SALES PROMOTION Objectives On completion of this Unit, you should be able to: • explain the nature and role of personal selling and sales promotion • list different types of sales position and the sales promotion schemes • describe the steps involved in the selling process • learn about the growing importance of sales promotion in India. • understand the process involved in planning sales promotions • appreciate the need for integration among the different methods of promotion. Structure 17.1 Introduction 17.2 Role of Personal Selling 17.3 Types of Selling Jobs 17.4 The Selling Process 17.5 Sales Promotion 17.6 Sales Promotion Objectives 17.7 Sales Promotion Methods 17.8 Planning Sales Promotion 17.9 Towards Promotional Strategy 17.10 Summary 17.11 Key Words 17.12 Self-assessment Exercises 17.13 Further Readings 17.1 INTRODUCTION In contrast to advertising and publicity, which use impersonal methods of communication, personal selling makes use of direct personal communications to influence the target customers. Personal selling is a highly distinctive method of promotion, and makes use of oral presentation in conversation with existing and potential customers, for the purpose of making a sale. It is one of the oldest methods of business promotion. The contributions made by personal selling in making the promotion function more effective have earned the distinction of being the most reliable promotion method. Though, it is the most expensive method of promotion, yet we see an increasing number of firms making use of it, and a good number of them realise that they cannot, perhaps, live without it.
    [Show full text]
  • Demonstrate Specialist Products to Customers in a Retail Organisation
    PPL.C356 - SQA Unit Code J0BA 04 Demonstrate specialist products to customers in a retail organisation Overview This standard is about creating and making the most of opportunities to demonstrate specialist products to customers in a retail organisation. This standard is for owners, managers, department managers, team leaders and sales/customer service assistants. When you have completed this standard you will be able to demonstrate your understanding of and ability to: • Demonstrate specialist products to customers in a retail organisation PPL.C356 Demonstrate specialist products to customers in a retail 1 organisation PPL.C356 - SQA Unit Code J0BA 04 Demonstrate specialist products to customers in a retail organisation Performance criteria You must be able to: 1. judge from customers' body language and immediate circumstances whether they are likely to respond positively to an invitation to watch or take part in a specialist product demonstration 2. organise specialist product demonstrations in ways that ensure a smoothly- run, efficient demonstration that meets relevant health and safety requirements 3. give demonstrations that clearly show customers the use and value of specialist products 4. offer customers the opportunity to use the specialist products themselves, when it is safe, legal and cost-effective to do so 5. encourage customers to ask questions about the specialist products being demonstrated 6. respond to customers' comments and questions during demonstrations following your retail organisation's customer service standards 7. take the necessary steps, within the limits of your authority, to minimise any security risks associated with demonstrations of specialist products PPL.C356 Demonstrate specialist products to customers in a retail 2 organisation PPL.C356 - SQA Unit Code J0BA 04 Demonstrate specialist products to customers in a retail organisation Knowledge and understanding You need to know and 1.
    [Show full text]
  • Retail Management and Merchandising
    RETAIL MANAGEMENT AND MERCHANDISING SAMPLE EXAM QUESTIONS These test questions were developed by the MBA Research Center. Items have been randomly selected from the MBA Research Center’s Test-Item Bank and represent a variety of instructional areas. Performance indicators for these test questions are at the prerequisite, career-sustaining, and specialist levels. A descriptive test key, including question sources and answer rationale, has been provided. Copyright © 2014 by MBA Research and Curriculum Center®, Columbus, Ohio. Each individual test item contained herein is the exclusive property of MBA Research Center. Items are licensed only for use as configured within this exam, in its entirety. Use of individual items for any purpose other than as specifically authorized in writing by MBA Research Center is prohibited. Posted online March 2014 by DECA Inc. SAMPLE RETAIL MANAGEMENT AND MERCHANDISING EXAM 1. Which of the following is a characteristic of debtor-creditor relationships: A. Designed to monitor accounts C. Intended to increase competition B. Controlled by industry standards D. Regulated by various laws 2. Which of the following is a benefit of the business-format franchise arrangement: A. Strict operating hours C. Limited number of vendors B. Reduced risk of failure D. Uniform store appearance 3. The total number of members in a channel is called A. channel length. C. distribution pattern. B. distribution intensity. D. channel width. 4. For which of the following markets would producers use a short channel of distribution: A. Baby boomers C. Local consumers B. Generation X D. Senior citizens 5. Channel members' sharing inventory and order-processing information through databases and computer systems is an example of the use of technology in A.
    [Show full text]