Asiance - Digital Agency: Sales Promotion Schemes Project Report MBA
Asiance - Digital Agency: Sales Promotion Schemes Project Report MBA
Project Report on Sales Promotion MBA Project Report on Sales Promotion Schemes Sales Promotion and Advertising Project Report Sales promotion
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Promotion
Project Report
do
companies
decide
on
their
promotion
budget?
There are mainly four
methods
of
sales
promotion :
Affordable Method :
Many
companies set
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Project Report on Sales Promotion MBA Project Report on Sales Promotion Schemes Sales Promotion and Advertising Project Report Sales promotion
One
executive
explained this method
as follows : "Why, its
simple. First I go
upstairs
to
the
controller and how
It is a method which is
uncertain
one
makes
long
and
term
planning difficult.
Percentage of Sales
Method :
Many
their
companies set
promotion
expenditures
at
a
specified percentage of
sales. Accordingly the
sales is set on the basis
of sales.
In this a specified sales percentage is decided for the promotional budget
Advantages of this method :
First, its use means that promotional budget vary with what a company can
afford.
Second, it encourages the management to think in terms of the relationship
among promotion costs, selling price, and profit per unit,
Third, it encourages the competitive stability to the extent that competing
firms spend approximately the same % of their sales on promotion.
Inspite of the advantages, the % sales method has little to justify it. Its
reasoning is circular : It views sales as the determiner of the promotion
rather than as a result. It leads to budget setting by availability of funds
rather than by marketing opportunities.
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Meaning of Promotion
The term promotion is the term and includes mainly three type of
sales activity :
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Acc. to A.H.R. Delons :"Sales promotion means any step that are taken for the purpose of obtaining or
increasing sales".
Acc. to W.Q. Kelly Opines :"Muddled misused misunderstood that is sales promotion Acc. to him the
field of sales promotion as a marketing activity is still vaguely defined and
organized.
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customer would have bought the product without the incentive. It is also
difficult to find out how many customers were held after the coupon offer
expired.
2. Price-off-offer (Also known as bargain offer price packs) :This offer is intended to stimulate the sales during a slump season. In this
method the customer is offered a reduction from the printed price list. It is
also used when a substitute for competing product enters the market.
Many experts on sales promotion fed that Off Schemes are among the
weaker and less desirable methods of promotion. These can be trade
resentment particularly when the retailer raises the price to retain his
margin. Secondly that is not conductive to building up brand loyalty.
Consumers may simply shift to the products that offer this scheme.
3. Samples :In the hope of converting a prospect into a customer a sample (Some
quantity of the product) may be given. This helps the consumer to verify
the real quality of the product. Various pair manufacturing companies offer
this method. For developing brand loyalty this method is quite useful.
Sampling is a fast method of demand creation because one knows the
result as soon as the consumer has had time to use the sample and buy the
brand.
Disadvantage of Sampler :Offering sample in quit expensive. There is the cost of producing samples.
The distribution costs are also high. Sample have to be mailed to potential
customers or to be distributed through retail shops. There are also
problems when the real product does not resemble the sample supplied.
4. Money Refund Offer :An offer usually stated on the package is that manufacturers will return
with in a stated period part or all of the purchasers money if he is not
completely satisfied with the product.
5. Trading Stamps :A premium in the form of stamps is given by the sellers to consumers while
selling goods. The number and value of stamp that the buyer receives
depends on the values of the purchase. These stamps are redeemable
through premium catalogues at the stamp redemption centres.
6. Buy-Back Allowance :
This an allowance following a previous trade deal not offer a certain
amount of money for new purchases based on the quantity of purchases on
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the first trade deal. It extends the life of a trade deal and helps to prevent
part deal sales decline. It greatly strengthens the buyers motivation to cooperate on the first deal.
7. Premium :There are various forms of premiums provided by the manufacturer as
sales promotional devices :(a) Coupons are supplied for effecting price reductions.
(b) Factory in pack premium these are popular in the case of Body food
and Tin food items, Spoons, Cups, Measuring, Glass etc. and such other
items are packed with the product in the box itself. Factory in pack
premium are particularly goods for product meant for children. The Binaca
Toothpaste packs contain animal shape toys. These are very attractive and
qutie popular among the children.
(c) Self Liquidating Premiums :The cost of the premium is collected from the buyer himself. But when the
buyers pays for it he has to pay only a considerably low price for the
premium. This is possible for the manufacturer purchases the items in bulk
at a premium and his cost per unit as is substantially low.
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Aggressive Selling
Meaning :Goods are produced for market. Manufacturers have to make efforts to
sell all they produce. When the manufacturers uses various sales efforts to
obtain increased sales volume for his product it is called aggressive
selling or offensive selling. The sales efforts which a manufacturer makes
to retain his customers i.e. to protect his already established market
against against his competitors is termed as defensive selling. In contrast
to this aggressive selling is concerned with the sales efforts made with the
express objective of selling more by expanding the market for the product
of the selling firm.
Aggressive Selling and Defensive Selling :Aggressive selling is based on the answer to the question how much does
the firm gain (in term of sales with profit) by using this method defensive
selling is based on consideration as to how much the firm will lose if it does
not use this method increase of sales can be obtained from two sources:1. New customers if the market is expending.
2. From the competitors i.e. those consumers who were purchasing similar
product of competiting firms, if the market for the product is static.
Acc. to H. Whitehead :"In case of an expanding market all the firm may stand to gain by following
the methods of aggressive selling but if the market is static manufacturer of
a new market will have to be much more aggressive to capture the
established market of competitors".
When Aggressive selling is resorted ?
Usually manufacturer of a new product has to do aggressive selling :1. When the product has been improved.
2. When the manufacturers product is supervisor in quality to the product
of the established competitor.
3. When the total market for the product or line of product to expanding.
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2. Consumer Promotion :Under consumer promotion method special incentives are offered to the
consumers to buy the firms product. The more prominent amongst such
incentives are as following.
(a) Coupons :www.allprojectreports.com/MBA-Projects/Marketing-Project-Report/sales-promotion-schemes-project-report/sales-promotion-at-different-level-and-diffe
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