CHAPTER II

LITERATURE REVIEW

2.1 INTRODUCTION :
Sales Promotion is one of the elements of the promotional mix. (The primary elements in
the promotional mix are advertising, personal selling, direct marketing and publicity/public
relations). Sales promotion uses both media and non-media marketing communications for
a pre-determined, limited time to increase consumer demand, stimulate market demand or
improve product availability.

Sales promotions can be directed at either the customer, sales staff, or distribution channel
members (such as retailers). Sales promotions targeted at the consumer are
called consumer sales promotions. Sales promotions targeted at retailers and wholesale
are called trade sales promotions.

Sales promotion includes several communications activities that attempt to provide added
value or incentives to consumers, wholesalers, retailers, or other organizational customers
to stimulate immediate sales. These efforts can attempt to stimulate product interest, trial,
or purchase. Examples of devices used in sales promotion include coupons, samples,
premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes.

Sales promotion is implemented to attract new customers, to hold present customers, to

counteract competition, and to take advantage of opportunities that are revealed by market
research. It is made up of activities, both outside and inside activities, to enhance company
sales. Outside sales promotion activities include advertising, publicity, public relations
activities, and special sales events. Inside sales promotion activities include window
displays, product and promotional material display and promotional programs such as
premium awards and contests
2.2 DEFINITION:
In the words of Roger A. Strong, “Sales promotion includes all forms of sponsored
communication apart from activities associated with personal selling. It, thus includes trade
shows and exhibits, combining, sampling, premiums, trade, allowances, sales and dealer
incentives, set of packs, consumer education and demonstration activities, rebates, bonus,
packs, point of purchase material and direct mail.”

“Those activities that supplement both personal selling and advertisement, coordinate them
& help to make them more effective”-AMA(American marketing association).

“Sales promotion means any steps that are taken for purpose of obtaining or increasing
sales”.— A.H.R. Delens

2.3 Objectives of Sales Promotion:

1. Bridge between advertising and personal selling

Sales promotion consists of those activities other than personal selling, advertising and
publicity. It serves as a bridge between personal selling and advertising.

2. Introduction of new products

Sales promotional devices help introduce new products in the market. They induce buyers
to purchase a new product. Free samples are distributed or money or merchandise
allowance is offered to the dealers to stock and sell the new product.

3. Attracting new customers

Sales promotion aims at wooing new customers. Sales promotional devices at consumers
level include Coupons, product samples, giving demonstration about the product,
organizing contests, refund offers, offering free trials etc. These stimulate customers to
make purchase promptly on the spot.
4. Inducing present customers to buy
Sales promotion induces present customers to buy more of the product. Sales promotion
methods work faster than advertisement. Moreover, sales promotion materials make the
salesman’s effort more productive. It enables the consumer to know more about the
product, its ingredients and uses.

5. Increasing sales during off season

Some products are seasonal in nature. After the season is over, they are not demanded any
more. Sales promotion is used to retain customer’s interest in the product during off-season.
Short term incentives offered to the buyers stimulate sales.

6. Encouraging business buyers

Wholesalers and retailers purchase goods for resale. Promotional activities are undertaken
to attract retailers and wholesalers to stock the products more. Display and advertising
allowances are granted to dealers to compensate them for the space given for the display of
manufactured products. Premiums are offered for purchasing above a particular level.

7. Improving the public image of the firm

Huge amounts are now being spent on determining appeals for arresting the attention of the
prospects towards the product. Consumer’s dissatisfaction about a particular brand can be
removed by aggressive sales promotion programmes. Sales promotional devices make
products popular among customers. Ultimately, they enhance the public image of the firm.

2.4 CHARACTERISTICS:

1. It is a part of market promotion. It involves all the promotional efforts other than
advertising, personal selling, and publicity.

2. The primary purpose is to induce customer for immediate buying or dealer effectiveness
or both.
3. It is optional. Many companies do not practice it.

4. It is directed for multiple objectives, like to maintain sales during off season, to increase
sales, to face competition, to clear stocks, to improve image, to promote new products, etc.

5. It consists of offering, wide variety of tools/incentives.

6. Sales promotion efforts consist of special selling efforts for the specific time period in
forms of short-term incentives and schemes undertaken at consumer level, dealer level or at
salesmen level.

7. It involves the non-recurrent selling efforts. They are not a part of daily activities. They
are not undertaken repeatedly.

8. Sales promotion incentives are imitative. Competitors can easily imitate them.

9. Sales promotion is expensive. It may affect adversity the profitability of company.

10. Excessive use of sale promotion may affect sales and reputation of company adversely.

2.5 IMPORTANCE:

1. To introduce new products.

2. To keep consumers satisfied.

3. To attract new customers.

4. To clear stocks of products.

5. To induce consumers to try and buy certain products

6. To induce present customers to buy more quantity and/or times.

7. To strengthen competitive position.

8. To offset price competition.

9. To speed up sales of slow moving products.

10. To induce consumers to switch from competitors’ brands.

11. To maintain or increase sales during off-seasons.

12. To inspires middlemen to keep more inventories/stocks.

13. To encourage middlemen to put more efforts in attracting customers.

14. To support personal selling.

15. To increase effectiveness of advertising.

16. To reduce the degree of dissatisfaction of customers.

17. To increase familiarity and popularity of product, brand or company name.

2.6 Important tools of Sales Promotion Schemes

The importance of sales promotion has increased tremendously in the modern times. Lakhs
of rupees are being spent on sales promotional activities to attract the consumers in our
country and also in other countries of the world.

Some large companies have also begun to appoint sales promotion managers to handle
miscellaneous promotional tools. All these facts show that the importance of sales
promotion activities is increasing at a faster rate.

1. Competitions
Prize contests depend for success on the value or originality of the price and the number of
prize offered, including the consolation prizes. The entry requirement can be proof of
purchase such as a token or entry coupon detached from the pack, extra entries requiring
extra purchases. To be legal, contests require an element of skill. Contests should be
organized with adequate time for proper adjudication, and there should be publicized
announcement of results.

2. Self-liquidating premium offers

The meaning of the expression ‘self-liquidating’ is that cost of liquidating the premium is
collected from the buyer. For example, the manufacturer of a bathing soap, may offer a
‘soap box’ at a very nominal price if the soap is purchased. The manufacturer may buy the
soap box in very large quantities at an attractive rate and then may make an attractive offer
to the consumers to stimulate sales.

4. Mail-in free offers

A manufacturer offers to send an item free of cost, if a product is purchased (e.g., sending a
pen free by mail for those who buy some stationery items). Here, no payment is required,
only proof of purchase or perhaps a token payment to cover postage and packing is
required.
5. Free gifts with goods
The gift is usually attached to the product, as with a toothbrush attached to a carton of
toothpaste; Toys (carefully packed separately) may be inserted in packets of baby food.

6. Picture cards
Picture cards encourage repeat buying in order to retain them. They may be inserted in
packs, or printed as cut-outs on cartons.

7. Gift coupons
Coupons, with a stated value is kept inside the packet. Again, these have to be collected in
order to qualify for gifts, and so require repeat purchasing. A catalogue of gifts must be
made available.
8. Cash premium vouchers or coupons

These can be redeemed at the retail shops as a price reduction. They may be printed in press
advertisements, delivered door-to-door, or printed on packs as money off for the next
purchase.

9. Cross-Couponing offers and other schemes

This is a popular co-operation scheme whereby an on-pack coupon or token enables the
customer to buy another product (not necessarily made by the same manufacturer) at a
reduced price.

10. Coupon Redemption schemes

This is fairly a recent on-pack idea, whereby a product carries a premium coupon entitling
the customer to a discount at named store. This is liked by the store because the discount
can lead to other purchases.

11. Jumbo or multiple packs

It signifies that a number of items are packed together or the container is extra large, and
they are offered at a special price. It is an economical way of, both packing and buying
such items, and ensures that the customer is well stocked with the products and may thus
become a habit buyer.

12. Money-off offers

Money-off offers, are ‘flashed’, that is, printed on the wrapper or carton, a sure way of
inducing impulse buying.

13. Packing
Another important attempt of sales promotion is through attractive package. Now-a-days
customers are attracted by good and attractive packing of products. A good package is one
which is attractive and protective, tells the product story, builds confidence, convenient to
handle and above all economical.
The economy and attractiveness of packing are two important areas which the sales
promotion department should always keep in mind.

14. Direct Publicity — Sales Letters / Circulars

The sales promotion department takes all necessary steps to ensure that a better relationship
exists between the sales department and the customers/dealers. In this regard, sales letters
have got an important role.

While drafting the sales letters and circulars, it should be kept in mind that a personal touch
and some kind of intimacy is maintained. By doing so the manufacturer is not only able to
attract old customers to renew their purchase but also able to attract new customers.

2.7 PROCESS OF SALES PROMOTION:

The main stages which is involved in sales promotion planning are: 1. Establishment of
objectives, 2. Selection of promotional tools, 3. Planning the sales-promotion program, 4.
Pre-testing, 5. Implementation and 6. Evaluation

As in the case of advertising, effective sales promotion involves an on-going process with a
number of stages.

1. Establishment of objectives:
Sales-promotion objectives vary according to the target market. If the target is the
customer, objectives could include the encouragement of increased usage or the building of
trial among non-users or other brand users. For intermediaries, objectives could be to
encourage off-season sales or offsetting competitive promotions. Sales-promotion activity
could also be aimed at internal personnel, making up part of the reward system

2. Selection of promotional tools:

Promotional objectives form the basis for selecting the most appropriate sales-promotion
tools. The cost and effectiveness of each tool must be assessed with regard to achieving
these objectives in respect of each target market. The tools available to the service marketer
are described in more detail in the next section.

3. Planning the sales-promotion program:

The major decisions that need to be made when designing the sales-promotion program
relate to the timing of the promotion and how long this tool is to be used. Also important
are the size of incentive, rules for eligibility and, of course, the overall budget for the
promotion.

4. Pre-testing:
This needs to be undertaken to ensure that potentially expensive problems are discovered
before the full launch of a promotion. Testing in selected market segments can highlight
problems of ambiguity, response rates and give an indication of cost effectiveness.

5. Implementation:
The program for implementation must include two important time factors First, it must
indicate the ‘lead time’- the time necessary to bring the program up to the point where the
incentive is made available to the public. Second, the ‘sell in time’ which is the period of
time from the date of release to when approximately 90-95 per cent, of incentive material
has been received by potential customers.

6. Evaluation:

The performance of the promotion needs to be assessed against the objectives set. If
objectives are specific and quantifiable, measurement would seem to be easy. However,
extraneous factors could account for the apparent success of many sales-promotion
activities.
2.8 Methods/Techniques of Sales Promotion:

Sales promotion methods could be divided into the following two categories:
(a)Sales promotion devices for dealers

(b)Sales promotion devices for consumers

Following is a brief account of the sales promotion devices comprised in each of the above
two categories:
(a) Sales Promotion Devices for Dealers:
For promoting sales at the dealers’ level, the following techniques of sales promotion might
be used:
(i) Dealers’ Aids:
This method of sales promotion involves supplying advertising material to dealers by
manufacturers, like

1. Sign boards

2. Banners

3. Goods supplied for display

(ii) Dealers’ Contests:

Dealers’ contests may be organized by a manufacturer, by promising additional incentives
to dealers who are able to attain per-determined sales targets. Or prizes might be awarded
by a manufacturer to dealers; who arrange for the most attractive display of his products.

Such contents infuse a sense of competition into dealers; each of whom would try to excel
others with a view to availing of incentives or prizes announced by the manufacturer.
(b) Sales Promotion Devices for Consumers:
Some of prevalent sales promotion devices, directed at consumers are the following:
(i) Coupons:
A coupon is a certificate that entitles its holder to a specified discount, on the purchase of a
specified product. As a method of sales promotion, coupons may be distributed among
prospects through mail, newspapers, magazines or retailers.

The manufacturer reimburses dealers for the value of coupons redeemed by them; also
paying some additional amount to them for .the trouble of handling coupons and
maintaining record about them.

(ii) Free Samples:

In case of some new product brought into the market for a first time, by a manufacturer;
free samples of the same might be distributed, as a method of sales promotion. Examples of
items for which free samples are usually distributed may be – soaps, cosmetics, toothpastes,
perfumes, tea, coffee, shampoo pouches etc.

One may recall to memory the instance of free distribution of ‘mini’ – Dalda packs’; when
Dalda vanaspati was manufactured, for the first time.

(iii) Reduction Sales:

A reduction sale, as a technique of sales promotion, implies an offer to sell a product at a
substantial discount.

Reduction sales might be tried under the following two situations:

(a) Intense Competition:
When there is an intense competition in a particular product market; the manufacture may
announce ‘reduction sales’ of his product at a heavy rate of discount.

(b) Off-Season Sales:

Some products might be offered for reduction sales, during off-seasons, e.g. sales of fans at
reduced prices during winters or sale of woolen garments at heavy discount, during the
peak summer season.
(iv) Money-Refund Offer:
Under this technique of sales promotion, a manufacturer makes a promise to refund the
price of the product to the customer, if the latter feels dissatisfied with the product.

This technique of sales promotion reveals the good and genuine intensions of the
manufacture; and may lead to generation of sizable sales.

(v) Trading Stamps:

Trading stamps are issued to customers through dealers – as a certain percentage of the
value of goods purchased by them e.g. 2½%. Customers go on collecting such stamps. An
adequate amount of trading stamps collected could be exchanged for a product – original or
specified – at ‘stamps redemption centres’.

(vi) Premium (or Bonus) Offer:

Premium or bonus offer as a technique of sales promotion implies an offer of some
additional free item, along with the purchase of the main product e.g. a bucket offered with
a 5 kg. Pack of a detergent powder or a ball-point pen offered with a book or a free
transistor offered with a deck etc.

(vii) Prize Contests:

Prize contests, as techniques of sales promotion are quite popular now-a-days. Such
contests may be organized through the radio or TV or newspapers etc. Participants in these
contests might be required to answer a given question and the best answer being entitled to
an award; or they might be asked to write a slogan for popularizing the product – the best
selected slogan being awarded by the judges.

(viii) Exchange Offers:

Under the ‘exchange offer’ method, a manufacture may offer an entirely new piece of
product of his manufacture in exchange for an old product of similar type of whatever make
subject, of course, to some nominal extra payment, by the buyer. For example a TV
manufacturer may make an offer to supply a new TV set of his company, in place of any
old TV set of the prospect on the payment of some nominal additional amount.
2.9 Advantages of Sales Promotion

1.When compared with advertising and personal selling, sales promotional activities are
less expensive.

2. It enables both the dealers and the consumers to enjoy certain tangible benefits, e.g., free
samples, gifts, price reductions, etc.

3. Certain sales promotional activities also enable the consumers to gain knowledge. For
example, displays and demonstrations help them to, understand the product mechanism.
The customers can also raise their queries and get clarification immediately. Pamphlets
distributed to the consumers also provide useful information.

4. Advertising approaches the buyer indirectly and personal selling approaches the buyer
directly. Whereas sales promotional activities involve both direct and indirect approaches.

5. Sales promotion helps to supplement and support both advertising and personal selling.
No business can totally rely on advertising and personal selling alone.

6. Most of the sales promotional activities can be undertaken by the manufacturers

themselves. Distribution of free samples and gifts, money refund and coupon offers,
demonstrations, exchange of old for new and so on can be made by the manufacturers
themselves. They may, at the most, need the help of the dealers only. Whereas, in the case
of advertisement, media are required, e.g., Radio, TV and
newspapers. Personal selling requires efficient and committed salesmen.

7. The salesmen of a business cannot perform their work effectively without the use of sales
promotional tools like pamphlets, audiovisual aids, cell phones and pagers.

8. When compared with advertising, sales promotional activities can create better and
quicker impact. Free sample, gifts, demonstrations etc., can induce the consumers to act
fast. One can, therefore, say that sales promotion satisfies the ‘A I D A formula’ to a greater
extent.
9. The business can have better control over its sales promotional activities. The financial
aspects, in particular, pertaining to sales promotion can be effectively managed. This may
not be possible in the case of advertisement and personal selling.

10. Measuring the effectiveness of sales promotion can be easy when compared to
measuring the effectiveness of advertising and personal selling

2.10 Disadvantages of sales promotion

1. The number of sales promotional activities to be performed are too many, distribution of
free samples and gifts, making such offers as price off and money refund, holding contests,
participating in trade fairs and exhibitions, display and demonstration of goods and so on.

2. Sales promotion, by itself, cannot produce results. It can only supplement advertising and
personal selling which are vital for a business.

3. Sales promotion is non-recurrent in nature. It cannot, therefore, be used continuously.

The marketer has to select the most appropriate tool of sales promotion and the same shall
be introduced at the right time.

4. It involves additional expenditure on the part of the business. Apart from the heavy
expenditure to be incurred on advertisement and personal selling, the business may have to
spend further on sales promotion. This leads to an overall increase in promotional costs.

5. The marketer cannot use any sales promotional tool at any time. Certain tools are to be
used only in the introduction stage of a product, while others will be used in the growth and
maturity stages. Indiscriminate use will not produce the expected results.

6. Another drawback of sales promotion is that there is a tendency on the part of all the
competitors to use the same method of sales promotion at the same time. Such an approach
may not benefit all. For example, if all the manufacturers of air-conditioners offer off
season discount (during winter), the consumer may only decide based on brand popularity.
7. Sales promotion is generally required to promote sales of those brands which are not so
very popular. Popular brands move fast in the market without much effort. Brand
popularity can be secured mainly by means of advertisement and personal selling.

8. Sales promotion offers such as price cut, discount, free gift etc., may sometimes create an
impression that these are being done to sell a poor quality product.

9. As far as the various types of discounts (cash discount, off-season discount and festival
discount etc.) are concerned, there is always a feeling that these are not real and the price
would have already been hiked.

10. As the sales promotional activities are short-lived, the results of such activities will also
be short-lived. The moment the various inducements offered by the marketer are
withdrawn, the demand is bound to fall.

2.11 ARTICLE REVIEW

REVIEW 1:” An Empirical Study on Sales Promotion

Techniques”

BY: Dr. A. Ananda Kumar , Ms. S. Suganya & Mr. V. Imayavendan ; Christ College of
Engineering & Technology.

LINK:https://journalofbusiness.org/index.php/GJMBR/article/download/2530/2431/

Vecchio, Del, Devon et al. (2006) report the results of the study, which examined the effect
of sales promotion on brand preference through Meta-analysis. Results of 51 studies were
integrated and analysed. As per the study sales promotions do not affect post promotion,
brand preferences in general. Ndubisi, Oly, Nelson and Me, Tung, Chiew (2005) in their
study evaluated the impact of sales promotional tools, namely coupon, price, discount, free
sample, bonus pack, and in-store display, on product trial and repurchase behavior of
consumers. Kumar, V. And Swaminathan, Srinivasan (2005) studied the impact on brand
sale and how that impact decays over the life of the coupon. The authors use an
econometric model to demonstrate the coupon effect about a price reduction, coupon effect
over time. Laroche, Michel et al. (2005) studied the effect of coupons on consumer's brand
categorization and choice process. He developed an approach that influences dynamic
loyalty program and more traditional short-term promotions. They argue that the loyalty
programs under examination successfully alter behavior and increase retention rates. Swat,
Jofie and Erden, Tallinn (2002) focused particularly on the marketing mix, purchased
packaged consumer goods, the impact on store promotions as well as the availability of the
product on the shelf. Seaman, Dilip and Gourville, T. John (2001) 'O investigated how and
why price bundling affects the consumption of a service based products. The study showed
that price bundling leads to sunk cost and pending benefits of a transaction.

REVIEW 2: RETAIL PROMOTION AND EFFECTIVENESS

BY: Ashish Mishra is an Assistant Professor in the Marketing area at IIM Bangalore.

LINK:https://tejas.iimb.ac.in/articles/28.php

Customer survey indicated that the customer group 1 who belong to 15-24 age group
prefer simple discounts like flat percentage offers which is a price discount whereas the
other group namely the 24-40 age group preferred complex deals like quantity discount
wherein the percentage savings is not obvious. They believe that more cost savings occur
in this type of deals. This customer groups predominantly consist of married couples
with children who shop having their family in mind. They have a notion that with
quantity discount more savings can be done as their shopping quantity increases than
normal in one purchase itself. On the other hand a young customer group of college
students and working professionals value money more than value. They see more savings
on a direct discount on the apparel and hence believe that there is more savings in money
in price discount. They don't analyze complex deals and the actual savings they derive
from it, thus preferring simple deals. One of the main reasons for this attitude is that they
 are being supported by their family financially and they do not see a reason to save
money.

This has huge implications to the store as the consumer surplus can be tapped by
targeting both the groups with different discounts and hence increases the top line.
Quantity discount should be directed towards 24-40 age group customers whereas simple
percentage sales should be offered to 15-24 age group customers. Advertisements of
these deals should be such that it appeals to the customer segment on which it is being
targeted. So, profit of the store will increase due to proper direction of the offer.

REVIEW 3: Analyzing the Influence of Sales Promotion on

Customer Purchasing Behavior.
BY:MAHSA FAMILMALEKI

LINK: https://www.omicsonline.org/open-access/analyzing-the-influence-of-sales-
promotion-on-customer-purchasing-behavior-2162-6359-1000243.php?aid=52367

According to Ghafran Ashraf [15], their study confirmed that consumers buying behavior
and sales promotion can be motivated through various kinds of elements, including
promotion techniques such as free samples, price discounts, social surroundings and
physical surrounding.

In addition, according to Jin-Woo Park et al. [36], their study has empirically verified the
relationship between sales promotions, customer satisfaction, customer value and
behavioral intention, legitimizing the growth of sales promotions within the duty-free shop
sector. Their results indicate that there were significant relationships between cutting price,
cents off, customer satisfaction, customer value, image and behavioral intentions. From
their research, they found that Duty-free shops should realize that attractive sales promotion
strategies should enhance customer repurchase intention and recommendations to other
customers because they raise the level of customer satisfaction, value perception and duty-
free shop image formation.
REVIEW 4:Point-of-sales promotions and buying stimulation
in retail stores.
BY:RAJA GOPAL

LINK: https://link.springer.com/article/10.1057/dbm.2008.23

Sales promotions are considered to be short-term instruments, usually designed to yield

an immediate sales effect. Point-of-sales promotion program have become the principal
tool of retailers in Mexico to acquire new customers and retain loyal customers. There are
a variety of promotional strategies used by the retailing firms during the leisure seasons
observed three times per annum. It is found that loyal customers are attracted to the store
brands during the promotional offers, while new shoppers are price sensitive and are
attracted by the in-store ambience of sales promotions and volume discounts. Retail sales
promotions are largely built around price or volume discount offers. Retailing firms
attempt to influence the buying behaviour of customers by launching attractive
promotional campaigns and introducing changes in their price policies, among other
actions. Periodical price discounts offered by the retailers exert a greater influence on the
store-brand choice over the non-store-brand preferences. The type of promotion and the
level of retailer dominance, however, have significant effects on the volume of sales,
acquiring new customers and sustaining customer loyalty. The discussions in the study
reveal that point-of-sales promotions significantly stimulate the buying behaviour among
customers towards compulsive buying that is driven by the factors of the hidden fear of
not getting such bargain in the future, product attractiveness and in-store shopping
arousal. It has also been observed in the study that customers develop a higher preference
for store brands, enhanced use value and repeat-buying behaviour through a hands-on
experience of the product.

REVIEW5:The Review of how Sales Promotion Change the

Consumer’s Perception and Their Purchasing Behavior of a
Product
BY:Wong Ai Jean & Rashad Yazdanifard

This article has discussed about how sales promotion strategy changed consumers’
cognitive thinking and purchasing behavior. Through the understanding of the relationship
between sales promotion and the consumers’ cognitive thinking and purchasing behaviors,
the marketers are more likely to produce a more effective sales promotion strategy to
increase their sales profit. Also, the marketers should work toward eliminating the negative
perception of sales promotion, specifically price reduction, towards the consumers. In this,
the marketers need to remember that the products have represented their brand. Thus, in
order to survive and receive good reputation in the market place, the marketers need to
maintain the good quality of their products while selling them at a lower price during sales
promotion period or provide extra gifts for the consumers, especially loyal-consumers. Not
only that, this research has helped the marketer to understand the potential effects of both
monetary and non-monetary sales promotion strategy on consumers’ purchasing behaviors.
In other words, the marketers need to pay extra attention in choosing the most suitable sales
promotion strategy for the specific products. For instance, monetary sales promotion
strategy is more effective for entertainment products while non-monetary sales promotion
strategy is more likely effective for functional products. Last but not least, this article has
also allowed the consumers to understand the relationship between their purchasing
behavior during sales promotion and their personal mental satisfaction and self-perception.
Most of the time consumers have perceived that sales promotion will only benefit
consumers in terms of their finance.. However, through the research reviewed in this
article, consumers’ mental well-being is more likely being improved through sales
promotion as well. Besides receiving financial benefits during sales promotion, consumers
have also received personal mental well-being..Moreover, the consumers tend to feel safe
to purchase the brand which receives good feedbacks from other consumers..Therefore,
consumers have become wiser to purchasing more during sales promotion periods, which in
turn assist the marketer to achieve the agenda of the sales promotion.
REVIEW 6:Online Sales Promotions and Advertising Methods

BY:Prachi Juneja and Reviewed By Management Study Guide Content Team.

LINK: https://www.managementstudyguide.com/online-sales-promotion-and-advertising-
methods.htm

Sales Promotion and Advertising is one of the major activities of any Marketing Function
in any business. Sales promotion and advertising is always drawn up based on the sales
strategy combined with the nature and composition of the market. Audio, visual, print
media advertising besides sales promotional campaigns have been the normal set of
activities that go with marketing. When it comes to the E Marketing strategy, the need for
online advertising remains the same as it is for the conventional sales. What is different
from the traditional modes of sales promotion is that the methodology or the process
adapted in the e world is different.

When you engage an SEO company to build a website for your, the developers take care to
design the website, pages and the content, host, ensure it is listed as the top ranking page in
any search and do all things necessary to get the traffic into website. To be able to attract
the target audience and to connect with them, you will need to engage in online
promotional activities. There are several types of online promotional activities that you can
try out. One of the most popular ways of getting into online promotion is by using ‘Online
Ad Banners’.

When you surf on the net what strikes you and attracts your attention is the online banner.
There are many more promotional activities like Internet newsgroups, Email broadcasts,
Social Media Networking, Internet mailing list, sponsorship of online chats, electronic
press release distribution etc. You can opt for free advertising as well as for paid
advertising on the internet depending upon your choice of activity.

REVIEW 7: E-Commerce Trends

By :Prachi Juneja and Reviewed By Management Study Guide Content Team.

LINK: https://www.managementstudyguide.com/e-commerce-trends.htm
If internet has had far reaching impact on all walks of life, E trade has had similar impact
on all types of businesses. No Organisation big or small, whether a global organisation or
an individual owned enterprise can afford to ignore e commerce and e marketing scene.
Normally we see people using internet to make their travel bookings like booking airline
tickets online, make hotel reservations, look at the places of interest etc. People have also
begun to shop online and buy fashion stuff as well as books and other items of interest.

Online buying has not been restricted to these alone. You may be surprised to know that
cars are being bought online by customers. This new trend has had the car dealers as well as
manufacturers to sit up and take notice of the changes in the buyer’s behaviour. Internet is
one medium that transfers the power of information to the users.

In the case of buying a car, the process of buying is heavily dependent upon
information. The fact that internet is able to provide detailed information, comparison and
all details in the interactive and multimedia mode, customers find it very easy to surf the
net for information about the cars. Comparing specifications, models, and technical specs is
easier on the internet for retrieving all the information about various brands can be done by
the click of a button. It takes a few minutes to obtain all the information that one is looking
for. Normally this process would have taken several weeks for the interested individual to
compile information.