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Sales Promotion, which is the fourth major component of the promotion mix, is direct and instant
inducement aimed at an immediate increase in sales. In a competitive market, sales promotion
comes handy to a marketer in meeting the short term sales requirements. It serves a supportive
activity to advertising and personnel selling. 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. Examples
include contests, coupons, freebies, and loss leaders, point of purchase displays, premiums,
prizes, product samples, rebates and sweepstakes. 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.
Sales Promotions are announced both by manufacturers and retailers. Manufacturers’ announced
promotions might be direct at consumers, resellers or both. Manufacturers may also announce
sales promotion for its sales force. Sales promotions may also originate from retailers aimed at
consumers. The retailer originated promotions’ main objective is to increase store traffic rather
than sell any specific brand. Manufacturer announced consumer promotions constitute “Pull”
strategy and retailers’ promotions are based on “Push” strategy. Sales promotions are more
effective when combined with advertising and “pull-push” strategy are used at the same time.
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.
Sale promotions often come in the form of discounts. Discounts impact the way consumers think
and behave when shopping. The type of savings and its location can affect the way consumers
view a product and affect their purchase decision. The two most common discounts are price
discounts (“on sale items”) and bonus packs (“bulk items”). Price discounts are the reduction of
an original sale by a certain percentage while bonus packs are deals in which the consumer
receives more for the original price. Many companies present different forms of discounts in
advertisements, hoping to convince consumers to buy their products.
Definition:
According to American Marketing Associations, Sales promotion is defined as, “those
marketing activities, other than personal selling, advertising and publicity that stimulates
consumer purchasing and other dealer effectiveness measures such as displays, shows,
expositions, demonstrations and various other non-recurrent selling efforts not in ordinary
routine”
It may also be defined as “any steps taken for the purpose of obtaining or increasing sales.
Sales promotion may also be defined as all the marketing and promotional activities other than
advertising, personal selling and publicity that motivate and encourage the consumer to purchase
by means of such inducements as premiums, refunds, rebates, displays and demonstrations.
Meaning of Advertising:
Advertising is an impersonal promotional tool which is used to draw public attention towards a
product or service through selected and paid media. It is a means of communication that helps to
communicate a single message, to a large number of people in less time. In a nutshell,
advertising is nothing but “telling and selling” of commercial items.
Advertising is a technique used by most of the companies to persuade the potential customers to
buy the product. Various channels are used for the purpose of advertising like television, radio,
newspaper, magazines, billboards, pamphlets, posters, cabs, buses, walls etc. Due to extreme
competition between companies, the cost of advertising a single product is very high these days.
In general people get attracted to the advertisement and the demand for that product increases. So
the effects of advertising are positive. The results of advertising are seen in the long run when
there is an upward movement in the sales figure. However, it is quite difficult for a common man
to identify good products because only positive aspects are disclosed in the ads. The more the
ads are displayed to the customer, the more it will make an impression on the customer’s mind.
In this way, it helps the companies to make money easily whether their product’s quality up to
the mark or inferior
Meaning of Promotion:
Promotion refers to the set of activities that communicate the merits of the product, service or
brand to persuade target customers to buy it. It is one of the four elements of marketing mix. It is
a way of attracting, inducing and creating awareness among the people to initiate the purchase.
The ways of promotions include discount coupons, free distributions of samples, and offers like
giving two items at the price of one, trial offers, offers on festivals and occasions, contests, value
added services etc. Due to these methods, the companies get instant boost in their sales because
customer response is impulse when they know that they will get more at a price of less. It
involves activities like:
a. Direct marketing: It is a technique in which companies sell their products
directly to the customers by eliminating the middlemen.
b. Advertising: It is a paid announcement, wherein the message is conveyed to
attract the customer and bring in attention towards the products through a
medium.
c. Public relation: Every company wants to build and maintain an image in
front of the public, through various channels.
d. Personal selling: In this technique, the salesman sells the company’s
product by directly visiting and influencing them to buy the product.
Sales promotion represents those marketing activities that stimulate consumer purchasing and
dealer effectiveness such as displays, shows, exhibitions, demonstrations etc. Though these are
the activities appearing similar to those of advertising but they can be distinguished on the basis
of following grounds:
a. Advertising is a technique of driving public attention towards a product or
service through paid network, while promotion is a set of activities that spread a
word about the product, brand or service.
b. Advertising is a promotional strategy while Promotion is a marketing strategy.
c. Results of Advertising are generally slow and can be seen over time while the
results of Promotion are instant.
d. Cost involved in advertising is very high while promotion is cost effective.
e. Advertising is best suited for medium and big enterprises while promotion is
suited for all enterprises.
f. Advertising aims at developing a favorable consumer attitude towards the
product and moving the consumer to the point of purchase, while sales
promotion aims at increase in sales by providing specific inducements. In other
words, sales promotion starts where advertising ends.
g. Advertising may have a long- term or short term perspective, while sales
promotion always has short term perspective.
h. The media of advertising are broadly classified as indoor, outdoor, and direct and
display while Sales promotion has media like contests, premiums, prizes, special
schemes etc.
i. Though both are media of communication, advertising is more pronounced in pre
and post transaction phases while sales promotion is the transaction phase itself.
That is, sales promotion is closest to the selling proper than advertising.
j. Since the impact of advertising is long term and cumulative, it is both repetitive
and frequent while sales promotion is not repetitive and frequent as the impact is
short-term and non-cumulative.
k. Advertising is done to build brand image and increase sales while promotion is to
push short-term sales.
l. Advertising is one of the elements of promotion mix while Promotion is one of
the variables of marketing mix.
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