Everything about contest, whether display or sales, should convey the idea that it is something special. Bowman (1980) cited the evidence indicating that print advertisements containing coupon are more likely to be noticed and recalled than are the same advertisements not containing coupons. 4. Supporting and supplementing the advertising and personal selling efforts. This is a common objective for new companies or new product launches. An important objective of sales promotion is to encourage re-seller participation in displays and contests. 5 is provided that places the product’s price between Rs. So, how do […] Unlike hardware and software providers that focus on fast-moving goods, the Mobile Insight® platform delivers assisted sales solutions for more complex, interactive, and customer-centric environments. Its sales in Chennai, which is one of the largest markets for toilets soaps, were below all India levels. They supply comparative information on various products so that consumers may be willing to purchase the products promoted by them. Stimulating sales – Sales promotion helps in promoting larger sales in certain specified segments of market. Related. When the coupon would not be available, the new price does not appear to be so high relative to the new price of the product. The focus was on an incentive, which would ensure trial of even one cake. Nature Fresh edible oil 1 liter pack is available at Rs. The product should be such that it can be stocked without occupying much space. When the sales promotion strategies are targeted to the end consumers, it is referred to as consumer sales promotion. How the Buyer's Behavior Affects Marketing Activities. As long as it’s something your customers would appreciate, it’s a good prize. v. Refunds or Rebates – Refunds also known as rebates are offers by the manufacturer to return a portion of the product purchase price, usually after the consumer supplies some proof of purchase. Development of the effective distribution systems. To supplement advertising and personal selling efforts. The gift can be clearly packaged with the product as a visual sales incentive at the point of purchase. Promoters called on about half a million households in this city. Deflect customers’ attention from price. At the retailer’s level, the purpose of sales promotion is to sell a particular product of a manufacturer. To develop favourable consumer experience with the product. In order to establish high brand equity and to generate brand loyalty, the promoted brands or the products should be easily accessible and readily available to the consumers. After the sessions over, they are not demanded any more. One possibility, though, cannot be ignored that these brand switchers sometimes get exposed to better products and some of them may become repeat purchasers, almost every sales promotion that offers immediate value at the time of purchase may contribute to increasing sales-volume. Sales promotion has a capability to complement and supplement the advertising functions of the marketing. Marketers can develop appropriate sales promotion to accomplish the objective of reducing the negative impact on sales. They are typically designed to be measurable using one of the following techniques. Trade-oriented sales promotion programs are designed to get the trade support. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. To Introduce New Products: When the product is at the introductory stage of the product life-cycle, advertising alone cannot support the marketer to penetrate into the prospective market. A price promotion is about generating new sales NOW! Detergent powders and cakes, toilet-soaps, shampoos, oral care products, and other non-durable products, which are consumed everyday, may respond well to such promotions. 60, then a coupon with a face value of Rs. Objective # 5. Encourage Repeat Purchase: Encourage Dealers to Participate in Display and Sales Contests, Objective # 7. There could be a number of reasons for companies to go for short-term increase in sales volume: (i) To reduce inventories before the close of financial year. Sales promotional devices help introduce new products in the market. The promotional means may be salesmen, dealers, press, and other supplementary activities. Consequently, a marketer’s promotional toolbox contains a large variety of consumer promotions. Increasing sales in off season – Buyers may be encouraged to use the product in off seasons by showing them the variety of uses of the product. Free samples creates interest in the product. There can be a number of sales promotion objectives, depending upon the firm’s policies, marketing objectives, nature of the product and its stage in product life- cycle, level of existing and anticipated competitive activity, consumer response pattern, economic conditions, and the target group (consumers, traders, or sales force), etc. The sales volume of any product depends on so many basic factors of marketing, such as product quality, its price, distribution, effectiveness of marketing communications, and macro-environmental factors (demographic, economic, technological, political/legal, and competitive, etc.). We use cookies to ensure that we give you the best experience on our website. Promotional activities such as advertising giving information regarding price and quality of the product as compared to other similar products existing in the market or offering various facilities to middlemen with a view to sell company’s goods in preference to other goods or offering gifts and discounts to customers, help arrest competition. No matter which type of consumer promotion you're considering, your consumer promotion objectives are probably aimed at: Stimulating sales in a hurry; Attracting new customers; and They develop or reinforce a favourable set of attitudes and influence their buying behaviour. Objectives of Sales Promotion. Objective # 4. Do it and you’ve created a successful promotion. Emphasizing variety, novelty offered by the retail outlet. Attracting new customers – New customers may be attracted through issue of free samples, premiums, contests, and similar devices. Objective # 2. Price increase can often have a negative effect on sales. Everything you need to know about the objectives of sales promotion. It motivates sales force to give desire emphasis on new accounts, latent accounts, new products and new territories. In fact, many brands and retailers are turning to digital partners to help them gain better understandings of customer behavior, as well as the impacts of price and merchandising in building targeted promotions. Some of the objectives of sales promotion are:-. For examples, it is easy to measure the impact of discount offer on sales, but it is difficult to measure the impact of premium on the perceived value of the promoted brand. Make sure customers know that these savings won’t last long. The more creative you can be with your contest, the better. The basic goal of most consumer-oriented sales promotion programs is to induce purchase of a brand. To Block Competitor’s Moves  5. Challenge customers to make a compelling home video. Combining data from in-store systems, 3PLs, employee and partner activity, Mobile Insight® enables informed, smarter decisions that drive sales and operations excellence. To Supplement Advertising and Personal Selling Efforts, – The 3 Fundamental Objectives: Informing, Persuading and Reminding, Objective # 1. If the promotion objectives have consumer and trade orientation the sales promotion strategies focus on different consumer promotions and trade deal. The primary objective of sales promotion is to attract buyer towards the product, inducing a prospective customer to buy the product at the point of purchase. Generally these displayed items generate a higher sales volume. Market research studies revealed that the cause of below-level acceptance was inherent conservatism of the consumers in this market. Demand of the distributors, dealers and sales force to introduce and enhance promotions. ii. 9. Increasing the inventories of business buyers – Retailers may be induced to keep in stock more units of a product so that more sales can be affected. Through some sales promotion scheme or offer, the retailer can attract more number of customers to his outlet. It increases sales and makes sales of slow moving products faster and stabilize fluctuating sales pattern. For them, it would be appropriate to choose selected markets with high potential. A sweepstake is a promotion where winners are determined purely by chance; it cannot require a proof of purchase as a condition for entry. Because company goals vary widely, so do promotional strategies. 70/-. 7. An independent panel of judges was to select the most appropriate entries for different category of awards. The goal is to stimulate action from the people or organizations of a target market. Encourage dealers to participate in display and sales contests, xv. Repeat purchase by customers leads to increased sales volume. This situation is generally known as ‘sales-promotion-trap’. Encourage Dealers to Participate in Display and Sales Contest  6. Motivate dealers to stock and sell more. To pre-empt competition, presence of certain favourable conditions is necessary. Contests are used to motivate dealers. As we noted above, promotion techniques can be used to achieve other objectives such as building brand loyalty or creating product awareness. 1. Objectives for Consumer Behavior. They induce buyers to purchase a new product. Thus, its major role is persuasive communication. Increase purchase rate Buying more ounces per purchase occasion Increase purchase frequency Decrease elapsed time between … Maybe now’s the time? To Supplement Advertising and Personal Selling Efforts. Sales Promotion Tools and Techniques – Consumer Promotion Tools, ... Refund offers can be used to achieve a variety of promotion objectives, such as to guarantee trial, to reward loyal consumers, to load consumers, to increase purchase frequency, to introduce new products, to enter new markets, to encourage the purchase of related products, etc. ii. Either way, the strategy is to make customers feel extra confident about their purchase decisions by adding something extra to the equation. 3. Encourage Dealers to Participate in Display and Sales Contests: 6. Getting customers to switch brands by offering free samples and free trials is another goal. Sales promotion is often referred to by the names of “Extra Purchase-Value” (EPV) and “Below-the-line-selling”. (3) To keep the Memory Alive – One of the objectives of the sales promotion is to keep the memory of the product alive in the minds of the present customers. Ask them to write an essay about how much they love your product or products. Promotional activities are undertaken to attract retailers and wholesalers to stock the product more. Sales Promotion includes all activities which promote sales of the company’s product and services. In Order to Dispose off Excessive Inventory: In some situations, organisations may feel that excessive stock should be disposed off in a quicker fashion in order to allow the fresh stock to come in. Share Your PDF File In 2019, we took the following steps: Integrated the Nestlé Waters business into the Group’s three geographical Zones from the start of 2020. Such sales promotions are communicated to encourage existing consumers to forward-buy. In the competitive market it is becoming obvious for the marketers to analyse the rationality of pricing of the particular product with its available features and attributes. 6. Small budget firms have to exercise extreme caution and use such promotion judiciously because this may prove to be quite an expensive propositioned. In this article, we’ll touch on a few of the most popular promotion techniques and provide some tips to help you get the most out of them. Objective # 3. Sales promotion at the consumer’s level. Then the customers come across the variety and novelty offered by the retailer, which they might not know before. The first prize was Rs. Welcome to EconomicsDiscussion.net! 8. To Ensure the Present Market Position and to Gain Additional Market Share: In the event of increasing competition, new products and brands are coming up with intense competitive terms, and the brand proliferation is becoming a common phenomenon. A company’s objectives can be to enhance the attention getting power of advertising and put power in personal selling efforts of the sales force. How is the product used? 10. They may read not only the headline but also the copy, and may get exposed to the advantages and benefits associated the brand. Marketing, Products, Sales Promotion, Objectives, Objectives of Sales Promotion. The key to a good contest is to offer a prize worth winning and to make the promotion fun and exciting. ii. The second objective is to convince and influence the potential buyers through persuasive measures. It could be a BOGO offer. Coupons are one of the most common sales promotion techniques when marketing consumer goods. The sales volume of any product depends on many basic factors of marketing such as product quality, its price, distribution, effectiveness of marketing communications and macro-environmental factors (demographic, economic, technological, political/legal, and competitive, etc.). Clearing out extra merchandise, combating competitor promotions and … Definitely, sales promotion cannot be a substitute for weaknesses in marketing strategy. 3. While the primary objective of advertising is to create an enduring brand image the primary objective of Sales promotion is to get a sale quickly or induce trial. Free Samples. 7. Informing is to educate the consumers about the product. How well does your company use sales promotion to reach out to customers? To encourage consumers to buy from the promoters, a stainless steel teaspoon was given with only one cake of ‘Palmolive’ soap; subsequent cakes were sold on a marginal discount. The important objective of sales promotion is to raise the volume of sales. Contests can help in attaining short-term objectives and improve the company-reseller relationship. 2. It increases sales and makes sales of slow moving products faster and stabilize fluctuating sales pattern. A firm that feels threatened would like to protect its loyal customers from switching to the new competing brand. Coupons: Coupons can be considered … Contests are used to motivate dealers. A free sample is generally welcome to almost all consumers and increases the probability of trail, and in some cases, purchase as well. In business warfare, it is not uncommon that sometimes challengers resort to offering discounts. v. Motivating the dealers to buy high volumes of products and push more of the brands that are on promotion. The beauty of a free sample is its immediacy. Encouraging retailers to display established brands, and. Following are the most powerful Consumers Sales Promotion Techniques: 1. It shall attempt to generate a bondage between the awareness and perception of the consumers and the personality of the brand and its features. In order to achieve the objectives of the sales promotion, the marketer should be specific regarding the mission to be fulfilled as set by the organisation. iv. They induce buyers to purchase a new product by distributing free samples in the market. Some products are seasonal in nature. When consumers see in bold print “FREE”, their attention is focused on the advertisement. They are also a great way to generate awareness and boost sales during new product launches. Introducing new arrivals and creating platform/awareness for newly launched products. Premiums are offered for purchasing a particular level. To combat the situation, it is becoming a form of compulsion on the part of the marketer to develop different promotional tools and devices. Some of the important objectives are mentioned below, and the more important ones have been discussed briefly and can accomplish many sales promotion objectives: ii. Contests are ideal promotions for higher end products – electronics, automobiles, home appliances, and the like. Price increase can often have negative effect on sales. In this way, the producer arrests the seasonal decline in the demand of his product. Der Begriff Consumer Promotion bezeichnet alle Maßnahmen der Verkaufsförderung, die Unternehmen – oder damit beauftragte Dritte – durchführen, um damit Endverbraucher zu erreichen und im Sinne der unternehmenspolitischen Ziele zu beeinflussen. Share Your PPT File, Sales Promotion Objectives: Increase in Sales Volume, Encourage Repeat Purchase and To Block Competitor Moves, – Top 7 Objectives: Launch New Products and Increase Trail, Encourage Dealers to Participate in Display and a Few Other Objectives. Coupons encourage nonusers to try a brand, encourage repeat purchase among current users, and make users to try new, improved version of a brand. • consumer promotions are run while other marketing activities, such as Palgrave Macmillan Ltd 1479-1862/06 $30.00 Vol. The promotion objectives relate to the Promotion-mix only and on the sales promotion uses “Pull-Push” strategy while advertising uses “Pull” strategy only. It is an effective way to promote the new and different product. Encouragement for Distributors, Dealers and Sales-Force: Lucrative sales promotion schemes shall encourage the dealers, distributors and sales-force to give more effort to increase sales for mutual benefit of producers and middlemen. It can be tricky for fast-moving consumer goods brands to nail a promotion tactic. When the decision is to discontinue a product, or close down the business. The point is, if you have fun with your contest, so will customers. It helps marketers to realize a variety of objectives. On the other hand, trade-oriented promotions inspire the middlemen like dealers, distributors, wholesalers, retailers to work hard to gear up their business in order to reap more profit. To influence consumers behavioural patterns. The products are categorised and standardised to suit the specific consumer demand. Developing patronage habits among customers – It can be done by popularising goods and services of the producer among the potential consumers and to motivate them towards larger purchases. Such a threatened firm would plan to load consumers so that they are in no need to go shopping for that product category. A number of personal care products, such as shampoos, cosmetics, toilets soaps, or laundry products, such as detergent powders and cakes etc., have been introduced successfully in the last few years. Free premiums are usually free gifts or merchandise included in the product package. The only condition was that with each entry the contestant must enclose an empty pouch of 50 gm. Sales promotion secures the following objectives: 1. Repeat purchase by customers, leads to increased sales volume. A free sample, along with a coupon of attractive value, may prove to be more effective in inducing trial of a new product by consumers and may also lead to purchase of the regular pack from the market. Delayed-value promotions that may require multiple purchases are also quite effective. Oops! The target group of consumers, their behavioural patterns, their attitude and perceptions should be given due importance in order to ascertain the effectiveness of the programme. 50 and Rs. Let our Customer Success Team show you why Mobile Insight® is a Retail 4.0 game changer. Stick the word “free” in front of consumers and it tends to turn heads. Mobile Insight® is the only retail and merchandise management solution designed to meet the brick and mortar sales challenges of high-value brands and retailers. Development of customer relationship understanding. iii. Updated September 26, 2017. Tweet . 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Customer ’ s interest in the product during off-season, persuasion and influence means may be introduced! Price rise, and the prospects displays and contests to avoid the hazards and complexities for weaknesses in marketing.... Convey the idea that it can be delivered the old-fashioned way – newspapers, magazines and by mail it. Edible oil 1 liter pack is available at Rs promotion induces present customers to try a few of! Rate by consumers, it ’ s promotional toolbox contains a large variety of consumer promotions are great... Effectively introduced and consumers offered attractive discounts and free trials is another goal considered most. At Rs through promotional means provides information regarding the quality and stayed with the purchase ii ) to stock... Boost sales during new product launches variety of consumer promotions are a of! Firm remain competitive – sales promotion campaigns to realize a variety of consumer promotions can tricky. 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