Sales Promotion Techniques

In: Business and Management

Submitted By astonlover
Words 573
Pages 3
Marketing firms use many sales promotion techniques to attract and retain customers. There are four that are the main ones. They are the use of: (1) discounts and deals (2) increasing industry visibility, (3) price based consumer sales promotion, and (4) attention- getting consumer sales promotion. Discounts and deals can be summarized as enticing customers through some offer that can considered a “good” deal. For example, things like “buy one get one free” offers can be considered in the discounts and deal category of sales promotion techniques. In a way, discounts and deals are promotions where the company selling the product are giving away their product on a structured price or offer where it is different from its normal circumstances. Another example can be a something found in today’s economy where many retailers are offering 20% off discounts on all older car models or anything of that sort. Though these examples are geared to everyone in general, discounts and deals usually can be geared towards trade among wholesalers and retailers. An example for that can be salesmen within the company can receive bonuses if they can push more products out the door. The second category of sales promotion techniques is increasing industry visibility. In short, this technique just makes the product well known in smaller ways and even bigger ways. For example, a company might put their logos on coffee mugs or refrigerator magnets. Many realtors do this, they want to promote their services and by giving their future clients a refrigerator magnet, it helps them get remembered. Trade shows are another outlet where the product can be well known. Trade shows involve all kinds of businesses and by exposing themselves to potential investors and customers, or maybe even similar competition; it can lead to higher sales because their brand is put out in public. Discounts and…...

Similar Documents

Sales Promotion

...Sales Promotion Lesson 24 Sales Promotion Suppose you go to the market to buy soap. The shopkeeper suggests that if you buy two soap cakes, an extra soap cake will be given to you free of cost under “buy 2 get 3” scheme. You feel attracted to buy as by doing so you are saving money on one soap. Moreover, soap is an item which is required on a regular basis, and so you can keep the extra two cakes to be used later. This is an approach of increasing sale of a product and it is quite different from what you have learnt in the earlier two lessons. Let us learn more about it in this lesson. 24.1 Objectives After studying this lesson, you will be able to: explain the meaning of sales promotion; state the objectives of sales promotion; describe the various tools used in sales promotion; recognise the role of each tool in promoting sales; and describe the importance of sales promotion in business. 24.2 Meaning of Sales Promotion Every businessman wants to increase the sale of goods that he deals in. He can adopt several ways for that purpose. You might have heard about “lakhpati bano”, “win a tour to Singapore”, “30% extra in a pack of one kg”, “scratch the card and win a prize” etc. You might also have seen gifts like lunch box, pencil box, pen, shampoo pouch etc. offered free with some products. 115 Business Studies There are also exchange offers, like in exchange of existing model of television you can get a new model at a reduced price. You may have......

Words: 2810 - Pages: 12

Personal Selling and Sales Promotion

...Chapter 17: Personal Selling and Sales Promotion 1. Under what conditions does personal selling typically become a primary component of the firm’s promotional mix? * Consumers: geographically concentrated and relatively low number of them * Product: expensive, custom made, special handling requirements * Price: relatively high * Channels: relatively short 2. Describe over-the-counter and field selling. Which is more expensive? Over-the-counter selling: personal selling conducted in retail and some wholesale locations in which customers come to the seller’s place of business Field Selling: sales presentations made at prospective customer’s locations on a face-to-face basis *More expensive 3. Distinguish between inbound and outbound telemarketing. Inbound: customers who initiate calls to obtain information and place orders Outbound: salesperson who makes a call to the customers 4. List/discuss the three major personal selling approaches. Relationship Selling: regular contacts between sales rep and customers over an extended period of time to establish a sustained buyer-seller relationship Consultative Selling: meeting customer’s needs by listening to them, understanding their problems, paying attention to details, and following through after the sale Team Selling: selling situation in which several sales associates or other members of the organization are recruited to help the lead sales rep reach all those who influence the......

Words: 670 - Pages: 3

Sales Promotion

...Abstract Sales promotion has been in constantly growth since the 1960’s and have today become one of the key factors in the promotional mix. The methods used have become more sophisticated and an increasing number of companies are realizing the importance of a well structured promotion strategy. The purpose of this thesis is to provide a better understanding on how sales promotion is used in B2B setting. In order to reach this purpose, research questions focusing on the objectives of sales promotion, as well as which sales promotion tools that were used were stated. Based on these research questions, a review of the relevant literature was conducted, resulting in a conceptual framework, which was used to guide this study's data collection. A qualitative, case study approach was used, using interviewing at an industrial company in Sweden as the primary data collection tool. The findings indicate that, although the individual objectives of the tools can be different they can still be used overall to lead to the same overall goal. It was also found that the focus is not always on using sales promotion tools to generate sales, but to improve relationships. As for the tools used, it was found that there are commonly used sales promotional tools in B2B settings. More specifically, gift giving can be deemed inappropriate in certain contexts and should be used carefully. Table of Contents TABLE OF CONTENTS 1. INTRODUCTION .........................................................

Words: 15132 - Pages: 61

Sales Promotion

...interest in the product being promoted. + Attract more attention and interest than sweepstakes. (Effort in the entries) + Can be design to have public relations value. + Allow companies to solve marketing problems (contest about What the coolest computer can do) - Most people enter only once or a few times. Sales Force Contests Designed to encourage company, distributor, or retail sales forces to work hard to sell the product. ex, reward the top salesperson Spliffs – reward retail- or distributor-level salespeople with a certain amount of cash for each item they sell. Mystery Shopper – usually consist of actors, hired by manufacturers, who visit retail outlets asking for assistance and recommendations. If salespeople respond by suggesting the “right” brand, they can win a prize. Instant win – find out directly if they’ve won Other sweepstakes may give consumers game pieces that include entry numbers or symbols; individuals must then visit a specific retailer, watch a particular TV show, or take some action to find out if the have won a prize. Uses of Sweepstakes & Contests 1. Create consumer interest and excitement. 2. Joint promotion can be developed with manufacturers of relatively high-priced goods, who provide prizes at cost, or free, in exchange for the publicity value. 3. Attract free media attention, especially contests. 4. Good way to collect information about its consumers for a costumer database. 5. New technology has made......

Words: 2553 - Pages: 11

Sales Promotion

...become major facilitating or constricting forces on the institution as it works to accomplish its mission. In the extreme, these forces can keep an institution alive artificially; conversely, they can thwart organizational survival. THE COMPETITOR FACTOR Competitors constantly influence a broad range of managerial decisions related to routine business activities and to the development of an organization. If the marketplace is highly competitive, managers must ensure  that the organization remains competitive and provides high quality products or services to customers at the right price. Competitors represent a significant factor in formulating the organization's marketing plan and adopting suitable product development, price setting, promotion and distribution strategies. It is important, therefore, that business owners and managers monitor relevant trends in the marketplace in relation to competition in order to secure the company's survival and growth in a highly competitive environment. In order to focus on the environmental scan, organizational assessments tend to gather data around four basic questions that cut across various components of the external environment: What are the major forces affecting the organization? The major categories of forces described in the previous section need to be integrated into some sort of environmental profile. This profile can take various forms, but whatever form it takes, the profile should identify and characterize the main......

Words: 3502 - Pages: 15

Sale Promotion

...Sale promotion Techniques By one get one free, receive a free gift bag with this purchase, free samples to try, Voucher and coupons for extra discount, Prize draws or zero percent financing have you ever herd these words or read them in a news paper magazine or internet or maybe even seen it on TV or your local mall or even a bus ride to work or home, these are all examples of sales promotion. According to Dave Dolak (2010), Sales promotions are short-term incentives to encourage the purchase or sale of a product or service. But first sales promotion could be directed towards Trade or consumers and some times both trade is the retail store or the sales men and maybe the whole sale distributor that the company must work with to sell its product wile on the other hand consumers are people who are there to buy the product. Different companies or firms or even people use different techniques of sales promoting some of them are discount and deals, increasing industry visibility, price based consumer sales promotion and attention getting consumer sales promotion Moving on to the first technique, which is discount and deals this is done by giving a price break to seller or whole seller or some times even the sales men or by lowering the prices of the product. The Firm or company can do this by offering merchandizing allowance, according to MIMI.HU web site (2010) states “Merchandise allowance a manufacturer's agreement to pay resellers certain amounts of money for providing......

Words: 907 - Pages: 4

Promotion Sales

...1 6 CHAPTER Advertising, Publicity, and Sales Promotion In the summer of 1965, 17-year-old Fred DeLuca was trying to figure out how to pay for college. A family friend suggested that Fred open a sandwich shop—and then the friend invested $1,000 to help get it started. Within a month, they opened their first sandwich shop. From that humble start grew the Subway franchise chain with more than 33,000 outlets in 91 countries. Targeted advertising, timely publicity, and sales promotion have been important to Subway’s growth. For more than 10 years, memorable Subway ads featured Jared Fogle, a college student who was overweight but lost 245 pounds by only eating Subway’s low-fat sandwiches like the “Veggie Delite.” Jared says it was a fluke that he ended up in Subway’s ads. After all, he was recruited to do the ads because of good publicity that Subway got after national media picked up a story that Jared’s friend wrote about him in a college newspaper. Subway’s strategy at that time focused on its line of seven different sandwiches with under 6 grams of fat. The objective was to set Subway fare apart from other fast food, position it to appeal to health-conscious eaters, and spark new sales growth. Jared already knew he liked Subway sandwiches, but the “7 under 6” promotion inspired him to incorporate them into his diet. As soon as Jared’s ads began to run, word of his inspiring story spread and consumer awareness of Subway and its healthy fare increased. It’s always hard......

Words: 19343 - Pages: 78

The Impact of Sales Promotion

...ABSTRACT The deregulation of the Ghanaian telecom sector in 1994 has led to the increase in the number of telecom firms in the country which render identical services. The ever increasing competition in the industry has prompted telecom firms to be determined and ensure satisfaction of customer needs and wants more effectively than their competitors. In other for these telecom firms to succeed in this ever increasing competitive market, they employ a lot of different promotional tools to attract and retain their customers. One of the most commonly used promotional tools is sales promotion which provides incentives to customers or to the distributor channel to stimulate demand for a product. This study is aimed at assessing the role sales promotion play in influencing the consumer buying behavior of telecom consumers. A non-probability sampling technique was used for the study and the sample was selected from a population of telecom service users resident in the Accra Central. A five point Likert scale Questionnaire will be used in acquiring the respondent’s information. The questionnaires Will be analyzed with the help of Statistical Package for Social Sciences (SPSS) and Microsoft Excel. INTRODUCTION The business environment has become very competitive in the 21st century due to the growth in technology, infrastructure and access to information around the globe. This has made the environment very complex and consumer preferences keep changing because of...

Words: 2345 - Pages: 10

Sales Promotion

...Sales promotion describes promotional methods using special short-term techniques to persuade members of a target market to respond or undertake certain activity. As a reward, marketers offer something of value to those responding generally in the form of lower cost of ownership for a purchased product (e.g., lower purchase price, money back) or the inclusion of additional value-added material (e.g., something more for the same price). Sales promotions are often confused with advertising. For instance, a television advertisement mentioning a contest awarding winners with a free trip to a Caribbean island may give the contest the appearance of advertising. While the delivery of the marketer’s message through television media is certainly labeled as advertising, what is contained in the message, namely the contest, is considered a sales promotion. The factors that distinguish between the two promotional approaches are: whether the promotion involves a short-term value proposition (e.g., the contest is only offered for a limited period of time), and the customer must perform some activity in order to be eligible to receive the value proposition (e.g., customer must enter contest). The inclusion of a timing constraint and an activity requirement are hallmarks of sales promotion. Sales promotions are used by a wide range of organizations in both the consumer and business markets, though the frequency and spending levels are much greater for consumer products marketers.......

Words: 254 - Pages: 2

Sales Technique

...Sales Promotion Techniques Sales promotion describes promotional methods using special short-term techniques to persuade members of a target market to respond or undertake certain activity.  As a reward, marketers offer something of value to those responding generally in the form of lower cost of ownership for a purchased product (e.g., lower purchase price, money back) or the inclusion of additional value-added material (e.g., something more for the same price). Sales promotions are often confused with advertising.  For instance, a television advertisement mentioning a contest awarding winners with a free trip to a Caribbean island may give the contest the appearance of advertising.  While the delivery of the marketer’s message through television media is certainly labeled as advertising, what is contained in the message, namely the contest, is considered a sales promotion.  Sales promotions are used by a wide range of organizations in both the consumer and business markets, though the frequency and spending levels are much greater for consumer products marketers.  One estimate by the Promotion Marketing Association suggests that in the United States alone spending on sales promotion exceeds that of advertising. Promotions are all about deals, visibility, and working to “grab” the customer. Deals are the way to brand loyalty or creating product awareness and this is done by promotions which include: coupons, rebates, promotional Pricing, trade-ins,......

Words: 775 - Pages: 4

Sales Promotion

...Objectives of Sales Promotion You have learnt that the main objective of sales promotion is to increase sales. i. To introduce new products ii. To attract new customers and retain the existing ones iii. To maintain sales of seasonal products iv.To meet the challenge of competition Let us learn about these objectives in details. (i) To introduce new products: Have you ever heard about distribution of free samples? Perhaps you know that many companies distribute free samples while introducing new products. The consumers after using these free samples may develop a taste for it and buy the products later for consumption. (ii) To attract new customers and retain the existing ones: Sales promotion measures help to attract or create new customers for the products. While moving in the market, customers are generally attracted towards the product that offers discount, gift, prize, etc on buying. These are some of the tools used to encourage the customers to buy the goods. Thus, it helps to retain the existing customers, and at the same time it also attracts some new customers to buy the product. (iii) To maintain sales of seasonal products: There are some products like air conditioner, fan, refrigerator, cooler, winter clothes, room heater, sunscreen lotion, glycerin soap etc., which are used only in particular seasons. To maintain the sale of these types of products normally the manufactures and dealers give off-season discount. For example, you can buy air......

Words: 8537 - Pages: 35

Sales Promotion

...1. Free Maintenance As we know that Dr.Martens is with the light skinned shoes boots. If shoes do not maintenance will easy get dirty and look old. Nowadays, people are regard to designer shoes but they only buy the shoes do not know how to maintenance. As I know in Malaysia do not have this kind of after sales service and the maintenance thing of shoes are not popular in Malaysia. Moreover, shoes has maintenance compare with those which do not maintenance are easier to distinguish, although those pirated products are look exactly the same as original’s but you get what you pay for. Those pirated are using inferior material to produce with a time period people can distinguish the original and pirated. Therefore, Dr.Martens should using this for sales promotional tools to promote their shoes, FIRST that other brands do not have this kind of service; SECOND easy to defeat those pirated products to imitate Dr.Martens design. 2. Lucky Draw Lucky draw is the simple way to attract people attention but the important part is the reward of the lucky draw. Dr.Martens can provide the 1st place a pair of special design shoes that the design is not selling at all. When the reward was attractive, Dr.Martens should set the condition of the lucky draw. The condition of lucky draw can be buy over RM1000 can get 2 name card for lucky draw. However, Dr.Martens normal price is between RM500-RM600, people may find friend to buy together or buy over RM1000 by himself because of the special......

Words: 949 - Pages: 4

Sales Promotion Strategy

...Sales Promotion Suppose you go to the market to buy soap. The shopkeeper suggests that if you buy two soap cakes, an extra soap cake will be given to you free of cost under “buy 2 get 3” scheme. You feel attracted to buy as by doing so you are saving money on one soap. Moreover, soap is an item which is required on a regular basis, and so you can keep the extra two cakes to be used later. This is an approach of increasing sale of a product and it is quite different from what you have learnt in the earlier two lessons. Let us learn more about it in this lesson. Objectives After studying this lesson, you will be able to: explain the meaning of sales promotion; state the objectives of sales promotion; describe the various tools used in sales promotion; recognise the role of each tool in promoting sales; and describe the importance of sales promotion in business. Meaning of Sales Promotion Every businessman wants to increase the sale of goods that he deals in. He can adopt several ways for that purpose. You might have heard about “lakhpati bano”, “win a tour to Singapore”, “30% extra in a pack of one kg”, “scratch the card and win a prize” etc. You might also have seen gifts like lunch box, pencil box, pen, shampoo pouch etc. offered free with some products. Business Studies There are also exchange offers, like in exchange of existing model of television you can get a new model at a reduced price. You may have also observed in your neighbouring markets......

Words: 1941 - Pages: 8

Sales Promotion

...AIDA 5. Promotion Process For Cars i. ii. iii. iv. v. vi. vii. viii. ix. Selecting the target market Product and Brand Positioning Promotional Decisions Advertising Direct Marketing Interactive/Interactive Marketing Sales Promotion Publicity/Public Relation Personal Selling 6. Ford Fiesta and its Promotions i. Target Market 2 ii. Adopting offer to suit target segment iii. iv. Market Competition Strategic Promotion of Ford 7. Questionnaire 8. Analyzed Survey Report of the Questionnaire 9. SWOT Analysis 10. SWOT Analysis of Ford Fiesta 11. Conclusion 12. Bibliography 3 Chapter 1 Introduction 4 Objective  To study and analyze the elements of Promotional Strategies.  Study and analysis of promotional strategies of Ford India for its product Ford Fiesta.  Study the customer response regarding the promotions of cars in India. Scope of the Project  Study the basic aspects of Promotional Strategies such as Sales Promotion, Personal Selling, Advertising and Publicity.  Studying the customer response regarding promotions of cars in India through a questionnaire.  Study the promotional strategies of Ford Fiesta with all the tools of promotion.  Analyze and interpret the responses by SWOT analysis. 5 Data Collection and Analysis  Secondary data collection from the various car information websites, newspapers, magazines, etc.  Primary data collected from a questionnaire designed to target the customer regarding the promotions of......

Words: 7080 - Pages: 29

Sales Promotion

...Sales promotion From Wikipedia, the free encyclopedia Sales promotion is one of the seven aspects of the promotional mix. (The other six parts of the promotional mix are advertising, personal selling, direct marketing, publicity/public relations, corporate image and exhibitions.) Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include contests, coupons,freebies, loss leaders, point of purchase displays, premiums, prizes, product samples, andrebates 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 calledconsumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions. Some sale promotions, particularly ones with unusual methods, are considered gimmicks by many. 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.[1] |Content| |s | |  [show| |]  ......

Words: 2464 - Pages: 10

Dragon Ball – Bảy Viên Ngọc Rồng chap 247 | Watch movie | TAPPETI TAPPETINI IN GOMMA Ford Transit Custom dal 2013 3-posti