Samples are one of the most important tools of sales promotion. Offer valid only till stocks last. Barnum. The advantage of sales promotion is that they are not too expensive for the company when compared with ATL advertising mediums like Television or newspaper. ~P.T. As sales promotions are mostly announced for a short period, customers may feel a sense of urgency and stop comparing the alternatives.  They are persuaded to act now rather than later.With every 500g pack of Tang, you get a free Tang glass. The basic purpose of sales promotion is to increase the sales of a product by creating demand. The Bangalorean is as Cosmopolitan as his Mumbai or Delhi counterpart. Short-term promotions present an opportunity and encourage dealers to forward buy. Samples help consumers verify the quality of the product. Taking 25 percent off the price of a good without altering its benefits increases the customer's perception of value. With that in mind, here are nine benefits of running a well-planned sales promotion: Previous post: How QR Codes Can be Used to Share Your Content, Next post: Design Thinking Interview with Clark Kellogg of Collective Invention. The main motive of consumer-oriented promotion is to increase sales directly by attracting new customers and wooing existing ones. Sales promotion consists of short-term incentives to encourage purchases or sales of a product or service. Sales promotion was done by organizing various ‘super shows’ and ‘mega-shows’ for the masses in states of Tamil Nadu and Andhra Pradesh respectively. Consumer Sales Promotion. When P.T. Samples are defined as offers to consumers of a small amount of a product for trial. A sales promotion allows brands to communicate on packaging and enables them to focus campaigns around an event. Sales promotions have a significant effect on the behaviour of consumers and trades people. A sales promotion is a marketing tactic used by retailers to drive sales. An example would be offering 20% off on certain products to the customers. Consumer sales promotions are discounts and incentives offered to consumers as an inducement to get them to buy. Maintains contact between the producer and the consumer; Has an educational value. So basically, these are different tools with purpose of encouraging consumers, dealers as well as the company’s sales force. 1. The aim of any given business is to increase the profits. Sales promotions have a significant effect on the behaviour of consumers and trades people.  Such promotions can bring in more profits for the manufacturers because they permit price discrimination. Sales promotion can prove useful for marketers in several ways. Promotion is a combination of various activities to bring information about the merits of the product to potential consumers and to stimulate their desire to buy it. How QR Codes Can be Used to Share Your Content, Design Thinking Interview with Clark Kellogg of Collective Invention, If I Owned a Restaurant, Here’s What I Would Do Immediately (in light of Covid-19 shutdowns). Saving of time and Labour in making purchases as they already know details about product through advertising viz., features, place where available. Advantage of Sales Promotion 1. 3. Although sales promotion is an important strategy for producing quick, short-term, positive results, it is not a cure for a bad product, poor advertising, or an inferior sales team. “Without promotion something terrible happens… Nothing!” To increase buying response by ultimate consumer, and 2. Some sales promotions are aimed at consumers. Sales promotion has a capability to complement and supplement the advertising functions of the marketing. It is a direct inducement that offers an extra value of incentive for the product sales force, distributors, or the ultimate consumers with the primary objective of creating an immediate sale. Do You Know the 5 Most Powerful Words for Marketers? 10. Measuring the effectiveness of sales promotion can be easy when compared to measuring the effectiveness of advertising and personal selling.. The Tamilian, consumer in particular, is value oriented, rational and looks up to film stars, while the Keralite is more international in his outlook. Promotion planning compels you to identify something new or different that offers value to your customers; 4. Promotion is a key element in putting across the benefits of your product or service to the customers. Sales promotion has dual objectives; 1. The Sales Promotion tools are directed towards Consumers (Consumer promotion tools), Dealers or middlemen (Trade promotion tools), and Sales force. Sales Promotion Advantages. So, for the Tamil Nadu market, they created a special campaign “The Super Star of the House” and made the cine idol Rajnikant their brand ambassador as in that state he is popularly known as “Superstar”. When I speak of promotions, I mean it as a noun. Such factors have to be taken into consideration while providing incentives to the customers. It helps marketers to realize a variety of objectives. Sales promotion could not be a substitute to compromise in quality and effectiveness of marketing. The concept of promotion means the process of persuading people to accept the products, concepts, and ideas of the company. It’s a planned and coordinated event meant to sell a specific product or service for a limited time and that meets a seasonally relevant consumer need. One study suggested the following reasons for undertaking actively all forms of sales promotion: 1. Sales promotions draw attention to a particular product or service being offered. Barnum spoke about promotion, he was most likely using the word as a verb. As the noise of competitors rises, you will find more and more companies using sales promotions techniques. I’m not talking about promotions where you drop the prices on your existing products significantly, or when you have a blowout sale to move stale inventory. Instead I mean a well-planned, seasonally relevant focus on themes or solutions wrapped around your products that your customers will take note of and value, and that prospects will be enticed to try for the first time. Hence, even small businesses use it quite effectively. Sales promotions are a marketing communication tool for stimulating revenue or providing incentives or extra value to distributers, sales staff, or customers over a short time period. A brand is … Whereas, in Andhra Pradesh, they launched their brand as “Mega Star of the House” as Chiranjeevi was taken as their brand representative. While many consumers cut coupons from the inserts in Sunday newspapers, other consumers find coupons online or on their cell phones. Some sales promotions are aimed at consumers. Sales promotion helps in increasing sales in a short span of time. Due to the diversity of the market, the importance of sales promotion has increased tremendously. – unique in using a socially-based, sales process to attract and retain new customers; Benefits for the Economy, State and Society: Creates earning opportunities (mainly part-time) and facilitate economy; People prefer to do business with other people, rather than companies. Advantages of Sales Promotion. Everyone loves a bargain, right? What are other benefits you think of around sales promotions? When the sales promotion strategies are targeted to the end consumers, it is referred to as consumer sales promotion. Consumer promo­tion methods are those which directly encourage consumers to buy product in more […] Buy 2 dozen shampoo sachets & get 2 sachets free. Marketeers can reap the following advantages from the implementation of appropriate sales promotion technique: 1. Advantages of Sales Promotion. Calling attention to new products and p… Well-designed marketing and promotional strategies ensure long-term success, bring in more customers and ensure profitability for businesses. The result of an effective total marketing programme is sales success, which entirely depends on positive customer reaction and an intense, well organised selling effort by resellers and salespersons. Social Benefits ; The social advantages of advertising are. The South is generally characterised by greater degree of going out and people tend to drink outside the house. 2. Sales promotion is designed to be used as a short-term tactic to boost sales – it is not really designed to build long-term customer loyalty.. In mid 80s, Philips decided to launch a special project in Tamil Nadu and Andhra Pradesh for their rural buyers. Various tools of sales promotion, also known as methods of sales promotion may be divided into two parts – (i) Consumers Pro­motion Methods (ii) Dealer Promotion Methods. How to Create Word-of-Mouth for Your Local Business, 11 Marketing Tactics You Should Steal From Starbucks. The advertisers bear the cost of newspapers, magazines and provide the reading material to the consumers at a cheaper price. Sales promotion helps to remove the consumer’s dissatisfaction about a particular product and manufacturer. Consumer Sales Promotion Methods. Sales promotion is designed to be used as a short-term tactic to boost sales – it is rarely suitable as a method of building long-term customer loyalty. Knowledge about New Products. Create Urgency. A sales promotion is a marketing technique that is designed to entice a customer to take a specific action such as make a purchase or request more information. “Without promotion something terrible happens… Nothing!”. Over 51% of marketers claimed that taking the time to develop relationships with consumers showed positive results in sales. It involves offering shoppers a deal that would enable them to either purchase a product for a lower price (e.g., $10 off) OR get more value of the sale (e.g., Buy One Get One Free). This forward buying ensures that retailers won’t to go out of stocks.  As dealers have more than the normal stocks, they think it advisable to advertise in local media, arranged displays and offer attractive promotion deals to consumers.  These actions help in increasing the store traffic. These objectives are for both marketers and traders. Free samples are given to consumers to generate their interest in the product. Both these campaigns became a major success. Drypen provides action-oriented intelligence for management professionals that's smart, useful, crisp and just a click away. These tools are unique in their way and directed differently to these three groups. Consumers are able to get better quality products at competitive prices. This effort typically means the customer … Sales promotion mainly involves short-term and non-routine incentives offered to dealers as well as consumers. It can eliminate idle … With that in mind, here are nine benefits of running a well-planned sales promotion: Creates differentiation – When you launch a new product or ask customers to engage with your business in a new way, this sets you apart from your competition. Creates word of mouth. Get smart with the Thesis WordPress Theme from DIYthemes. Producers can introduce price discrimination through the use of sales promotions.  They can charge different prices to different consumers and trade segments depending on how sensitive each segment is to particular prices.Coupons, special sales events, clearance sales and discounts are examples to explain the phenomenon. Communication is an art, an art which creates formidable relationships with consumers that make your brand unique. Such promotions can bring in more profits for the manufacturers because they permit price discrimination. Disadvantages of sales promotion. They distinguish a company from the rest of other in the competition in terms of prices. Advantage: Entice Customers The primary benefit of sales promotions is that they induce customer traffic and sales by offering a lower price and better value proposition. Sales promotion is the process of persuading a potential customer to buy the product. addition to that other researchers considered sales promotion as a direct inducement, proposing special added value for goods to target salesperson, customers or resellers (William and Ferrell, 1987; Gardener and Treved, 1998). Increase the Sales. Sales promotion covers those marketing activities other than advertising, publicity, and personal selling that stimulate consumer purchasing and dealer effectiveness. To increase selling efforts and intensity by dealers as well as by sales personnel. Rebate programs offer consumers a chance to receive a reward such as a full or partial reimbursement on the purchase price, a free product or a gift card, in exchange for purchasing a specific product and expending some effort. Promotions, when done well, are an effective way for you to market your business or products and services. When brands are interactive by sharing content, commenting, and posting statuses on social media, it personifies a brand. These include: Helps Create Awareness of New Products – Sales promotion is a highly effective methods for exposing customers and business partners to new products and for moving customers to take an action (e.g., sample a product). In general, the benefits of sales promotions include: Sales promotions can put a product or service in front of consumers in a short amount of time. When sales promotions are offered for a limited time, they create urgency among customers because they have to act before the promotion expires. Others are targeted at intermediaries (such as agents and wholesalers) or at the firm's sales force. Often such price discrimination are offered in specific cities in the country,Bajaj Auto Ltd. started the scheme on 20th august 2001, where by if you buy a Bajaj Spirit two-wheeler you get Rs.3000/- off, valid only in Ahmedabad. Sales promotion acts as a bridge between advertising and personal selling. As everyone knows that high profits result from increased sales, that’s why, all businesses engage in some innovative promotion techniques, from time to time, to increase awareness of their products and to boost the sales. The short-term orientation of sales promotions contrasts longer-term objectives of advertising to build brand awareness. ADVERTISEMENTS: Everything you need to know about the tools and techniques of sales promotion. D. Benefits / Advantages to Consumers: 1. 1. Sales promotion activities include special offers, displays, demonstrations, and other nonrecurring selling efforts that aren’t part of the ordinary routine. Advance Decision to buy Consumers are able to take advance decision to buy in the light of advertisement. Increase sales directly by attracting new customers and ensure profitability for businesses and intensity dealers... 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