24-07-2012, 02:51 PM
Sales Promotion
Sales promotion .ppt (Size: 2.1 MB / Downloads: 41)
Definition
Sales promotion is any initiative undertaken by an organisation to promote an increase in sales, usage or trial of a product or service (i.e. initiatives that are not covered by the other elements of the marketing communications or promotions mix). Sales promotions are varied.
Buy-One-Get-One-Free (BOGOF), Bonus points or money off coupons, New media – Kitkat Unique Code, Merchandising - POS
Sales Promotion Campaign
A promotional campaign generally consists of three desired outcomes:
Outcome 1: Promotional message reaches intended and targeted audience.
Outcome 2: Message is understood by the audience.
Outcome 3: Message stimulates the recipients and they take action.
Evaluation of Sales Promotion
Sales promotions offer the customer extra value in return for purchases. The idea is for customers to buy more during the sales promotion period, thereby increasing total sales. Companies evaluate the success of their promotion based on the sales volume and the associated costs.
If the sales promotion lasts a week, the evaluation period should be at least four weeks, including one week before and two weeks after the promotion.
Sales, Profits, Brand Awareness
Future Of Sales Promotion
Usage of sales promotion activities has a direct impact on behaviour as it motivates a consumer to buy now rather than in future
Enhances value of an offer temporarily till the promotion period, encourages switching, reinforce or reward loyalty etc.
In Future, objectives set for these activities would be ; i)to generate store traffic, ii) to move excess inventory, iii)to enhance store image and iv)to create a price image( high or low).
Traffic building is achieved by special event promotions like Diwali, Rakshabandhan promotions; inventory reduction through end of season sale; creation and building store image through feature advertising and displays and joint promotions and price image by highlighting the discounts.
It helps consumer reduce not only financial risk but also psychological and social risk by making consumer confident of his/her purchase, conformation to group norms by shopping at famous stores/brands.
Promotions may induce non buyers to walk in to the store and loyalty programmes may encourage to buy more, more often or upgrade to better quality. Exciting promotions also have tendency to generate positive word of mouth and help consumer feel a smart shopper.
Thus not only utilitarian benefits like, saving of money, time or quality up - gradation but hedonic benefits like feeling confident, feeling of excitement and entertainment etc