Direct marketing allows a business to engage in one-way communication with is customers about product announcements, special promotions, bulletins, customer inquiries, and order confirmations. However, some sales promotions do offer customers access to product information. Thus, it can be defined as: Sales promotion involves non-routine promotional devices to stimulate and re-stimulate demand of the products. It can create and stimulate demand, capture demand from rivals and maintain demand even against stiff competition. This refers to products that have a certain lifespan, as well as things that do not.
The Bangalorean is as Cosmopolitan as his Mumbai or Delhi counterpart. Miscommunications As with majority of sales promotions, either the dealer or the business that offer the product do not benefit as much like before. A promotion costing twice as much to advertise than the sales it produces is a disaster. Gifts on special social occasions and festivals 8. For example, in the case of medicine free samples are distributed among physicians, in the case of textbooks, specimen copies are distributed among teachers.
The screen shot below shows the consolidation step where our system displays a summary screen at Promotion level. When sales promotion is overdosed, the emotion or the need that surrounds them disappears. It can increase effectiveness of other promotional efforts. Free samples, trade discounts, cash discounts are basically sales promotion measures. Sales promotion differs from advertising in that its intent is to create a sense of urgency to encourage immediate action as opposed to building sales or a brand over a long period of time. Another important way to create interest is to move customers to experience a product.
Advantage of Sales Promotion 1. This results in reduction of wastages. Price shop newspaper, radio and local cable television ads to devise a well-rounded, yet cost-effective campaign. When sales promotions are offered for a limited time, they create urgency among customers because they have to act before the promotion expires. To introduce new products or services: Sales promotion is often used to motivate prospective consumers to try new products and services. Hence, the advertising and publicity are more effective at the early stages of buying decision process while the sales promotion and personal selling are more effective during the later stages.
Invitation: They include a distinct invitation to engage in the transaction now offer valid till â¦or till stocks last The negative effect of sales promotions is it will yield fast and measurable responses in sales but it will not yield new loyal nor long term buyers in mature markets. Sales promotion implies a wide variety of promotional activities. The reduced price under this scheme attracts the attention of the prospective customers towards new or improved products. Basically, sales promotion has three specific objectives. To encourage middlemen to put more efforts in attracting customers. If the funds available for the promotion are large, then the blend of promotional tools can be used, whereas in the case the funds are limited then the management must choose the promotional tool wisely.
It also encourages distributors to buy more items and make sure that they always have an adequate supply of sales, says Dryden. Salesman answers these queries quickly and removes any doubts in the mind of the buyer. Importance Need or Objectives : The basic objective of sales promotion is to maintain, increase, or regulate sales. Participation in formulating sales policies and strategies 12. It is basically to reinforce loyalty to the brand and keepthem relevant. These coupons can be presented to the retailer while buying the product. A promotion is a term that is used in different contexts, the most popular being a job promotion.
It is seen that in some cases, despite knowing some shortcomings of a product, customer tend to purchase it simply because of personal relationship with the seller. Long-term advertising is used to drive up the perception of worth of the company's brands. New approaches are promptly cloned by competitors, as each marketer tries to be more creative, more attention getting, or more effective in attracting the attention of consumers and the trade. That is the main reason behind discounts and off-season price reductions of such items in the market during slack seasons. Examples: direct mail, e-mail 4. Ask online customers to select their favorite promo items.
Social marketing has revolutionized the way businesses create buzz. Personal Rapport: Competitive strength of a business organisation increases with the development of personal rapport between its salespersons and prospective customers. It is one of the most expensive forms of promotion. Minimises Wastage of Efforts: Personal selling involves minimum wastage of efforts as compared to other tools of promotion. In nutshell, it can be said that sales promotion is aimed at satisfying customers, encouraging salesmen and middlemen, and achieving sales targets. Sales promotion mainly involves short-term and non-routine incentives offered to dealers as well as consumers. These incentives may be financial or non-financial.