If the promotion objectives have consumer and trade orientation the sales promotion strategies focus on different consumer promotions and trade deal. Stimulating sales – Sales promotion helps in promoting larger sales in certain specified segments of market. 5. Inducing retailers to promote the brand by local advertising and POP display. Samples are a great way to promote impulse purchases, such as new food items in a grocery store. Contests and Sweepstakes – A contest is a promotion where consumers compete for prizes or money on the basis of skills or ability. iv. Educating customers – Educating customers/dealers and salesmen simplifies the efforts of salesforce and motivate them for larger purchase. Sometimes a simple sale price can be the best promotion. Targeting a specific market segment, or. Event Marketing – Event marketing is a type of promotion where a company or brand is linked to an event or where a themed activity is developed for the purpose of creating experiences for consumers and promoting a product or service. In case of competition from substitutes having superior technology, promotional activities cannot help much. In the marketing of such goods as cosmetics, confectionery, soap, etc., manufacturers incur a heavy expenditure on popularizing the product. 5 is provided that places the product’s price between Rs. 55. They are made available in smaller than the regular package size. Ready stock should be made available through different outlets, approachable and accessible to the target consumers. Such promotions can be particularly useful in new markets, and can also be used to introduce a sense of urgency in consumer or the trade to buy the product now. They are also a great way to generate awareness and boost sales during new product launches. Was ist Consumer Promotion? Speed up the sales of slow moving products. Everything you need to know about the objectives of sales promotion. The reasons for the growth of sales promotion is mainly due to: 2. It attracts channel members to participate in manufacturer promotion effort. Deflect Customer’s Attention from Price 7. Promotional activities increase or help increase the sale by making effective upward change in the elasticity of demand of the product or service through various techniques i.e., by distributing samples, free gifts, purchase premium, discounts etc. Accessibility and availability of the products. Thank you! The main motive of consumer-oriented promotion is to increase sales directly by attracting new customers and wooing existing ones. A firm that feels threatened would like to protect its loyal customers from switching to the new competing brand. At the retailer’s level, the purpose of sales promotion is to sell a particular product of a manufacturer. In the present market condition to face the challenges of increasing competition, the marketers develop different promotional schemes to augment sales to satisfy the need of the prospective consumers. Improving the Public Image of the Firm: Huge amounts are now being spent on determining appeals for arresting the attention of the prospect towards the product. It shall develop a strong positive impact on the purchase decision, a preference for the brand for the extra value offered. The trial use, through distribution of samples or demonstration may convince the prospects regarding the positive features of the brand introduced. The most commonly used method of consumer promotion takes the form of samples, contests, demonstrations and coupons. These objectives are for both marketers and traders. Or, better yet, go digital and deliver your discount coupons via email, text message, or even social media. Promotional objectives involve the question of what the firm hopes to achieve with a campaign—“increasing profits” is too vague an objective, since this has to be achieved through some intermediate outcome (such as increasing market share, which in turn is achieved by some change in consumers which cause them to buy more). vii. Sales promotion objectives should be specific, measurable, clear and concise, practical and realistic, affordable and attainable. 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. Thus, its major role is persuasive communication. Consumers often use samples that are distributed free, with or without a coupon, to introduce a new product or induce trial of even an existing product. The promotional means may be salesmen, dealers, press, and other supplementary activities. Make sure customers know that these savings won’t last long. Either way, the strategy is to make customers feel extra confident about their purchase decisions by adding something extra to the equation. Fall short and the time and money you’ve invested to connect with that customer and drive sales is not coming back. If you continue to use this site we will assume that you are happy with it. Premiums (Gifts) – A premium is an offer of an item of merchandise or services either free or at a low price that is an extra incentive for purchasers. Small budget firms have to exercise extreme caution and use such promotion judiciously, because this may prove to be quite expensive proposition. Sales promotional devices at customers level include samples, coupons, demonstration, contacts, money refund offers, premium offer, free trials etc. Sales promotion aimed at consumers is called ‘ consumer sales promotion ‘. The promotional objectives are to be considered and framed by the organisations on the basis of an in-depth study of the economic environment, nature of competitive situations, the attributes of the product, the stage of the product in the product life cycle, consumer’s perception about the product and the image of the organisation. They must have some knowledge about the product offered by the producer. The more creative you can be with your contest, the better. Objectives for Consumer Behavior. Sales promotion is the avenue to reach the product or the brand in the mind of the prospective consumers and to develop a brand image with favourable attitude towards the product. At the end, the result should be an action from the consumer. To Block Competitor’s Moves 5. Consumer Sales Promotion: Techniques, Objectives, and Importance. When the coupon would be available, the new price does not appear to be so high relative to the new price of the product. Premiums are offered for purchasing a particular level. This work is done mainly by advertisement but other promotional activities help achieve this objective. To accomplish the objective, normally a combination of “push-pull” strategy is used. Free samples are distributed or money or merchandise allowance is offered to the dealers to stock and sell the new product. Delayed-value promotions that may require multiple purchases are also quite effective. Generally, the brand switchers or marginal buyers, who buy when a product is on promotional deal, contribute more toward increasingly sales volume. The various objectives of sales promotion are as follows: 1. Particularly, sales promotion serves as a bridge between advertising and personal selling. Consumer promotions are geared toward customer needs and wants. 50 and Rs. Some companies offer a free pack with purchase of a product like free soap with purchase of detergent. Post . The main consumer promotion tools include samples, coupons, demonstration, contests, cash refund offer, premium, etc. Of the four Ps of marketing - product, price, promotion, and place - the three goals of promotion are to inform, persuade, and remind consumers of products. iv. First, it is meant to provide important marketing information to the potential buyers. Nature Fresh edible oil 1 liter pack is available at Rs. Samples. Colgate Palmolive launched ‘Palmolive’ toilet soap in 1989. 8. These immediate value promotions can be directed toward those who like trying new products, and those who are regular users of the product. It shall attempt to generate a bondage between the awareness and perception of the consumers and the personality of the brand and its features. Sales Promotion includes all activities which promote sales of the company’s product and services. In business warfare, it is not uncommon that sometimes challengers resort to offering discounts. Sales promotion has a capability to complement and supplement the advertising functions of the marketing. 7. Bridge between Advertising and Personal Selling: Sales promotion consists of those activities other than personal selling, advertising, and publicity. To overcome the seasonal fluctuation of products. Most firms use some form of promotion. Is it an impulse buy or a calculated purchase on the part of the consumer?” These are all key factors to determining which sales promotion techniques are worth exploring. ix. As general rule, if possible, offer the customer a rather substantial discount. 10. Objective # 3. Following are the most powerful Consumers Sales Promotion Techniques: 1. It motivates sales force to give desire emphasis on new accounts, latent accounts, new products and new territories. iv. Consumer promotions are a way to attract new customers and grow your customer base. 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. If you found this article insightful, learn more about retail sales and promotions in the digital age at mobileinsight.com. Basically, sales promotion has three specific objectives. 15. B.Trade-oriented Sales Promotion Cash bonuses Stock return Credit terms Dealer conferences Dealer trophies Push incentives 7. They induce buyers to purchase a new product. Sales increased substantially in March, and informed people say, it almost doubled by the end of the April 1990. The focus was on an incentive, which would ensure trial of even one cake. To supplement advertising and personal selling efforts. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. (ii) To increase the stock-holding of retailers, or even consumers, before the introduction of a competing brand, or. 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