Advertising

“ Advertising is means of communication with the users of a

product or services. Advertising is an announcement online,or in
a newspapers , or on television , or on a poster about something
such as a product , event or job .”

“ Advertising is bringing a product ( or service ) to the attention of

potential and current customers .Advertising is focused on one
particular product or service .Thus an advertising plan for one
product might be very different than that for another product
.Advertising is typically done with signs, brochures, commercials ,
direct mailings or e mail messages , personal contact ,etc. .
Sales promotion
“It refers to those marketing activities that stimulate consumer shows and
expositions.”

“ sales promotion means any steps that are taken for the purpose of obtaining
an increasing sales.”

 It includes all forms of sponsored communication apart from activities

associated with personal selling.

 It does includes trade shows and exhibits, combining, sampling, premiums,

trade, allowances, sales and dealers incentives, set of packs, consumer
education and demonstration activities, rebates, bonus, packs, point of
purchase materials and direct mail.
Objectives
Sales promotion is vital bridge or a connecting link between
personal selling and advertising.
Sales promotion activities undertaken to achieve the following
objectives.

To increase sales by publicity through the media which are

complementary to press and poster advertising.

To disseminate information through salesman, dealers, etc.. so

as to ensure the product getting into satisfactory use by the
ultimate consumer.

To stimulate customers to make purchases at the point of

purchase.
To prompt existing customer to buy more.

To introduce new products.

To attract new customers.

To meet competitions from others effectively.

To check seasonal decline in the volume of sale.

TOOLS OF SALES PROMOTION :
There are two types of sales promotion tools :
I. Consumer oriented tools
II. Trade oriented tools

CONSUMER ORIENTED PROMOTION TOOLS :

The consumer can take the benefit of promotion tools either from
the manufacturers or from the dealer or both .
In general some of the commonly used consumer oriented
promotion tools are as follows :
FREE SAMPLES

COUPONS
DEMONSTRATION

EXCHANGE SCHEME
 DISCOUNTS

PREMIUM OFFER
PERSONALITY PROMOTION

INSTALLMENT SALES
II. TRADE ORIENTED SALES PROMOTION :

It is also known as push strategy which is directed at the dealer

network so that they push the brand to the consumers by giving
priority over other competitor brands.

 DEALER CONFERENCES  STOCK RETURN

 DEALER TROPHIES  CREDIT TERMS

 PUSH INCENTIVES
TYPES OF SALES PROMOTION
There are two types of sales promotion-
Consumer sales promotion: Any sales promotion activity you
do keeping the end consumer in mind is known as consumer
sales promotion.
Trade sales promotion: If your promotional activities are
focused on dealers, distributors or agents, then it is known as
trade promotions.

DISCOUNT-TRADE/
CONSUMER
GIFTING
COUPONS FINANCING

SAMPLING BUNDLING

REFUNDS &
CONTESTS
REBATES

EXCHANGE
FREE TRIAL
OFFER

EMAIL EXHIBITION
MARKETING
TRADE SHOWS DEMONSTRATION

CONTINUITY QUANTITY
PROGRAMS DISCOUNT
IMPACT OF SALES PROMOTION :
Promotion is the component of the marketing mix strategy that
emphasis the use of various tools to promote the value of your
company , products or services .While much of promotion is
focused on long term communication objectives , sales
promotion have a specific motive of creating immediate sales .

ATTRACTING CUSTOMERS

INCREASED REVENUE

PRICE ORIENTATION

INVENTORY REDUCTION
HOW INDIAN MARKET USE
SALES PROMOTION
 PERSONAL SELLING :
It is a process of face to face interaction between the
salesperson and the prospective customer .A good salesperson is
the one who has thorough knowledge about the product he is
about to sell .

 PERSONAL SELLING IN RURAL REGIONS :

Most of the marketers think personal selling is not feasible in

rural areas because of various reasons ranging from scattered
population to a large number of villages to be covered .For the
marketer to adopt personal selling as a tool of promotion in rural
area , following are few of the basic requirements that need to be
present in their salesperson :
 Familiarity with the rural area
 Proficiency in local language
 Acquaintance with the rural folks
 Be persuasive but not pushy
 Public relations
 Free distribution of samples
 Free distribution of samples
 With-pack Premiums
 With pack Premiums
 Price off premiums
 Money refund Premiums
 Exchange premiums
 Interactive games
 Fair and Exhibitions
 Village huts
 Melas
 Mandies
PRICING STRATEGY :

In rural India , financing at zero interest can persuade

customers to purchase consumer durables durables
like television , washing machine etc. and increase the
sales .

 Increasing the term of payment of loan

 Financing at low interest
 Positioning of the product
 Psychological pricing
SALES PROMOTION +
ADVERTISING

SALES PROMOTION
– ADVERTISING
SALES PROMOTION + ADVERTISING
1) It stimulates in the consumers an attitude towards the
product.

2) When compared with advertising and personal selling, sales

promotional activities are less expensive.

3) It enables both the dealers and the consumers to enjoy certain

tangible benefits, e.g, free samples, gifts, price reduction, etc.

4) Certain sales promotional activities also enable the consumers

to gain knowledge. E.g. displays and demonstrations help
them to understand the product mechanism.

5) It creates a better incentive in the consumers to make a

purchase. It is a demand creator.
6) It gives direct inducement to the consumers to take immediate
action.

7) It is flexible. It can be used at any stage of a new product

introduction.

8) Sales promotion leads to low unit-cost, due to large scale

production and large scale selling.

9) It is an effective supporter of sales. It helps the salesman and

makes his effort more productive.

10) The promotional tools are the most effective to be used in

increasing the sales volume.
MORE EFFECTIVE WHEN:-
A new brand is introduced.
We have to communicate a major improvement or
attraction in product.
Enlarging the result of advertising.
Increasing the number of retail stores in order to sell
out products.
Engaging or embarking upon aggressive sales
campaign.
SALES PROMOTION – ADVERTISING
1) Sales promotions are only supplementary devices to
supplement selling efforts of other promotion tools.

2) Sales promotion activities are having temporary and short

life. The benefits are also short lived for three or four
months. Then the demand will fall down.

3) They are non-recurring in their use.

4) Brand image is affected by too many sales promotion

activities.
5) Competitors to use the same method of sales
promotion.

6) It is expensive and leads to a rise in the price of

products.

INEFFECTIVE WHEN:-

When there is a declining market for an established

brand.

When there is no product improvement.