Speed up the sales of slow moving products, ix. Not sales next quarter. The stages of the product, in the life cycle should be taken into account while introducing any particular sales promotional method. Ask them to write an essay about how much they love your product or products. Who doesn’t love a good game? Stock clearance of slow moving, non-moving, outdated, defective or inferior quality goods. Introducing new arrivals and creating platform/awareness for newly launched products. Sales / Promotional Pricing. A free sample is generally welcome to almost all consumers and increases the probability of trial and, in some cases, purchase as well. Detergent powders and cakes toilet-soaps, shampoos, oral hygiene products, and many other non-durable products, which are consumed every day, may respond well to such promotions. The basic objective of sales promotion, is to develop good relationship with the customers and to establish a better understanding. On the other hand, trade-oriented promotions inspire the middlemen like dealers, distributors, wholesalers, retailers to work hard to gear up their business in order to reap more profit. Consumer promotions are incentives aimed toward a company’s customers. Related: 17 Importance and Role of Small-Scale Industries (Economy) Objectives of Sales Promotion It could be a percentage off the list price. It shall attempt to generate a bondage between the awareness and perception of the consumers and the personality of the brand and its features. The space available for displays in retail stores and in showrooms is limited and expensive depending on the size of the store and display material, number of displays is limited. 55. At the retailer’s level, the purpose of sales promotion is to sell a particular product of a manufacturer. They induce buyers to purchase a new product. In the competitive market it is becoming obvious for the marketers to analyse the rationality of pricing of the particular product with its available features and attributes. ii. The only condition was that with each entry the contestant must enclose an empty pouch of 50 gm. When consumers see in bold print “FREE”, their attention is focused on the advertisement. Sales promotion is used to retain customer’s interest in the product during off-season. Sales promotion aims at wooing new customers. 70/-. Free samples are an ideal promotion for consumables and products with lower price points. Of course the coupon should be of immediate value, instantly redeemable “on-package”, or the discount should be given at the time of purchase. However the marketer may have a number of different objectives for example: ii. Inducing retailers to promote the brand by local advertising and POP display. The environment itself is already challenging and fast-paced, and attempts to clearly communicate with customers can get lost in the crowd. Marketers can develop appropriate sales promotion to accomplish the objective of reducing the negative impact on sales, if the price of the product was Rs. Do it and you’ve created a successful promotion. Reminding leads the firms to reinforce the previously satisfactory behaviour of the customer. Consumer sales promotions are discounts and incentives offered to consumers as an inducement to get them to buy. Demand of the distributors, dealers and sales force to introduce and enhance promotions. Helping firm remain competitive – Sales promotions maybe undertaken to meet competition from a firm. If the promotion objectives have consumer and trade orientation the sales promotion strategies focus on different consumer promotions and trade deal. Maybe now’s the time? The competition may be from manufacturers or sellers of similar products or of substitutes. iv. When the sales promotion strategies are targeted to the end consumers, it is referred to as consumer sales promotion. i. To Supplement Advertising and Personal Selling Efforts. This work is done mainly by advertisement but other promotional activities help achieve this objective. Getting customers to switch brands by offering free samples and free trials is another goal. Share Your PPT File, Sales Promotion Objectives: Increase in Sales Volume, Encourage Repeat Purchase and To Block Competitor Moves, – Top 7 Objectives: Launch New Products and Increase Trail, Encourage Dealers to Participate in Display and a Few Other Objectives. They can be delivered the old-fashioned way – newspapers, magazines and by mail. Updated September 26, 2017. Such a threatened firm would plan to load consumers so that they are in no need to go shopping for that product category. Another important rule when offering a discount price is to stick to a clear time period. 50 and Rs. 7. Share . Market research studies revealed that the cause of below-level acceptance was inherent conservatism of the consumers in this market. He or she must then be motivated to give some attention to the product and what it may provide. Most firms use some form of promotion. However, consumer promotions can be utilized to achieve various other objectives as well, and different promotions work better for different purposes. Price-off reductions are typically offered right on the package through specially marked price packs For example, on Palmolive shaving brush Rs. Stimulating sales – Sales promotion helps in promoting larger sales in certain specified segments of market. Encourage Repeat Purchase 4. 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. 15. In terms of the prize, it could be anything from a wad of money to a free Caribbean vacation. 7. In 2019, direct-to-consumer businesses represented 8.2% of sales and grew by 4.6%. 3. There were 1565 prizes to be won. Sales promotion has a capability to complement and supplement the advertising functions of the marketing. Companies, who have a small market share, cannot match the substantial advertising budgets of market leaders in the same industry. To Block Competitor’s Moves 5. Related. Promotional activities are undertaken to attract retailers and wholesalers to stock the product more. “Our digital solution captures a broad range of internal and external data that lead to insights into customer wants and needs, traffic patterns, price, product merchandising, store conditions, sales channels and a lot more,” says Eduardo Santaella, Chief Operating Officer of Mobile Insight, “leveraging this information helps shape sales promotion techniques and strategies. Encouraging retailers to display established brands, and. Nature Fresh edible oil 1 liter pack is available at Rs. TOOLS OF SALES PROMOTION A.CONSUMER ORIENTED PROMOTION TOOLS Free samples Coupons Exchange scheme Discounts Premium offers Personality promotions Installment sales 6. Introducing new products – To induce buyers to purchase a new product, free samples maybe distributed or money and merchandise allowance maybe offered to business to stock and sell the product. The aim of any given business is to increase the profits. Sales promotions motivate the salesmen to sell more and to sell the full line of products. It supplements and coordinates effort in these two areas. Generally these displayed items generate a higher sales volume. Everything you need to know about the objectives of sales promotion. In this way, the producer arrests the seasonal decline in the demand of his product. Companies must consider what they want to achieve through their consumer-oriented sales promotion programs and how to mix these with other promotional activities such as -advertising, direct marketing and personal selling. To encourage consumers to buy from the promoters, a stainless steel teaspoon was given with only one cake of ‘Palmolive’ soap; subsequent cakes were sold on a marginal discount. Print . It improves the performance of middlemen and acts as a supplement to advertising and personal selling. 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