Guest rewards sales strategy. To encourage repeat purchase, extra benefit offers are particularly effective. vi. Sales promotional devices help introduce new products in the market. These new customers help increase total sales. Targeting a specific market segment, or. Price discounts can take different forms ranging from straight price discou nts to buy- The only remedy of such type of competition is to improve the quality of the product through research and innovation. To generate a favourable attitude towards the brand and to develop the awareness regarding the special attributes of the product, sales promotion devices are adopted effectively. An important area that concerns sales promotion objectives is directly related to the specific promotional techniques to be used. 12. A coupon or a premium offer in a print advertisement increases the attention getting ability of ad. They induce buyers to purchase a new product. Promotional features should highlight the suitability of special attributes to specific targeted segments. Promotional activities help maintaining the sales of the product in slack season when demand is little. This objective may also be accomplished for certain consumer durable goods in case of trade segment. To Help the Firm Remain Competitive 13. 3. Regular customers are offered cards whereby after a certain amount of purchases they are entitled to a gift for example, a trip to Mauritius. Contestants were required to suggest one word as a prefix or suffix to describe ‘Nescafe’. Sales promotions are used to stimulate purchasing and sales by way of giving incentives or offers, and the objectives are to increase sales by informing […] Then the customers come across the variety and novelty offered by the retailer, which they might not know before. This certainly pre-determines the scope of sales promotion. 6. (ii) Customers may be encouraged to buy more quantities by offering them various incentives. Persuading generally becomes the main promotion goals, when the product enters the growth stage of its life cycle. In its absence, it is useless to imagine an increase in sales. Increasing the inventories of business buyers – Retailers may be induced to keep in stock more units of a product so that more sales can be affected. The basic purpose of sales promotion is to increase the sales of a product by creating demand. 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. 200,000. Deflect customers attention from price. 2. For instance, a promotional scheme allows a customer to try a fee-based online service free for several days. To pre-empt competition, presence of certain favourable conditions is necessary. 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. Basically the consumers are conscious about prices. (6) To Face Competition Effectively – Promotional activities help the producer or seller to meet the competitive situations in the market. The objectives of a sales promotion are to increase consumer demand, stimulate market demand, and improve product availability. Sales promotion has a capability to complement and supplement the advertising functions of the marketing. 8. Sales Promotion Objectives. They supply comparative information on various products so that consumers may be willing to purchase the products promoted by them. A firm that feels threatened would like to protect its loyal customers from switching to the new competing brand. 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. Attracting new customers – New customers may be attracted through issue of free samples, premiums, contests, and similar devices. Therefore, small businessmen try to attract the customers through persuading. 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 should, therefore, be informed of the new product and told that the new products works better than all similar existing products. One of the first objectives of trade promotions is to increase the distribution level of a company. As these fittings are large and attractive, and kept at conspicuous places, they attract the attention of the customers. Colgate offers 25gm extra on their 200gm pack at the same price. In nutshell, main objectives of market promotion can be described with reference to below stated points: 1. To Stimulate Demand: It is the primary objective of market promotion. In some conditions, customers leave their old products and adopt goods with new packaging and the latest improvement. However, they may vary with the type of target market and points of channel. The products are categorised and standardised to suit the specific consumer demand. To attract new customers and retain the existing ones iii. Key Points. While brand awareness is a key promotional objective, a number of other important business objectives are served by promotional activities. For example, free hairstyling done using a hair gel sold by the store. To … It improves the performance of middlemen and acts as a supplement to advertising and personal selling. i) To reduce inventories before financial year-closing, ii) To increase the stock-holding of retailers, or even consumer before the introduction of a competing brand, or. The most important objective of sales promotion is to build demand by convincing customers to make a purchase. Frequency Programs – One of the fastest growing areas of sales promotion is the use of frequency programs also known as continuity or loyalty programs. It would be ‘economical’ for the customers to buy a pack of three as it is available at the price of two packets. Product’s design, colour, packaging and price, all communicate something. For example, Hindustan Lever Ltd., offering with their Brooke Bond BRU 50 gm coffee packs an attractive glass bowl. Sales promotion objectives should be specific, measurable, clear and concise, practical and realistic, affordable and attainable. Generally these displayed items generate a higher sales volume. v. Motivating the dealers to buy high volumes of products and push more of the brands that are on promotion. In spite of the several objectives of sales promotion, there are three which are fundamental, viz., informing, persuading and reminding. Contests are used to motivate dealers. Some outdated brands may also be withdrawn from the regular market and may be disposed off, adopting different schemes, allowing the consumers to buy the products at a concessional rate. 6. Objective # 2. ii. 2. Facilitating co-ordination – Sales promotion facilitates co-ordination and proper link between advertising and personal selling. Sales Promotion includes all activities which promote sales of the company’s product and services. There can be a number of sales promotion objectives, depending upon the firm’s policies, marketing objectives, nature of the product and its stage in product life- cycle, level of existing and anticipated competitive activity, consumer response pattern, economic conditions, and the target group (consumers, traders, or sales force), etc. The final objective is to encourage customers to return again and again to the store. Offer Details: The basic purpose of sales promotion is to increase the sales of a product by creating demand. For this purpose, it provides suitable knowledge for recollection. During four-month period (February-May 1990). 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. The main objective of this research is to investigate the influence of sales promotion and physical surroundings that is situational factor on consumer buying behavior. Sales promotional devices at customers level include samples, coupons, demons­tration, contacts, money refund offers, premium offer, free trials etc. The basic purpose of sales promotion is to increase the sales of a product by creating demand. The retailer is not actively involved in them. These objectives are for both marketers and traders. Sales promotions can originate from two sources — suppliers or the retail store itself. Nature Fresh edible oil 1 liter pack is available at Rs. Sometimes, the customers have to send the empty packets to the supplier for getting their free products. Informing is to educate the consumers about the product. Launch New Products and Increase Trail: Objective # 3. Sales promotion objectives could be either proactive or reactive. Developing patronage habits among customers – It can be done by popularising goods and services of the producer among the potential consumers and to motivate them towards larger purchases. Sales promotion efforts are generally designed to assist the other communication activities undertaken by a store. Buy Bigger 9. The objectives for the sales force may be to encourage a new product or model, stimulate off-season sales, and persuade more prospective buyers, and so on. Definitely, sales promotion cannot be a substitute for weaknesses in marketing strategy. Consumer-Oriented Sales Promotion Techniques: Marketers use various sales promotion techniques to meet the objectives. To reduce the perception of risk associated with the purchase of a product. This promotion is used selectively, normally in supermarkets, department stores, etc. Marketers attempt to increase sales for an established brand in several ways, and sales promotion can play an important role in each. To introduce new products or services: Sales promotion is often used to motivate prospective … 3. viii. activities make the product popular and increase the demand. 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