what are the objectives of sales promotion

Boob/ Boobie/ Booba , Wednesday, 11th of August 2010 08:23:22 AM

* Building Product Awareness – Several sales promotion

Boob/ Boobie/ Booba

techniques are highly effective in exposing customers to products for the

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first time & can serve as key promotional components in the early stages

Joined: Thursday, 3rd of June 2010, 12:19:34

of new product introduction. Additionally, as part of the effort to build

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product awareness, several sales promotion techniques possess the added

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advantage of capturing customer information at the time of exposure to the
promotion. In this way sales promotion can act as an effective customer
information gathering tool (i.e., sales lead generation), which can then
be used as part of follow-up marketing efforts.
* Creating Interest – Marketers find that sales promotions are very
effective in creating interest in a product. In fact, creating interest
is often considered the most important use of sales promotion. In the
retail industry an appealing sales promotions can significantly increase
customer traffic to retail outlets. Internet marketers can use similar
approaches to bolster the number of website visitors. Another important
way to create interest is to move customers to experience a product.
Several sales promotion techniques offer the opportunity for customers to
try products for free or at low cost.
* Providing Information – Generally sales promotion techniques are
designed to move customers to some action & are rarely simply
informational in nature. However, some sales promotions do offer
customers access to product information. For instance, a promotion may
allow customers to try a fee-based online service for free for several
days. This free access may include receiving product information via
email.
* Stimulating Demand – Next to building initial product awareness,
the most important use of sales promotion is to build demand by convincing
customers to make a purchase. Special promotions, especially those that
lower the cost of ownership to the customer (e.g., price reduction), can
be employed to stimulate sales.
* Reinforcing the Brand – Once customers have made a purchase sales
promotion can be used to both encourage additional purchasing & also as a
reward for purchase loyalty (see loyalty programs below). Many companies,
including airlines & retail stores, reward good or “preferred”
customers with special promotions, such as email “special deals” &
surprise price reductions at the cash register.

Forms & Objectives of sales promotion

There are many sales promotional techniques (and the number is still
growing with the development of new ways to reach consumers), but they can
apparently be reduced to 12 classical & widely used. The rest of the
techniques usually include some kind of combination of these 12 most used
techniques of sales promotion.

1. Sampling - the use of various distribution methods to deliver actual or
trail size products to consumers with the purpose to initiate trial.

2. Coupons - A promotional device that provides a price-off to consumer
upon redeeming the coupon

3. Trade incentives - incentives that are given to retail managers & sales
people for performing tasks such as displaying merchandise or selling
certain lines of merchandise.

4. Trade allowances - deals that are offered to retailers for performing
activities in support of manufacturer brand

5. Price-offs - promotion which entails a reduction in the brand is
regular price.

6. In, on, & near-packs (and reusable containers) - specially designed
pieces that retailers give to consumers who purchase the promoted product.

7. Free-in the mail premiums - a promotion in which consumers receive
premium item from the sponsoring manufacturer in return for submitting a
required number of proofs of purchase.

8. Self-liquidating premiums - a method where the consumer mails in a
stipulated number of proofs of a purchase along with the fee to cover
manufacturer is costs of shipping & handling of premium item. From
manufacturer is point of view this form of promotion is cost free, &
therefore the name is self-litigating.

9. Contests & sweepstakes - a form of consumer oriented promotion in which
winners receive prizes, cash, or merchandise.

10. Refund offers - A cash reimbursement to the consumer by the
manufacturer whose product the consumer has purchased.

11. Bonus packs - Extra-quantities of a product that company gives to
consumers at a regular price.

12. Stamp plans & continuity premiums - type of promotion where the
consumer is getting rewarded for continuos use or repetitive purchase of a
product/service, f.ex frequent flyer programs.

These techniques can be trade or consumer oriented.

Because sales promotional tools are so varied in form, no single unified
objective can be identified for them. There are three major contributions
of sales promotions that have practical influence of the objectives of
promotion: (Kotler 1988)

1. Communication - promotions gain attention & usually provide information
that may lead the consumer to the product

2. Incentive - they incorporate some concession, inducement or
contribution designed to represent value to the receiver

3. Invitation - promotions include a distinct invitation to engage in the
transaction now.

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