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MARKETING/SALES PROMOTIONINFRASTRUCTRE

Submitted By:

AJEESH K APPUKUTTAN

S4 MBA

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Marketing

Marketing is concerned with anticipating

customer demand and directing the flow of

goods from producers to consumers

Marketing has to do with matching producers

outputs to consumers activities (wants, needs)

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Important functions

The mission of marketing is satisfying customer needs.

Marketing has a connective function in society.

At business unit level, marketing can have an integrative function.

function of a business enterprise.

The societal function of marketing.

Moreover, the traditional function of marketing is to increase the sales

volume of the company through promotions.

Modern function of marketing is customer satisfaction

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functions in marketing

Buying

Selling

Financing

Storage

Transportation

Risk taking

Market information

Standardizing

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Implications of marketing functions

on new entrepreneur MARKET ASSESSMENT

- Demand forecasting

MARKET SEGMENTATION

-geographic variable

-demographic variables

-education variables

-income variables

-psychological variables

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Marketing mix

Product

Price

Place promotion

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Promotional mix

Advertising

Personal selling

Sales promotionPublic relations/publicity

Direct marketing

Advertisement gives a reason to buy but salespromotion gives incentives to buy

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METHODS OF MARKETING

ZERO LEVEL CHANNEL

ONE LEVEL CHANNEL

TWO LEVEL CHANNEL

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Sales promotion is essential for any marketer.

As a new player in the market sales promotion

helps the new entrepreneur to attract the

customer.

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The right sales promotion, especially one that is not price-

based, can be a very effective tool in getting a new brand quick

consumer awareness and creates a brand image.

Premium-based promotions tend to see longer post-

promotional benefits than price-based promotions.

Eg:-hairbrush with a hair dryer, or through the use of coupons.

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SALES PROMOTION

Sales promotion is any initiative undertaken by

an organization to promote an increase in

sales, usage or trial of a product or service.

Sales promotion is an incentive given to the

consumer to buy the companys products or

services.

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Objectives of SP

To introduce new products

To attract new customers and retain the

existing ones To maintain sales of seasonal products

To meet the challenge of competition

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SALES PROMOTION-STAGES

Establishment of objectives

Selection of promotional tools

Planning the sales promotion programme Pre-testing

Implementation

evaluation

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Consumer Sales Promotions designed to

encourage customers to buy a product

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Tools of sales promotion

Free samples:-

Providing free samples of the products.

Creates customer awareness

Eg:- shampoos, washing powders etc.

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Money-off price incentives

These are used to stimulate demand during

slack periods where price is considered to be a

key element. Example Rs. 2 off on purchase of

a lifebouy soap

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Coupons

These allow holders to obtain a discount off a future

purchase and can be targeted at quite specific groups

of users .

For example, you might have come across coupons

like,' show this and get Rs. 15 off on purchase of 5

kg. of Annapurna Atta

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Fairs and Exhibitions: Fairs and exhibitions may be

organised at local, regional, national or international

level to introduce new products, demonstrate the

products and to explain special features and

usefulness of the products.

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Scratch and win offer: To induce the customer to

buy a particular product scratch and win scheme is

also offered.

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Gift Offers

These allow an organization to augment its

service with an additional gift which can

satisfy a number of objectives

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Short term discounts

Price cuts that are promoted as being available

for only a limited time period

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Premium or Bonus offer: goods offered either free or at low

cost as an incentive to buy a product.

A milk shaker along with Nescafe, mug with Bournvita,

toothbrush with 500 grams of toothpaste, 30% extra in a pack

of one kg. are the examples of premium or bonus given free

with the purchase of a product.

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Exchange schemes:

It refers to offering exchange of old product for a new product

at a price less than the original price of the product.

Bring your old mixer-cum-juicer and exchange it for a new

one just by paying Rs.500 or exchange your black and white

television with a colour television are various popular

examples of exchange scheme.

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Point of Sale Display

A point-of-sale display (POS) is a specialized form

of sales promotion that is found near, on, or next to a

checkout counter(the "point of sale").

They are intended to draw the customers' attention toproducts, which may be new products, or on special

offer, and are also used to promote special events, e.g.

seasonal or holiday-time sales.

POS displays can include shelf edging, dummy

packs, display packs, display stands, mobiles, posters,

and banners.

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Trade promotions

Designed to gain manufacturers, wholesalers,

and retailers support for a product.

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Promotional Allowances a cash payment or

discounts given by manufacturers to

wholesalers or retailers for performing

activities to encourage sales.

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Cooperative Advertising A manufacturer

supports the retailer by helping to pay for the

cost of advertising its product locally.

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Slotting Allowances a cash premium paid

for placing a product on a retailers shelves

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Sales Force Promotions awards given to

managers and employees who successfully

meet or exceed a sales quota.

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Trade shows and conventions

Manufacturers conduct trade shows and

conventions to promote there products

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Promotion at different stages of the

PLC Introduction wise to use heavy promotion to induce trialsand promote brand franchise

Growth promotion should be limited ,if any

Maturity Higher promotions required since the brand isunder attack from competitors or product quality or advertisingeffectiveness is tapering off

Decline Heavy promotions. Used only to retain a set of loyalcustomers. Prior to withdrawal of the product, it could be usedas a one time stock clearance from the trade

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Types of Buyers

Loyals

Buy a particular brand on a more or less consistent basis

Competitive loyals

People who are loyal to the competing brandSwitchers

Purchase of various brands in one category

Price buyers

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Steps for Successful

Sales Promotion1. Understand your brand's current brand image,

value and reputation.

3. Know your current consumers and target audience.

4. Recognize the capabilities of your sales force.

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5. Understand the relationship your brand has with your

wholesalers and retailers.

6. Research the results of past sales promotions.

7. Have a clearly defined objective for the promotion.

8. Make sure there is a benefit to the consumer.

9. Stay within your budget.

10. Be creative.

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Trends in SP

of the marketing budget is allocated to sales

promotion

In 1995, 51% of total adspend represents trade

promotions. 24% on media spending 22% onconsumer promotion

Growth in the coupon segment is tremendous in

aspirational markets

Americans redeem more than 7 billion coupons annually.

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PROBLEMS OF MARKETING

According to field study of 50 small scale enterprises

in a notified backward region of UP, there are 3

major problems of marketing of small scale industry

products

1. Competition with modern sector

2. Lack of sales promotion3. Weak in bargaining power

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REFERENCES

ENTREPRENEURIAL DEVELOPMENTS S KHANKA

PRINCIPLES OF MARKETINGDr.D.C.BOSE

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