Sales promotions are those activities that stimulate customers demand and improve the dealer’s performance. It is different from personal selling, advertising and publicity. Sales promotion is not carried out for the whole year. It is done after certain periods. The purpose of sales promotion may be introduction of new brand of good, stimulating customers demand, fighting competition, gaining favorable opinion from general public dealer’s participation, bulk buying and training of middlemen. There is a need of shows, exhibitions, displays and demonstration for promoting the sales. The businessmen use various methods in sales promotion; the sales promotion activities have become a fashion due to large scale production and ever increasing competition in free market economy. Division of labour and specialization has made it possible to hire the services of experts in the field of sales promotion. The sales promotion activities provide quick result. The brand name is also one of the reasons for sales promotion. The large scale retailers have developed pressure on the companies for allowance. The low business activities lead towards to idea of some sort of concession from the sellers. Business is a war and the competitors play their role in this war through sales promotion as well. It is perhaps the powerful tool to clear stocks in order to improve the liquidity position during the year. Thus sales promotion is technique to increase the volume of sale by providing incentive to employees, dealers, customers and users of goods, services and ideas.
- 1. American Marketing Association defines sales promotion as those promotional activities other than personal selling, advertising and publicity that are intended to stimulate customers demand and to improve middlemen marketing performance.
- 2. E.J McCarthy says that sales promotion refers to those promotion activities which complement personal selling and mass selling. It may use displays, shows and exhibitions or demonstrations.
- 3. David W. Nylen says that sales promotion is a short, special offer advertising program directed to consumers, the trade, or both and designed to achieve fast response.
Objectives Of Sales Promotion:
- 1. New Brand:
A company can introduce the new brand of goods by means of sales promotion. A brand is a name, symbol, mark, design or a combination of such items which are used to know about the goods or services of one seller or group of sellers and o differentiate them from those of the rivals. The quality of the product is the reason of reputation of the company. The customers become familiar with the name of the product. The tastes of the branded goods are liked by the people. They do not like to change the product already under their usage. They become loyal to a particular brand. The purpose of the sales promotion is complete when the new as well as old customers try to use new brand of the product.
- 2. Competition:
The rival firms can start sales promotion activities at any time. In order to fight the competition there is a need to start own program. The purpose is retain the old customers by offsetting the effects of propaganda campaign launched by the competing firms. Moreover the able management can increase the number of customers by informing the customers about the superior qualities of own products. The customers analyses the facts and figures and they try to buy the most suitable goods by eliminating the inferior one. In this way the management can fight on two fronts at a time. The old customers are reminded to use the quality products as before and attracting the customers of the competing business units.
- 3. Favorable Opinion:
A business unit can gain the favour of the general public through sales promotion. The management can change the opinion of the people in its own favour. The sales promotion is used as a tool to convince the general public. The incentives help the buyers to save some money out of current expenses. Even through the saving is not very large but the people feel that the company is not overcharging for the produces. The management can gain the favour of the general public through public relation, publicity, advertising and sales promotion. All these methods can be applied at he same time just to increase the sales volume at reasonable sales price. Even when the business conditions are not favorable the management can clear the position to retain the old customers. Anyhow the sales promotion is a method of obtaining favorable opinion of the customers.
- 4. Stimulate Buying:
The desire to buy the things arises in the minds of the people when they see he thing working. First of all the management tries to attach the eyes of the customer. When he pays attention towards the product and listens to the salesman it means an interest is created in the mind of the customers. When demonstration of the product is made the desire arises to have the product. The customer can raise objections to clear the doubt relating to the product, when there is proper handling of the objections. The people are convinced to place an order. A desire and sufficient money are the basic requirements to purchase the goods. The objective of sales promotion is just to increase the desire of purchasing the products through various incentives and allowance.
- 5. Dealers Participation:
The Manufacturers can promote sales through middlemen. They can provide incentive to the dealers so that they should join in sales promotion efforts. The company enters the market with the employees and dealers to win the favour of the customers. When the company has no direct link with the customers. The participation of dealers becomes necessary to promote the campaign of sales. The dealers create a link between the manufacturers and the consumers. The effective link is indispensable for favorable volume of sales. The poor link cannot achieve the company objectives. The discount and allowances, display stand and training are sufficient incentive schemes on the part of the producers, and manufacturers for dealer’s participation in promoting sales.
- 6. Bulk purchases:
The Manufacturers can offer price reduction to the middlemen in order to collect large orders. There may be a free unit with the stated quality of purchases the manufacture can attract bulk buying from the dealers and retailers. Buy five goods and get one free is an appeal from the owner to the wholesalers and retailers to buy his products. The sales promotion program for wholesaler’s retailers and dealers motive them to buy the goods in large quantities. The various types of incentives are given to the dealers. The buying allowance. Merchandise allowances buy back allowance count and un-count allowance free goods are the incentives for the dealers to place an order in bulk. The purpose of sales promotion is complete when dealers buy goods.
- 7. Training:
The retailers must know the working of the products and the benefits of such goods to the consumers. The training can be imparted at the business place of the manufacture. The seminars are to be arranged. The films can be shown. The manuals and brochures are also helpful for providing training to the dealer’s staff. The wholesalers and retailers become aware of the operation of the products. The customers feel satisfaction over the good working and they place an order for the purchase of goods. The training brings perfection among the retailers who are able to participate in the sales promotion program. The benefits of training are available to the company for a number of years.