Assignment # 3

Subject Advertisement & Promotion

Section BBA # 8

Dated 19/6/2020

Semester 8th

Summited to Prof. Irtaza Aitzaz

Student Name: Muhammad Umais

Reg no: S2F16BBAM0018
NTRODUCTION OF SALES PROMOTION
 The term sales promotion covers a wide range of activities intended to provide a short-term
increase in sales, Some sales promotions are aimed at retailers, some are aimed at consumers,
others are aimed at wholesalers, but in all cases the intention is to provide an extra incentive to
buy [ to stock] a specific brand or product range.     Sales promotion consists of a diverse
collection of incentives tools, mostly short-term designed to stimulate quicker and greater
purchases of a product by consumers. When advertising offers a reason to buy, sales promotion
offers an incentive to buy.

DEFINITION OF SALES PROMOTION

“Those marketing activities, other than personal selling, advertising, and publicity that stimulate
consumer purchasing and dealing effectiveness, such as displays, shows and exhibitions,
demonstration and various non- recurrent efforts not in the ordinary routine is known as sales
promotion.”-American marketing Association.  
“Sales promotion consists of all those activities whose purpose is to supplement, to coordinate
and to make more effective efforts of the sales force, of the advertising department and of the
distributors and dealers to increase sales and otherwise stimulate consumers to take greater
initiative in buying.”-By L.K. Johnson
“Sales promotion is an organized effort applied to the selling job to secure the greatest
effectiveness for advertising and for dealer’s help”- By George w. Hopkin
“We define sales promotion as those promotional activities (other than advertising, personal
selling, and publicity) that are intended to stimulate customers demand and to improve
middlemen’s marketing performance.”- By W. J. Stanton.
“Sales promotion is a short-term prize, gift or product incentive designed to include purchase
when offered to distributors, industrial users, or consumer. - By Tull & Kahel.   

ROLES OF SALES PROMOTION

Sales promotion is an important component of a promotion campaigning program. It can be
specific tool of the marketing strategy of an enterprise. Because of increasing level of
competition and costs of advertisement, producers largely use this technique as a promotional
tool. 
Sale promotion techniques are not only useful to the producers and distributors, but also are
useful to consumers. The importance of sales promotion may be grouped as follows:
a). Importance to Consumers.
b). Importance to Manufactures/Producers.
c). Importance to Dealers/Middleman.
d). Importance to Society & the nation.

A)  IMPORTANCE TO CONSUMER
Enough product knowledge: -
Various consumer promotion methods such as demonstrations, training to use the product, etc.
give enough product’s knowledge to consumer with regard to uses, operations, maintenance or
upkeep of the product.

2. Availability of product at reduced prices: -

Sales promotional tools like prices-off deals, premium offers, discounts, etc. reduce the price of
the product when purchased on notified occasions.

3. Increase in consumers buying confidence: -

Free samples offered under the sales promotion program give the potential consumers an
opportunity to use the goods and satisfy with the quality of product. This experience may give
them confidence to take a better decision towards the purchases of products.

4. Increases in the quality of goods purchased: -

Stimulated by the various promotional incentives like free goods, premium and coupons, etc. the
buyer are attracted towards larger purchases than their usual needs to avail the opportunity.

5. Higher slandered of living: -

The consumer also gets plenty of opportunities in using the new, cheaper & durable items, to
their satisfaction, which may help them to maintain a higher standard of living.

6. Minimize exploitation: -
The consumer promotion program gives enough knowledge about product and substitutes
available for a product, its quality and price. As a result, a seller cannot be able to create a
monopoly in his product an exploit the consumers. This may be the reason that for product like
soaps. Detergent, toothpastes, etc. the exploitation is not at all possible.
B)  IMPORTANCE TO PRODUCER / MANUFACTURE
1. Increases in sales: -
sales promotion program attracts the consumers & stimulates them for larger purchases leading
to increased sales.

2. Regular sales of seasonal product: -

The offer of off-season discounts, price cut etc. on seasonal products like fridge, coolers, fans,
etc. can maintain regular are continuous sales of such items.

3. Improve effectiveness of advertisement and personal selling: -

The sales promotion makes the advertisement more effective to push the sales. It is effective
technique to minimize the dissatisfaction of customers that have been create by retail selling.

4. Cooperation from middlemen: -

The various promotional incentives offered to the dealers help to achieve co-operations from
them to sell the product on priority basis and to maintain maximum stock with them.

5. Demand for product & services: -

The sales promotion techniques have proved successfully in introducing new product & services.
By the supply of free samples, the new product makes its place in the market.

6. Able to capture new market: -

The sales promotion program facilitates the producer to capture new markets for his products
easily. The markets of plantation products have been successfully in capturing the markets by the
distribution of free samples.

7. Increase in goodwill: -
The repeated uses of sales promotion tools facilitate the consumers to get a special identification
of the product as well as of the producer. The satisfaction that have been arrived to the
consumers by continuous uses of the products will gradually increase the goodwill of the firm.

8. Direct control: -
Since the advertising media is controlled by advertising agencies, the advertising costs are on
higher side. This has adverse effect on the sales and profits. But in the sales promotion program,
the producer has full control over the promotional tools & therefore, can achieve maximum
results at minimum costs.
9. Effective steps to face the competition: -
Larger sales, reduce production costs, increase in profits, special identity and goodwill of the
producer, etc. achieved through sales promotion measures can help to face the competition more
effectively.

10. Improvement & new uses of the production: -

The sales promotion program invites suggestions from the consumers from time to time to know
about their change in need & performance. According, necessary improvements or modifications
are made in the product to satisfy the consumer need.
                         

C) IMPORTANCE TO DEALERS/ MIDDLEMEN

1. Facilitates larger sales: -
The dealers get advantages of sales promotional techniques for increasing their sales. Sales
promotion is a coordinating activity between sales, advertising, research & public relations
efforts & they reduce the resistance at the point of sales.

2. More facilities & assistance: -

The producer, under the sales promotional program, provides various facilities & assistance to
the middlemen, such as assistance to marketing research, providing with display materials and
managerial assistance, etc. for maintaining regular stock for sales.

3. Direct relation with customers: -

A direct relationship between the dealers & the consumers are established through the sales
promotion techniques which will continue for a long time.

D) IMPORTANCE TO THE SOCIETY & THE NATION

The importance of sales promotion program for the society & the nation can be summarized as
below: -
 Increase in standard of living the people.
 Increase in employment opportunities.
 Development and expansion of transport, communication, banning, insurance and
warehousing facilities.
 Increase in Gross National Product and precipitate income.
 Creation of healthy competition in national and international trade, etc.
Benefits of Sales Promotion

 It helps to generate new leads

 Allows re-engaging with your existing audience
 Skyrockets revenue
 Increases brand awareness

 It helps to generate new leads. Sales promotion can boost your product image since it
encourages sharing information about it within social groups related to your business. If
you sell training football shoes, people keen on playing football will share the message.
 Allows re-engaging with your existing audience. Once a person subscribed to a
brand’s email newsletters, they will receive regular sales promotions. It is a way to keep
the audience engaged and maintain a close connection with the company, which is crucial
for building loyalty.
 Skyrockets revenue. Sales promotions help companies to increase the number of sold
goods, even though they need to lower the price to achieve that goal. Of course, merely
reducing the price is not enough, people should need your product, while the discount is
only another reason to make a purchase.
 Increases brand awareness. Sales promotion is a way to make a name for your brand
because people are more likely to talk about a сompany that proposes benefits and saves
their money. That’s what sales promotion does.

Types of Sales Promotion

 Price deal
 Loyalty reward program
 Bonus-pack deal
 Giveaways
 Coupons
 Mobile couponing
 Sampling
There is a variety of ways to run a successful sales promotion, but let’s focus on some most
frequently used ones, using a cup of coffee as an example.
  Price deal. It is a temporary cost reduction, for instance, 20% off for a coffee for a week.
 Loyalty reward program. This means that customers collect points or credits when they
buy coffee. If they get 10 points, for example, they will have one coffee for free.
 Bonus-pack deal. It means that a customer can get more products paying the original
price. For instance, they pay a dollar for one cup of coffee and get free candy, which
gives some positive emotions and makes them come back in the future.
 Giveaways. These tactics aim to increase brand awareness. It means giving some items
for free in exchange for personal information to use in further marketing. For example,
offer a free cup of coffee in exchange for a phone number, which you can use for many
purposes: promoting new sales, sharing updates and news with short text messages, etc.
 Coupons. You can sell coffee for the original price and give a coupon, which will make
the next purchase 5% cheaper.
 Mobile couponing. It stands for coupons received on mobile phones via SMS. To get a
discount, a customer needs to show the coupon on their smartphone.
 Sampling. Choosing this promotion type, companies give a sample of the product; for
instance, the first cup of coffee to promote a new taste.

Sales Promotion Examples

 Email marketing
 Facebook marketing
 SMS marketing

Email marketing:
It is one of the most efficient digital marketing channels, with the ROI up to 4000%. Marketers
use sales promotion for lead nurturing, reactivation, promotion, etc. To succeed, marketers
combine sales with educating materials. In this sales email, Grammarly offers users a chance to
upgrade to a premium plan and shows the multiple benefits and suggests taking advantage of the
40% discount limited it time.
Email is also an effective platform for holding giveaways. You can create a giveaway campaign
on specialized resources like Rafflecopter, and keep users engaged with giveaway emails along
the way. The example below shows how the Apple Music Festival encourages people to
participate, using the names of famous artists who are going to perform there.
Facebook marketing:
Facebook is one of the most powerful advertising platforms due to its global coverage and
detailed targeting options. Facebook marketing allows using various types of ads to fit any
demand and budget. Here’s an example of a carousel ad with a 10% discount by iHerb.

SMS marketing:
This channel is excellent for instant updates and flash sales. It works out well for local
businesses. The example below shows how sales promotion in SMS marketing can create a sense
of urgency, stimulating people to visit a restaurant for lunch.
Sales Promotion Ideas

1. Give an adequate range of discounts

2. Target sales promotion to the right people
3. Take advantage of the shopping holidays
4. Create a sense of urgency
5. Develop a loyalty program
6. Use sales promotion to generate leads
7. Offer free shipping

 Give an adequate range of discounts. Avoid more than 50% discounts, because they make
you look desperate. Don’t give discounts, like 2% either, as they won’t thrill your
customers.
 Target sales promotion to the right people. Find out which people are likely to buy a
particular product you want to promote. For instance, if you run a sports shop and you
want to increase the demand for skateboards, target your promotions to teenagers and
young people.
 Take advantage of the shopping holidays. Marketers have developed a system of
consumerism based on traditions. As a result, people spend more money on shopping in
particular days called shopping holidays. These are Black Friday, Cyber Monday,
Christmas, New Year, Halloween, to name a few. Any holiday meaningful for a specific
group, like Mother’s day for women, can be a reason for companies to promote sales.
 Create a sense of urgency. Create time-limited offers to make your audience feel they are
going to miss something important. Time-sensitiveness is an excellent incentive for
people to purchase since it appeals to their emotions.
 Develop a loyalty program. This technique will help you keep your customers engaged
for an extended period. Offer to collect points from every dollar spent, so in the future,
your customers could use them to pay for new purchases in your shop.
 Use sales promotion to generate leads. Use a discount as an incentive to subscribe to
your email newsletters. Lead magnets help to cover this process during the subscription.
 Offer free shipping. It is the right motivation for people from distant regions to decide to
buy from you.
 CONCLUSION
Sales promotion refers to non-recurring and short-term sales activities other than advertising and
personal selling. Brand proliferation, trade pressures, growing competition recession, quick
returns, competent staff and attitudinal change are the causes of growing popularity of sales
promotion. Sales promotion methods or scheme are used at the level of declares, consumers and
salesmen.