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Chapter 5 Advertising and Sales Promotion

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Chapter 5 Advertising and Sales Promotion

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CHAPTER 5- ADVERTISING AND SALES PROMOTION

WHILE ADVERTISING PRESENTS A REASON TO BUY A PRODUCT, SALES PROMOTION OFFERS A SHORT-
TERM INCENTIVE TO PURCHASE. SALES PROMOTION OFTEN ATTRACT BRAND SWITCHERS (THOSE WHO
ARE NOT LOYAL TO A SPECIFIC BRAND) WHO ARE LOOKING PRIMARILY FOR LOW PRICE AND GOOD
VALUE.

SALES PROMOTION IS A MARKETING STRATEGY IN WHICH A BUSINESS USES A TEMPORARY CAMPAIGN


OR OFFER TO INCREASE INTEREST OR DEMAND IN ITS PRODUCT OR SERVICE. IT SERVES TO BRING A
SURGE OF INTEREST IN AT A SPECIFIC TIME DURING THE CAMPAIGN, HELPING TO MAKE IT MORE
EFFECTIVE

OUTSIDE SALES PROMOTION

 ADVERTISING
 PUBLICITY
 PUBLIC RELATIONS ACTIVITIES
 SPECIAL SALES EVENTS

INSIDE SALES PROMOTION

 WINDOW DISPLAY
 PRODUCT AND PROMOTIONAL MATERIAL DISPLAY
 PROMOTIONAL PROGRAMS (PREMIUM AWARDS AND CONTESTS

SALES PROMOTION TECHNIQUES

 REBATE- an amount of money that a manufacturer or store pays back to customers when they
buy something
 DISCOUNTS- a reduction made from a regular or list price
 REFUNDS- a sum of money that is returned to a person, usually because they paid too much or
are unhappy with a product or service
 GIFTS- offering the shopper some gift item given the purchase of a certain number of products
 QUANTITY DEAL-a pricing strategy where a seller offers a lower price per unit to customers who
purchase a larger quantity of a product or service
 SAMPLES-in which a small amount of a product that is for sale is given to consumers to try.
Samples encourage trial and an increased awareness of the product.
 CONTEST- create engaging challenges on social media or get people engaged with your brand for
a chance to win a freebie or a massive discount on your products
 PREMIUM- prizes, gifts, or other special offers received when a consumer purchases a product
 LUCKY DRAW- the customers of a particular product are offered gifts on a fixed date and the
winners are decided by the draw of lots
 INSTANT DRAWS- a customer is asked to scratch a card on the purchase of a product and the
name of the product is inscribed thereupon which is immediately offered to the customer as a
gift.

TOOLS ON SALES PROMOTION


 FREE SAMPLES- a usually small and packaged portion of merchandise distributed free especially
as an introduction to potential customers.
 PREMIUM- a product or offer given to a consumer as a reward for purchasing another
product. Premiums can be free or offered for a small shipping and handling charge. They can be
novel toys or collectibles, or more practical items
 EXCHANGE SCHEMES- It refers to offering exchange of old product for a new product at a price
less than the original price of the new product.
 COUPONS-a small piece of paper that allows one to get a service or product for free or at a
lower price
 FAIR AND EXHIBITIONS- also known as trade fair marketing, is a strategic way for businesses to
promote their products, services, and brands at trade fairs, exhibitions, or trade shows

OBJECTIVE OF SALES PROMOTION

 KEEP EXISTING CUSTOMERS- can be geared toward keeping existing customers, especially if a
new competitor is opening nearby.
 INVENTORY CLEARANCE- a special promotion can help you clear inventory to make room for
seasonal or new merchandise.
 REACHING NEW MARKET- a promotion can be a way to reach a new segment of the market
 NEW PRODUCT LAUNCH- a sales promotion can help you introduce a new product to the
marketplace
 INCREASED BRAND AWARENESS- a sales promotion can help increase awareness of your brand,
which can ultimately lead to additional sales

RELATIONSHIP BETWEEN ADVERTISING AND PROMOTIONAL STRATEGY

Advertising uses multiple means to inform and educate consumers about a company’s goods and
services. Promotional strategies can include things such as coupons, discounts and loyalty incentives.

PROMOTIONAL STRATEGY

 BRANDING
 SOCIAL MEDIA
 WEBSITES
 SPECIAL EVENTS
 DIRECT MARKETING
 BROCHURES AND NEWSLETTER
 ADVERTISING AND PR
 PERSONAL SELLING

PROMOTION ADVERTISING- is one of several advertising tools used to attract interest in a product or
service line by offering consumers some additional incentive to make a purchase.

THE STEPS IN PLANNING AN EFFECTIVE SALES PROMOTION PROGRAMS


 IDENTIFY YOUR TARGET MARKET- all sales promotion programs start with identifying your
primary and seconday target markets.
 SETTING GOAL- determine the goals for your promotion and include actual sales figures ypou
want to reach.
 CHOOSING THE MIX- most sales promotion plans require a mix of media to reach the target
market
 CREATING A MESSAGE-the design of your message needs to appeal to your target market, use
graphics, headlines, and copy that grab attention and cause the reader to take action.
 IMPLEMENTATION- knowing your target market and its buying habits helps you decide on the
best time to implement your sales promotion.
 TRACKING- keep an eye on the ongoing promotion to make sure everything stays on track.

THE EFFECTS OF ADVERTISING AND PROMOTION

 BRAND ESTABLISHMENT
 PRIMARY MARKET GROWTH
 CUSTOMER LOYALTY
 COMBATTING THE COMPETITION
 NEW MARKETS
 PROBLEMS

SALES PROMOTION: ROLES AND LIMITATIONS IN MARKETING

All the three parties of the marketing mechanism namely manufacturers, middlemen, and the
consumers are beniffitted by this short-term technique of sale promotion.

 MANUFACTURERS- A manufacturer is a person or company that produces finished goods from


raw materials by using various tools, equipment, and processes, and then sells the goods to
consumers, wholesalers, distributors, retailers, or to other manufacturers for the production of
more complex goods.
 MIDDLEMEN- They provide manufacturers with valuable market feedback and let them
concentrate on production by providing the ancillary services of warehousing, distribution,
advertising, insurance, finance, etc. They make goods and services easily available to consumers
in the desired quantity.
 CONSUMERS- The one who purchases the product for his/her own need and uses or consumes
it. A consumer cannot resell the good, product or service but can consume it to earn his/her
livelihood and self-employment.

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