You might set a sales objective to improve your percentages of upsells. Marketers should provide continuous reinforcement to resist brand switching and to encourage brand loyalty. To increase buying response by ultimate consumers and selling efforts and intensity by dealers as well as by sales personnel, and. 7. Some products have a good market. Consumer-Oriented Sales Promotion Techniques: Marketers use various sales promotion techniques to meet the objectives. One of the first objectives of trade promotions is to increase the distribution level of a company. It shall attempt to generate a bondage between the awareness and perception of the consumers and the personality of the brand and its features. To increase the sales and encourage the present customers, 3. Calling attention to new products and product improvements. Sales promotion induces present customers to buy more of the product. Sales promotion objectives are consistent with marketing objectives. To develop favourable consumer experience with the product. Sales promotion efforts are necessary to create awareness in the beginning, later on it seeks to develop brand image and product preferences among the buyers so that they may switch over to the company’s product. Encourage Repeat Purchase: Encourage Dealers to Participate in Display and Sales Contests, Objective # 7. The first prize was Rs. The promotional objectives are to be considered and framed by the organisations on the basis of an in-depth study of the economic environment, nature of competitive situations, the attributes of the product, the stage of the product in the product life cycle, consumer’s perception about the product and the image of the organisation. Dealers are also induced to buy new products for resale. In-Store Activities 15. The basic objective of sales promotion, is to develop good relationship with the customers and to establish a better understanding. Sales promotions are used to stimulate purchasing and sales by way of giving incentives or offers, and the objectives are to increase sales by informing […] But it can also feel like our days are overrun with sales promotions. 2. To attract new customers distribute free sachets to households. These objectives are attained through effective communication. Many companies use show-business personalities to endorse their products. In some cases, the suppliers and retailers collaborate to produce a mutually acceptable point-of-sale display material. Content Guidelines 2. Thus, the per unit purchase price is low enough to be covered by the profit on all extra sales made. A free sample is generally welcome to almost all consumers and increases the probability of trail, and in some cases, purchase as well. Companies, who have a small market share, cannot match the substantial advertising budgets of market leaders in the same industry. The suppliers tend to associate the charisma associated with these personalities with their products. The objectives of a sales promotion are to increase consumer demand, stimulate market demand, and improve product availability. 7. The space available for displays in retail store and display material, number of displays is limited. It helps marketers to realize a variety of objectives. Hasbro, a toy company, teamed with the retailer Toys R Us to create direct mail booklets offering discounts on Hasbro toys only at Toys R Us stores. Reminding the consumers of their past satisfaction will persuade them to stay with the product and prevent them from shifting to competitors. Display is a powerful tool to enhance sales. Sales promotions encourage the customers to try a new product. (5) To Induce Middlemen – The middlemen-wholesalers and retailers are induced to purchase more stock of company’s product by offering more facilities such as credit facilities, higher cash and trade discounts, free gifts etc. 6. Advertising cannot normally close a sale because its impact is too far from the point of purchase, but sales promotion can. Such a threatened firm would plan to load consumers so that they are in no need to go shopping for that product category. store ‘club’ cards, or continuity programmes such as collecting a dinner service. Sales persons persuade consumers to buy products. Discounts in cash or goods may also be offered to dealers to stock a new product. These are some of the sales promotion techniques adopted by the marketers to accomplish the desired objectives. Sales promotion is often referred to by the names of “Extra Purchase-Value” (EPV) and “Below-the-line-selling”. They must have some knowledge about the product offered by the producer. (1) Providing Information – Promotion is an exercise in information, persuasion and influence. Share Your PPT File, Sales Promotion Objectives: Increase in Sales Volume, Encourage Repeat Purchase and To Block Competitor Moves, – Top 7 Objectives: Launch New Products and Increase Trail, Encourage Dealers to Participate in Display and a Few Other Objectives. Objectives of Sales Promotion: The basic purpose of sales promotion is to increase the sales of a product by creating demand. To motivate and attract the sales force by exhibiting their products in the important markets. Different lucrative offers are launched to generate a favourable attitude of the consumers. Even though the retailer is not actively involved, he has to be well informed for achieving the planned objectives of promotional schemes. 2. These stimulate customers to make purchase promptly on the sport. If every supplier wants his individual rack to be placed in the store, it would lead to a much disorganized environment. The trial retention ratio suggested that once consumers tried ‘Palmolive’ soap, they liked the quality and stayed with the brand. The popularity of the institution grows when customers are offered free gifts and prices are reduced after a fixed time. (iii) To push stocks of the old brand before the introduction of new model. Such contests should be field infrequently and not become a routine feature which would reduce their importance and lead to decline in interest contests can help in attaining short-term objectives and improve the company reseller relationship. Everything you need to know about the objectives of sales promotion. Customers are told new methods how to use the product and this is done through work demonstration and cinema. He does not play any role in designing such activities. The idea being that the customer would be attracted towards purchasing the product. v. Refunds or Rebates – Refunds also known as rebates are offers by the manufacturer to return a portion of the product purchase price, usually after the consumer supplies some proof of purchase. An important area that concerns sales promotion objectives is directly related to the specific promotional techniques to be used. To combat or offset competitors' marketing efforts. 5. The most important objective of sales promotion is to build demand by convincing customers to make a purchase. The space available for displays in retail stores and in showrooms is limited and expensive depending on the size of the store and display material, number of displays is limited. Sometimes, a demonstrator may also be present to explain the product. 8. Sales force promotion: It involves efforts targeted towards the sales force to boost the morale of salesmen. In these conditions, sales promotion devices are started to counter the other sellers’ plans. Price discounts can take different forms ranging from straight price discou nts to buy- These samples aim at inducing trial of the product. These objectives are attained through effective communication. In Order to Generate Immediate Liquid Funds: In order to meet certain commitments or funding some other immediate projects, it may be necessary to generate some liquid funds in quick fashion, by an organisation. This promotion is used selectively, normally in supermarkets, department stores, etc. The satisfied consumers may generate a habit of purchasing the product in a repetitive fashion with brand preference and loyalty. Display is a powerful tool to enhance sales as it attracts the attention of consumers who are passes-by or window-shoppers. The manufacturer or marketer has a good product, reasonable price, attractive package, a good sales force. 5. In the competitive market it is becoming obvious for the marketers to analyse the rationality of pricing of the particular product with its available features and attributes. They should, therefore, be informed of the new product and told that the new products works better than all similar existing products. Sales promotion objectives could be either proactive or reactive. For example, companies distribute free samples of their new product. Having persuaded customers to enter the shop, they could now be encouraged to buy by presenting the merchandise in such a manner as to create the purchase instinct in the customer’s mind; e.g. The objectives for the sales force may be to encourage a new product or model, stimulate off-season sales, and persuade more prospective buyers, and so on. To do that, you could look into your sales reps’ commission packages and provide a heightened incentive to achieve the objective. Consumer’s dissatisfaction about a particular brand can be removed by aggressive sales promotion programmes. Encourage dealers to participate in display and sales contests. To Supplement Advertising and Personal Selling Efforts. Launch New Products and Increase Trail: Objective # 3. — A.H.R. Promotion Objectives . Marketing planning and reward systems may lead to an increase in the use of sales promotion because sales promotions encourage: the use of price-oriented promotions to generate short-term sales. That is why we find discounts, off-season price reduction of such items in the market. Moreover, sales promotion is used to retain customer’s interest in the product during offseason. The basic goal of most consumer-oriented sales promotion programs is to induce purchase of a brand. Display is a powerful tool to enhance sales. The following are the main in-store promotional activities: The product is sold at a reduced price from its normal selling price. The most common objectives under proactive category are: i. Informing is to educate the consumers about the product. We all wait for the summer/winter clearance sale to finally buy items we’ve spotted but couldn’t afford to buy during the season. (ii) To increase the stock-holding of retailers, or even consumers, before the introduction of a competing brand, or. As stated by Schultz and Robinson in ‘Sales Promotion Management’ the objectives should be – a) Specific, b) Clean and concise, c) Practical and realistic, d) Measurable, e) Affordable and f) Attainable. Gifting. Hasbro, a toy company, teamed with the retailer Toys R Us to create direct mail booklets offering discounts on Hasbro toys only at Toys R Us stores. Institution follows sales promotion activities is the objective of sales promotion is to improve encourage re-seller participation in the marketing programmes store. 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