New Trends in Effective Sales Promotion


By

Mr. Swagat Kumar Rath
Assistant Professor of Marketing
Shri D.B. Pawar College of Management
Kalwan, Nashik
 


Introduction

The Marketing environment is changing at an accelerating rate; today is not like yesterday, and tomorrow will be different from today. Continuing today's strategy is risky, so is turning to a new strategy. Leaders who must plot the future of their companies are challenged to find a path that makes sense.

The noteworthy changes taking place in the market scenario are

1. From local to national to global marketing-Companies are expanding their geographical coverage with leaps and bounds.

2. From buyers needs to buyer's wants-As incomes are improving, buyers are becoming more selective in their choice of goods.

3. From price to non-price competition-with many players in a particular category, marketers are increasing the use of branding, product differentiation, advertising and sales promotion.

Sales Promotion  is the process of communication involving communication and influence it include all type of personal or impersonal communication  with customers as well as  middleman in the channels of distribution.

Sales promotion includes those marketing activities other than personal selling, advertisement & publicity that stimulate consumers purchasing & dealer effectiveness, such as displays, shows & exposition, demonstration & various non current selling efforts

The Basic Objectives of Sales Promotion

* To introduce new products -To induce buyers to purchase a new product, free samples may be distributed or money and merchandise allowance may be offered to business to stock and sell the product.
* To attract new customers -New customers may be attracted through issue of free samples, premiums, contests and similar devices.
* To induce present customers to buy more-Present customers may be induced to buy more by knowing more about a product, its ingredients and uses.
* To help firm remain competition-Sales promotions may be undertaken to meet competition from a firm.
* To increase sales in off season- Buyers may be encouraged to use the product in off seasons by showing them the variety of uses of the product.
* To increase the inventories of business buyer- Retailers may be induced to keep in stock more units of a product so that more sales can be affected.

New Trends Involved in Sales-Promotion

* MDU Activity (Multi Dwelling Unit)

This one of the best Promotional activity now a day's used by Telecom Industries, Medias and Other FMCG Companies.Multi Dwelling Unit Means a Society with more than 300 families.

In this Process first contact the Society secretary and convinces them for a promotional activity inside the society in any holiday.

Promotional activity may be Samples, Free gifts, providing a branding process for car parking for the society.

Make a Quiz competition /Drawing Competition for the society children and involve the society in that and during that time provide the company product to the winners and promote that brand inside the society.

* Samples on Traditional Occasions

This Promotional activity used by the most of the medicine companies during the traditional occasion.

The religion of belief is the part of promotion; As India people have a big religion of belief in each and every region.

Some products are giving samples like Bam, Pain Clears in occasion like where they have to climb, run and walk for a long distance some example of this occasion like kaudi in Hinduism they have to walk a long distance due to the religion of belief some others like Mata Darshan where they have to walk more and more distance.

* Cinema Slides

This commonly used Promotional activity by the colleges and institutions most .Because cinema is the best entertaining medium for the youth so they got all the information.

* Retailers Tie-Up

This is most commonly used by the internet services provider, newly launched FMCG Products for the push strategy of Promotion.

This a Trade based sales promotion in which the manufacturer providing some benefits and margin to the retailers to sell their product and merchandising their  retail according to the manufacturer instruction for quick and effective sale

In this Process the Manufacturer got the exact data and information about the customers from the retailers.

* Putting Canopy at Right Place

As Canopy Operation is a combination of advertisement and personal selling process, so it's really necessary to Putting the canopy in a particular place .Generally

Canopy Operation provides the right information to the potential customers tie up with the big shopping centers like BIG BAZAR, PANTALOONS, SHOPPER STOP and put the canopy there for follow the crowd   and effective selling and customer data.

Putting Canopy at those points where people awaiting in a QUEUE AREA like outside of the Petrol Pump, Cinema Hall, Outside the Bank, Admission in Institutes and Entrance examinations.

This is very important that you must have a good sales person who provides the right data to the customers.

* Paper Insert

The most low cost promotional activity which is used for local area frequency .In this process the Pamphlets, Leaflets are inserted in local area news paper by the help of the huckster union. It's Covers maximum frequency in a City, Taluka and Village.

* Demo-Van Operation

This is generally used by the Bike companies Like BAJAJ, HERO HONDA to show the demonstration and all the information regarding the product of that particular company.

Conclusion

It is difficult to satisfy the customers due to customers wants is unlimited still the company should adopt different strategies with respect to time as well as change in customer's want for retaining them and approach them through Promotional activities. Promotional activity can predict the behavior and Provides data for innovation in sales promotion techniques and how to change the likelihood of the customers and maximize the quick sales lead.

References-

* Philip Kotler's Principles of Marketing.
* A Survey Report on Effective Sales Promotion in Media Marketing in Odisha 2008-09, By.Murari Prasad Pangi (Currently in London).
* Promotional planning by Mr.Saswat Mohapatra (Senior-Marketing Executive) Hi-tech Builders and Promoters, BBSR, Odisha.
 


Mr. Swagat Kumar Rath
Assistant Professor of Marketing
Shri D.B. Pawar College of Management
Kalwan, Nashik
 

Source: E-mail July 16, 2012

          

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