Course Material of ESDP on Food Processing in Hindi + English

SALES PROMOTIONAfter the product has been planned, the channels <strong>of</strong> distribution and physical distribution <strong>of</strong> theproduct decided, and the price structure evolved, the next step is to decide upon the promotional activities thatthe firm may follow. The promotional activities are concerned with (i) informing the people about theproduct, (ii) reminding the people periodically about the product and (iii) persuading the people –prospective buyers to buy the product. Promotion is telling and selling. “Promotion” is the all inclusive termrepresenting the board field advertising personal selling and sales promotion.SALES PROMOTION:Sales promotion activity consists <strong>of</strong> those marketing activities other than usualadvertising, publicity and personal selling that stimulates the customer purchasing and dealereffectiveness such as display, shows and exhibitions, demonstrations and various nonrecurrentselling efforts. Advertisement media reaches the consumers at their homes, <strong>of</strong>ficesor while in travel and they may soon be forgotten. But sales promotion devices at the point <strong>of</strong>purchase remind or stimulate the customer to make purchase promptly on the spot. Salespromotion is a vital link between personal selling and advertising. Sales promotion is the plusingredients in the marketing mix, while advertising and personal selling are its essential andbasic ingredient.The basic goals <strong>of</strong> Sales Promotion are:i) to introduce new products,ii) to attract new customers,iii) to induce present customers to buy more,iv)to help firm remain competitive,v) to increase sales in <strong>of</strong>f seasons,vi) to increase the inventories <strong>of</strong> business buyers.Sales promotions, thus, are marketing devices to stimulate orrestimulatedemand for a product.Sales Promotion Strategy involves the following basic elements:-1) identifying the audience to be reached,2) determining and creating the specific advertising messages to be directed toreach this audience,3) selecting the most efficient media to communicate the idea,4) scheduling the chosen media to provide best timing, frequency and impact,5) determining the advertising budget,6) measuring advertising results.Kinds <strong>of</strong> Sales Promotion :Sales promotion is classified into the following two broad categories viz.(1) Consumer Sales Promotion and (2) Dealer Sales Promotion.Consumer Sales Promotion :This covers all the marketing activities which are undertaken to educate or informconsumers and stimulate demand. The devices used for this purpose are:a) Distribution <strong>of</strong> free samples,b) Free demonstration at retail shops,c) Premium <strong>of</strong>fers in the form <strong>of</strong> free gifts, e.g. key chains, ball pens, plastic mugsetc.,d) Issue <strong>of</strong> coupons to be accepted as cash by retailers while selling the product,e) Fashion shows and parades.f) Price reduction,57