What are the objectives of sales promotion. Objectives of Promotional Strategies 2019-01-06
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Not long after, these competitors realized that the scheme was very successful and quickly moved to introduce their own schemes. Advertisers use product information to educate consumers on various product features and benefits. A multinational agency provides the best cultural interpretation in a situation in which local modification is required. Bundled promotional campaigns are successful in persuading customers to purchase or switch brands, as they offer good value for money, although the can be expensive for the marketer. While sales promotion is a powerful and effective method to produce immediate short term positive results, it is not a cure for a bad product or bad advertising. When a product or service is well supported by sales promotion, dealers are automatically induced to have more of such items.
For example, when Lever Brothers introduced its Lever 2000 brand of bar soap, it distributed millions of free samples along with a 75-cent coupon. An ad using shocking or taboo material to promote a product. The second objective is to convince and influence the potential buyers through persuasive measures. Cash discounts are rarely used in loyalty promotions. Companies are turning their attention to the potential for this below-the-line promotion element of marketing.
Sales Promotion: Meaning, Definition, Objectives and Importance of Sales Promotion
Many new brands are merely new versions of an existing product without unique benefits, so advertising alone cannot induce trial. Self-liquidating offer An example here is where a manufacturer of a brand of canned food purchases a quantity of kitchen knives from a supplier at a price of £1 per knife. We see that achieving a given objective may require targeting sales promotion at various parties. Small companies often distribute brochures, catalogs, sales letters, videos and other information to market their products. Promotions which simply give more products as bonus packs are less successful in promoting new products since consumers place much less value on extra quantity until they have decided they like it. These are very legitimate goals. Under this scheme a customer scratch a specific marked area on the package of the product and gets the benefit according to the message written there.
These objectives are attained through effective communication. There is a lot that can fall outside our control. The sample is often of a smaller size than the normal pack size and it is hoped that customers will try the product, like it, and purchase it in future. First, it is meant to provide important marketing information to the potential buyers. It is basically to reinforce loyalty to the brand and keepthem relevant.
This is useful for drawing attention to product improvement. Feedback and noise are problems. To Widen Usage Very often it would be seen that one product is widely used in one sector and not so in other sectors. They cite the effect of a redesigned package for McVities Jaffa Cakes. In spite of the several objectives of sales promotion, there are three objectives which are fundamental, viz. The samples allowed consumers to try the new soap, while the coupon provided an incentive to purchase it. In other words, companies strive to build brand awareness so their products are chosen over other brands.
Sales Promotion: Meaning, Definition, Objectives and Importance of Sales Promotion
This method does not help the retailer so much as the manufacturer, who is able to increase turnover of large packs, sales of which may have been sluggish, and at the same time maintain the turnover of the smaller pack. This can be done by giving them an incentive to switch, such as a coupon, premium offer, bonus pack, or price deal. Short-term orientation: Sales promotions are generally for a short duration. The primary is to attract buyer towards the product, inducing a prospective customer to buy the product at the point of purchase. These are in-store kiosks where potential customers are presented with visual and verbal information regarding products in the store, their features, uses, unique selling points and stock availability.
When marketers implement sales promotion programs without considering their long-term cumulative effect on the brand's image and position in the marketplace, they often do little more than create short-term spikes in the sales curve. It, thus includes trade shows and exhibits, combining, sampling, premiums, trade, allowances, sales and dealer incentives, set of packs, consumer education and demonstration activities, rebates, bonus, packs, point of purchase material and direct mail. Recognition simply means that if a customer is shown your brand logo, characters or other symbols, he can identify it with your company. For example, a pizza shop may send out a direct mail flyer to households within 2 miles of their location. The place of offering the product.
Inducing present customers to buy5. Regional Differences: The South is generally characterised by greater degree of going out and people tend to drink outside the house. To increase Loyalty Loyalty to a product or service is much more subjective and personal in nature than repeat purchase. Sales promotion represents a variety of techniques used to stimulate the purchase of a product or brand. Keep Existing Customers A sales promotion can be geared toward keeping existing customers, especially if a new competitor is opening nearby. One of the most successful promotions ever used to attract users of a competing brand was the Pepsi Challenge. In mid 80s, Philips decided to launch a special project in Tamil Nadu and Andhra Pradesh for their rural buyers.
