Page 265 - DMGT408DMGT203_Marketing Management

Marketing Management/Essentials of Marketing

Notes 3. For sales force promotion, objectives include getting more sales force support for current
or new products, or getting salespeople to sign up new accounts.
In general, sales promotion should focus on consumer relationship building.

11.2.2 Sales Promotion Tools

Sales promotions are announced both, by manufacturers and retailers. Manufacturer announced
promotions might be directed at consumers, resellers, or both. Manufacturers may also announce
sales promotion for its sales force. Sales promotions may also originate from retailers aimed at
consumers. The retailer-originated promotions’ main objective is to increase store traffic rather
than sell any specific brand. Manufacturer announced consumer promotions constitute “pull”
strategy and retailer promotions are based on “push” strategy. Sales promotions are more
effective when combined with advertising and “pull-push” strategies are used at the same time.

Consumer Sales Promotions

Sales promotions directed at end-users are called consumer sales promotions. Usually, consumer
promotions are either “same for less” or “more for the same” type and may get translated into a
straight price-cut or added value. ‘Interest promotions’ may or may not require the purchase of
anything such as free samples, free premiums, contests, and sweepstakes. The objective of such
promotions is to stimulate consumer interest in products, services, activities, and special events.
“Consumer franchise-building” promotions are those which reinforce consumer brand preference
and include a product-related selling message, such as in case of free premiums, free samples,
coupons and patronage awards. “Non-franchise building” promotions include price discounts,
price-packs, premiums not related to the purchased product, contests and sweepstakes, and ad
refund offers. Some commonly used consumer promotions are briefly discussed:
Price Discount (also called cents-off): The customers pay a certain amount less than the regular
price of the product or service if purchased within a specified period. This can yield short-term
sales increase, can serve as an incentive to try a new product, and can also help product sales
during off-season.
Bonus-Pack: An additional quantity of the purchased product is offered free with standard pack.
The producer may develop special larger-sized pack containing more product quantity but the
price is proportionately low. A variation of this offer is “buy two, take one free.”

Example: These offers are generally limited to low-bulk items or ready-to-wear dresses,
and sometimes footwear. There are stray cases when a buyer would get a 14-inch TV free with
the purchase of a 21-inch TV.
Samples: It is an offer of some amount of product or service free or at a very nominal price. One
major concern of the marketer is to put the product in the consumer’s hand, which often is the
key to success in many product categories and some services. The main objective of sampling is
to induce initial product trial and let the consumer have the first hand experience with the
product or service. Sampling is probably the most successful approach when the product is new,
is not a market leader to induce trial.
Premiums: A premium (gift) is a reward given to the consumer for performing a particular act,
generally purchasing a product or service. The premium may be free or available to the consumer
by paying a price well below the regular market price.

Example: Getting a printer free with the purchase of a computer, or getting a Swiss knife
well below the market price when the consumer purchases a microwave oven, are typical
examples of premium.

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