Page 177 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Unit 9: Sales Promotion

Notes
Rahul Jain is pondering over the major issues bothering him about the market. He has
realised that after 1996, the circulation of Cosmofem has not grown as per expectations
and the advertisers may shy away if this trend continues for long. Another issue bothering
him is that so far the magazine has not been able to create the desired brand image that
they aimed for. Rahul discussed this issue with the marketing head and concluded that the
following points needed urgent attention:
1. The need to develop a strong image that appeals to women in the age group 21 to 35
years.

2. Increase the subscription figures.
3. Increase news stand sales.
4. Enhance magazine visibility in fashion and beauty related associations.
Questions
1. Develop a questionnaire to understand the reading habits and target market
preferences for a women’s fashion magazine.
2. Develop a sales promotion plan to increase the number of subscribers by 10 per cent
in one year’s time.
3. Suggest sales promotion to increase the sales from news stands.

9.5 Summary

Sales promotions are short term incentives provided by the company to boost sales. Some
marketers tried reaching customers directly with these tools on a one-to-one basis to
assess whether this can stimulate immediate behavioural response and now direct
marketing is a rapidly growing discipline in marketing.
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.
Some of the sales promotional techniques include premiums, rebates, discounts, contests,
schemes, sweepstakes, samples, coupons, free gifts, trade allowances, buy back allowances
etc.

The first step in sales promotion planning is situation analysis. The next step would be the
allocation of budget to sales promotion out of the combined total budget for advertising
and sales promotion.

Sales effect before, during, and after the sales promotion can be measured by studying the
sales figures. In case of objectives related to trial purchase, or change in consumer awareness
and attitude as a result of increase in perceived value of the product, measurement may be
difficult.

9.6 Keywords

Consumer Sales Promotions: Sales promotions directed at consumers
Premiums: Rewards for an act usually purchase
Sales Promotions: Short-term incentives to boost sales

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