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Unit 11: Promotion Strategies for Rural Market

improving sales. Many advertising agencies refute that advertising should directly increase Notes
sales. However, the ultimate use of advertising must be to improve profitable sales.

Sales Promotion

Business environment, as it exists in India today, there exist:
1. Severe international competition

2. Large middle and upper middle consumer class
3. Changes in money supply and interest rates
These factors have lead to an era of continuous sales promotion. It is, therefore, important to
learn what sales promotion is and how it can be made effective.
With number of products in each group increasing the customer is the main beneficiary. However,
he is also a bit confused as each advertiser is telling the benefit story to him. The need to give
that extra benefit to clinch the order leads to promotion.
Consumers need extra stimulus to buy the product. The dealers or retailers need that extra
benefit to stock and push the product these promotional activities must be advertised to be of
any value in increasing market share.
In sales promotion, the marketers are giving something extra. This is in lieu of price reduction.
Price reduction, unlike promotion gets to be an extended expense; while promotional expense
can be withdrawn any time you feel you have achieved your objectives.

Sales promotion provides extra incentive, an offer of direct inducements that enhance the basic
value of a product for a limited time to stimulate immediate distributor commitment, sales
force effectiveness and consumer purchasing.

Figure 11.2: Cokes Promotional Strategy in Rural Market

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