Sales promotion consists of short-term incentives to encourage purchases or sales of a product or service. Over 51% of marketers claimed that taking the time to develop relationships with consumers showed positive results in sales. Samples are one of the most important tools of sales promotion. – unique in using a socially-based, sales process to attract and retain new customers; Benefits for the Economy, State and Society: Creates earning opportunities (mainly part-time) and facilitate economy; Sales promotion can prove useful for marketers in several ways. Consumer sales promotions are discounts and incentives offered to consumers as an inducement to get them to buy. 1. Sales promotion is designed to be used as a short-term tactic to boost sales – it is rarely suitable as a method of building long-term customer loyalty. In mid 80s, Philips decided to launch a special project in Tamil Nadu and Andhra Pradesh for their rural buyers. Sales promotion has a capability to complement and supplement the advertising functions of the marketing. Advantage of Sales Promotion 1. Often such price discrimination are offered in specific cities in the country,Bajaj Auto Ltd. started the scheme on 20th august 2001, where by if you buy a Bajaj Spirit two-wheeler you get Rs.3000/- off, valid only in Ahmedabad. A sales promotion is a marketing technique that is designed to entice a customer to take a specific action such as make a purchase or request more information. Sales promotion mainly involves short-term and non-routine incentives offered to dealers as well as consumers. Advantage: Entice Customers The primary benefit of sales promotions is that they induce customer traffic and sales by offering a lower price and better value proposition. So, for the Tamil Nadu market, they created a special campaign âThe Super Star of the Houseâ and made the cine idol Rajnikant their brand ambassador as in that state he is popularly known as âSuperstarâ. Knowledge about New Products. Sales promotion could not be a substitute to compromise in quality and effectiveness of marketing. Others are targeted at intermediaries (such as agents and wholesalers) or at the firm's sales force. D. Benefits / Advantages to Consumers: 1. Barnum spoke about promotion, he was most likely using the word as a verb. Communication is an art, an art which creates formidable relationships with consumers that make your brand unique. Creates word of mouth. The South is generally characterised by greater degree of going out and people tend to drink outside the house. Sales promotion activities include special offers, displays, demonstrations, and other nonrecurring selling efforts that aren’t part of the ordinary routine. As everyone knows that high profits result from increased sales, that’s why, all businesses engage in some innovative promotion techniques, from time to time, to increase awareness of their products and to boost the sales. Advance Decision to buy Consumers are able to take advance decision to buy in the light of advertisement. These objectives are for both marketers and traders. Maintains contact between the producer and the consumer; Has an educational value. Instead I mean a well-planned, seasonally relevant focus on themes or solutions wrapped around your products that your customers will take note of and value, and that prospects will be enticed to try for the first time. An example would be offering 20% off on certain products to the customers. They distinguish a company from the rest of other in the competition in terms of prices. 4. Sales promotion acts as a bridge between advertising and personal selling. The Bangalorean is as Cosmopolitan as his Mumbai or Delhi counterpart. When P.T. Taking 25 percent off the price of a good without altering its benefits increases the customer's perception of value. The result of an effective total marketing programme is sales success, which entirely depends on positive customer reaction and an intense, well organised selling effort by resellers and salespersons. With that in mind, here are nine benefits of running a well-planned sales promotion: Creates differentiation – When you launch a new product or ask customers to engage with your business in a new way, this sets you apart from your competition. Samples are defined as offers to consumers of a small amount of a product for trial. Sales promotion helps to remove the consumer’s dissatisfaction about a particular product and manufacturer. Samples help consumers verify the quality of the product. Offer valid only till stocks last. Disadvantages of sales promotion. Free samples are given to consumers to generate their interest in the product. “Without promotion something terrible happens… Nothing!”. Sales Promotion Advantages. 2. Sales promotion is the process of persuading a potential customer to buy the product. Promotions, when done well, are an effective way for you to market your business or products and services. Sales promotion was done by organizing various âsuper showsâ and âmega-showsâ for the masses in states of Tamil Nadu and Andhra Pradesh respectively. Consumer Sales Promotion Methods. Increase the Sales. Rebate programs offer consumers a chance to receive a reward such as a full or partial reimbursement on the purchase price, a free product or a gift card, in exchange for purchasing a specific product and expending some effort. 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