Importance of Sales Promotion Essay

Sales progress is one of the septette aspects of the processional mix, which atomic heel 18 publicise personal selling, direct marketing advancement/ public relations, corporate image and exhibitions. Sales advancements atomic number 18 succinct-term incentives that argon done to encourage the purchase or sale of a harvesting or service P.DALOK 200. Sales promotion can be utilize to inform, persuade, and remind target customers about the business and its market mix. just about reciprocal types of sale promotion include Samples, Coupons, Sweepstakes, Contest, In-store display, Tradeshows, Price off deals, Premium and rebates. on that point ar many reasons why companies opt for gross revenue promotions other than advertising. Some of the reasons include increasing competition and products becoming to a greater extent standardized, build snitch awareness, create interest, domiciliate information, stimulate study and also reinforce the trademark. In this essay I prep are briefly described gross revenue promotion, and comprehensively discussed the reasons for gross revenue promotion. Definition of gross sales promotionSales promotions are short incentives to encourage the purchase or sale of a product or service. C. Mitchell 1999 defines sales promotion as a process of persuading a capability customer to buy the product And it includes several communications activities that attempt to provide added value or incentives to consumers, wholesalers, retailers, or other organizational customers to stimulate ready sales. These efforts can attempt to stimulate product interest, trial, or purchase. Below are reasons for sales promotion. Reasons for sales promotion1. Increasing CompetitionThe air of mixed bag is gaining momentum after the introduction of stinting liberalization. Due to increase in competition, companies are captureing it increasingly difficult to compete on quality. They are therefore resorting to more(prenominal) innovative methods of sales promotion (Du Toit and Erasmes 2008347).2. Customers Have experience more(prenominal) Price SensitiveThis increased worth sensitivity is a direct result of existing inflation. Economic recession is likely to dismiss this trend further, as consumers and dealers sire more sensitive towards costs. If the customers get mark jeans at half the actual price, then they are definitely dismissal to make huge purchases of Spykar Jeans beca give they want value for their money, as they are price sensitive. 3. Sales progresss Generally Create an Immediate Positive Impact on Sales Advertising, personal selling and other methods of promotion produce lazy sales response compared to sales promotion. Sales promotions are mostly for short duration, for a specified period, leading to a sense of urgency in consumers to buy now. This creates an immediate positive impact on sales.4. Products ingest father more standardizedIn many product categories, there is a proliferation of brand s many of them are line extensions and me-too brands. Most brands are being sensed by consumers to be more or less similar within a given price range because of the inability of manufacturers to develop authentically differentiated products. Under these circumstances, advertising messages are unable to strongly fix the consumers perceptions and create brand franchise. As a result of these perceptions of similarity among brands, marketers have no way but to compete on the basis of especial(a) benefit offered through sales promotion. Competing companies struggle to capture market look at by using every tool likely to bring sales success. There are many unbrand jeans sold at shop malls and places like Mr Price, bandra which are bought at half the price of actual branded jeans. People who are money conscious buy such jeans. Therefore, Spykar Jeans comes up with such discounts, which helps them in increasing their sales and also in stock(a) clearance.5. Consumer AcceptanceAs compe tition intensifies and promotions proliferate, consumers have learnt to earn the rewards of being refreshful shoppers. Over a period of sentence, they have also learnt that brands on promotion are not necessarily of lower quality.6. Advertising Has Become More Expensive And Less EffectiveAll the advertising media have experience quite expensive. Audio-visual medium, which is considered as the most effective for short-duration ads, may cost in excess of K5000 for a 10 second exposure during prime time (Kambwir 2013). In many cases, consumers have reached a point of boredom ascribable to excessive advertising on TV. Some consumers even consider advertising as an intrusion into their privacy, leading to zapping (surfing channels). Firms with small budgets cannot compete with big companies, which deteriorate huge sums of money on advertising. For these small budget firms, sales promotion is a more cost-effective promotion method to produce sales results.7.Trade Has Become More Pow erfulRetailers and wholesalers have become powerful and find themselves in a position to demand extra facilities from the companies. They Channel members demand more incentives to get the desired results. Manufacturers do not seem to have any alternatives but to concede to their demands, keeping in view the agonistical market conditions. In shopping malls like Globus and Lifestyle, decent margins have to be paid to them in order to have shelf visibility for your brand.8. ferocity On Sales VolumesTowards achieving the long-term profit goals, manufacturers try to attain richly sales volume. Brand managers and product managers find themselves under pressure to arrive at short-term sales results for the sake of their careers. Compared to any other promotional method, sales promotion is a more effective method to generate short-term sales volume.9. Sales Promotions Maximise ProfitsA number of economic theories conclude that a company can maximise profits by using sales promotion. Suc h promotions can permit price unlikeness by allowing the brand to compete in 2 or more different market segments. Sales promotion may allow a premium brand to compete with a lower tier brand among price sensitive consumers. For example, a premium brand of toilet clean may be on promotion in some price sensitive markets, while in the remaining markets it is sold at its public price.10. Introducing An Element Of InterestThere are a number of promotions, which are often called interest promotions. Some of the more popular interest promotion techniques are samples, contests, and sweepstakes, free premiums and mail-in premiums. These promotions create an element of interest and excitement, and consumers enjoy these and response enthusiastically to such contests and sweepstakes, etc.11. Build Brand awarenessNo company can survey without building awareness for itself and its brands. Companies may use all forms of advertising be it on Television, radio, direct marketing and on line to bu ild awareness. The specific promotional objective may be to gain additional market share or to make a roads into a specific market segment. Another objective may be to replace the market leader in top-of-mind.12. Sales Promotion Specialists Are AvailableAs a result of economic liberalization, the number of management institutions has increased. This has lead to the availability of specialists, who are not only sanitary paid but can handle this specialized work more efficiently in the current market conditions, where sales promotion has become more important.13. Excess StocksBecause of increasing number of brands, it is difficult for manufacturers and dealers to anticipate futurity sales. This, at times, leads to excessive inventories, and the quickest way to clear that is to go for sales promotion.