Custom Search
Custom Search

Saturday, March 28, 2009

Sales Promotion

Communication for Marketing and Selling

Effective communication about your product, services and ideas is an important key to boost the image of the company, the brand, sales and overall profitability. It is of two types:

  • Mass communication or communication using mass media
  • Personal communication with prospective customers

Here, in this write-up, we are going to focus only on mass media communication.

Mass Communication

Marketers can use one or more of following mass communication systems:

  • Advertising
  • Sales promotion
  • Events
  • Marketing public relations

Here, in this write up, we will focus only on “sales promotion, events and marketing public relations”. We have covered “advertising” separately on another page, the URL of which is:

Sales Promotion

  • Sales promotion is aimed at boosting the sales in shorter duration by providing effective incentives to the buyers.
  • Advertising is aimed at boosting the sales by giving reasons to buy and sales promotion is aimed at boosting sales by giving incentives to customers. Sales promotion integrated or combined with advertising will be more effective than doing only one of the two alone.
  • Sales promotion consists of:
    - Consumer promotion which uses free samples, free trials, discount coupons, loyalty rewards, cash paybacks, discounted prices, prizes etc.
    - Trade promotion which includes discounted prices to the retailers, advertising and display allowances to retailers, certain amount of free goods if dealer or retailer buys certain minimum quantity etc.
    - Business and sales force promotion include trade shows and conventions, sales contests among sales people of company/dealers and their recognition, specialty advertising by way of the give-aways like pens, tee shirts, bags, key chains, calendars, torches and such goodies with company’s products and company’s name etc displayed on them.

Major Factors of Sales Promotion

Marketers need to decide about four factors for effective sales promotion:

  • Deciding the objective(s) of sales promotion
  • Selecting appropriate sales promotion methods (from the ones described earlier under consumer promotion, trade and business and sales force promotion)
  • Developing the sales promotion campaign
  • Sales promotion effectiveness evaluation

Objectives of sales promotion

One could work to achieve one or more of the following objectives through various methods (mentioned earlier) of sales promotion:

  • Encouraging trial by new prospective customers of the products, services and ideas offered
  • Brand switching by customers
  • Buying earlier than usual requirement by customers
  • Buying in quantities more than usual by customers
  • Encouraging off season buying by customers
  • Store switching by customers
  • Attracting new customers
  • Establishing customer loyalty
  • Offsetting competitive sales promotions

Selecting sales promotion method(s)

Various tools/methods of sales promotions have been mentioned earlier for consumer promotion, trade promotion and business and sales force promotion. The choice of these tools/methods depends on:

  • Type of market/customers
  • Objectives of sales promotion (see the earlier point)
  • The nature of market competition
  • Appropriateness of the methods/tools
  • Cost effectiveness of methods/tools

Developing sales promotion campaign

Following factor need to be thought of and developed:

  • Quantum of the incentives to be offered (considering its possible and expected benefits)
  • Duration of sales promotion program
  • Deciding the lead time of sales promotion preparation and sell-in duration (the duration within which the targeted sales will be accomplished)
  • Timing of promotion campaign
  • Terms and conditions of participation by the prospective/existing customers
  • Mode of distribution of incentives
  • Budget for the entire sales promotion plan

Sales promotion effectiveness evaluation

Evaluation of effectiveness of sales promotion can be done using:

  • Sales data analysis: customer behavior- pre-promotion and post promotion, number of switches from the competitors, profile analysis of customers who participated, boost in sales etc
  • Customer surveys: to gather the feedback about their assessment/reaction of the sales promotion program
  • Construct experiments: around quantum of incentives, duration of incentives and incentive distribution mix/channels etc


Marketers need to decide about four factors for effective sponsorship of events:

  • Event objectives
  • Choice of events
  • Developing sponsorship campaigns
  • Evaluation of sponsorship programs

Event objectives

  • To identify the products with particular target customers/markets
  • To increase awareness and image of the company and its products among prospective customers
  • To improve image of the company in the area of corporate social responsibility by sponsoring social and human welfare events
  • To confirm the image association of the products (superior quality, sophistication and style, excellent performance etc) in the minds of the customers

Choice of events

There are large numbers of event options:

  • Sports and games events
  • Award functions
  • Festivals
  • Social events
  • Television shows
  • Professional conferences

Developing sponsorship campaigns

It is important to carefully carve the marketing programs around the event sponsorship for its effective and success. It is also necessary to choose the right kind of event(s). Marketers must spend good amount of their time and efforts in developing the sponsorship campaigns.

Evaluation of sponsorship programs

The extent of media coverage of the brand and its exposure/impact on the audience/customers collected as customer feedback are the two ways of measuring the effectiveness of the sponsorship programs.

Marketing Public Relations

It consists of variety of ways in which company can improve the company’s image in the minds of the existing/prospective customers as well those segments of public that can have impact on fulfillment of company’s objectives.

There are many ways in which positive public relations can be established:

  • Press releases
  • Product awareness creation
  • Seeking editorial spaces in the media to publicize the company and its products
  • Internal and external corporate communication
  • Being in touch with people who matter
  • Gathering constant feedback and modifying public relations programs

For public relations also, the marketers need to decide about factors like: its objectives, designing and developing the public relations campaign and evaluation of its effectiveness.

For More Guidance, Assistance, Training and Consultation


Also refer: (Prodcons Group), (Training Programs by Prodcons Group), (Productivity Consultants)

Other Topics of Interest

All Management Topics (General Management, Marketing and Sales, Service, Operations/Manufacturing, Quality, Maintenance, Human Resources, Finance and Accounts, Information Technology, Life Management)

The topics are listed in alphabetic order:

(Home Pages for All the Management Topics) and
(Building Leadership and Management)
(Alphabetic List of All Management Topics)
(Home Page for Writings of Shyam Bhatawdekar)
(5S Housekeeping)
(Activity Based Costing- ABC)
(Anger Management)
(Assessment Centers)
(A to Z of Management Systems)
(A to Z of Quality Techniques)
(Balanced Scorecard)
(Basic Statistics)
(Behavioral Safety)
(Body Language or Non-verbal Communication)
(Books- Best Management Books)
(Business Ethics and Ethics in Management) (Business Plan)
(Business Process Reengineering- BPR)
(Career Planning within Organizations)
(Case Method)
(Case Studies in Management)
(CEO Roles, Qualities and Competencies)
(Change Management)
(Competencies- Life Management)
(Competency Matrix)
(Conflict Management)
(Corporate Governance)
(Cost Management)
(Cost of Quality- COQ)
(Counseling at Workplace)
(Creativity and Innovation)
(Critical Thinking skills)
(Cross Cultural Etiquette and Manners)
(Customer Orientation)
(Customer Relationship management- CRM)
(Daily Management)
(Decision Making)
(Design for Manufacture)
(Dining Etiquette and Table Manners)
(Discipline at Work)
(Dream Exotic)
(Effectiveness and Efficiency)
(Effectiveness Management: HSoftware)
(Efficiency Techniques: Work study: Motion and Time Study)
(Efficient Work Methods or Practices)
(Email Etiquette)
(Emotional Intelligence)
(Enterprise Resource Planning- ERP)
(Entrepreneurship and Entrepreneur)
(Executive Etiquette and Manners)
(Exit Interview)
(Financial Ratios and Financial Ratio Analysis)
(Financial Services)
(Functions of Management)
(Gemba Kaizen)
(Genuine Professional)
(Global Mindset)
(Goal/Target Setting)
(Group Discussion)
(Group Dynamics)
(How to Be a Good Boss)
(How to Get Promoted)
(How to save Money)
(HR Dynamics)
(HR Strategies and Functions)
(Human Capital Architecture)
(Human Relations)
(Human Resource Planning)
(Human Software- HSoftware)
(Internal Motivation or Self Motivation)
(Interpersonal Relations)
(Interview Skills)
(Interview Preparation for Job Seekers)
(Interview Questions)
(Just in Time Management- JIT)
(Knowledge Management)
(Lead Time Management)
(Lean Enterprise)
(Learning Organization)
(Life Management: Competencies)
(Life Management: Effectiveness Management: HSoftware)
(Life Management: I Am Liberated)
(Life Positions and OKness)
(Life Skills)
(Management Anecdotes)
(Management Book- Best Books)
(Management Information System- MIS)
(Managing/conducting Meetings)
(Management Notes- Free and Authentic)
(Marginal Utility)
(Marketing Management Overview)
(Marketing Management Tasks)
(Marketing Orientation)
(Market Research)
(Market Segmentation)
(Musings of Shyam Bhatawdekar on every topic on the earth)
(Negotiation Skills)
(Negotiation Tactics)
(Objection Handling)
(Organization Development- OD)
(Organizational Culture)
(Out of Box Ideas)
(Ownership on Job)
(Paradigm and Paradigm Shift)
(Performance Management and Appraisal)
(Positive Strokes)
(Presentation Skills)
(Problem Solving)
(Profit Improvement)
(Project Management)
(Public Speaking)
(Quality Circles History)
(Quality Circles)
(Quality Function Deployment- QFD and House of Quality)
(Quality Gurus)
(Recession Management)
(Recession and Opportunities)
(Recruitment and Selection)
(Research Methodology)
(Safety and Health Management)
(Sales/Selling Process)
(Sales Promotion)
(Self Motivation or Internal Motivation)
(Self Development)
(Shyam Bhatawdekar’s Articles on Management)
(Six Sigma)
(Six Thinking Hats)
(Soft Skills)
(Spiritual Quotient/Intelligence)
(Statistics- Basic)
(Strategic Management)
(Stress Management)
(Stress Management)
(Success in Life or Success)
(Success in Life or Success)
(Supply Chain Management)
(Supply and Demand)
(Talent Management)
(Team Building)
(Telephone Etiquette)
(Three Sixty Degrees Appraisal System)
(Time Management)
(Total Productive Maintenance- TPM)
(Total Quality Management- TQM)
(Training and Development)
(Trainers’ Qualities)
(Transaction Analysis- TA)
(TRIZ- Inventive Problem Solving)
(Value Engineering/Analysis)
(Winners and Losers)
(Work Study: Method Study and Work Measurement)
(Work Methods or Practices: Efficient)
(World Class Manufacturing)
(Writings of Shyam Bhatawdekar on Management)
(Written Communication)
(Zero Based Budgeting)

Counseling: General and Psychological
(Anger Management)
(Children’s Behavior Problems)
(Cholesterol Control)
(Counseling: Psychological)
(Counseling: Psychological)
(Cross Cultural Etiquette)
(Executive Etiquette and Manners)
(Family Counseling)
(Health: Homeopathy)
(LifeManagement: Competencies)
(Life Management: Effectiveness Management: HSoftware)
(Life management: I Am Liberated)
(Marriage Counseling)
(Ownership on Job)
(Parental Responsibilities)
(Qualities of Spouse)
(Quit Smoking)
(Self Development)
(Stress Management)
(Stress Management)
(Swine Flu and Its Prevention)
(Telephone Etiquette)
(Winners and Losers)

About All the Products
(Home Page for All Products)
(Greeting Cards)
(Mobile Phones)

Home Tips
(Home Page for All Home Tips)
(Entertainment: Movies)
(Oscar Award Movies)
(Entertainment: Recommended Hindi Movies)
(Entertainment- Hindi Movies of Your Choice)
(Plagiarized, Copied or Inspired Hindi Movies)
(Health: Homeopathy)
(Housekeeping at Home)
(How to Save Money) or
(Jewelry Design)
(Recipes: Easy to Cook)
(Recipes: Exotic)
(Stories for Children)
(Travel and Sightseeing- India)
(Travel and Sightseeing- World)
(World Heritage Sites)

General Knowledge and Out of Box Ideas
(General Knowledge- GK)
(General Knowledge- Top 5 of Everything)
(General Knowledge- Top 10 of Everything)
(Out of Box Ideas)
(Shyam Bhatawdekar’s Knols)
(Running Commentary on the Run)