Meaning of Sales Promotion. Sales Promotion is “An activity designed to boost the sales of a product or service. It may include an advertising campaign, increased PR activity, a free-sample campaign, offering free gifts or trading stamps, arranging demonstrations or exhibitions, setting up competitions with attractive prizes, temporary price reductions, door-to-door calling, telemarketing, personal letters on other methods”. Sales promotion – It is a Short-term incentives to encourage the purchase or sale of a product or service. It is about stimulating customers to buy a product. It is not designed to be informative – a role which advertising is much better suited to. Sales promotion consists of short-term incentives to encourage purchase or sales of a product or service., whereas advertising and personal selling offer reasons to buy a product or service, sales promotion offers reasons to buy now. Sales promotion activities may be used singly or in combination, both offensively and defensively, to achieve one goal or a set of goals. Sales-promotion tools vary in their specific objectives. A free sample stimulates consumer trial, whereas a free management-advisory service aims at cementing a long-term relationship with a retailer. Sellers use incentive-type promotions to attract new users, to reward loyal customers, and to increase the repurchase rates of occasional users. Sales promotions used in markets of high brand similarity produce a high sales response in the short run but little permanent gain in market share. In markets of high brand dissimilarity, sales promotions can alter market share permanently. Sales promotion is one of the four aspects of promotional mix. (The other three parts of the promotional mix are advertising, personal selling, and publicity/public relations.) Media and non-media marketing communication are employed for a predetermined, limited time to increase consumer demand, stimulate market demand or improve product availability. Sales promotions can be directed at either the customer, sales staff, or distribution channel members (such as retailers). Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions.
Objectives of Sales Promotion i. To introduce new products ii. To attract new customers and retain the existing ones iii. To maintain sales of seasonal products iv.To meet the challenge of competition (i) To introduce new products: Many companies distribute free samples while introducing new products. The consumers after using these free samples may develop a taste for it and buy the products later for consumption. (ii) To attract new customers and retain the existing ones: Sales promotion measures help to attract or create new customers for the products. While moving in the market, customers are generally attracted towards the product that offers discount, gift, prize, etc on buying. These are some of the tools used to encourage the customers to buy the goods. Thus, it helps to retain the existing customers, and at the same time it also attracts some new customers to buy the product. (iii) To maintain sales of seasonal products: There are some products like air conditioner, fan, refrigerator, cooler, winter clothes, room heater, sunscreen lotion, glycerin soap etc., which are used only in particular seasons. To maintain the sale of these types of products normally the manufactures and dealers give off-season discount. For example, you can buy air conditioner in winter at a reduced price. Similarly you may get discount on winter clothes during summer. (iv) To meet the challenge of competition: Today’s business faces competition all the time. New products frequently come to the market and at the same time improvement also takes place. So sales promotion measures have become essential to retain the market share of the seller or producer in the product-market.
Importance of Sales Promotion The business world today is a world of competition. A business cannot survive if its products do not sell in the market. Thus, all marketing activities are undertaken to increase sales. Producers may spend a lot on advertising
and personal selling. Still the product may not sell. So incentives need to be offered to attract customers to buy the product. Thus, sales promotion is important to increase the sale of any product. Let us discuss the importance of sales promotion from the point of view of manufacturers and consumers. From the point of view of manufacturers Sales promotion is important for manufacturers because i. it helps to increase sales in a competitive market and thus, increases profits; ii. it helps to introduce new products in the market by drawing the attention of potential customers; iii. when a new product is introduced or there is a change of fashion or taste of consumers, existing stocks can be quickly disposed off; iv. it stabilizes sales volume by keeping its customers with them. In the age of competition it is quite much possible that a customer may change his/her mind and try other brands. Various incentives under sales promotion schemes help to retain the customers. From the point of view of consumers. Sales promotion is important for consumers because i. the consumer gets the product at a cheaper rate; ii. it gives financial benefit to the customers by way of providing prizes and sending them to visit different places; iii. the consumer gets all information about the quality, features and uses of different products; iv. certain schemes like money back offer creates confidence in the mind of customers about the quality of goods; and v. it helps to raise the standard of living of people. By exchanging their old items they can use latest items available in the market. Use of such goods improves their image in society.
Consumer sales promotion techniques. • Price deal: A temporary reduction in the price, such as happy hour • Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage marked on the package. • Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example, 25 percent extra). • Coupons: coupons have become a standard mechanism for sales promotions. • Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for delivery. • On-shelf couponing: Coupons are present at the shelf where the product is available. • Checkout dispensers: On checkout the customer is given a coupon based on products purchased. • On-line couponing: Coupons are available on line. Consumers print them out and take them to the store. • Online interactive promotion game: Consumers play an interactive game associated with the promoted product. See an example of the Interactive Internet Ad for tomato ketchup. • Rebates: Consumers are offered money back if the receipt and barcode are mailed to the producer. • Contests/sweepstakes/games: The consumer is automatically entered into the event by purchasing the product. • Point-of-sale displays:o Dump bin: A bin full of products dumped inside. o Lipstick Board: A board on which messages are written in crayon. o Necker: A coupon placed on the 'neck' of a bottle.
Trade sales promotion techniques. • Trade allowances: short term incentive offered to induce a retailer to stock up on a product. • Dealer loader: An incentive given to induce a retailer to purchase and display a product. • Trade contest: A contest to reward retailers that sell the most product. • Point-of-purchase displays: Extra sales tools given to retailers to boost sales. • Training programs: dealer employees are trained in selling the product. • Push money: also known as "spiffs". An extra commission paid to retail employees to push products. • Trade discounts (also called functional discounts): These are payments to distribution channel members for performing some function.
Personal selling. Personal selling or salesmanship is an important method of selling. It is the process of assisting and persuading a prospective buyer to buy a product in a face-to-face situation. It involves direct and personal contact between the seller and his representative with the prospective buyer. It provides feedback and performs the complete job of selling. But it is more expensive and time-consuming. The purpose of personal selling is not to ensure the present sale alone, but winning a regular customer. The basic features of salesmanship are as follows: a. Salesmanship involves persuasion of customers: A salesman has the ability to convince the people to buy his product. b. Salesmanship involves winning buyer’s confidence: Modern salesmanship aims at educating the customer and providing a solution to his problems. This helps in winning his confidence. c. Salesmanship involves providing information: Salesmanship is an educative process. It tells customer the ways in which they can satisfy their needs. Salesman provides information about products available, their broad features and their uses and utility to the customers. d. Salesmanship aims at mutual benefit: Salesmanship is a two way process. It results in benefits not only to the sellers but also to the buyers. It helps in solving the problems of the buyers and satisfying their needs. Customer satisfaction leads to increase the profitable sales volume for the salesman Personal selling involves face-to-face contact with specific individuals, while advertising is directed towards a large number of potential customers. They also help in increasing sales of goods. Thus, advertising can be used as means of communication to inform potential customers about the incentives offered for sales promotion. Personal selling can as well include communication of the incentives to individual customers. But, sales promotion differs from advertising and personal selling in terms of its approach and technique. Sales promotion adopts short term, non-recurring methods to boost up sales in different ways. These offers are not available to the customers throughout the year. During festivals, end of the seasons, year ending and some other occasions these schemes are generally found in the market. Thus, sales promotion consists of all activities other than advertising and personal selling that help to increase sales of a particular commodity. Salesmanship is an indispensable technique of promotion. The importance of personal selling may be described under the following heads: 1. Benefits to consumers: A salesman acts as a friend and guide to consumers. He informs them of new products and new uses of existing products. He helps them in choosing products, which match their needs and incomes. A salesman guides the customers in buying products that will provide maximum satisfaction. 2. Benefits to businessman: They help in the creation of demand for new products and in the extension of markets for existing ones. Through personal selling, a businessman can not only inform customers of his products but can know their tastes, attitudes and behaviour. Such information is helpful in the design and development of products that match market demand. By creating large scale and regular demand, salesmanship makes planned and regular mass production possible. Salesmen help to build up a favourable corporate image necessary to secure repeat sales. 3. Benefits to society: Salesmanship helps to expand employment and income of a country through large and rapid sales turnover. Salesmen provide marketing information to producers so that consumers can get new and better products. Salesmen perform several non-selling tasks, e.g., after sale service, meeting complaints, conducting marketing research, providing credit information, delivering goods, collecting payments, etc. Salesmen help minimize price fluctuations and trade cycles by matching demand and supply.
ADVERTISEMENT AND PUBLICITY Advertisement is different from publicity with respect to the following points: 1. Advertisement is a paid form of communication. Its cost is borne by the advertiser. Publicity is any non-paid mention of an organization or its ideas or products in the news media. 2. Advertisement is issued by an identified sponsor. Publicity does not need an identified sponsor.
Ethics in Advertising. Though many benefits are achieved through advertisements, the ad message is becoming more and more exaggerated. To achieve competitive advantage, advertising magnifies unimportant differences, resorts to clever, tricky product promises, and claims more and more unbelievable benefits. The customer finds many advertisements as false, deceptive, or misleading. Consumers are uncertain regarding whether or not the performance of a product purchased will in fact meet their needs. If they find that the product lacks in quality, advantage, durability etc., as advertised they might not buy it again, and develop an aversion to every other product of that company. Unethical advertising Advertisement is considered unethical in the following situations; o When it has degraded or underestimated the substitute or rival's product. o When it gives false or misleading information on the value of the product. o When it fails to give useful information on the possible reaction or side effects of the product. And o When it is immoral.
Ways of misleading the consumers Many a time, traders entice the customers into their stores by advertising goods at a very low price, but they stock only a handful of such sale items in the store. When the advertised goods are sold out, consumers are steered towards the higher-priced stock or lower quality goods. Retailers must ensure that reasonable supply of products is available during the sales, and retailers should not purposely avoid it. Retailers should make it clear in the advertisement that how many items on sale are available or when the sale ends. o Sale offer should be for a limited period. Advertisement should declare that sale offer is for a limited time period. The period of the offer should be made clear in the advertisement only when the advertised goods are available for a limited period or stocks are limited.
o Traders often offer insignificant price reduction. To illustrate, a trader may advertise that the price of product is reduced to Rs.99.95, when the normal selling price is Rs.100.. The trader must include the normal selling price and discounted price in his offer .The trader sale offer is misleading if the trader claims the product is below cost , when the price is not below cost after discounts, rebates and other allowances it is misleading if the trader simply shows a fictitious higher price as normal selling price in the advertisement. o Advertisement must clearly indicate the total price of goods or services. All price comparison must be truthful and must not intentionally or unintentionally mislead the consumers. Under the Fair Trade Practices Act, retailers have an obligation to ensure that they do not mislead or make false representations to customers with respect to price of the goods. The consumers who shop around and compare the prices of various products are less likely to be deceived by misleading claims consumers should also be aware of what is a reasonable price of goods and not take any advertised discounts at face value. o While many sales are legitimate or genuine, the consumers should not get attracted to such sales offers i.e., "Hurry...very few days remain for sale''. The consumers should be aware of what to expect when retailers place items on sale and how to avoid being misled by discount advertisements. A marketer should take care to ensure that when goods or services are advertised to be available at a discount or as being on sale, it is a genuine discount or sale.
The role of research in advertising can be seen in various stages of advertising planning. First, what should be the objectives of advertising? Unless the objectives are clear, advertising cannot be useful. Research would enable the company to be clear in its objectives of advertising. Second, advertising research should be used for developing a strategy for marketing the product in question. Further, the selection of the target audience can be facilitated by advertising research. In this connection, mere demographic classification will not be adequate. It may be equally necessary to pay attention to product usage behaviour. Another aspect where research can be useful is the selection of message that an advertisement should carry and through what media it should be conveyed. This is a major area of advertising research. Finally, research has to concern itself with the evaluation of advertising in order to find out whether the expenditure on advertising has been justified or not. If not, the reasons should be ascertained so that in improvement in advertising can be made in the future. In short, research can be instrumental in increasing the efficiency of advertising as a result of which the pay-off from advertising expenditure will increase.
Media Research The main issues in media research are: (a) How to choose amongst media types – television, radio and newspapers? (b) How to decide on a specific insert within a particular type of media, say, television? In order to decide on these two issues, it is necessary to have some data. The Advertising Research Foundation (ARF) suggested the following type of data for this purpose: 1. Media vehicle distribution: the circulation number for a magazine or newspaper or the number of television or radio sets available to carry the advertising. 2. Media vehicle audience: the number of people exposed to the media vehicle. This would be larger than the number in (1) above as more than one person reads the same newspaper/ magazine or watches on the same television set. 3. Advertising exposure: the number of people exposed to a specific advertisement in the media vehicle. This number would be less than the number in (2) above as all those who are exposed to a newspaper/magazine may not notice a particular advertisement. 4. Advertising perception: the number of people who perceived the advertisement in question. This number would be less than that in (3) above. The people may perceive an advertisement because of several factors such as its large size, use of attractive colours or its positioning in the media vehicle or on account of the product involved.
5. Advertising communication: the number of people who comprehend specific things about the advertising. This number would obviously be less than the number of people who perceived. 6. Sales response: the number of people who buy the product in question as a result of advertising. This number would be far less than that in (5) above. It may be noted that of these six categories, there is an interaction of media and message in the last four categories. This makes it difficult to obtain the numbers for media alone in respect of these categories. Accordingly, media vehicle data are generally obtained for the first two categories, viz. media vehicle distribution and media vehicle audience. Media Audiences Media research comprises, inter alia, the measurement of the size and break-up of individual vehicle audience. We will discuss this under two heads – print media and radio and television. Print Media Prior to the reports of the Audit Bureau of Circulation (ABC), the measures regarding the individual vehicle audiences were those which the media themselves claimed. Such measures were rather inflated as any individual media vehicle would suggest that its circulation is far and wide. Since the ABC’s reports are now available, these inflated measures have ceased. The ABC compiles its report which gives the size of circulation of a newspaper/magazine on the basis of certified audits. This information while being useful, it’s not sufficient. It is difficult to estimate precisely the size of audience for a particular publication. The data collected by merely asking respondents as to whether they have looked at a particular copy would be unreliable. This is because some respondents may regard reading a particular magazine as a status symbol and hence they may report exaggerated readership. Likewise, reading of some magazines may be regarded as below one’s status and hence their readership may be reported to be much less than in reality. Another important aspect in determining the audience size for print media is the extent of duplication between magazines. This is because readership of three or more magazines among respondents is quite common. But the data on readership seldom give the extent of duplication. The problem is how to get the size of ‘unduplicated’ audience. A detailed study is determine the duplication among a large number of magazines would obviously be very expensive, not to mention the time it would involve.
Radio and Television There are four methods to measure the size of the audience for any radio and television programme. These methods are discussed briefly below. Coincidental Method First of all, a sample of households having a telephone is selected. This is followed by an inquiry on telephone as to whether a particular programme on radio is being listened or being watched on television. Other information such as the name of the sponsor and the product being advertised is also collected. The main advantages of this method are that it is quick and economical. It has some limitations though. First, the method has to be confined to only those households which own telephones. In a country like India, a large number of households do not have telephones and hence they have to be excluded. Second, since the enquiry has to be conducted while a particular programme is in progress only a limited number of households can be contacted in this short duration. Finally, it is extremely difficult to undertake an enquiry with respect to late night programmes. Roster Recall As the same names implies, a roster or list of programmes is used to facilitate respondents to recall what programmes were listened to or watched. Respondents are contacted personally by interviewers. This method has some major limitations. First, the responses are dependent upon memory. Second, depending on the status or popularity or otherwise of a particular programme, respondents may give their replies regardless of whether they have listened to a programme (or seen it). Third, the method is unable to provide information on a continuing basis. Finally, it is not possible to estimate duplication in the audience as respondents are approached for programmes within a short estimate duplication in the audience as respondents are approached for programme within a short time period. It is possible to estimate the number of persons who watch both programmes, falling within the same time span on which respondents are being contacted.
Diary Method As the name implies, this method uses a diary for estimating the number of persons listening to or watching different programmes. A diary, especially designed for this purpose, is issued to respondents who have agreed to furnish the desired information. Each respondent records his radio listening or television viewing, along with personal data such as age and sex in this diary. If respondents accurately record their radio listening or television viewing, this method would give accurate and complete information, eliminating the errors that may arise due to memory lapse and interviewer bias. Further, it is cheaper than other methods involving personal interviewing and recall. However, in practice, one may find that respondents are not so careful in listing the programmes listened to or viewed by them. Besides, there is a lack of continuity in the flow of information as the diary method is unable to provide the estimate of an audience, say, minute-by-minute. Apart from this, some respondents in the panel may stop giving the information sought or move to another address. In such a case, how far the panel will remain representative of the population is a moot question.
The Audimeter As Audimeter is an electronic machine attached to a television set. As soon as the television set is turned on, the machine records it on the tape. In advanced countries, this method is frequently used. The audimeter ensures a continuous flow of information which is not possible in any of the earlier methods. This is its main advantage. Another advantage of this method is that there is complete objectivity in the information thus collected. Moreover it is possible to have a cumulative estimate of the audience since the audimeter sample will be almost the same from month to month. The method suffers from some limitations as well. First, turning a set on does not necessarily mean that the programme in question is being watched. Second, the method cannot indicate as to who is watching a programme.
Copy Testing Another important area in advertising research is copy testing. The word ‘copy’ is used to denote an entire advertisement, including the message, pictures, colours, etc, regardless of the medium in which the advertisement has appeared. Methods of copy testing can be divided into two categories, viz. ‘before’ tests and ‘after’ tests. The former category includes all those tests that are used in ascertaining the suitability or otherwise of an advertisement before it is finally released. Their purpose is to effect improvements in the copy or advertisement. The latter category includes tests to measure the effectiveness of an dvertisement after it has been formally released. Despite this distinction, at times the difference between the two types of method gets blurred. This is because some ‘before’ methods require that an advertisement should be run one or two media.
‘Before’ Methods A number of pre-test methods are used for copy testing. In this section, we will discuss the following methods: (i) consumer jury, (ii) portfolio tests, (iii) rating scales, (iv) physiological methods, (v) dummy advertising vehicles, (vi) onthe- air tests, (vii) inquiries, and (viii) laboratory testing.
Consumer Jury In this method, a sizeable number of consumers from the target audience are shown a set of rough and unfinished advertisements. With respect to these advertisements, they are asked such questions as: Which copy would you prefer to read? Which one would induce you to buy the product? Which headline is the most interesting? Paired comparisons or ranking may be used by respondents. The assumption in this method is that at least one of the advertisements shown will be liked by them. Rating Scales This method involves the use of certain standards against which a copy is tested. They copy is rated on the basis of scale values. As a result, a numerical score is obtained. It may be added that weights may be assigned to different factors or items on the basis of which a copy is to be tested, depending on their relative importance or relevance. This method is generally used by professional advertising agencies which are able to ‘rate’ advertisements without any difficulty. This method has one major advantage as it provides a list of factors against which a copy is to be tested. However, there are certain limitations. First, the problem is how eights are
to be assigned to different items. Second, different respondents will rate the items differently. It is difficult to say who is right in his rating. Third, an overall high score of a copy does not necessarily mean a superior copy. This is because that copy might have scored high ratings with respect to several items and low ratings with respect to only a few items. It is these few items which may be extremely relevant in judging the copy.
Portfolio Tests According to this method, a number of alternative copies that are to be tested are placed in a portfolio. At times, the copies are placed in dummy copies of magazines or newspapers. Respondents are given the portfolio and asked to go through it. After they have done so they are asked to recall the copies from memory. Such a recall may be either unaided or aided. The interviewer may facilitate recall by asking about specific advertisements. The interviewer may further ask the respondent to recall the advertisement as much as possible. The extent of recall will indicate the strength of the copy. Psychological Tests This method uses a number of psychological techniques to find out the reactions of respondents to a given advertisement. Techniques such as word association, sentence completion, depth interviewing and story telling are used by trained psychological to find our what respondent see in a given advertisement and the influence it has on them. As it is extremely difficult to interpret the information obtained on the basis of psychological tests, only trained persons should be appointed to carry out this test. In view of this, only a small sample can be used for such tests. Laboratory Testing This method uses mechanical devices to measure the respondent’s psychological responses to a given advertisement. The commonly used tests are the galvanic skin response and the eye movement. As regards the former, a device is used to measure changes in the amount of perspiration in the hands. This may be taken as a measure of emotional change as a response to an advertisement. However, the test is unable to indicate whether such an emotional change is favourable or unfavourable to an advertisement. In the latter test an eye camera registers the continuous movement of the eye as it reads an advertisement. However, the results obtained from the an eye camera are difficult to interpret. For example, if the eye was fixed on a certain point could it be interpreted that the respondent was interested in the advertisement or that he was confused?
Inquiry Tests Some advertisements may invite several inquiries from the readers about a given product or service. However, it is questionable whether a large number of inquiries can be regarded as a good yardstick for a successful advertisement. Inquiry tests can take several forms. One way could be to place the same offer in different copies in different issues of the same magazine/newspaper. These offers are keyed to a specific advertising copy. If the number appeals more to readers. Another variant could be to give the same offer in different advertising copies that appear in different news papers or magazines. This assumes that there are only negligible differences among different media. However, this may not be the case. Sometimes, the same offer is made through two pieces of copy. One piece of copy is carried in half the copies of the newspaper or magazine and the second piece of copy is carried in the remaining half. Inquiries received are then linked to the two pieces of copy. Inquiry tests can be developed in the form of controlled experiments to ascertain the impact of an advertisement copy. However, one has to exercise great care in isolating the effect of other factors from that of advertising. Simulated Sales Tests These tests expose prospective consumers to different pieces of copy through point of purchase displays or direct mail. Thus, one may select two groups of similar stores where two alternative pieces of copy are displayed at the entrance or at some other place in the store. Sales of the product in question are measured both before and after the display of copy in the two groups of store. The copy in those stores which have registered a higher increase in the sale of the product over time is regarded as a better copy. Likewise, comparisons can be made between two pieces of copy using direct mail. While these tests are both more economical and simpler than actual sales tests, one major limitation is that there is no certainty that the advertisement when actually given will have the same result as at the time of the test.
Day-after Recall Tests These tests are generally undertaken for television commercials. The test involves an on air exposure of a commercial in a couple of cities. This is followed by a telephonic enquiry of the respondents to find out if they can recall the message. The aggregate recall score that is arrived at is compared with a standard score based on similar studies. If the score given by the commercial is higher than the standard score, it is inferred that the advertisement is useful and should be telecast on a larger television network. The main advantage of this test is that it is performed in a natural setting. Moreover, a proper sample design can be used in this method. In contrast, the major limitation is that it turns out to be a test of the respondent’s ability to remember. This does not necessarily establish that the respondent will behave in a different way as a result of watching the commercial on television. How far can be recall be related to a change in the respondent’s attitude and behaviour? This is a pertinent question which is difficult to answer in the context of day-after recall tests.
‘After’ Tests There are three methods that are frequently used to test an advertisement after its formal release. These are recognition test, recall test and sales test. They are described below. Recognition Tests These tests are carried out with respect to a printed advertisement and commonly referred to as a readership study. Here, the respondents are asked if they have read a particular issue of a magazine. They are further asked as to what they saw and read. Generally, the respondent is shown a particular page of the magazine and then the following measures of recognition are taken 1. Noted - the percentage of readers who have seen the advertisement earlier. 2. Seen-Associated – the percentage or readers who read a part of the advertisement which indicates the brand or advertiser. 3. Read Most – the percentage of readers who read a major part of the advertisement. Scores are assigned to these three measures and overall scores are determined for all the advertisements contained in a particular issue of the magazine. These scores are then related to the expenditure incurred on the advertisement. In this way, cost ratios can be determined. The recognition method has certain limitations. Some respondents may confuse specific advertisements with similar or identical advertisements seen elsewhere. Respondents may forget having seen an advertisement earlier or falsely claim that they have seen it.
Recall Tests In this method respondents are asked to recall specifics of the advertisement. In the foreign countries, there are some advertising agencies that offers a post-testing readership service. To begin with, copies of test magazines are sent to a sample of respondents who are asked to read them in a normal manner. Telephone interviews are held on the following day. Respondents are read out a list of advertisements and asked to identify those they remember and the extent to which they are able to recall. Thus, scores are assigned to the ability of the respondent to remember the name of the product, the underlying message contained in the advertisement and their favourable attitude regarding the advertisement. Recall tests, no doubt, go beyond recognition tests but it is difficult to say that recall scores indicate the desired consumer behaviour. Recall scores may be high and yet there may not be any perceptible change in the consumer behaviour with respect to the product in question.
Sales Tests This method measures the effect of an advertisement on the sale of the product. The assumption is that changes in sales are as a result of the advertisement. However, as there are several factors influencing sales, one has to be extremely careful in establishing a relationship between advertising and sales. It is desirable to isolate the influence of other factors while determining the impact of an advertisement on the sale of the product.
PACKAGING Most physical products have to be packaged. One package, such as coke bottle is world famous. Many marketers have called packaging a fifth “P” along with product, price place and promotion. Packaging is defined as all the activities of designing and producing the container for a product.
Functions of packaging Historically, packaging was intended primarily to provide protection. Today packaging is a major factor in gaining distribution and promotion. And packaging may become a product’s differential advantage, or at least a significant part of it. That was certainly true with coca-cola and its distinctive contour glass bottle. 1. Protection: Protection from damage, contamination, physical effects and environmental conditions. Packaging design and material utilized is a balancing of economic consideration and adequate protection. The higher the value of product the more protection it deserves and more expensive the packaging. Packaged product can be damaged during transportation, handling and storage due to vibration, piercing, crushing, temperature, humidity etc. packaging provides a protection against all this adds and makes the product available to the consumer in the right condition. 2. Utility: packaging the product in the form of master cartons, unit loads and containers promotes handling, transportation and storage efficiencies by speeding up handling higher quantities to be transported, more quantity storage in the same space and faster retrieval from storage. Packaging facilitates securing and stacking during transportation, storage and handling 3. Facilitating handling & using: fruit juices in tetra packs, handling and consumption by users 4. Facilitating storage & reuse: ink cartridges for printers, floppies, CDs, reusable corrugated boxes, bottles and refill packs 5. Grouping goods into convenient unit for distribution: mangos in boxes, milk bags in crates, cola bottles in crates. 6. Communication: a] Content identification - what does this contain? Product, manufacturer, universal code etc. with high visibility b] Tracking: bar codes and scanners c] Handling instructions: fragile, which side up? Temperature restrictions, environment concerns, potential dangers etc Packaging Strategies: - In managing the packaging of a product, executive must make the following strategic decisions. 1). Packaging the product line: A company must decide whether to develop a family resemblance when packaging related products. Family packaging uses either higher similar package for all products with a common and clearly noticeable feature. Family packages makes since when products are of similar quality and have a similar use.
2). Multi packaging: For many years, there has been a trend toward multiple-packaging, the practice of placing several units of same product in one container. For example, dehydrated soups, motor oil, beer, candy bars and count less other products are packaged in multiple units. 3). changing the package: When something is detected in package then company must change a poor feature in an existing package. For this firm’s need to consider continuing developments such as new packaging materials, uncommon shapes, innovative closures, all these are intended to provide a benefit to middlemen and to consumer and as a result are selling points for markers.
Survey Today the word “survey” is used most often to describe a method of gathering information from a sample of individuals. This “sample” is usually just a fraction of the population being studied. Not only do surveys have a wide variety of purposes, they also can be conducted in many ways — including over the telephone, by mail, or in person. Common Survey Methods. Surveys can be classified by their method of data collection. Mail, telephone interview, and in-person interview surveys are the most common. In newer methods of data collection, information is entered directly into computers either by a trained interviewer or, increasingly, by the respondent. One well-known example is the measurement of TV audiences carried out by devices attached to a sample of TV sets that automatically record the channels being watched. 1) Mail surveys can be relatively low in cost. As with any other survey, problems exist in their use when insufficient attention is given to getting high levels of cooperation. Mail surveys can be most effective when directed at particular groups, such as subscribers to a specialized magazine or members of a professional association. 2) Telephone interviews are an efficient method of collecting some types of data and are being increasingly used. They lend themselves particularly well to situations where timeliness is a factor and the length of the survey is limited. In-person interviews in a respondent’s home or office are much more expensive than mail or telephone surveys. They may be necessary, however, especially when complex information is to be collected. a) Questionnaire survey: This method of data collection is quite popular, particularly in case of big enquiries. It is being adopted by private individuals, research workers, private and public organizations and even by governments. In this method a questionnaire is sent to the persons concerned with a request to answer the questions and return the questionnaire. A questionnaire consist of number of questions printed or typed in a definite order on a form or set of forms. The respondents have to answer the questions on their own Advantages of questionnaire survey method: There is Low cost. It is free from the bias of the interviewer. Respondents have adequate time to give well through own answers. Large sample can be made use of and the can be made more dependable and reliable. Demerits of questionnaire survey method: Low rate of return of the duly filled in questionnaires. It can be used only when respondents are educated and cooperating. The control over questionnaire may be lost once it is sent. It is difficult to know whether willing respondents are truly representative. This method is likely to be slowest of all.
By post we will not get 100% feedback. This is a difficult process, when data collector is not honest and information is collected from illiterate person.
b) Online surveys • • • • • • • • • • • • •
can use web or e-mail. Web is preferred over e-mail because interactive HTML forms can be used often inexpensive to administer very fast results easy to modify response rates can be improved by using Online panels - members of the panel have agreed to participate honesty of responses can be an issue if not password-protected, easy to manipulate by completing multiple times to skew results data creation, manipulation and reporting can be automated and/or easily exported into a format that can be read by PSPP, DAP or other statistical analysis software data sets created in real time some are incentive based (such as Survey Vault or YouGov) may skew sample towards a younger demographic compared with CATI often difficult to determine/control selection probabilities, hindering quantitative analysis of data used in large scale industries.
STEPS IN EFFECTIVE SELLING Most selling program view the selling process as consists of several steps that the sales person must master. These steps focus on the goals of getting the new customers and obtain orders from them. The process of personal selling consists of the following steps
1. Pre-Sale Preparation: The first step is the selection, training, and motivation of sales persons. The sales persons must be fully familiar with the product, the firm, the market and the selling techniques. They should be well informed about the competitor’s products and the degree of competition. They should also be acquainted with the techniques of effective selling and the policies of the firm. 2. Prospecting: It refers to searching out prospective buyers who have the need for the product and the ability to buy it. Social contacts, business associations and dealers can be helpful in the identification of potential buyers. 3. Approaching: Before calling on the prospects, the sales person should know their number, needs, habits, spending capacity, motives, etc. After this, the salesperson should approach the customer in a polite and dignified way. He should make the customer feel that he is getting proper attention of the salesperson. The salesperson should be very careful in his approach as the first impression lasts for long. 4. Presentation: The next step is to gain customer’s attention. For this purpose, the salesperson has to present the product and describe its features in brief. 5. Demonstration: In order to maintain customer’s interest and to arouse his desire, the salesperson must display and demonstrate the product. He has to explain the distinctive qualities of the product so that the prospect realizes the need for the product to satisfy his wants. 6. Handling objections: The salesperson should clear all doubts and objections without entering into controversy and without losing his temper. The salesperson should convince the customer that he is making the best use of his money by purchasing the product. For this purpose, the salesman should prove the superiority of his product over the competitor’s products. He should not lose patience if the prospect puts too many queries and takes time in arriving at any decision.
7. Closing the sale: The salesman should not force the customer but let him feel that he has made the final decision. He should guide the customer in making the choice without imposing his own view. He should assure the customer that he has made the right choice. Sales should be closed in a cordial manner so that the customer feels inclined to visit the shop again. In closing the sale, the article should be packed properly and handed over to the customer with speed and accuracy. 8. Post-sale follow-up: It refers to the activities undertaken to ensure that the customer is satisfied with the article and the firm. It helps to secure repeat sales, to identify additional prospects and to evaluate salesman’s effectiveness.
REQUISITES OF EFFECTIVE SALESMANSHIP
Success in personal selling depends u [pm the salesman and the framework in which he works. In order to practice effectively the highly skilled profession of salesmanship, wide knowledge and experience is necessary. To be effective, a salesman should have knowledge of the following types. 1. Knowledge of Self: The overall personality of the salesman is very important. To make the best use of his personality, a salesman must continuously assess himself and analyse his qualities in the light of the requirements of his job. Such assessment will make him fully aware of his strength and weaknesses. He should constantly try to overcome his weak points through training and experience. 2. Knowledge of firm: Salesman should be fully conversant with the history of the firm. He should have a thorough knowledge of the objectives, policies, standing and organizational structure of his firm. Such knowledge will help him to utilize the strong points of the firm in personal selling. 3. Knowledge of product: A salesman has also to convince customers about the features and utility of the product by removing their doubts and objections. Therefore, the salesman should have full knowledge about the nature of the product, manufacturing details, terms and conditions of sale, distribution channels used and promotional activities. 4. Knowledge of competitors: In order to prove the superiority of his product, a salesman must have full knowledge about the competitive products, their positive and negative features. Knowledge of competitors’ sales policies, their brands and prices, etc, is also helpful. 5. Knowledge of customers: In order to be successful, the salesman must use the right appeal and approach. He should be able to understand the prospects correctly and quickly and to motivate and win them permanently. He should, therefore, have complete knowledge of the nature and type of customers (their age, location, sex, income, education, etc.) and their buying motives (low price, convenience, prestige, fashion, etc). 6. Knowledge of selling techniques: Above all, a salesman should be well-versed in the principles and techniques of salesmanship. He should pay undivided attention to the customer, be courteous and sympathetic towards customers, never loose patience, consider customer as the king, serve the customer in the best possible manner, etc. Training of Salesmen The purpose of sales training is to achieve improved job performance. In the absence of training, job performance improves with experience. Training substitutes for, or supplements experience, so sales personnel given training reach high job performance levels earlier. In most, companies, the rate of sales personnel turnover is higher for new personnel than for experienced people- often new sales personnel find themselves unprepared to perform their jobs satisfactorily, become discouraged, and leave the company. Content of training programme varies from company to company, because of differences in products, markets, company policies, trainees' ability and experience, organizational size, and training philosophies.
1. Product Data Some product training is basic to any initial sales training program. Companies with technical products devote more than half their programs to product training. But in many situations, especially with standardized products sold routinely, new sales personnel require only minimal product training. In all cases, new salespeople must know enough about the products, their uses, and applications to serve customers' information needs. Product knowledge is basic to a salesperson’s self-confidence and enthusiastic job performance. Some training on competitors' products is desirable. Salespeople should know the important characteristics of competitors' products and their uses and applications. They should know the strengths and weaknesses of competitive products. Thus informed, salespersons gain a decided advantage. 2. Sales Technique. Most new sales personnel need instruction in sales techniques. Some sales managers believe, however, that careful selection of sales personnel and product training are sufficient to ensure effective selling. They believe, in other words, that if an individual has an attractive personality, good appearance and voice, and reasonable intelligence and knows the product, he or she will sell it easily. But the predominant view is that new sales personnel need basic instruction in how to sell. 3. Markets. The new salesperson must know who the customers are, their locations, the particular products in which they are interested, their buying habits and motives, and their financial condition. In other words, the salesperson needs to know not only who buys what but, more important, why and how they buy. Markets are always changing, so training in this area should be continuous, the content changing with market changes. 4. Company Information Certain items of company information are essential to the salesperson on the job; others, not absolutely essential, contribute to overall effectiveness. The training program should include coverage of all sales-related marketing policies and the reasoning behind them. The sales person must know company pricing policy, for instance, to answer customers' questions. The salesperson needs to be fully informed on other policies, such as those relating to product services, spare parts and repairs, credit extension, and customer relations. Training Methods 1. The Lecture This ancient instructional method, in use before the invention of printing, is used extensively in sales training. Trainees mainly watch and listen, although some versions of lecturing permit questions. The lecture features passive, rather than active, trainee participation. Its main weakness is that teaching is emphasized more than learning. But a lecture can be effective, provided that the lecturer is able and enthusiastic and uses examples, demonstrations, and visual aids. Compared with other training methods, the lecture is economical in terms of time required to cover a given topic.
2. Demonstrations The demonstration is appropriate for conveying information on such topics as new products and selling techniques. Demonstrating how a new product works and its uses is effective, much more so than lecturing on the same material. In initial sales training, demonstrating techniques to use in "closing sales" is more effective than is lecturing. Effective sales trainers use demonstrations to the maximum extent-since the beginning of time, showing has been more effective than telling!
3. Role Playing This method has trainees acting out parts in contrived problem situations. The role-playing session begins with the trainer describing the situation and the different personalities involved. The trainer provides needed props, then designates trainees to play the salesperson, prospect, and other characters. Each plays his or her assigned role, and afterward, they, together with other group members and the trainer, appraise each player's effectiveness and suggest how the performance of each might have been improved. 4. Case Discussion This method, originated by business educators as a partial substitute for learning by experience, is widely used in sales training. Write-ups of selling and other problems encountered on the job provide the bases for group discussion. Trainees discussing a case should identify the issue(s), collect the relevant facts, devise specific alternatives, and choose the one most appropriate. Most trainers believe that securing a thorough grasp of the problem situation is more essential to learning than the rapid production of solutions. 5. On-the-Job Training This method, combines telling, showing, practicing, and evaluating. The trainer, sometimes a professional sales trainer but more often a seasoned salesperson, begins by describing particular selling situations, explaining various techniques and approaches that might be used effectively. Next, accompanied by the pupil, the trainer makes actual sales calls, discussing each with the trainee afterward. Then, under the coach's supervision, the trainee makes sales calls, each one being followed by discussion and appraisal. Gradually, the trainee works more and more on his or her own, but with continuing, although less frequent, coaching. 6. Correspondence Courses This method is used in both initial and continuing sales training. In the insurance field it is used to acquaint new salespeople with industry fundamentals and to instruct in basic sales techniques. Companies with highly technical products and small but widely deployed sales forces use correspondence courses to acquaint experienced salespeople with new product developments and applications. This method is used also to train non company sales personnel, such as distributors' salespersons, to improve their knowledge of the manufacturer's product line and selling techniques. Few companies use this training method exclusively. AIDAS Theory of Selling. This theory—popularly known as the AIDAS theory, after the initials of the five words used to express it (attention, interest, desire, action, and satisfaction)—is the basis for many sales and advertising texts and is the skeleton around which many sales training programs are organized. During the successful selling interview, according to this theory, the prospect's mind passes through five successive mental states: attention, interest, desire, action, and satisfaction.
1. Securing attention. The goal is to put the prospect into a receptive state of mind. The first few minutes of the interview are crucial. The salesperson must establish good rapport at once. Favorable first impressions are assured by, among other things, proper attire, neatness, friendliness, and a genuine smile. 2. Gaining interest. The second goal is to intensify the prospect's attention so that it evolves into strong interest. Many techniques are used to gain interest. Some salespeople develop a contagious enthusiasm for the product or a sample. When the product is bulky or technical, sales portfolios, flipcharts, or other visual aids serve the same purpose. 3. Generating desire. The third goal is to kindle the prospect's desire to the ready-to-buy point. The salesperson must keep the conversation running along the main line toward the sale. The development of sales obstacles, the prospect's objections, external interruptions, and digressive remarks can sidetrack the presentation during this phase. Obstacles must be faced and ways found to get around them. Objections need answering to the prospect's satisfaction.
4. Inducing actions. If the presentation has been perfect, the prospect is ready to act—that is, to buy. However, buying is not automatic and, as a rule, must be induced. Experienced sales personnel rarely try for a close until they are positive that the prospect is fully convinced of the merits of the proposition. Thus, it is up to the salesperson to sense when the time is right. 5. Building satisfaction. After the customer has given the order, the salesperson should reassure the customer that the decision was correct. The customer should be left with the impression that the salesperson merely helped in deciding. Building satisfaction means thanking the customer for the order, and attending to such matters as making certain that the order is filled as written, and following up on promises made.
Advertising Medias. Flyer A flyer is a single page leaflet advertising an, event, service, or other activity. Flyers are typically used by individuals or businesses to promote their products or services. They are a form of mass marketing or small scale, community communication. The verb "flyering" or "fliering" has evolved as a colloquial expression meaning "to put up flyers". As marketing became more direct in the late 1980s and 1990s, flyers evolved and currently there are many formats to be found. Some examples are: A4 (roughly letterhead size), DL (compslip size) A6 (postcard size)CC (credit card size)etc. Flyers are inexpensive to produce and are regarded as a very effective form of direct marketing by media experts. Their widespread use intensified with the spread of desktop publishing systems. A poster is any piece of printed paper designed to be attached to a wall or vertical surface. Typically posters include both textual and graphic elements, although a poster may be either wholly graphical or wholly text. Posters are designed to be both eye-catching and convey information. Posters may be used for many purposes.
A trade magazine, also called a professional magazine, is a magazine published with the intention of target marketing to a specific industry or type of trade. The collective term for this area of publishing is the trade press. Trade magazines typically contain advertising content focused on the industry in question with little if any general-audience advertising. They also generally contain industry-specific job notices, a highly pertinent aspect to many readers. Some trade magazines operate under controlled circulation, meaning the publisher decides who may receive free subscriptions based on each individual's qualification as a member of the trade. This allows a high level of certainty that advertisements will be received by the advertiser's target audience.
Outdoor advertising Outdoor advertising is an affordable way to gain high-frequency visibility to your target viewers. Skywriting Skywriting is the process of using a small aircraft, able to expel special smoke during flight, to fly in certain patterns to create writing readable by someone on the ground. The message can either be an advertisement aimed at everyone in the vicinity, a general public display of celebration or goodwill, or a personal message. Billboards Billboard is a large outdoor advertising structure (a billing board), typically found in high traffic areas such as alongside busy roads. Billboards present large advertisements to passing pedestrians and drivers. Typically showing large, ostensibly witty slogans and distinctive visuals, billboards are highly visible in the top designated market areas
A point-of-sale display (POS ) A point-of-sale display (POS) is a specialized form of sales promotion that is found near, on, or next to a checkout counter (the "point of sale"). They are intended to draw the customers' attention to products, which may be new products, or on special offer, and are also used to promote special events, e.g. seasonal or holidaytime sales. POS displays can include shelf edging, dummy packs, display packs, display stands, mobiles, posters, and banners. Neon signs Neon signs are luminous-tube signs that contain neon or other inert gases at a low pressure. Applying a high voltage (usually a few thousand volts) makes the gas glow brightly. They are produced by the craft of bending glass tubing into shapes. Street furniture Street furniture is made up of formats such as bus shelters, newsracks, mall kiosks, and telephone booth advertising. This form of outdoor advertising is mainly seen in urban centers. Additionally, this form of advertising provides benefits to communities, as street furniture companies are often responsible for building and maintaining the shelters people use while waiting for the bus. Transit advertising Transit advertising is typically advertising placed on anything which moves, such as buses, subway advertising, truckside, and taxis, but also includes fixed static and electronic advertising at train and bus stations and platforms. Airport advertising, which helps businesses address an audience while traveling, is also included in this category. Municipalities often accept this form of advertising, as it provides revenue to city and port authorities.
is the art and technique of arranging type, type design, and modifying type.Type glyphs
are created and modified using a variety of illustration techniques. The arrangement of type involves the selection of typefaces, point size, line length, leading (line spacing), adjusting the spaces between groups of letters (tracking) and adjusting the space between pairs of letters (kerning). Typography is performed by typesetters, compositors, typographers, graphic designers, art directors, comic book artists, graffiti artists, and clerical workers. Until the Digital Age, typography was a specialized occupation. Advertising Strategy An advertising strategy is a campaign developed to communicate ideas about products and services to potential consumers in the hopes of convincing them to buy those products and services. This strategy, when built in a rational and intelligent manner, will reflect other business considerations (overall budget, brand recognition efforts) and objectives (public image enhancement, market share growth) as well. Today, most advertising strategies focus on achieving three general goals, as the Small Business Administration indicated in Advertising Your Business: 1) promote awareness of a business and its product or services; 2) stimulate sales directly and "attract competitors' customers"; and 3) establish or modify a business' image. In other words, advertising seeks to inform, persuade, and remind the consumer.
METHODS OF ADVERTISING Small business owners can choose from two opposite philosophies when preparing their advertising strategy. The first of these, sometimes called the push method, is a stance wherein an advertiser targets retail establishments in order to establish or broaden a market presence. The second option, sometimes called the pull method, targets end-users (consumers), who are expected to ask retailers for the product and thus help "pull" it through the channel of distribution. Of course, many businesses employ some hybrid of the two when putting together their advertising strategy. PUSH METHOD The aim of the push method is to convince retailers, salespersons, or dealers to carry and promote the advertiser's product. This relationship is achieved by offering inducements, such as providing advertising kits to help the retailer sell the product, offering incentives to carry stock, and developing trade promotions. PULL METHOD The aim of the pull method is to convince the target consumer to try, purchase, and ultimately repurchase the product. This process is achieved by directly appealing to the target consumer with coupons, instore displays, and sweepstakes. Advertising slogans Advertising slogans are short, often memorable phrases used in advertising campaigns. They are claimed to be the most effective means of drawing attention to one or more aspects of a product. A strapline is a British term used as a secondary sentence attached to a brand name. Its purpose is to emphasize a phrase that the company wishes to be remembered by, particularly for marketing a specific corporate image or connection to a product or consumer base. Some slogans are created just for specific campaigns for a limited time; some are intended as corporate slogans, to be used for an extended period; some slogans start out as the former, and find themselves converted to the latter because they take hold with the public, and some are memorable many years after their use is discontinued.
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gives a credible impression of a brand or product makes the consumer feel "hot" or... makes the consumer feel a desire or need is hard to forget - it adheres to one's memory (whether one likes it or not), especially if it is accompanied by mnemonic devices, such as jingles, ditties, pictures or film
After Sales Service Periodic or as required maintenance or repair of equipment by its manufacturer or supplier, during and after a warranty period. After Sales Service is the customer support following the purchase of a product or service. In some cases after-sales service can be almost as important as the initial purchase. After Sales Service Can be a major source of revenue, although it often receives too little management attention. Is essential for achieving customer satisfaction and good long term relationship. The manufacturer, retailer, or service provider determines what is included in any warranty (or guarantee) package. After Sales Service Contract will include the duration of the warranty - traditionally one year from the date of purchase, but increasingly two or more years maintenance and/or replacement policy, items included/excluded, labor costs, and speed of response.